Sports Subbed out for eSports
With sports seasons dead and buried, athletes from footballers to racing drivers are entertaining millions on simulators and in back gardens. Disney’s ESPN has had nothing to go on for weeks, and now investors are stoked for the airing of eSports tournaments!
Verizon estimates a 75% increase in data usage in the gaming sector since the lockdown, with even musicians opting for online gigs. Analysts at Wells Fargo reckon we’ve struck a catalyst for the billion-dollar industry. It’s “fantastic for eSports,” they say, recommending traders jump on this sector as competitive video games finally get their shot at the mainstream.
The bulls and bears here are separated by generation. Tournaments, players, and investors make their money through ads in the space, but Jon Harron, senior director of AdColony, doubts if “55-year-old cable viewers will ‘dig’ teenagers playing computer games on broadcast television.” Actually, industry insiders couldn’t care less about cable!
It’s live-streaming. It’s ‘bolt on’ shows at entertainment conventions. It’s video game sales, computer hardware showcases, and merchandise promos. The big winners in eSports so far have been online streamers like Twitch (owned by Amazon), Mixer (owned by Microsoft), and Caffeine (funded by Disney).
Live-action on those platforms has supported the companies making the games, like Take-Two Interactive and Activision Blizzard. Invstrs love these names. They each command 93% bullish sentiment from the community, and it’s not surprising given their resilience amid this downturn.
Discord, the gamer’s version of Skype, is also attracting attention as rumors swirl that it could float an initial public offering (IPO) soon. This universe is bigger than you think. Don’t take your eyes off it!