@@thunderb00m Yes, we do disclose this. We can change our positions at any time and have no obligation to inform the public if we do. But at the time we release the report we will disclose our position in the stock if we have any, and we often do. With that being said our reports are not financial advice and you need to do your own research before making any investment decision.
@@Limitedonathios We'll always be transparent about positions and views on any stock we write about. We only write about stocks we truly believe are fraudulent or overvalued. Our goal is to build a track record for years to come, we're not trying to make a quick buck.
The way I see it is they’re being managed like a k-pop groups essentially it’s all managed and organized and the players have to go along with whatever management wants. Who have no idea what video games even are. An example of out of touch management was the bully hunters fiasco taking mostly mid player girls having them compete against pros and being obliterated.
@@NaviRyan Something to keep in mind is the management level isn't as blind to this as you might think. The girls never were meant to compete competitively against the professionals. There was never a future planned for the girls outside of marketing and looks. They were an ad campaign, nothing more. Leadership knew they wouldn't stand a chance, but that wasn't the goal to begin with.
Check his private messages, quite a few of the influencers are being exposed as predators. Dont know their names but saw some supposed big names in the news recently
The esports bubble got so big so quickly there was never a chance for a lot of the games/leagues to establish themselves. They want to compare to other big sports but they’ve been around for over a century in most of them to establish a fan base to get bought in. The orgs wanted to set themselves up like an NFL team but didn’t understand the underlying strength of viewers wasn’t there. Since it’s free to view and they can switch at will they can jump from game to game viewing.
I never really understood the popularity of traditional sports until I started to appreciate professional-level CS:GO. It suddenly made a lot of sense why people are into Soccer or American Football. It's all about seeing competition at a level far beyond what the average person is capable of.
@@CarlTobbs dude what are you on lol just cause cable tv labels something as entertainment doesn't mean it's also not competitive. For example, the Olympics is competitive and entertainment. Hope you get better.
"but this wasn't enough to cover their corporate overhead" just sounds to me like "our executives get paid way too handsomely, at the expense of investors".
.... Yeah, no. Tell everyone you're super into this crap and can't tell that it's inherently a money sink due to fanboy bias without telling everyone. 🤷
I think the challenge here is attracting people who dont play games to watch the matches and invest in the industry. A lot of popular sports like football (Assoc, American, Australia etc) and Basketball are spectacle sports that people watch and follow eventhough they dont play the game. People inherently appreciate the difficulties and the excitement of the sports eventhough they never play the game. Other sports like Golf, Chess are only exciting to watch for people who play the game because general watcher cant really appreciate the level of difficulty. E-Sports went into this category. I think e-sports should learn from other "Physically less demanding sports" for references on how to market them. In addition e-sports are new. The oldest demographic that can understand the industry are Millenials. Not enough legacies to be build yet. The industry will be more sustainable when Gen Beta reach adolescent. Its too early now.
I think a big issue with esports is that watching a streamer who is just ok at the game but is likable and funny can be just as or more entertaining than watching super competitive players.
Like many other new industries, esports was the product of the last two decades of bubblenomics. I seriously doubt whether esports is a sustainable industry, especially given the major headwinds facing the global economy.
Eh it will exist in a form of another. Esports has existed on the late 2000s Its the esports leagues that wont be sustainable. Community run leagues would live much longer
@@ryanwalker9599 Anything that was largely driven by hype and easy money and driven by globalization. Just look at a lot of big tech and social media firms as many are not profitable but are kept afloat by venture capital money and retail investors operating on hype. Or... anything that SoftBank or Kathy Woods invests in. haha.
@@MikeMike-ms1ns Pretty close to, when trying to enter the league and participating it. It's intensely competitive, with an all or nothing culture. If you dedicate your entire life to it, only to be outclassed, then it's a lot of wasted time. Job security is low in football as well. The stress in playing and winning resulted in a lot of unprofessional behavior over the past decade. There's a lot of parallels to e-sports in that regard.
The real-time games are all physically very challenging to play professionally. It's doing very specific movements at insanely high intensity and accuracy. Kind of like a pitcher in baseball
@TheMightymolar it's one of those sports like NASCAR to actually appreciate the focus and the physical toll on your body. I used to think the same thing but it's something a regular person will never experience so someone like you or me or the guy making the video just can't comprehend how difficult to be professional at anything even a game
I invested in two esports companies in Canada, both of which were listed on the TSX in 2020 and 2021. Today, one of the companies was delisted due to low trading volume, while the other is currently at 90% of its IPO. I'm unsure whether the esports industry will become profitable, but I hope these companies will turn a profit and help the industry grow.
It's really hard to tell. Games have such s short lifespan in the grand scheme of things and second i firmly believe the franchise models that so many developers push for their own profit motives is just genuinely bad for esports and in OWL i think it strangled the entire scene, no natural grassroots movement formed like in other games, no real passionate groups for the game and when it wss relegated to what it is now there's no community or orgs to keep things going.
They are all trying to replicate the success of Dota2 and its teams. Dota2 had record amounts of money coming in from willing spectators, contributing to the massive prize pool. All because the developers recognized something the players wanted and gave it to them and most esports teams piggybacked off this success and saw huge growth.
Valve just has a better approach to esports, they allow the game to naturally grow and lets the community build events while tencent has a top down corporate approach to the whole thing.
That would be true before 2020. Even Dota's professional scene is a trainwreck now. Valve doesn't even intervene in its crown jewel tournament anymore (The International). Every year, the hype, the prize pool and even the prestige keeps on going downhill.
No one ever mentions a *core* problem of eSports, someone, legally owns it, football is not copyrighted by someone, i can create a league and theres nothing anyone can do about it, it can compete with any league from anyone, which creates competition and more teamn to attract people, eSports someone owns that shit, you slight the owner, or run a competition, good luck with your cease and desist letter
Uhm, 3 of the biggest esports, Counter Strike, League of Legends and Dota have all been consitently among the top 5 for more than a decade, so the majority of the existence of esports as mainstream thing.
@@reappermen professional british football is almost 150 years old, with the roots of sport going back to medieval times. Video games are not meant to be long standing. People still play them, but general interest cannot be sustained in an audience that always wants new games.
Yeah, it's a problem. It's harder to maintain an audience when the games and technology naturally cycle out. Its crucial that your vote audience has played the game. The biggest football fans are people who played football in high school. You have a deeper appreciation for the sport. But that's hard to do when games cycle out. I've been an old school fighting games player for years. I've been attending tournaments since I was 16, which was 2004. At the time, everyone was playing street fighter 3. Now it's street fighter 6. The genre has perks- it's easy for anyone to watch and follow the basic match, unlike LOL or DOTA. But even so, I just don't have the same interests in street fight 6, I'm too old to play it. I still have an encyclopedic knowledge of street fighter 3, but 6, I don't know anything deep. I dont think this is insurmountable. But it's a problem e sports bas to deal with. Its never really been big enough to make money. streaming and advertising changed that a little bit, but nothing like LOL or CSGO. Even so, playing fighting games js not a job, even for the pros. The pros are basically influences, who also occasionally win a bit of prize money (or don't). Fighting games players have always played for the love of the game, IMO, money plays a much smaller role than other genres.
Interesting angle. Makes me think of fifa, 2k or NFL. Although the technicalities between fifa 98 and 23 are vastly different. The fundamentals remain the same. I could argue these have remained roughly the same for decades and seem like they will be popular for a while. Would these gain traction?
