Why Esports Failed
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- Опубликовано: 6 окт 2024
- Watch the original video here: • The Crooked Economics ...
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It's factually proven that profits go up by 10,000% if there are glizzies for sale at tournaments. Seems like a quick fix
haha, PROOF OR IT DIDNT HAPPEN
They sell glizzies in every successful sport (NBA, NFL, NHL etc)
You might be onto something buddy
especially if the glizzies are made from cafeinated cow meat
Statistics show this to be true 68 percent of the time ;-)
Name checks out
no tv deals, twitch is free to look at, adblock exists. it's really tough to make consistent money that way. overwatch league did get something on TV i think but it was buried somewhere. for esports to work like nba, nfl, etc they'd need to find some consistent revenue from somewhere, otherwise it's just better to use the streamers themselves since they're actually getting views.
overwatch league wasnt even buried it was on espn, it was just an incredibly bad esport
@@benjisurf They had like 1 match a week on ESPN2 plus only like half their playoff games, it was kinda buried, there was no way to actually follow it on TV.
I remember being in a hotel, switching on the TV and saw Overwatch on the screen. Then the tv like malfunctioned or some shit because I could not re-find the channel lmao
So, basically go back to 1999-2009 Korean Starcraft e-sports?
Back in the day due to TVs stranglehold on home entertainment there was no competition for sports as an entertainments piece due to networking deals. Abe before that entertainment was basically dominated by whatever you could do in public spaces.
Nowadays every sport and e-sport has to compete with every other form of entertainment at all times. Which means that E-sports and traditional sports suffer
True, I actually believed that gaming would be as big as European Football, what a child I was back then.
I mean gaming itself is huge, probably makes more than sports tbh. But yeah esports specifically is nowhere near as big
It will. It’s only early days.
Soccer has been around for over 200 years. Esports has been around for maybe 20?
Give it time. VCs are notoriously dumb money. Some esports are already bigger than the NHL today.
@@User-pu3lc the nba in its 20th year was alr negotiating 12k contracts for its players (equivalent to 125k in todays money) and alr had tv deals with nbc and abc😂
@@Olliertloli think this is mainly because video games charge so much, and have so many micro transactions nowadays and less so about popularity. in culture, sports beat gaming by a landslide
ooohhhhhhhhhh so that's why he's called Point Crow
I wonder if he's the point guard
It also helps that for traditional sports they generally own the stadiums/can sell tickets. Most of the time for esports events the team/publisher doesn’t own the venue. So to rent it out even for 3 days it’s a massive loss
i never understood how people thought league would have the same mass appeal as basketball or soccer. to a random person that shit is incomprehensible
Even better was Blizzard convincing sports teams that overwatch was the future of sports. Even overwatch players can’t tell wtf is happening in a broadcast.
@@Dere2727 that's Bobby's magic to ya
I feel like what they didn't really understand was that they needed to create some kind of culture around the e-sports.
A big part of why the NFL makes so much is because pretty much every American city has their own team to root for, and a well-known trophy that they want their team to win.
You never really had that with e-sports. You can watch the games online without buying a ticket, the prizes are often just money, and most people throughout the world don't even have the ability to attend events in-person. Plus, for the NFL they have entire seasons with a new 'important' game every week, with E-Sports you tend to only have a week of qualifying for a spot, and then a single tournament, with a finals match to determine the winner. It's hard to make money when that's the extent of the professional competitive scene.
Ngl i think you're looking at it wrong, football has had 150 years to develop and grow and ingrain itself into American culture. That's why it makes so much money, it's had time to mature as a product and ecosystem. In the exact same way, elden ring dominated gaming not because of this mechanic or that design, but because the product was the culmination of several years of design and iteration and had fostered a dedicated following.
@@SYLin-rs8ob But also NFL is incomprehensible to watch for everyone else. The games with actual mass appeal have easy things to understand "Ball go in hoop" or "Ball go in Goal".
I think the difference between them is that a random person can look at football and know that it's impressive, even if they've never played.
To outsiders, any computer game just looks like a nerd sweating over a computer screen for no reason.
