eResearch | This week, Eric Bernofsky, COO of Enthusiast Gaming Holdings Inc. (TSX: EGLX), presented a session called “Navigating the Current eSports Environment” at the 2020 PocketGamer Connects Digital #2 conference (“PGC”). The online conference was run by Steel Media Ltd., a subsidiary of Enthusiast Gaming.
In the PGC session, Bernofsky spoke on how eSports was currently the smallest segment in the gaming industry, but he quickly followed up by saying it was also the segment with highest growth rate.
As the pandemic continues to extend lockdowns, large corporations who usually contract out advertisements to national sports leagues are now reaching out to the eSports industry, which is currently experiencing a spike in demand.
Traditional sports sponsors such as Nike Inc. (NYSE: NKE), Puma SE (ETR: PUM), and Adidas AG (ETR: ADS), are now sponsoring eSports teams and top players, while other brands such as Louis Vuitton SE (EPA: MC) also announced sponsorships.
To allow professional athletes to continue competing and creating new content for viewers during the lockdowns, traditional sports organizations are increasing efforts to converge their operations online.
Through the “2K” branded series of sports simulation games developed by Electronics Arts Inc. (NASDAQ: EA), the NHL and NBA have both recently experimented with eSports alternatives for hockey and basketball.
Shortly after lockdowns were announced, eResearch published an article on various national sports leagues and organizations who implemented strategies to adapt online, called “Real-Life Sports Go Virtual Through Video Games with Sports Betting Platforms Offering Ways to Wager”
Enthusiast Gaming
Enthusiast Gaming started as a games publisher focused mainly on the Nintendo Co., Ltd. (TYO:7974) platform. However, it has now expanded to multiple platforms with three important business segments: (1) Media, (2) Events, and (3) eSports.
Over the years, Enthusiast Gaming grew its Media business to over 100 websites and its Events business to numerous key partnerships, including influencers such as NFL player, Richard Sherman, and Grammy singer, Tory Lanes.
Enthusiast Gaming’s eSports division, Luminosity Gaming, has 50 eSports and gaming influencers, and 7 professional eSports teams, including its Overwatch team called the Vancouver Titans and its Call of Duty team named the Seattle Surge.
Luminosity Gaming leverages Enthusiast Gaming’s media and events capabilities to market its eSports teams through key partnerships and deals.
Enthusiast Gaming’s eSports News
See below recent partnerships announced by Enthusiast Gaming related to its eSports teams and platform:
- On May 20, 2020, Enthusiast Gaming announced a sponsorship deal between the Vancouver Titans and Pizza Hut Canada.
- On May, 11 2020, Enthusiast Gaming announced a partnership with Grammy-nominated artist, ZHU, who with Luminosity Gaming, is launching a global concert which will be live streamed on the front page of Twitch.TV, the most popular game streaming platform.
- On April 23, 2020, Enthusiast Gaming announced advertisement deals with gg and Checkmate Gaming, two major eSports community platforms that support competitive gaming, which together adds 400 million annual combined page views.
- On April 14, 2020, Enthusiast Gaming announced a partnership with Monkey Knife Fight, a leading fantasy platform for both traditional sports and eSports, to provide support for marketing efforts.
Unlike most industries struggling through the current pandemic, the gaming industry has continued to thrive as most platforms and games report surges in demand and user activity.
As eSports experience rapid growth through new partnerships and collaborations, it will be interesting to see if it can outgrow the traditional sports market.
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