@@reappermen ESports are still infants compared to football (both flavors), basketball, baseball, and hockey. These sports have been around for literally ~100 years. None of them were that profitable in the beginning either. The problem that's unique to esports is that the competitive medium (the game) is control by one company where as the physical sport it is not. Anyone can start up a sport league without any restriction, just need the space and the equipment. With ESports, you literally can not start up another exact carbon copy of LoL, CS, or any game for that matter. You'd have to develop your own version of it that's entirely different from the original. So there's no consistency. I love video games but due to the nature of how they are generally short lived, they will never be able to get to where sports are today. I give league another 10 years before it goes into the retro gaming category and permanent falls out of the mainstream competitive scene.
The thing I can't figure out is this, if these events are so popular why are the over all prize pools so small? I know there is something I'm missing. I just don't know what it is.
Prize pool is small for Riot Games esports events, as they're more focused on behind-the-door revenue sharing to their entire esports scene, not just the one at the top. If you want to large prize money, see Valve's esports events like Dota 2's The International (though they don't care anymore on prize money like they did before) and CS2 Majors. Also, follow Saudi's money (Esports World Cup)
The game creators have millions of fans who will buy their games, play, and buy future games......this is where the real money is.....esports is just promoting the games
There are almost no sports that can play full time without working alongside. For reference, most Olympic competitors have jobs and/or partners (married kind of stuff) and/or do side hustles (speaking at corporate events is a big one).
It would be the best way to make money, they issue is international legality makes that extremely difficult (and morally, fuck gambling, because its only profitable on the backs of addicts).
I hope that people stop investing in SPACs. I don't get why people invest in investment vehicles that are specifically created to bypass all the paperwork that is protecting the investors.
Small correction not athletes, gamers or players. Athletes indicates athletics, physical exercise etc... I know we want to upgrade our favorite players but I think this is a big misconception that is potentially dangerous. Playing a video game is not the same as running track and field.
Still athletes for the most part, as most esports are very heavily dependant on body skills and ability. A llt of athletes are not endurance athletes, or even ones that extremely strain their muscles, e.g. Archery has more to do with fine motor controll than strength or endurance, just like most esports.
tell that to golf, billiard, air-gun shooting, and dart-shooting. Esports call themselves sports because a lot of rules are written with the word “sport” in them (visa rules, business rules etc), not because of clout, they don’t need any.
I’ve been playing video games since I was 4 years old in 2000 and I never have gotten the appeal of esports. I don’t get why they are called “athletes”
@@zeusjukem9484 esports aren't physical that's why there's an "e" in front of the name. Football players are called athletes because what they do requires athletic ability. Playing a video game doesn't require athletic ability. Pretty cut and dry
The economy of excess crumbles when there is no excess. This is also why the old malls have become empty and stores are closing and moving out. People tend to spend money on what they can afford or have money to spend on. When there is no money then they spend on what they feel they absolutely need in the moments. Don't know yet if esports will die or morph into something else.
@@derekmarsden8934 You are not seeing the rising prices on the fundamentals expenses. Companies know people have adapted to a lifestyle and they are raising the price every year which has a draining effect on your wallet because no one really wants to go backwards just because they suddenly re categorize your goods as luxury now.
I personally hate the luxury market with a passion due to how people are illogically attracted to it and how much it affects socializing. Not just the fashion industry. They're quite a drain on the economy too, since they don't meaningfully contribute to society. Utilitarianism, minimalism, and frugalism are always a good approach to living.
Melee: * Rushed out the door on Christmas 2001 * No balance patches, game is hilariously broken * Only like 5 good characters and 1 good stage * Loved by everyone * Is the sole reason Nintendo still makes gamecube controllers * The most played competitive Smash Bros much to Nintendo's chagrin Overwatch: 💀
It seems odd a company managing teams got large enough to be listed on NASDAQ to begin with. Most sports of medium to large scale seem to have a similar pipeline from player to broadcaster of some form, which probably has similar small percentage make that transition successfully.
This is one of the most accurate videos of this style I've ever seen. Most of the time people reporting on these topics are wildly off base. 11:57 here is where you are wrong though. In the West it is true, generally it doesn't matter what you look like. Western teams will generally take the most talented player(outside of behavioral issues), but in the East this is not true at all. Famously the starcraft player July Zerg had an incredibly hard time getting onto a professional team despite being one of the greatest starcraft players of all time. Why? Because he was fat and ugly and the Eastern teams focus a lot on the fandom of female fans. Where the west focuses almost entirely on male fans. So often times the star players on eastern trams are handsome and sociable. For a second example the Lol player Effort had a similar issues getting sighned to a team as he suffered from terrible acme. Which he had to have professionally treated before he could sign to a top team. Your off base here. The popular Chinese and Korean players can transition quite well because they already have personal brands that the teams manage. They never say out right but they hire people based on work but it's kind of an unspoken rule.
I'm surprised he didn't mention the esports world cup happening. millions are being put up by a middle eastern org for a new tournament (series?) Starting this year.
When i worked at one of the big athletics brand companies i tried to convince them to sponsor some esport, they said no one is interested in it. They then spent 50K for one social media video (about 2 mins long) of some dancers who refused to wear their clothes or promote them. They final put a single hashtag. It resulted in absolutely no exposure. There was a lot of wasted money like that.
EV's and clean energy are still inevitable. Or at least inevitable if we still want to have a liveable planet. 🤷 AI also isn't going anywhere. The most successful VC's are right significantly more often than they're wrong. That's literally how they make money and continue to exist.
@@Cooe. But they hype things up for their own profit for sure. The AI is so over-hyped, EVs are promoted for EVERYONE but they're not the best purchase for an average guy (poor EV charging infrastructure, high insurances, etc). Clean energy like nuclear fusion will play a very important role in the future for sure, but currently it's a far fetched dream if we need affordable energy. VCs have a history of hyping things up to a point that the bubble bursts.
@@Qwerty.240 "poor EV charging infrastructure, high insurances" For a typical commute you don't really need "infrastructure", and insurance is more tied to your habits of buying insane monstro cars that make no actual sense than EV's. A Chevy Bolt is 80 bucks a month to insure, just stop buying extremely expensive vehicles maybe. "EVs are promoted for EVERYONE but they're not the best purchase for an average guy" 99.9% of Americans buy a car they don't need. High luxury sedans, huge oversized SUV's and pick ups, freaking mega boosted race cars etc... Almost no car is the best purchase for an average guy but somehow, weirdly, it's when we talk about EV's that it starts to become an issue.
My significant other was a professional on the community/events side of the games industry for a decade, and from everything they told me about the vibe of the industry this is totally unsurprising. Pretty much everything that isn’t software sales is operating at a hard loss financed by VC or the software side. They told me that part of why Twitch had to clean house so hard on acquisition was because something in the >10% range of their expenses was just the party budget (not even the public facing events).
This video is about League of Legends Esports, not the whole Esports. In Counter-Strike 2 or other games, it's a different economy where the video game developer doesn't own and produce any tournaments.
They are not athletes. They are gamers. Chess is a game. Video games are games, not sports. You could argue a race car driver isn't an athlete. However, at lest a race car driver has demands on many parts of his body and there is a physical endurance factor. Video games aren't sports.
@@NoVisionGuy Definition: “Athlete”- a person who is proficient in sports and other forms of PHYSICAL exercise. Sitting in front of a screen for 7 years does not count as physical exercise only in clown world maybe but since we do live in a clown world I see where you’re coming from.
I never considered playing video games as a pro sport, and the hype about it is trash. It’s boring to watch. I much prefer watching a normal streamer play his game alone, I don’t want to watch some team of kids getting sweaty playing together as “pros”.
