Will we see an improve on esports revenue through 2018?

reports from Newzoo early last year expected there to be a continuation of growth following the unexpected 60% year on year revenue from 2015 to 2016.

However, following delays to the launch of Overwatch and NBA 2K leagues and the fact that PUBG is unproven in the competitive scene, 2017 actually saw a sharp downturn in revenue.

In fact, YoY revenue drastically dropped from 51.7% in 2016 to just 33.9% in 2017.

Via https://newzoo.com press release

Industry leaders Newzoo also revealed that events and league organised directly by publishers are generating less revenue from direct advertising and sponsorship.

And following the PUGB invitational tournament, we saw some pretty serious problems that even dev Brendan Greene agreed there were problems not only with the tournament but the game itself.

 

Despite the popularity of the game, it was clear that sponsors and third party event organisers weren’t quite willing to jump on board of a game that was still in early access.

That being said, there has been an increase throughout 2017 of teams gaining more sponsorship rather than the event organisers.

2018 improvement?

While 2017 might have been a downturn on revenue, 2018 could very well see a huge increase financially from sponsors and advertisers, but also a growing popularity from mainstream media with the likes of Sky Sports and BT both showing events on UK TV.

Newzoo will be releasing their first quarterly report of 2018 that will give us an early indication of where this year will finish – be sure to check back here next month for a breakdown of the report.

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