E-Sports Analytics

Project Aim

Understand the functioning of emerging E-sports market segment
Analyze the revenue structure and financial aspects of the market
Perform a comparative analysis with traditional sports with regard to the revenue, strategies among others.

Members

Ashwin KV
Aaron George
Kunal
Neil
Navneeth

Work Done

Forecasting and Time series analysis of E-Sports and other traditional sport tournaments like UEFA CL, NBA, IPL etc.

Future Scope

The growth of E-sports is incredibly huge in the recent years. With COVID 19, It is expected to increase further. Analysis at ground root was performed to compare the two sporting cultures. A detailed analysis would further give insights on the market size and the vast opportunities in the E-Sports segment.

Analysis Files

Click here to see the files used in Analysis.

Data-Compilation used

As defined by the Oxford English Dictionary, a sport is “an activity involving physical exertion and skill in which an individual or team competes against another or others for entertainment.” Under this definition, we believe eSports are as much of a sport as any other, and one that at the highest levels requires intense training and focus. Professional eSports teams train for up to 8 hours a day, have coaches, trainers, and nutritionists on staff, and players receive base salaries, just like any pro sports league. In the U.S., there are roughly 50 colleges that have varsity eSports teams, and eSports are under discussion for inclusion in the 2024 Paris Olympics, according to the BBC.

Due to the growing popularity of survival-based games Fortnite and PUBG, we believe eSports viewership is moving more into the mainstream, which should support a 14%audience growth CAGR for the next 5 years. Recently, Epic games announced that it would set aside $100mn in prize pool for the first year of Fortnite eSports tournaments, nearly the size of the entire eSports prize pool in 2017. With growing incentives for eSports players, and by extension more interest from the casual observer, we believe the eSports audience should continue to outpace the growth of traditional leagues.

The above figure shows how the total revenue of esports has varied over the past few years in million dollars. We also predict how by how much the revenue is expected to increase by analysing the stats of the past years. We compare the revenues generated by different leagues of various sports.

English Premier League

Bundesliga

La Liga

Serie A

Ligue 1

UEFA Champions League

NBA

Forecast of when Esports will overtake UEFA Champions League in terms of Revenue

We conduct polynomial regression to predict the revenue of Esports and UEFA Champions League. We then equate the equations developed and solve. We attain the year at which the revenue and UEFA Champions League are equal.

Regression Equation for Esports: y= 0.0176x^2 - 70.957x + 71365.88

Regression Equation for UEFA Champions League: y = 0.00522x^2 - 20.864x + 20831.80

To find the year when the revenues become equal, we equate the 2 regression equations

0.0176x^2 - 70.957x + 71365.88 = 0.0052x^2 - 20.864x + 20831.80

0.0124x^2 - 50.093x + 50534 = 0

x = 1952.138 (Reject) , 2087.619

Prediction: With other conditions remaining similar to the previous years, it is predicted that the revenue of esports will take over that of UEFA Champions league by 2087.

The above fig. shows how the revenue is distributed for Esports and NBA. Esports attains a high percentage of revenue from sponsorships. Further, Esports can work on increasing its revenue percentage in media rights.