@@pocketvices Even then, the Fighting Game Community is seen as a subset of eSports with some real staying power. Each competitor in the FGC eSports are competing at an individual level, sponsored or otherwise.
Actual problem with eSports businesses is that the game studio has the upper hand, if you're the investor you'd have exposure in the developer not the participants.
Irrelevant comment. It doesn't describe the stock market over time nor does it describe most other professional sports leagues. For example, the average NFL owner has seen a 300% ROI over the last decade.
@@vanillatornado8390 OP is likely just another tankie that thinks that throwing the capitalism baby with the corruption bathwater will solve all of the worlds problems, pinky promise.
Seems to be more an issue with top-down organized corpo esports. Any game with a decent sized competitive scene can be an esport as long as there's an appealing way to spectate games. There's quite a few scenes that have chugged along this way, with tournaments organized by hobbyists and modestly popular streamers without there really being much money involved. That's the big advantage of esports! The barrier to entry for organizing tournaments is really low. I remember one awesome tournament where a streamer simply had a bunch of world class players crowded into his apartment. But then there's all these companies aiming for huge revenue off of esports that rarely have the fanbase to support it, operating on the assumption that the hoards of new fans will materialize if they just burn enough money on flashy events and elaborate marketing. But this somewhat chokes out the possibility for organic growth.
This is gambling but with a fancy name. It’s more like online gambling because you’re just staring at a screen but within the comfort of your own home if not at a stadium. The worst part like gambling is that what it does to your well being. I remember South Park had an episode of world of Warcraft where they all got fat, ugly and looked awful after being addicted for months. This is attrition at its finest. You will lose money and your mental well being.
Its beneficial for the ip holders but not sure how a stock for an esport organization will work they dont own the ip. Its not like they can dictate how league of legends or other ips are run
The difference between E-Sports and normal sports is that E-Sports were more artificial in growth than real sports(Ironic, really). You have some E-Sports games/genre that stuck around because they developed a decent fanbase, but most of them just really don't stick. To make E-Sports profitable and able to stick around, you need to find a game/genre that can capture people's attention and keep it for the long run. It also has to be something your normie casuals can understand.
How do we know fraud is not the determining factor of who wins? All sports are a vanity project for the wealthy. But how do we prevent fraud on the part of league owners.
What do you mean by win? The tournaments I say who cares ? Who survives, I don't particularly care if the company gets defrauded, I don't see how the average consumer gets screwed here unless they invest, which is dumb as hell
For one thing, being a social media influencer and content creator, especially if the esports player in question was mentored by any of the OGs of the organisation he/she joined. Matthew 'Nadeshot' Haag is one such example as he went from full-time pro player in Optic Gaming to Founding CEO of 100 Thieves.
Not that much real-world skills.They could lack the big opportunity of going to university or learning a trade skill. But coordination, communication, and discipline are good traits of these players. Not sure what job field would appreciate these the most.
Just say it Wallstreet millennial. You need to be physically attractive to transition into entertainment. Which that Chinese esports player definitely was
A basic look at top Twitch streamers would go against that (unless you limit it to women, the site and its userbase seem to prioritize a certain look and content style for females streamers). What counts is charisma, and the type of gamer who has it is usually not the type to get into esports when there’s less skill-intensive ways to turn that into fame and money.
@@EmperorDionx Fair enough, though I would add the caveat that the example WSM mentioned of reality TV is more skewed towards looks than some other TV programs. Certain genres can have a bit more leeway in that department. A funny-looking guy can still make it as a comedic actor, for example.
Sports in general are just for the rich to burn a lot of money. Not esports, but any sport. So, we should be just happy that Saudis for example decide to share their wealth by giving it back to us through entertainment/sports.
Wrong. Moat professional sports owners see multiple times over return on their investment in a relatively short period of time, far greater returns than the stock market. For example, NFL owners have seen a ~300% ROI over the last decade. Also, it sounds like you're pro sports washing. You're either a bot or kinda du..
10:34 contrary to what you are stating, their esports dvision is highly profitable though, so it have to be their other operations that are operating at a loss
Curling is much more fun to watch. Watching teams play video games is boring as hell. I much prefer just watching a single streamer play a game by himself. Stop trying to “sport” everything.
I think ideally e-sport tournaments aspire to get to premier league, NBA and NFL levels of popularity where fans can stream the games globally. they can then sell broadcasting licenses to tv station streaming services etc. The big question though is, will it ever get to this point? Is it still an industry in its nascent stages? Only time will tell.
The problem is they want esports to get there through capital investment instead of organically improving their broadcast product. You can put an infinite amount of money in a pro water polo league and thats not going to change how many will watch.
eSports will never be lucrative like traditional sports. There is enough for individuals to support a career as a streamer, but the audience is there for the individual streamer. There's no silver bullet to how a company can make money from that situation.
@@toomanyaccounts He's surprisingly bad at League of Legends. The irony of it all, is that he made a 10 year deal with TSM for naming rights for 210 million dollars until that deal fell apart following the collapse of FTX.
The 'reaction time' meme has been thoroughly debunked, the real issue is neuroplasticity and adapting to a game that literally changes drastically every two weeks, and that's just the game itself, it doesn't even consider the rapid player side innovation and growth that organically happens even with games that receive no updates. Look at games that have been around for decades with highly developed competitive scenes, namely Street Fighter and Tekken. Reaction times are EVEN MORE important in those games than they are in League, yet there are players in their late 30s or even 40s still dominating. For a newer game like League, the player base is growing and a player that was in the top .01% of 5 million players in the early pro days will still need to be in the top .01% when there are 500 million players, chances are that's not going to happen. Now that League's style has been clearly defined for a long time now and the player base has reached its peak, you aren't seeing superstar talent pop out of nowhere with yesterday's star falling into irrelevance, the best players right now have been the best players for the past 5 years.
Let's not kid ourselves, a big draw for traditional sports is betting, there's a reason why so many people are willing to pay to watch them live and why leagues like the NFL and NBA can demand huge sums of money for broadcasting rights.
Many years ago, I came across an Xbox gaming competition on TV. As they went to commercial, the announcer said they would return soon with interviews with the gaming "athletes". I kind of laughed. It was the first time I heard the word "athlete" associated with gaming, and it got me thinking about the definition of "athlete". Those xbox dudes certainly did not look like "athletes", and you don't call players in a chess tournament (or fast rubik's cubers) athletes, so I was having a problem with it being used for xbox gamers. I discussed it with friends and we kind-of decided that to be an athlete you needed to physically exert yourself and have full body locomotion. Physical conditioning would be necessary to succeed. I hadn't thought about it for years, but now I just heard it repeatedly in this video. Sorry WSM, I protest. Gamers are not athletes.
People like playing video games. But watching competitions of them?? I am not sure that is a natural progression and there could very well not be increasing demand for esports. Also many of the most poopular games do not lend themselves to esports
You gave the wrong information for League Of Legends, lower division teams cannot challenge the upper division teams for a spot. It is a franchise system, upper division teams had to buy in, consequently a team must be willing to sell their place for a lower division team to buy it.