I have aunts that watch football and can still say 'wow what a catch'. I can never envisage a world where they're saying "wow, that Ashe ult was clutch!" without investing 200 hours into Solo Q
"My grandson hits the meanest flicks" is a sentence that will change the world
This conceptually reminds me of something DarkViperAU said after he slowed his gta V speed runs in favor of making more RUclips content: no single world record will ever gain as much popularity as a single charming and funny RUclips video. People care about personality and entertainment/enjoyment way more that skill. Content creation is money. Being skilled at a game is just cool
5:09 genuinely, this dude does NOT know what he's saying lmao. to be clear, the chatter, not my pookie Big A
The closest e-sport to being structured like regular sport because there's no IP attached to it is probably chess, and that's not even e-
That’s why e-sports as a name is terrible. It should just be called pro gaming
this is a better atrioc video than todays atrioc video. literally swap the Big A and the Atrioc vid and it makes sense
Yeah but that one's more important and broad reaching of a topic
Nice to see Modern MBA getting some attention from Big A
some how ive caught the last 4 videos pre 10m
the point about esports being a loss leader for games is something that is lost even to a lot of esport viewers. Riot does care a lot about esports not being on a separate patch because they want teams to kind of "play with the same rules" because Esports are about getting players more invested into the game
The brood war education was king lmao
2 Glizz 2 Glizzious
league esports could have been more healthy, they just mismanage it.
1) riot runs all tournaments and doesnt allow third parties to run their own events (ewc and the red bull event hopefully are signaling the start of a new era). the people obviously love seeing international play above domestic but the way riot runs it we only get to see that for about 6 weeks a year and its in formats that naturally mean people barely get to see their team play. just a few Bo1s, maybe a couple of Bo3 or Bo5, if they are lucky.
2) they dont really do in-game cosmetics that are pro play related. only the worlds winners get a skin line. a lot of people would spend on a skin of the team they support domestically and thats per season or maybe even per split. they could have made skins for individual players. think of an InSec Lee Sin skin, or a MadLife Thresh skin or a Faker Zed skin. they could have made an absolute fortune off this when League was at its prime.
Lets say riot does both, someone else runs the league, HOW DOES THAT ORGANISER make money, riot wont share the skins profit with the organiser why would they, what could they do if riot doesn't
They don't allow 3rd parties to run events because of a certain event.
Are you just counting league as the only esport? CS and Valorant are both massive esports that have hundreds of cosmetic items for esport teams from around the world.
@@flytelp my brother in christ, the first word of the comment was "league"
@@vinceb8123 damn I read “esport leagues”
atrioc tuah!
Atriawk tuah
Talking about brood wars made me remember a show that they had, where some celebrity guy wanted to become a pro and got into a pro team to practice and actually did official matches n stuff, anyone else watched that?
the left picture on the thumbnail is from 2022 I believe, not 2018. It's DRX deft in his 2022 worlds.
The counterpoint to this is content-led esports teams. PWR is the best example that I can think of. Over a million subscribers and consistently pulls hundreds of thousands of views every week. It’s run like a group content channel for all the signed creators and pro players. I haven’t seen any other org really replicate that formula. Ludwig has the opportunity to do it with MXS, but so far he only gets the players on his channel sometimes. I think content creators leading teams are the key to getting people to care about the team rather than just the players.
So what you are saying is that PointCrow is the Larry Bird of basketball
If more teams were like tsm they might be profitable as well. People aren't going to just endlessly buy jerseys. Making clothes that people would actually want to wear that aren't plastered with logos and actually look good is how tsm has been profitable despite having really popular players in the scene (glazing goes crazy ik)
I mean it looks like being an eSports org is a more expensive way to become an influencer org, so why not cut the eSports and just be influencers
@@technetium9653 esports orgs are trying to capture a different audience than an influencer might be. I agree tho having a big org behind you can definitely boost you into being an influencer. I think it's more so a case of the two crossing
They should just have an in house gambling so that they can profit off the people betting to supplement ad revenue
dangerous PR move and could face legal stuff in some countries advertising betting when so many viewers are underage and its marketed to underage
modern mba mention we up
i think if teams allow themselves to exist at a loss while making up for it in terms of streaming revenue (FAZE, MxS) or merchandising (TL, TSM) it can work. but by and large and by itself esports will unfortunately not work unless a game can fully cement itself for like 25-30 years as a leading esport. if a game is around long enough and a large community is fully established around it and ages around it i could see things evolving to where that game could get some sort of smaller tv deal.
