eSports News, page-6

Hi everyone. Here's the latest news regarding eSports, but about investments in particular.

Why am I posting this?

The Kelogg's tournament powered by Mogul places the mogul.gg platform on the eSports map in Northern America (and the world). This is important because big companies have set aside billions of dollars on the side, as you can read from the article, looking around... a shopping budget if you like. I quote, “There’s a huge amount of money that’s getting pumped into companies around the world. There are acquisitions going everywhere, and that led me down this path where I saw a niche setting up a global active esports fund.” Link to the article is below. I will post about mobile games in due time (I'm watching game.tv (Silicon Valley based) as they are first movers in the mobile eSports sphere) once ESH app is released (NB. For those not in the know reason for Android before iOS is because on Android you can play the app by linking to your computer). Anyway back to money and investments in the industry that ESH is moving in to take a slice of pie.

Valuations

Traditional investors need to appreciate that investment in esports is analogous to investment in early-stage or even mid-stage tech companies because a lot of the fundamentals around valuations such as price-earnings ratios get thrown out the door. “This is a growth area, not a fundamental portfolio.”

The ecosystem extends far beyond just the game owners. “[It’s] the software owners. Also, who owns the hardware? Who owns the cloud devices? Who owns the pipes? There are obviously big players like Ten Cent who are just going after everything. But there are other big players there like Corsair Games or Netease.”

Forecast revenue for the gaming industry, of which esports is a sub-category, in 2020 was US$159.3 Billion and is expected to grow to US$200bn by 2023. For perspective the combined Film and Music Industry was worth approximately $US100 Billion.

In a report from August 2020 called The Global Gaming Industry Takes Centre Stage, Morgan Stanley analysts identified a range of current and future growth drivers including “… new ways to play (multi/cross-platform, streaming), pay (full price, free-to-play, and subscription) and engage (esports and live streaming), which Morgan Stanley Investment Management estimates will result in double-digit industry sales growth globally through 2025.”

Furthermore, they wrote, “High levels of player engagement within global gaming franchises, the opportunity for operating leverage as businesses increasingly transition to a recurring-revenue subscription offering, and the vast opportunities in mobile gaming, particularly in the emerging world, only enhances the industry’s appeal.”

https:// which-50.com/investable-opportunities-abound-in-esports-as-cash-mountains-grow-just-not-in-australia/