I'm interested in your short reports, would you be able to do a free trail, even a period as short as 3 days would be fine, I think it is a bit of an ask to request $20 a month while having no way to check the quality of data🤔
I feel like the reason for this is that the companies that own the games just strangle them. Like how are you going to make money from it You're going to make money from ads on streams and like sponsors to an extend because like somebody will always be willing to pay something to sponsor the teams or the streams to get their logo on it so that we only know that Intel exists or whatever. although that's a bad example because until probably doesn't want anyone to know they exist right at this moment. The way to make money is through merchandise. gamers will buy stupid little things and they will buy themed clothing, as well as cosplay stuff and they will buy skins obviously. Brian needs to give up on having their own store because currently it sucks. they should leave the store up but they need to stop trying to just like sell six things as if it's like fucking supreme or something I don't even know what they're doing. they need to let the teams make whatever merchandise they want to, even require it, and then put it on their storefront and then let the community make anything and basically start to enforce copyright to the extent that they don't shut everything down like Nintendo, But just corral people into their storefront. everybody can design things and make things sort of like teespring, riot just gets a cut of it whatever it is sold on the storefront. and for the love of God they have to stop advertising to like young Gen z and Jen alpha like those are fortnite players they don't even know how to use a computer because everything they've ever used is a touch screen or console Like your audience is aging up so stop marketing towards children cuz you just are never going to capture them that way Like you have to turn it into something adults play that's cool and then kids will want to play it because adults play it this is like how every other game got big like starcraft wasn't big because of child was amazing It was like people and like their late teens and twenties were good at it.
I like to play video games from time to time and I will occasionally throw a buck or two to a player I like(not LOL) but I would never invest money in it, its almost laughable that someone would invest in it, the same goes for normal sports too!
Sounds like owning a racing team. Even in F1, the majority of teams lose money let alone all the other racing teams in all the other leagues in the world.
Little do people know that most top sports like American football don't make any money either, valuations of those franchises have nothing to do with profits, but based off what the last team sold for...
The game creators have millions of fans who will buy their games, play, and buy future games......this is where the real money is.....esports is just promoting the games
I liked how Wall Street would show inages of the Old NIP Counter Strike roster and not the current clown car. Also this video felt like it had no substance. Too much focus on China/Riot.
The irony of it all is that it was not originally conceived as an eSport by Blizzard until South Korea made it popular as one. Only then did Bilzzard decided to capitalize on the craze.
@@crimcrusader8459It took a couple of patches too. A corsair could lock down defenses easily when the game launched. It wasn't competitive until the game became healthy and balanced. There's a nice video about the evolution of patches. Still got Zerg rushed after all the balance changes were made. Some things never changed in the casual scene.
If that is all it takes to be called "athletes", then my fellow RUclips community...I'm proud to announce I am Cristiano Ronaldo, Mike Tyson, and Kobe Bryant (RIP) all rolled into one. I demand to be entered into every sports hall of fame! I was going to complete in the Olympics but the hours of gaming on the Xbox took my energy.
For original short-selling research and much more check out our website: www.differentiatedanalytics.com/
Do you also disclose your position if you have any in each of the short analysis?
@@thunderb00m Yes, we do disclose this. We can change our positions at any time and have no obligation to inform the public if we do. But at the time we release the report we will disclose our position in the stock if we have any, and we often do. With that being said our reports are not financial advice and you need to do your own research before making any investment decision.
Please don’t pull a citron research on us, wsm.
@@Limitedonathios We'll always be transparent about positions and views on any stock we write about. We only write about stocks we truly believe are fraudulent or overvalued. Our goal is to build a track record for years to come, we're not trying to make a quick buck.
Avg bro plays a PS4 not a Xbox
One issue is the esports "athletes" aren't very marketable. They're not good looking and they're usually socially awkward.
I have never heard of any of them I don't know one esport players name and I don't care to and I hate to say most people are like me on this one
The way I see it is they’re being managed like a k-pop groups essentially it’s all managed and organized and the players have to go along with whatever management wants. Who have no idea what video games even are. An example of out of touch management was the bully hunters fiasco taking mostly mid player girls having them compete against pros and being obliterated.
Look up skitter dota 2 and tofu dota 2. There's some good lookers.
@@NaviRyan Something to keep in mind is the management level isn't as blind to this as you might think. The girls never were meant to compete competitively against the professionals. There was never a future planned for the girls outside of marketing and looks. They were an ad campaign, nothing more. Leadership knew they wouldn't stand a chance, but that wasn't the goal to begin with.
Except for a few teams like Sentinel for Valorant or T1 for LoL, their star players casually pull sponsors
My nephew wanted a Ninja in Pyjamas shirt for his birthday....my mom thought it was a Nickelodeon cartoon.
They not like us.
Check his private messages, quite a few of the influencers are being exposed as predators. Dont know their names but saw some supposed big names in the news recently
@@chiquita683
There actually is a Disney Jr show featuring ninjas in pajamas. It’s called PJ Masks.
Well the classic "ninja" outfit looks like pajama anyway
Forget 725M, Nobody is explaining why Faze is even worth 17M
Faze did a crypto scam;
BTW, $17 million valuation - as a marketing/internet-influencer vehicle
they seem to have a following, which also leads to donations by their viewers.
The esports bubble got so big so quickly there was never a chance for a lot of the games/leagues to establish themselves. They want to compare to other big sports but they’ve been around for over a century in most of them to establish a fan base to get bought in. The orgs wanted to set themselves up like an NFL team but didn’t understand the underlying strength of viewers wasn’t there. Since it’s free to view and they can switch at will they can jump from game to game viewing.
Today is my 29th birthday. Good to know my hand eye skills peaked 5 years ago.
How good do you have to be to peak at 24?
i'll turn 30 in 9 days, i can relate 🤣
Happy Birthday soldier 😊
I'm 38 so I'm ancient in eSports terms. Also happy bday
welcome to the senile division of esports
I never really understood the popularity of traditional sports until I started to appreciate professional-level CS:GO. It suddenly made a lot of sense why people are into Soccer or American Football. It's all about seeing competition at a level far beyond what the average person is capable of.
Its like having TikTok dancing in the Olympics
Its hard to explain how huge is the gap between a good player and a top pro is, imagine comparing normal players with a freak of nature like Messi
@@CarlTobbs how many times have you been crypto scammed? you probably donate to grown men, nice buzzwords you're using. stop beating your girlfriend.
@@CarlTobbs dude what are you on lol just cause cable tv labels something as entertainment doesn't mean it's also not competitive. For example, the Olympics is competitive and entertainment. Hope you get better.
@@CarlTobbsaccount created 1 week ago, saying incredibly stupid things. But have the nerve to call other ppl npc's. Lol
"but this wasn't enough to cover their corporate overhead" just sounds to me like "our executives get paid way too handsomely, at the expense of investors".
The problem is we've seen teams that are winning world titles where the executives in question are taking no salary and it's still true.
You're not very good at economics
.... Yeah, no. Tell everyone you're super into this crap and can't tell that it's inherently a money sink due to fanboy bias without telling everyone. 🤷
It’s the gamers that get paid too handsomely. They don’t generate revenue. Even free accommodation sounds like it’s pushing it
You think that the owners are happy to lose money so that those underneath them get paid a lot? You think way too highly of ultra rich people
I think the challenge here is attracting people who dont play games to watch the matches and invest in the industry. A lot of popular sports like football (Assoc, American, Australia etc) and Basketball are spectacle sports that people watch and follow eventhough they dont play the game. People inherently appreciate the difficulties and the excitement of the sports eventhough they never play the game.
Other sports like Golf, Chess are only exciting to watch for people who play the game because general watcher cant really appreciate the level of difficulty. E-Sports went into this category. I think e-sports should learn from other "Physically less demanding sports" for references on how to market them.
