Competitive gaming has taken off in the last years. Publishers like Riot Games with League of Legends or Wargaming with World of Tanks have built their business around the idea that these games are indeed a sport. League of Legends now attracts millions of viewers in live streams, and its championship events fill stadiums like LA's Staples Center. It seemingly happened overnight, but it did not. As any sport, electronic sports have evolved into their own complex eco system, with a myriad of business opportunities for multiplayer game developers. This lecture shows how it works, who the significant actors in this burgeoning industry are, how big it has become and sheds light on deal and investment sizes. Slides from my talk at Respawn Gathering conferencee, August 20th 2013.

1. SCREAMING FANS & PACKED STADIUMS
How games are turned into a global sport

2. ESL ARENA
PLAYER VS PLAYER
TEAM VS TEAM

3. CHAMPIONS

4. FAN CULTURE

5. WHAT THE EXPERTS ARE SAYING
“ I feel like eSports is happening with or
without us. Games have become the biggest
unofficial sports league in the world right
now. There’s a massive (…) ecosystem of
content. ”
Eric Hirshberg, CEO Activision
“ There are fundamental advantages that e-
sports will have over traditional sports. ”
Gabe Newell, Founder & CEO Valve
“ eSports is growing out of control. It’s alive
and breathing and flying away. I have no idea
when it’s going to stop. ”
Dustin Browder, Lead Designer StarCraft II Blizzard

6. 32m+ MAU
Multiplayer Online Battle Arena (MOBA)
50m registered players globally
First Person Tank Simulation
10m+ copies sold
Real Time Strategy (RTS)
5m+ MAU
MOBA
30m+ copies sold of all CS Versions
First Person Shooter (FPS)
100m players across franchise
First Person Shooter (FPS)
THE GAMES

7. Icefrog
Dota 2
Gabe Newell
Counter-Strike
Mike Morhaime
StarCraft II
Victor Kislyi
World of Tanks
Brandon Beck, Marc Merill
League of Legends
Bobby Kotick
Call of Duty
?
THE ECCLESTONES

8. WCS 2012 EU FINALS

9. LOL S2 WORLD
CHAMPIONSHIP

10. IEM KATOWICE

11. THE INTERNATIONAL 3

12. How games are turned into sport

13. KEY LEARNINGS
»One-off events don‘t work
»Running leagues is hard
»eSports is not an acquisition channel
»Not every game is a winner
»Always be balancing

14. BEST PRACTICES
»Be smart about your investments
»Evolve eSports features slowly, steadily
»Close collaboration with leagues
»Leagues create sustainable eco systems

15. COMMITMENT
»Free-to-play
»Matchmaking
»Custom Matches
»Anti-Cheat
THE GAME
LEAGUES
»Consulting
»Matchmaking aaS
»Anti-Cheat aaS
RESULT
»A potential sport

16. CREATION GRASSROOTS FORMATION OWNERSHIP

18. TOURNAMENTS
»Anorganic (40k$ annually / region)
»Weekly cups with monthly final
»Key questions: game mode, maps and team size
»Ongoing competition creates stories

19. RULES &
REFEREES

20. RULES & REFEREES
»Leagues are methodic about rule setting
»League rule sets designed to form clans out of parties / loose teams
»If rules have to work around your balancing, you‘re doing it wrong

21. CLANS

22. CLANS
»Financial self interest
»Support many games, good as testimonials and consultants early on
»Various, large communication channels
»They want exposure and prize money

23. Measure of success
LIVESTREAMING

24. COMMENTATORS

25. COMMENTATORS
»Leagues have commentator stables
»Pro players, former pros, personalities, full time commentators, hosts
»Build up fresh faces
»In-house streamers
»Faces of your brand
»Hire known commentators for industry events (500$+ daily)

26. BUILDING THE GRASSROOTS
LEAGUES
»Making players ambitious
»Tournaments
»Rulebooks
»Clans
»Commentators
»Streaming networks

27. COMMITMENT
»eSports coordinator
»Balancing
»Streaming-Friendly
»Spectator mode
»Map editor
BUILDING THE GRASSROOTS

28. BUILDING THE GRASSROOTS
RESULT
»Ongoing league content
»Your first audience
»Good commentators
»Known players & teams
»Balanced game

29. SANCTIONED LEAGUES

30. »Different models: Hands-off, Co-branded, Co-Owned, Secretly funded
»3rd party sponsorships
»Existing infrastructure
»Leagues operate globally, useful for entering new markets
»No ownership of league, still an investment
»50k$-2m$ (depending on regional scale, team size, physical presence)
SANCTIONED LEAGUES

31. TV SHOWS

32. COVERAGE

33. PROFESSIONAL
STREAMING

34. »Sanctioned leagues offer global event presence
»Pay attention to the details
»Leagues create the professional environment you‘ll claim
MEDIALIZATION

35. FORMING A SPORT
LEAGUES
»Sanctioned Leagues
»Sponsors
»Events
»Coverage
»Medialization

36. COMMITMENT
»eSports team
»Demo recording
»Team matchmaking
»Custom Match / Stats APIs
FORMING A SPORT

37. FORMING A SPORT
RESULT
»Outside investments
»Eco system
»Global infrastructure
»Audience

38. OFFICIAL
LEAGUES

39. »Online & Offline league covering all major territories
»Developer hands-on with the details
»Centralized coverage
OFFICIAL LEAGUES

40. OWNING A SPORT
»Building a new business
»Companies change
»Own league and infrastructure
»Large-scale events
»New revenue streams open up

41. ESL ARENA

42. »Fixed studio environment
»Frequent global highlight events
»Support for Barcrafts & eSports Bars
PHYSICAL PRESENCE

43. HAPPY PLAYERS

44. PRO TEAMS

45. »Make the pro players really happy
»Help teams with visa and establishing physical presences
»Team houses are essential to professionalize
PLAYERS & TEAMS

47. »Livestreams reach critical mass
»Name brand sponsors
»Traditional TV desperate for young content
TOUCHING THE MAINSTREAM

48. »Sponsors
»Ads
»Tickets
»In-game merch
»Merch
»TV Licenses
REVENUE STREAMS

49. OWNING A SPORT
LEAGUES
»League services
»Production Services
»TV Licensing
»Sales

50. COMMITMENT
»eSports Unit
»Operational control
»Official league
»Contractors
»Player Management
OWNING A SPORT

51. RESULT
»A global, profitable sport
OWNING A SPORT

52. »We‘ll need Bigger Stadiums
»Player agencies
»Emerging Markets
»Many new competitive free-to-play games
OUTLOOK

53. THANK YOU !
@affentod