Local interest in esports is growing, with the setting-up of an esports federation, casino companies hosting esports events, and now there’s a team representing Macau on the international esports stage.
It might be hard to believe but video gaming is a big thing and the esports industry is becoming a billion-dollar business.
Newzoo, which provides market intelligence on global games, esports and mobile markets, estimates that global revenues for the esports industry will hit US$1.1 billion next year, with sponsorships and advertising as the main revenue drivers in the industry.
According to Newzoo’s annual report in February, sponsorships are forecast to account for 40 percent of the world’s estimated US$905 million revenue this year.
A Forbes Magazine report in February noted that the Asia-Pacific will make up over half of the 165 million estimated esports enthusiasts this year, and China alone should drive 18 percent of this year’s revenue, or about US$164 million.
According to the Forbes report, “Riot Games”, which held its World Championships in China last year, was the most watched esports event last year, totalling 49.5 million hours.
Esports explained
In short, esports is a form of video game competition played at a professional level watched by thousands of fans.
Before the internet was easily accessible, people went to arcades to play games. They either played against the computer or against another player in the arcade, and well-played matches usually drew crowds.
“What really triggered it [to become esports] was the online explosion, the internet. So, if you stream your game online, anybody in the world can watch it,” Charles Fauchet, managing director of local Fore Vic eSports League (Macau) Limited (FVESL), told MPD Weekender in a recent interview.
“There is an audience who wants to watch these matches,” Fauchet said, adding that with the internet, gamers can play not just against the computer or friends in the same place, but against other players from around the world who just need to be connected to the game’s server.
Similarly, as in the arcade environment or any sports event, the matches played by the best players do attract an audience, and as in traditional sports, the professional players get a salary in esports too, and there are massive pool prizes to be won.
Although video games still have the stigma that they’re addictive and “a waste of time”, Fauchet said that proper esports games do require a skill, which is why there are professional players involved, and among the players in his esports team are smart people such as postgraduates and a PhD student.
“Not all computer games can be esports, there are less than 10 esports titles and they require skills such as good reflexes and quick analytical thinking and decision-making,” Fauchet said, adding, “So to be a professional player [especially to play at tournaments], you need those skills, and not everybody can make it.”
As it is a spectator sport, it’s a major marketing opportunity so sponsorships and advertising come in, from tech giants such as Intel and Google to global consumer brands like Coca Cola, and companies can cash in on ticket sales, merchandising, getting millions of views for online tournaments via streaming sites such as Twitch and YouTube, broadcasting rights, and so on.
“Esports is working like a traditional sport”, Fauchet said, although he was quick to add that the one main difference is that while no one, for example, owns football per se, the esports games are commercial products.
“What we see now is that game developers are organising the tournaments themselves to promote their games,” Fauchet said, adding that while this might mean shutting doors to companies that organise esports events it could open up partnership opportunities when hosting regional matches.
KIX
Fauchet’s FVESL was set up in 2016 and held its first esports event on the University of Macau (UM) campus last year that attracted about 300 spectators.
Since then, it has organised several online tournaments for mobile game Clash Royale and PC game Overwatch and through them the company has now garnered about 1,500 members, with 60 percent from Taiwan, up to 25 percent from Malaysia and the rest from Hong Kong and Macau.
Fauchet said that as the company is still in its early stages, it would initially be putting its focus on online tournaments, as opposed to hosting physical events, to reach out to more people and also as a way to meet the best players.
To gain more exposure in the world of esports, the company has also formed its own team KIX to compete in Clash Royale League (CRL) organised by the game developer itself, which features US$1 million in prizes for gamers around the world.
KIX stands for “kicks” and means to kick-start a career or project. “In our case, it’s to kick-start an esports career,” Fauchet said, adding that KIX is simple and easy to pronounce when the team goes out to battle on the international stage.
Clash Royale is a free mobile game with in-app purchases developed by Helsinki-based Supercell, which is now owned by Shenzhen-based social networking giant Tencent through an acquisition in 2016.
The KIX team is made up of two Singaporeans, two Malaysians, a Hongkonger and a Taiwanese. They will be playing against the best gamers around the world in a CRL match today and tomorrow in South Korea.
While KIX will compete in CRL, there’s a Macau team with local players that will compete in the Clash Royale Nations Cup, where teams represent their countries or regions, and players in the team must be of that country or region.
The Macau team will be up against Australia in the Nations Cup tournament on Monday, and then in Hong Kong on June 5.
“We have our chance against Australia but Hong Kong is a very tough opponent,” Fauchet said, adding that the KIX team will help train the Macau team for the upcoming matches.
This photo taken last month shows a celebrity match between Mario Ho Yau Kwan (left) and Carlos Ling (Executive Vice President of Macau E-Sports Federation) prior to the Grand Lisboa Hotel CESG & KOM Macau Esports Tournament held at the Macau Convention Centre. The event was title-sponsored by Grand Lisboa Hotel and jointly organised by Macau E-Sports Federation, Mario E-sport Limited, KOM Macau and A&J events planning company. Photo: SJM
Fore Vic eSports League (Macau) Limited Managing Director Charles Fauchet poses for a photo for a recent interview with MPD Weekender. Photo: Monica Leong
This photo provided by Fore Vic eSports League (Macau) Limited shows the company’s team KIX taking part in an esports match last Sunday.