In addition e-sports are new. The oldest demographic that can understand the industry are Millenials. Not enough legacies to be build yet. The industry will be more sustainable when Gen Beta reach adolescent. Its too early now.
I think a big issue with esports is that watching a streamer who is just ok at the game but is likable and funny can be just as or more entertaining than watching super competitive players.
Players who are at the same level as the streamer will not improve their skills watching him.
Very subjective. I personally don’t watch streamers at all. People have different tastes, like some people can’t get into regular sports.
Like many other new industries, esports was the product of the last two decades of bubblenomics. I seriously doubt whether esports is a sustainable industry, especially given the major headwinds facing the global economy.
Eh it will exist in a form of another. Esports has existed on the late 2000s
Its the esports leagues that wont be sustainable. Community run leagues would live much longer
What other new industries weren't sustainable? Sir
Bubbleconomics is a good way to put it
@@ryanwalker9599hmm… industries that have grossly over-expanded in the last 20 years due to cheap money… Maybe its just all of them?
@@ryanwalker9599 Anything that was largely driven by hype and easy money and driven by globalization. Just look at a lot of big tech and social media firms as many are not profitable but are kept afloat by venture capital money and retail investors operating on hype. Or... anything that SoftBank or Kathy Woods invests in. haha.
Playing games for money, and not for fun, sounds like hell.
Like eating when you’re not hungry food that you don’t like.
The fastest way to turn something you love into something you despise is to make paying your bills dependent upon success in that thing.
It's a lot of pressure
So you're saying playing football and getting paid for it is hell vs playing football without getting paid?
@@MikeMike-ms1ns Pretty close to, when trying to enter the league and participating it. It's intensely competitive, with an all or nothing culture. If you dedicate your entire life to it, only to be outclassed, then it's a lot of wasted time.
Job security is low in football as well. The stress in playing and winning resulted in a lot of unprofessional behavior over the past decade. There's a lot of parallels to e-sports in that regard.
idiot, that call a profession
"if you good at something, never do it for free"
My three favorite channels: Wall Street Millennial, Stock Brotha, & How Money Works. Make my week complete! 🔥 🔥 🔥
Replace stock brother with logically answered and i agree
You should add Plain Bagel and Patrick Boyle to that list
You should add modern mba too
You should add Company Man in there as well.
Young people losing their jobs and getting replaced by even younger people. This has been going on for generations.
asian method
Arguably the only thing "e-sports" has in common with actual professional sports
@@davidgil6875 americans losing their jobs but never their weight
Welcome to sports. Been happening in real sports for ever.
@@Seagaltalk This
The fact that CEO Bobby Kodick believed that the Overwatch League would be the equivalent to the NBA Esports is so funny. 😂😂😂😂
I think the term "athlete" is a bit much for eSports. Players, yes. Talented, yes. Athlete, no. Most can't run faster than me, and I'm on dialysis.
The real-time games are all physically very challenging to play professionally. It's doing very specific movements at insanely high intensity and accuracy. Kind of like a pitcher in baseball
@@xx765 Athletic actually has a meaning. Try a dictionary.
That was my first thought, too, that there has to be another word. You don't see a great guitarist and think, "what a great athlete!"
@TheMightymolar it's one of those sports like NASCAR to actually appreciate the focus and the physical toll on your body. I used to think the same thing but it's something a regular person will never experience so someone like you or me or the guy making the video just can't comprehend how difficult to be professional at anything even a game
They are e-athletes. There, I fixed it😂
I invested in two esports companies in Canada, both of which were listed on the TSX in 2020 and 2021. Today, one of the companies was delisted due to low trading volume, while the other is currently at 90% of its IPO. I'm unsure whether the esports industry will become profitable, but I hope these companies will turn a profit and help the industry grow.
you know people who actually know esports only put money in a team because they enjoy the hobby. they don't expect to ever make a profit.
well thats an L for you then this will nnever make any money im sure of that.
It's really hard to tell. Games have such s short lifespan in the grand scheme of things and second i firmly believe the franchise models that so many developers push for their own profit motives is just genuinely bad for esports and in OWL i think it strangled the entire scene, no natural grassroots movement formed like in other games, no real passionate groups for the game and when it wss relegated to what it is now there's no community or orgs to keep things going.
They are all trying to replicate the success of Dota2 and its teams. Dota2 had record amounts of money coming in from willing spectators, contributing to the massive prize pool. All because the developers recognized something the players wanted and gave it to them and most esports teams piggybacked off this success and saw huge growth.
Valve just has a better approach to esports, they allow the game to naturally grow and lets the community build events while tencent has a top down corporate approach to the whole thing.
That would be true before 2020. Even Dota's professional scene is a trainwreck now. Valve doesn't even intervene in its crown jewel tournament anymore (The International). Every year, the hype, the prize pool and even the prestige keeps on going downhill.
No one ever mentions a *core* problem of eSports, someone, legally owns it, football is not copyrighted by someone, i can create a league and theres nothing anyone can do about it, it can compete with any league from anyone, which creates competition and more teamn to attract people, eSports someone owns that shit, you slight the owner, or run a competition, good luck with your cease and desist letter
Yeah, also the rules of football don’t change every pAtch
I can't see video games competing with sports.
Sports do not change from year to year. But what game is popular changes very quickly
Uhm, 3 of the biggest esports, Counter Strike, League of Legends and Dota have all been consitently among the top 5 for more than a decade, so the majority of the existence of esports as mainstream thing.
@@reappermen professional british football is almost 150 years old, with the roots of sport going back to medieval times.
Video games are not meant to be long standing. People still play them, but general interest cannot be sustained in an audience that always wants new games.
Yeah, it's a problem. It's harder to maintain an audience when the games and technology naturally cycle out.
Its crucial that your vote audience has played the game. The biggest football fans are people who played football in high school. You have a deeper appreciation for the sport. But that's hard to do when games cycle out.
I've been an old school fighting games player for years. I've been attending tournaments since I was 16, which was 2004. At the time, everyone was playing street fighter 3. Now it's street fighter 6. The genre has perks- it's easy for anyone to watch and follow the basic match, unlike LOL or DOTA. But even so, I just don't have the same interests in street fight 6, I'm too old to play it. I still have an encyclopedic knowledge of street fighter 3, but 6, I don't know anything deep.
I dont think this is insurmountable. But it's a problem e sports bas to deal with.
Its never really been big enough to make money. streaming and advertising changed that a little bit, but nothing like LOL or CSGO. Even so, playing fighting games js not a job, even for the pros. The pros are basically influences, who also occasionally win a bit of prize money (or don't). Fighting games players have always played for the love of the game, IMO, money plays a much smaller role than other genres.
Interesting angle. Makes me think of fifa, 2k or NFL.
Although the technicalities between fifa 98 and 23 are vastly different. The fundamentals remain the same.
I could argue these have remained roughly the same for decades and seem like they will be popular for a while.
Would these gain traction?
@@reappermen ESports are still infants compared to football (both flavors), basketball, baseball, and hockey. These sports have been around for literally ~100 years. None of them were that profitable in the beginning either. The problem that's unique to esports is that the competitive medium (the game) is control by one company where as the physical sport it is not. Anyone can start up a sport league without any restriction, just need the space and the equipment. With ESports, you literally can not start up another exact carbon copy of LoL, CS, or any game for that matter. You'd have to develop your own version of it that's entirely different from the original. So there's no consistency.
I love video games but due to the nature of how they are generally short lived, they will never be able to get to where sports are today. I give league another 10 years before it goes into the retro gaming category and permanent falls out of the mainstream competitive scene.