but it would require a game to really have that longevity for a MASSIVE audience, and be at least triple anything we’ve ever seen to this point. it will be a long time before we ever see that, but i do think that at some point esports will exist as a more cemented existence. the reality of a company being in control of the IP is very true though, and clearly these companies prefer it that way (wizards of the coast just reminded us of that)
If sewing quilts was a competition, e-sports would be as interesting as that to the common person who would change the channel.
esports teams must make riot pay them to play
Here's the deal, most games are simply too complicated for a viewer to catch on without having played it themselves. If I'm watching hockey and someone asks me why did they blow that whistle I can explain that in two sentences. If someone is watching league and asks me what the hell just happened I have to give them a 30-minute tirade about riot games and the bullshit that they force onto the players
I played basketball with pointcrow in high school, and can confirm he does caw when he drains 3’s.(I am 21 and have never met him in my life).
Yay he watched my recommendation!!!
the first time ive seen a reaction video shorter than the original
I also think one of the big reasons is that you’re not supporting your country or your city or your region, you support a random organisation because you might like some of the players for unknown reason. There is a lot less reasons to spend money on a team you like because you just like them, and the only team that are able to do that and generate a lot of money are streamer’s team, like kameto or ibai in europe because there is a community and a reason to engage
Teams should forbid members from even showing up alone; that way HyperX needs to talk to CLG first, and CLG can just take 50%. You're either making content for game, or you go for the fame and glory as the best ever.
USA network mlg show is the reason my hands hurt from playing claw for 18 years
It says a lot when GenG, one of the most consistently top ranked orgs in League of Legends and now Valorant, is still broke and bleeding money. And almost all League esports orgs are the same if not worse.
a new way that teams are making serious money is buy doing affiliate deals in games for example in valorant gun skins launched this year and made millions riot takes 50% and the teams get the other half aswell as the champions bundle which is also split 50/50 and made the teams 40mil this year
yea this isn't "new". cs has had 50/50 sticker split with teams since 2014 katowice and COD has had cdl skins since like 2019/2020
btw blast 2023 sticker sales made teams 110m vs 40m in val 💀
@@jnogales That's obviously because of the difference in how monetization works in both games. In CS, you can buy multiples because it's just gambling. In Val, you can only buy the skin once per account.
I might be missing something but why do the esports companies (like Riot, not the teams) themselves not take on a bunch of advertising and sponsorships? Real sports have an absolute ton of it during the games, but esports often just has a red bull and or something and that's it
Because it's not worth for the sponsors
I was a s1mple (ex-NaVi cs player) fan and now Im still a navi fan even though he is not on the team anymore 😅
If riot hadn't set a precedent that esports was free they wouldn't be in this predicament. People sub $5 to random streamers but won't pay 5 dollars for league of legends tournaments... Would actually be profitable
I think if Faze Banks took up Ludwig’s vape deal, Faze would be just fine rn
thank you for the video coffee cow
coffee cow
US sports leagues cap salaries to keep teams finances manageable.
Esports, as a global entertainment product, can’t do that due to varying labor laws around the world.
Soccer clubs in Europe are in the same financial situation with a global talent pool as esports teams, most are unprofitable and serve separate purposes to oligarch owners.
ModernMBA is such a goated channel
Harder to appreciate, lack of dunks/touchdowns, some games have really bad overview. There is also not much generational culture built, Soccer/football are literal religions, kids need to grow up in households that watch. And there are too many games and some of them are too brief in existence.
TLDR
yes.
I think esports can't self-sustain, self-perpetuate the same way traditional sports can, as a matter of IP.
