Not too long ago, esports referred to something a couple video gamers might play by themselves to pass the time. Today, esports are poised to become the next crowd-pleasing spectator sport, played before thousands of screaming fans in stadiums worldwide.
According to Reuters, global esports revenues are anticipated to reach $1.1 billion this year, with North America generating $409 million. Esports viewership is on track to balloon to more than 600 million by 2020. As of now, North America’s audience comprises only 14 percent of the global audience. But in 2018 the continent generated 38 percent of global revenues, which totaled $806.3 million, according to Forbes.
No one is tracking esports’ evolution more keenly than Kansas City, Mo.-based Populous, a global architectural firm that designs stadiums, arenas and convention spaces. The firm’s current project is the Fusion Arena in Philadelphia, the largest purpose-build esports arena in the U.S., and first of its kind in the Western Hemisphere. Slated to break ground this summer, it is on track to open in 2021.
With professional gamers drawing social media followers in the hundreds of thousands, investment dollars are being funneled into leagues and stadiums, creating a commercial real estate investment opportunity where none existed several years ago.
Along with his colleagues, Brian Mirakian, brand activation director and senior principal at Populous, has intently scrutinized the growth of esports over the past five years and noted its surging online viewership over platforms such as Twitch.
“What’s exciting to see is that when esports fans gather together for the social experiience to watch these games, their excitement is just as high as it is for NFL, MLB and NBA games,” says Mirakian, a leading authority in the discipline of stadium and arena design.
Mirakian notes almost 80,000 fans came together to watch the League of Legends championship. ” The industry is at a tipping point now that there is a demand for esports to have a cathedral of its own ,” he adds. “For example, last November we opened Esports Stadium Arlington, esports’ largest and most robust venue in America.”
Maximizing social experiences
At the same time, in an effort to keep the turnstiles spinning, sports teams everywhere are aiming to find new ways of making their stadiums destinations while unlocking previously untapped value both in and outside the seating bowl. Long gone, Mirakian says, are the days when fans and event attendees preferred to sit in their seats for three consecutive hours watching a game, match or event. That “next-generation” audience member opts for a “choose your own adventure” mentality when it comes to attending sporting events.
Ths quest by owners to give them more is leading to a continual evolution in the retail, hospitality and technological amenities sports teams provide at their stadiums.
“Fans want to engage with the game or event in different ways,” Mirakian says. “From the second fans enter through the gates, they want to have several choices of how to interact with the game. And they want to migrate from place to place inside the building for new experiences within the game day or event experience. This means interactions involving new technology, food and beverage, sponsorship activation experiences. What Populous sees in the future is [fewer] seats and more space to gather together and watch the game or event from several places throughout the stadium.”
How esports fit
“Venues will evolve as esports continue to grow in popularity,” Mirakian predicts. “Where we are today is very different than where we’ll be 5 to 10 years down the road, so being able to design these venues for flexibility and growth is essential. In the future, these venues will be a vital part of a broader-scale entertainment strategy.”