The thing I can't figure out is this, if these events are so popular why are the over all prize pools so small? I know there is something I'm missing. I just don't know what it is.
Prize pool is small for Riot Games esports events, as they're more focused on behind-the-door revenue sharing to their entire esports scene, not just the one at the top.
If you want to large prize money, see Valve's esports events like Dota 2's The International (though they don't care anymore on prize money like they did before) and CS2 Majors. Also, follow Saudi's money (Esports World Cup)
Not profitable.....thats why....
The game creators have millions of fans who will buy their games, play, and buy future games......this is where the real money is.....esports is just promoting the games
Traditional sports are also not profitable but every team has government backing
There are almost no sports that can play full time without working alongside. For reference, most Olympic competitors have jobs and/or partners (married kind of stuff) and/or do side hustles (speaking at corporate events is a big one).
A house filled with teen male gamers. Imagine how funky that house must smell.
A house is fine. All you need is to open the window and let everything air out for 30min. A tournament location though is a different matter....
A lot of asian boys tho. Asians don't have the smell like western people do.
It would not surprise me if the leagues started to offer gambling on the tournaments.
It would be the best way to make money, they issue is international legality makes that extremely difficult (and morally, fuck gambling, because its only profitable on the backs of addicts).
CS is sadly full of gambling, probably the main source of income.
I hope that people stop investing in SPACs. I don't get why people invest in investment vehicles that are specifically created to bypass all the paperwork that is protecting the investors.
Same. Nobody's complaining about it, which is bothersome.
Small correction not athletes, gamers or players. Athletes indicates athletics, physical exercise etc... I know we want to upgrade our favorite players but I think this is a big misconception that is potentially dangerous. Playing a video game is not the same as running track and field.
Still athletes for the most part, as most esports are very heavily dependant on body skills and ability. A llt of athletes are not endurance athletes, or even ones that extremely strain their muscles, e.g. Archery has more to do with fine motor controll than strength or endurance, just like most esports.
tell that to golf, billiard, air-gun shooting, and dart-shooting. Esports call themselves sports because a lot of rules are written with the word “sport” in them (visa rules, business rules etc), not because of clout, they don’t need any.
Exactly. Sitting in a chair is not athletics......
@@gomahklawm4446Bro just disrespected the entire motorsports like that
@@reappermen playing video games doesn't require athletics ability so their not athletes.
Ninjas in Paris
🎶🎶🎶🎶🎶
No just antifa.
I feel like you are using the term “athlete” very liberally in this video.
Absolutely. Even the phrase "e sports" is laughable. Most of these people have probably never even run for a bus.
Happy Sunday
happy sunday to you too mate
@@aitoluxd much appreciated ❤️
I’ve been playing video games since I was 4 years old in 2000 and I never have gotten the appeal of esports. I don’t get why they are called “athletes”
the same reason footballers are.. it is a physical sport so the competitors are athletes.
@@zeusjukem9484 esports aren't physical that's why there's an "e" in front of the name. Football players are called athletes because what they do requires athletic ability. Playing a video game doesn't require athletic ability. Pretty cut and dry
I think “players” would be a better term, especially since they’re playing a game, and it’s just as easy to say “here are the players on our team.”
@@JiggyJones0 Imagine a nutritionist recommending a sport for weight loss and suggesting you buy a PS5. XD
You just don't understand why, and maybe never will. And that's OK.
The economy of excess crumbles when there is no excess. This is also why the old malls have become empty and stores are closing and moving out. People tend to spend money on what they can afford or have money to spend on. When there is no money then they spend on what they feel they absolutely need in the moments. Don't know yet if esports will die or morph into something else.
Glad less people are wasting money on disposable fashion.
In truth there is plenty of excess cash it just gets wasted in conspicuous consumption which is destroying our panet
@@derekmarsden8934 You are not seeing the rising prices on the fundamentals expenses. Companies know people have adapted to a lifestyle and they are raising the price every year which has a draining effect on your wallet because no one really wants to go backwards just because they suddenly re categorize your goods as luxury now.
I personally hate the luxury market with a passion due to how people are illogically attracted to it and how much it affects socializing. Not just the fashion industry.
They're quite a drain on the economy too, since they don't meaningfully contribute to society.
Utilitarianism, minimalism, and frugalism are always a good approach to living.
Every time you say athlete I'm mentally adding sarcastic air quotes around that word.
Yeah most athletes have a cheeto-free diet and upper arms thicker than their wrists.
Melee:
* Rushed out the door on Christmas 2001
* No balance patches, game is hilariously broken
* Only like 5 good characters and 1 good stage
* Loved by everyone
* Is the sole reason Nintendo still makes gamecube controllers
* The most played competitive Smash Bros much to Nintendo's chagrin
Overwatch:
💀
It seems odd a company managing teams got large enough to be listed on NASDAQ to begin with.
Most sports of medium to large scale seem to have a similar pipeline from player to broadcaster of some form, which probably has similar small percentage make that transition successfully.
This is one of the most accurate videos of this style I've ever seen. Most of the time people reporting on these topics are wildly off base.
11:57 here is where you are wrong though. In the West it is true, generally it doesn't matter what you look like. Western teams will generally take the most talented player(outside of behavioral issues), but in the East this is not true at all.
Famously the starcraft player July Zerg had an incredibly hard time getting onto a professional team despite being one of the greatest starcraft players of all time. Why? Because he was fat and ugly and the Eastern teams focus a lot on the fandom of female fans. Where the west focuses almost entirely on male fans. So often times the star players on eastern trams are handsome and sociable.
For a second example the Lol player Effort had a similar issues getting sighned to a team as he suffered from terrible acme. Which he had to have professionally treated before he could sign to a top team.
Your off base here. The popular Chinese and Korean players can transition quite well because they already have personal brands that the teams manage. They never say out right but they hire people based on work but it's kind of an unspoken rule.
I'm surprised he didn't mention the esports world cup happening. millions are being put up by a middle eastern org for a new tournament (series?) Starting this year.
Judging by the comments this channel is not the demo for esports news or analysis. Esports is widely popular but not with NA boomers.
When i worked at one of the big athletics brand companies i tried to convince them to sponsor some esport, they said no one is interested in it. They then spent 50K for one social media video (about 2 mins long) of some dancers who refused to wear their clothes or promote them. They final put a single hashtag. It resulted in absolutely no exposure.
There was a lot of wasted money like that.
So we got all these things pushed as next big thing by VCs: NFTs, Esports, EVs, clean energy and now AI..
EV's and clean energy are still inevitable. Or at least inevitable if we still want to have a liveable planet. 🤷 AI also isn't going anywhere. The most successful VC's are right significantly more often than they're wrong. That's literally how they make money and continue to exist.
@@Cooe. But they hype things up for their own profit for sure. The AI is so over-hyped, EVs are promoted for EVERYONE but they're not the best purchase for an average guy (poor EV charging infrastructure, high insurances, etc). Clean energy like nuclear fusion will play a very important role in the future for sure, but currently it's a far fetched dream if we need affordable energy. VCs have a history of hyping things up to a point that the bubble bursts.
@@Qwerty.240 "poor EV charging infrastructure, high insurances" For a typical commute you don't really need "infrastructure", and insurance is more tied to your habits of buying insane monstro cars that make no actual sense than EV's. A Chevy Bolt is 80 bucks a month to insure, just stop buying extremely expensive vehicles maybe.