Like in comparison something like Soccer isn't going anywhere. Huge organizations can make bank off of it but it's quite healthy that something like FIFA can't _own_ football, the sport itself. Esports in turn only develop as far as the developers, and no further.
To be fair international football actually almost became like this tho, people doesn't care anymore about the team or 'farmer' league they played in as long as it's Cristiano Ronaldo or Lionel Messi play there they'll religiously support.
DAE think part of the problem with gaming is that it’s too diverse? There are two major sports in the US, football and basketball. Sure, baseball gets some views but it’s less. Gamers there are plenty, but they don’t all play the same two games. Unless the popular games are worshiped like in SK, they will never have the same profitability.
its because they didnt add micro transactions evry 3 minutes during the matches for fans to buy
No mention of OpTic which are probably the best org that make content that people watch and can get sponsors now
Modern mba is a goat RUclipsr
Glizzy
Glizzy
Glizzy
Would love a video on overwatch league similar to the csgo video
Brandon "GlizzyHands" Ewing is too big to fail.
doomer mindset
“2018” -> uses picture from 2022
be dota, put a png trinked out so the players pay for the entire TI and make the pricepool higher for the players
esports is allways about the players not about the team. everything that makes a team popular was because of players.
sports have the "homeground" something you get to cheer for because where you grew up. Shure sometimes you start liking a team because of a season of good players and stick with it.
but in esports its 90% player and if those leave you follow the new team, its rare that you care for one team without combining it with players (even T1 would not be so strong as brand without Faker.. shure a lagacy name but so was Samsung Blue)
esport never made sense to me
i cant even stand to watch people play a game on stream
💯. Watching people play a game is dumb af. Just play it yourself. You bring a big dumb
E-Sports is way way too niche, even the e-sports name sounds dated.
I had to listen to people really sincerely telling me that pro gamers are athletes.
They added esports to the olympics recently, also how is it’s much closer to other competitive games like chess than chess is to athletics.
woah chill bro, they are athletes, they wake up everyday to do finger push ups and gain button smashing stamina
why you hate huh? are u jelly or sum'?
I believed Esports would be big, but back then we had player personalities and team recognition. The whole esports thing died for me personally when imaqtpie left. And you could feel a similar rift affecting every part of the whole esports scene. Imports and a major focus on winning and less on fun ruined it all. Personalities disappeared and the balance between fun and competitive was toppled. The money was only in winning. Caster personalities were getting screwed over, players getting screwed over, every week a new controversy. Idk what anyone expected.
which video did you compare nvidia and bitcoin with near identical charts? it wasnt long ago
That’s the ‘Always Buy The Dip ‘ video
@@aceacer2681 appreciate it!
Messi SIUUUUUU
esports can only rly thrive if its a large/ dedicated fan base for a fighting game, or if it has alot of backing from the publisher
also saudi arabia trying to take over esports is a terrible thing for the industry, bc players dont want to go there and it excludes alot of players for obvious reasons
The FGC is incredibly small.
Fr if anyone takes saudi money that’s my cue to bail on them because they obviously don’t care for the safety of others.
Wait esports are dead?
If I may point this out, crypto killed esports by getting them to sellout. Facts
No, esports killed itself by selling out to crypto. Don't deny the esports orgs their own agency in their self destruction
With respect thats fucking cope.
sellout or no the economics just never worked
No you may not point this out, denied
@@Brooks385 crap now I gotta take it down 😂
Please stop changing the thumbnail and title 20 times after an upload it's really annoying to keep up with
Second
Normal sports also has deathly loyal fans that have folllowed there team or their player for generations sometimes. Not only is competitive video gaming relatively new, but gamers are also the most petty, unloyal fans with no attention span, they follow whatever’s trendy at the time with a few exceptions like counterstrike and dota.
Go check EU v NA chat at Worlds… both regions aren’t great but they go to war with each other over who is better 😂
There's team loyalty in the Indonesian scene in the past 2 years. But since its mostly the mobile scene, most of the West doesnt know about it
Esports have never made money. It was an obvious bubble from the start. Just another case of big money thinking they know where the future is when they are super out of touch.
Atioc