How the Big 2020 Event Cancellations Have Affected Esports Winnings
COVID-19 has had a major impact on the gaming industry, from causing widespread delays to new game releases to prompting a boom in profits as more people stay at home and play games. However, where the games industry in general has been affected in one way, the impact on the esports industry has been somewhat different. Despite booming viewership, the top 2020 esports winnings have plummeted… though they may yet bounce back before the year comes to an end.
The Impact of COVID-19 on the Esports Industry
Last year, 2019 proved to be one of the most profitable years ever for the esports industry. When you add up all of the big esports tournament prize pools from 2019, the total winnings amount to a massive $227 million. Until the emergence of COVID-19, the esports industry seemed to be on course for an even larger year in 2020. That expectation, of course, has been thoroughly derailed. While online esports tournaments do continue, practically all major tournament events have been cancelled or postponed.
Fortunately, given the nature of esports, shifting to a primarily online format has been possible for most tournaments. The problem is that the big in-person events which have become a staple of the industry are not currently feasible. Those events, after all, are highly profitable, thanks to the combination of ticket sales, advertising revenue, sponsorship deals, etc. As such, the prize pools for esports tournaments thus far have been notably lower than those in 2019.
A Steep Drop in Esports Winnings in 2020
As stated above, when you total all the major esports tournaments’ prize pools in 2019, the figure stands at $227 million. Thus far in 2020, the total prize winnings have only managed to reach $32.5 million; a steep drop of almost 86% from last year’s total. Of course, the top players have still won enormous amounts of money. However, the total nonetheless pales in comparison to where the industry stood a year ago. With half the year already gone, it will take a great deal to catch up to the 2019 record.
Now, it would be easy to jump to conclusions at this point and project a downturn for the esports industry’s earnings. However, it’s worth noting that the sharp drop in winnings has come alongside a boom in esports viewership. With more people staying at home during lockdown, viewership of esports tournaments has been at an all-time high. (In the same way that game services like Xbox Game Pass have seen record numbers of sign-ups in recent months.)
If viewership was also down, then the esports industry might actually be in trouble. Such a downturn could result in investors withdrawing funding, reducing the size and number of tournaments (and their prize pools). New gamers looking to get into the Rainbow Six tournament scene, learn how to make money playing Fortnite, or get started with the Apex Legends Global Series, may not be as inclined to do so, causing search traffic and other revenue streams to stagnate too, etc.
However, since the opposite is the case, the esports industry is in an unusual moment. Yes, the industry will probably not be as profitable as last year (like almost every other industry during the lockdown). However, it stands to emerge from lockdown in a relatively strong position. Indeed, the heightened viewership figures may actually make esports tournament events a more attractive investment than they were before. As lockdowns begin to ease, events currently on hold will begin to start up again. As a result, the total winnings figure this year is likely to spike as we approach the end of 2020.
Will the Esports Industry Bounce Back Before the Year Ends?
In all likelihood, the figure for total winnings for esports players in 2020 is likely to increase dramatically before the year ends. Whether it will actually reach the 2019 figure, however, remains to be seen. (And is perhaps a less likely prospect.) Some major events, after all, may not be able to rearrange to take place before the end of the year. As such, they may opt to simply wait for the start of a new tournament season in 2021. If so, then it’s possible that the prize pots for certain tournaments next year could be extra large, as unused 2020 winnings get repurposed.
It’s worth bearing in mind, too, that 2020 has seen the launch of several new esports tournaments which could prove to be enormous in 2021. The Call of Duty League and Valorant Ignition Series, for example, have both attracted enormous attention since launch. (Despite the impact of the COVID-19 pandemic and lockdown.) The Apex Legends Global Series is also currently running its Summer Circuit event, with a $500,000 prize pool on the line. If these major tournaments can all thrive in lockdown, the likelihood is that they will get even larger next year.
Of all the tournaments currently ongoing, the one most worth keeping an eye on may be the Valorant Ignition Series. From the outset, Riot Games have clearly been angling to usurp CS:GO’s long-standing place in the esports circuit. The very recent launch of the Ignition Series is their first step into esports for Valorant. However, the title has already attracted record-breaking attention from gamers. As the game receives more content and the Ignition Series finds its feet, Valorant could very well become the next big esports phenomenon in 2021.