"EVs are promoted for EVERYONE but they're not the best purchase for an average guy"
99.9% of Americans buy a car they don't need. High luxury sedans, huge oversized SUV's and pick ups, freaking mega boosted race cars etc...
Almost no car is the best purchase for an average guy but somehow, weirdly, it's when we talk about EV's that it starts to become an issue.
@@Qwerty.240 EV works very well for most cars but not if you drive very long or haul heavy loads. Electrical trucks is stupid for long haul.
@@magnemoe1So EV only works for 99% of journeys?
Phillip.
My significant other was a professional on the community/events side of the games industry for a decade, and from everything they told me about the vibe of the industry this is totally unsurprising. Pretty much everything that isn’t software sales is operating at a hard loss financed by VC or the software side. They told me that part of why Twitch had to clean house so hard on acquisition was because something in the >10% range of their expenses was just the party budget (not even the public facing events).
as in, the budget for partying? c0k3 and sh1t?
This video is about League of Legends Esports, not the whole Esports. In Counter-Strike 2 or other games, it's a different economy where the video game developer doesn't own and produce any tournaments.
you never talked about the FGC, those guys are killing it
Please don't say my Ninjas in Pyjamas investment is anything less than a rock solid home for my retirement funds.
They are not athletes. They are gamers. Chess is a game. Video games are games, not sports. You could argue a race car driver isn't an athlete. However, at lest a race car driver has demands on many parts of his body and there is a physical endurance factor. Video games aren't sports.
What about reflex ? Hand and fingers dexterity and precision? There are very few pro players who can physically play at 800 apm for a long time.
I think fighting games are a good example of physical endurance and dexterity for example with arcade sticks.
"Athletes"🤣🤣🤣
You don't understand the definition of "athletes" then
@@NoVisionGuy Definition: “Athlete”- a person who is proficient in sports and other forms of PHYSICAL exercise. Sitting in front of a screen for 7 years does not count as physical exercise only in clown world maybe but since we do live in a clown world I see where you’re coming from.
I never considered playing video games as a pro sport, and the hype about it is trash. It’s boring to watch. I much prefer watching a normal streamer play his game alone, I don’t want to watch some team of kids getting sweaty playing together as “pros”.
watch evo moment 37
@@pocketvices Even then, the Fighting Game Community is seen as a subset of eSports with some real staying power.
Each competitor in the FGC eSports are competing at an individual level, sponsored or otherwise.
banger. make more on this topic
Actual problem with eSports businesses is that the game studio has the upper hand, if you're the investor you'd have exposure in the developer not the participants.
I had to stop the video. I kept laughing when you called these nerds athletes. 🤓
😅😅😅
It's all playing game for cash, I guess in this case we can at least say carpel tunnel is a "better" outcome than some other games provide.
@justinweber4977 only a nerd would come to this conclusion 😆
@@brandonburns5365 My cover is blown!
"Everyone is losing money" also describes the current stock market :)
Irrelevant comment. It doesn't describe the stock market over time nor does it describe most other professional sports leagues. For example, the average NFL owner has seen a 300% ROI over the last decade.
Only if you're a ponzi schemer
@@vanillatornado8390 OP is likely just another tankie that thinks that throwing the capitalism baby with the corruption bathwater will solve all of the worlds problems, pinky promise.
Only if you bot on Thursday
Seems to be more an issue with top-down organized corpo esports. Any game with a decent sized competitive scene can be an esport as long as there's an appealing way to spectate games. There's quite a few scenes that have chugged along this way, with tournaments organized by hobbyists and modestly popular streamers without there really being much money involved. That's the big advantage of esports! The barrier to entry for organizing tournaments is really low. I remember one awesome tournament where a streamer simply had a bunch of world class players crowded into his apartment.
But then there's all these companies aiming for huge revenue off of esports that rarely have the fanbase to support it, operating on the assumption that the hoards of new fans will materialize if they just burn enough money on flashy events and elaborate marketing. But this somewhat chokes out the possibility for organic growth.
It would be interesting if you could do a deeper dive into the Chinese Pro League.
This is gambling but with a fancy name. It’s more like online gambling because you’re just staring at a screen but within the comfort of your own home if not at a stadium. The worst part like gambling is that what it does to your well being. I remember South Park had an episode of world of Warcraft where they all got fat, ugly and looked awful after being addicted for months. This is attrition at its finest. You will lose money and your mental well being.
recruit "athletes" - yeah "athletes"
Its beneficial for the ip holders but not sure how a stock for an esport organization will work they dont own the ip. Its not like they can dictate how league of legends or other ips are run
The difference between E-Sports and normal sports is that E-Sports were more artificial in growth than real sports(Ironic, really).
You have some E-Sports games/genre that stuck around because they developed a decent fanbase, but most of them just really don't stick. To make E-Sports profitable and able to stick around, you need to find a game/genre that can capture people's attention and keep it for the long run. It also has to be something your normie casuals can understand.
How do we know fraud is not the determining factor of who wins? All sports are a vanity project for the wealthy. But how do we prevent fraud on the part of league owners.
What do you mean by win? The tournaments I say who cares ? Who survives, I don't particularly care if the company gets defrauded, I don't see how the average consumer gets screwed here unless they invest, which is dumb as hell
What tranferrable skills do esports players have after they age out of their team.
yes
For one thing, being a social media influencer and content creator, especially if the esports player in question was mentored by any of the OGs of the organisation he/she joined.
Matthew 'Nadeshot' Haag is one such example as he went from full-time pro player in Optic Gaming to Founding CEO of 100 Thieves.
Not that much real-world skills.They could lack the big opportunity of going to university or learning a trade skill.
But coordination, communication, and discipline are good traits of these players. Not sure what job field would appreciate these the most.
@@yensteel Don't forget about leadership and mentoring in general.
@@crimcrusader8459 Thanks!
Just say it Wallstreet millennial. You need to be physically attractive to transition into entertainment. Which that Chinese esports player definitely was
A basic look at top Twitch streamers would go against that (unless you limit it to women, the site and its userbase seem to prioritize a certain look and content style for females streamers). What counts is charisma, and the type of gamer who has it is usually not the type to get into esports when there’s less skill-intensive ways to turn that into fame and money.
@@sertorius3319 I said entertainment as in on TV series, not video game streaming
@@EmperorDionx Fair enough, though I would add the caveat that the example WSM mentioned of reality TV is more skewed towards looks than some other TV programs. Certain genres can have a bit more leeway in that department. A funny-looking guy can still make it as a comedic actor, for example.
Sports in general are just for the rich to burn a lot of money. Not esports, but any sport. So, we should be just happy that Saudis for example decide to share their wealth by giving it back to us through entertainment/sports.
Wrong. Moat professional sports owners see multiple times over return on their investment in a relatively short period of time, far greater returns than the stock market. For example, NFL owners have seen a ~300% ROI over the last decade. Also, it sounds like you're pro sports washing. You're either a bot or kinda du..
10:34 contrary to what you are stating, their esports dvision is highly profitable though, so it have to be their other operations that are operating at a loss
I know I am never going to be the target market, but watching e-sports is just as dull as watching curling. The events are much ado about fuck-all.
What game did you watch? I'm not a lol fan but i watched the world's final and it was interesting (didn't understand 90% of it lmao)
@@Emerald_ForgeeSports is fun when you can join
I watch esports all the time and love it
Curling is much more fun to watch. Watching teams play video games is boring as hell. I much prefer just watching a single streamer play a game by himself. Stop trying to “sport” everything.
