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eSports, the short form for electronic sports, which involves competitive and organized video gaming as a spectator sport, has grown in scale and popularity over the past decade. Through eSports events, gaming companies organize tournaments and enable spectators to watch professional gamers compete against each other in a virtual environment.
While eSports is currently a small part of the huge video game industry, it is growing exponentially. The audience for eSports and online gaming is already very large. The ongoing COVID-19 pandemic-led social distancing environment has led to increased engagement and investments in the industry. Thus, industry players like Electronic Arts (EA - Free Report) , Activision Blizzard and Take-Two Interactive (TTWO - Free Report) should gain.
Growing eSports Market
The industry has been seeing growing demand since the last year as video games and online game streaming was a major source of entertainment for millions of people locked indoors amid the ongoing COVID-19 pandemic.
According to data compiled by Esports Earnings, approximately $193 million has been awarded across 3,988 eSport tournaments in the year so far. That’s compared to $124 million distributed as prize money in 2020.
Over the past decade, the number of professional eSport gamers has grown to 20,469 in 2021 from 3,844 in 2011, per the data recorded by tracking website Esports Earnings. The total prize money has increased exponentially to approximately $193 million from $11 million in 2011.
According to Germany-based market and consumer data compiler, Statista, the worldwide market size for eSports increased to $1.28 billion in 2021 from $0.97 billion in 2020. The same is anticipated to reach $2.89 billion by 2025. The global audience size grew to 474 million in 2021 from 435.9 million in 2020 and is expected to reach 577.2 million by 2025.
Investors can tap this burgeoning market by keeping track of the following stocks.
Electronic Arts: This Zacks Rank #2 (Buy) global interactive entertainment software company delivers games, content and online services for Internet-connected consoles, personal computers, mobile phones and tablets. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
In an effort to push toward the eSports market, Electronic Arts acquired the leading developer and publisher of mobile games, Glu Mobile, earlier this year. The acquisition is expected to have aided the growth of EA’s mobile business, building on its network of 100 million monthly active players in mobile, and creating a market-leading portfolio of more than 15 top live services across multiple fast-growing genres.
The company is also focusing on enhancing player and spectator engagement by making its tournaments accessible to all players. Electronic Arts’ Madden and FIFA have been its biggest franchise games. According to Statista, the company holds a 3.8% market share in the eSports space.
Activision Blizzard: It is the world's most successful standalone interactive entertainment company with a worldwide market share of 21.9% in the eSports category, according to Statista. The stock has a Zacks Rank #3 (Hold).
Activision Blizzard has been aggressively pushing itself in the eSports space by focusing on building highly engaged communities of gamers and audiences. Its Call of Duty, Overwatch, and StarCraft gaming franchises are among the top competitive titles in league tournaments.
Activision Blizzard benefited from the shift to digital download format. The company’s policy of updating games all year round increased revenue visibility and stability. The game developer, which runs the professional eSports league, also signed sponsorship deals with carmaker Toyota Motor Corporation, wireless provider T-Mobile US and computing companies HP Inc. and Intel Corporation (INTC - Free Report) .
Take-Two Interactive: This Zacks Rank #3 company is a leading developer, publisher and marketer of interactive entertainment for consumers around the globe. The company used one of its most popular NBA 2K basketball series to launch its first eSport league, which has been a huge success.
The video-game developer’s blockbuster Grand Theft Auto series has a huge potential to pull massive gamers and spectators for the eSport tournament. Per the data compiled by Statista, the company holds a 1.9% market share in the eSport space.
TakeTwo Interactive Software, Inc. Price and EPS Surprise
Image: Bigstock
3 Stocks to Watch as eSports Trend Gains Momentum
eSports, the short form for electronic sports, which involves competitive and organized video gaming as a spectator sport, has grown in scale and popularity over the past decade. Through eSports events, gaming companies organize tournaments and enable spectators to watch professional gamers compete against each other in a virtual environment.
While eSports is currently a small part of the huge video game industry, it is growing exponentially. The audience for eSports and online gaming is already very large. The ongoing COVID-19 pandemic-led social distancing environment has led to increased engagement and investments in the industry. Thus, industry players like Electronic Arts (EA - Free Report) , Activision Blizzard and Take-Two Interactive (TTWO - Free Report) should gain.
Growing eSports Market
The industry has been seeing growing demand since the last year as video games and online game streaming was a major source of entertainment for millions of people locked indoors amid the ongoing COVID-19 pandemic.
According to data compiled by Esports Earnings, approximately $193 million has been awarded across 3,988 eSport tournaments in the year so far. That’s compared to $124 million distributed as prize money in 2020.
Over the past decade, the number of professional eSport gamers has grown to 20,469 in 2021 from 3,844 in 2011, per the data recorded by tracking website Esports Earnings. The total prize money has increased exponentially to approximately $193 million from $11 million in 2011.
According to Germany-based market and consumer data compiler, Statista, the worldwide market size for eSports increased to $1.28 billion in 2021 from $0.97 billion in 2020. The same is anticipated to reach $2.89 billion by 2025. The global audience size grew to 474 million in 2021 from 435.9 million in 2020 and is expected to reach 577.2 million by 2025.
Investors can tap this burgeoning market by keeping track of the following stocks.
Electronic Arts: This Zacks Rank #2 (Buy) global interactive entertainment software company delivers games, content and online services for Internet-connected consoles, personal computers, mobile phones and tablets. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
In an effort to push toward the eSports market, Electronic Arts acquired the leading developer and publisher of mobile games, Glu Mobile, earlier this year. The acquisition is expected to have aided the growth of EA’s mobile business, building on its network of 100 million monthly active players in mobile, and creating a market-leading portfolio of more than 15 top live services across multiple fast-growing genres.
The company is also focusing on enhancing player and spectator engagement by making its tournaments accessible to all players. Electronic Arts’ Madden and FIFA have been its biggest franchise games. According to Statista, the company holds a 3.8% market share in the eSports space.
Electronic Arts Inc. Price and EPS Surprise
Electronic Arts Inc. price-eps-surprise | Electronic Arts Inc. Quote
Activision Blizzard: It is the world's most successful standalone interactive entertainment company with a worldwide market share of 21.9% in the eSports category, according to Statista. The stock has a Zacks Rank #3 (Hold).
Activision Blizzard has been aggressively pushing itself in the eSports space by focusing on building highly engaged communities of gamers and audiences. Its Call of Duty, Overwatch, and StarCraft gaming franchises are among the top competitive titles in league tournaments.
Activision Blizzard benefited from the shift to digital download format. The company’s policy of updating games all year round increased revenue visibility and stability. The game developer, which runs the professional eSports league, also signed sponsorship deals with carmaker Toyota Motor Corporation, wireless provider T-Mobile US and computing companies HP Inc. and Intel Corporation (INTC - Free Report) .
Activision Blizzard, Inc Price and EPS Surprise
Activision Blizzard, Inc price-eps-surprise | Activision Blizzard, Inc Quote
Take-Two Interactive: This Zacks Rank #3 company is a leading developer, publisher and marketer of interactive entertainment for consumers around the globe. The company used one of its most popular NBA 2K basketball series to launch its first eSport league, which has been a huge success.
The video-game developer’s blockbuster Grand Theft Auto series has a huge potential to pull massive gamers and spectators for the eSport tournament. Per the data compiled by Statista, the company holds a 1.9% market share in the eSport space.
TakeTwo Interactive Software, Inc. Price and EPS Surprise
TakeTwo Interactive Software, Inc. price-eps-surprise | TakeTwo Interactive Software, Inc. Quote