You can call them athletes until the cows come home let's see one of them run a mile
“Athletes”
I think ideally e-sport tournaments aspire to get to premier league, NBA and NFL levels of popularity where fans can stream the games globally. they can then sell broadcasting licenses to tv station streaming services etc. The big question though is, will it ever get to this point?
Is it still an industry in its nascent stages?
Only time will tell.
The problem is they want esports to get there through capital investment instead of organically improving their broadcast product. You can put an infinite amount of money in a pro water polo league and thats not going to change how many will watch.
eSports will never be lucrative like traditional sports. There is enough for individuals to support a career as a streamer, but the audience is there for the individual streamer. There's no silver bullet to how a company can make money from that situation.
The problem with esports that traditional sports like football don’t have is that unlike overwatch there’s never going to be a football 2
I think if you would spend 1min formatting the excel tables (same font, no grid and beautify) your videos would look way more professional
SBF was an fSports champion while also an eSports champion
nope. he was garbage at the games
@@toomanyaccounts He's surprisingly bad at League of Legends.
The irony of it all, is that he made a 10 year deal with TSM for naming rights for 210 million dollars until that deal fell apart following the collapse of FTX.
The 'reaction time' meme has been thoroughly debunked, the real issue is neuroplasticity and adapting to a game that literally changes drastically every two weeks, and that's just the game itself, it doesn't even consider the rapid player side innovation and growth that organically happens even with games that receive no updates.
Look at games that have been around for decades with highly developed competitive scenes, namely Street Fighter and Tekken. Reaction times are EVEN MORE important in those games than they are in League, yet there are players in their late 30s or even 40s still dominating. For a newer game like League, the player base is growing and a player that was in the top .01% of 5 million players in the early pro days will still need to be in the top .01% when there are 500 million players, chances are that's not going to happen. Now that League's style has been clearly defined for a long time now and the player base has reached its peak, you aren't seeing superstar talent pop out of nowhere with yesterday's star falling into irrelevance, the best players right now have been the best players for the past 5 years.
Let's not kid ourselves, a big draw for traditional sports is betting, there's a reason why so many people are willing to pay to watch them live and why leagues like the NFL and NBA can demand huge sums of money for broadcasting rights.
Interesting.
Many years ago, I came across an Xbox gaming competition on TV. As they went to commercial, the announcer said they would return soon with interviews with the gaming "athletes". I kind of laughed. It was the first time I heard the word "athlete" associated with gaming, and it got me thinking about the definition of "athlete". Those xbox dudes certainly did not look like "athletes", and you don't call players in a chess tournament (or fast rubik's cubers) athletes, so I was having a problem with it being used for xbox gamers.
I discussed it with friends and we kind-of decided that to be an athlete you needed to physically exert yourself and have full body locomotion. Physical conditioning would be necessary to succeed. I hadn't thought about it for years, but now I just heard it repeatedly in this video. Sorry WSM, I protest. Gamers are not athletes.
People like playing video games. But watching competitions of them?? I am not sure that is a natural progression and there could very well not be increasing demand for esports. Also many of the most poopular games do not lend themselves to esports
maybe because the idea of esports is mostly tied to the in-game characters than the people doing the competing
never heard of these teams or esport.
gues you dont follow gaming AT ALL
8:54 No Diddy
You gave the wrong information for League Of Legends, lower division teams cannot challenge the upper division teams for a spot. It is a franchise system, upper division teams had to buy in, consequently a team must be willing to sell their place for a lower division team to buy it.
I'm interested in your short reports, would you be able to do a free trail, even a period as short as 3 days would be fine, I think it is a bit of an ask to request $20 a month while having no way to check the quality of data🤔
I used to play call of duty every single day. My thumbs still hurt thinking about it 😂
I feel like the reason for this is that the companies that own the games just strangle them.
Like how are you going to make money from it You're going to make money from ads on streams and like sponsors to an extend because like somebody will always be willing to pay something to sponsor the teams or the streams to get their logo on it so that we only know that Intel exists or whatever. although that's a bad example because until probably doesn't want anyone to know they exist right at this moment.
The way to make money is through merchandise. gamers will buy stupid little things and they will buy themed clothing, as well as cosplay stuff and they will buy skins obviously. Brian needs to give up on having their own store because currently it sucks. they should leave the store up but they need to stop trying to just like sell six things as if it's like fucking supreme or something I don't even know what they're doing.
they need to let the teams make whatever merchandise they want to, even require it, and then put it on their storefront and then let the community make anything and basically start to enforce copyright to the extent that they don't shut everything down like Nintendo, But just corral people into their storefront. everybody can design things and make things sort of like teespring, riot just gets a cut of it whatever it is sold on the storefront.
and for the love of God they have to stop advertising to like young Gen z and Jen alpha like those are fortnite players they don't even know how to use a computer because everything they've ever used is a touch screen or console Like your audience is aging up so stop marketing towards children cuz you just are never going to capture them that way Like you have to turn it into something adults play that's cool and then kids will want to play it because adults play it this is like how every other game got big like starcraft wasn't big because of child was amazing It was like people and like their late teens and twenties were good at it.
I like to play video games from time to time and I will occasionally throw a buck or two to a player I like(not LOL) but I would never invest money in it, its almost laughable that someone would invest in it, the same goes for normal sports too!
So much money lost... unless you're the casino in Macau I guess
i like Esports but not to the level of physical sports. also it started as a free to watch, which was weird given it was marketed as a sport.
how long before gaming is an Olympic sport?
Sounds like owning a racing team. Even in F1, the majority of teams lose money let alone all the other racing teams in all the other leagues in the world.
Calling people playing video games “athletes” is crazy 😂
The word just doesn’t feel right in this case. There should be a better one.
Esports never became a major player in America and that's a huge factor in its limited appeal.
Could we not call them athletes, please? I’m mean it’s bad enough We call golfers
Little do people know that most top sports like American football don't make any money either, valuations of those franchises have nothing to do with profits, but based off what the last team sold for...
The game creators have millions of fans who will buy their games, play, and buy future games......this is where the real money is.....esports is just promoting the games
As an esports investor in Houston. I lost $20,000 out of my $25,000 investment in a team.
Your mistake was trusting anything in Houston
You win some. You lose some. Better luck next time brother 🙏
Ninjas in pajamas... My ninjas
To be fair, it's the same waste of money that real sports are.
No, real sports produces money from media rights deals.
Real sports actually bring in a profit though so what do you mean by waste of money?
7:42 don't call them athletes
My thought exactly
Those tums be racing to touch the next button in rapid succession
It's a me, a-Mario
I liked how Wall Street would show inages of the Old NIP Counter Strike roster and not the current clown car.
Also this video felt like it had no substance. Too much focus on China/Riot.
Starcraft Brood War is the original and best esport
The irony of it all is that it was not originally conceived as an eSport by Blizzard until South Korea made it popular as one.
Only then did Bilzzard decided to capitalize on the craze.
@@crimcrusader8459It took a couple of patches too. A corsair could lock down defenses easily when the game launched.
It wasn't competitive until the game became healthy and balanced. There's a nice video about the evolution of patches.
Still got Zerg rushed after all the balance changes were made. Some things never changed in the casual scene.
If that is all it takes to be called "athletes", then my fellow RUclips community...I'm proud to announce I am Cristiano Ronaldo, Mike Tyson, and Kobe Bryant (RIP) all rolled into one. I demand to be entered into every sports hall of fame!
I was going to complete in the Olympics but the hours of gaming on the Xbox took my energy.
You clearly dont play those competitive games lol.
Has any watched eSports ,not me, ever.
What
The money is in the games themselves.