Esports had been a pillar of the gaming industry, introducing millions of people to the space while lifting up talented players and giving them an opportunity to do what they love for a living.

Thousands of fans would travel across the world to watch their team compete, cheering on the top players like they were Tom Brady in the Super Bowl.

At least, that is what it was. 

Now esports has changed, an industry forced to turn a profit, or die in the process.

But what brought an industry to the brink of collapse. Let’s take a look.

History of eSports

Esports itself has been around for a long time, as gamers from the early 1970s would compete in games like Space Invaders and Donkey Kong.

But it wasn’t until the early 2000s that the industry was shaped into what it is today.

Now, most major competitive games have an eSports scene, from first-person shooter games (FPS) like Call of Duty, Valorant, and Counter Strike to multiplayer online battle arena (MOBA) games like League of Legends and Dota 2.

A Recap of the 2023 League of Legends Worlds tournament, run by developer Riot Games. The Event is primarily used as a marketing method for the game, which has been released for over 15 years.

It’s in the 2010s to early 2020s when esports hit its peak, with hundreds of thousands to millions of people tuning into events, players receiving multimillion-dollar contracts to play for teams, and prize pools hitting new highs at over $10 million for a tournament. 

But, all hasn’t been so rosy after the highs esports and gaming industries found during the COVID pandemic.

Since late 2023, companies have been consistently laying off employees from esports departments, with layoffs at Activision Blizzard accounting for more than 83% of their esports staff.

eSports organizations and teams have been shutting down or laying off employees as well, with some like The Guard, a popular Valorant team who won the 2023 Valorant Ascension Tournament, completely disbanding after difficulties within the market. Other teams, such as Vexed Gaming, and Sprout Esports also shut down due to a lack of growth.

A recap from one of the last events run by Beyond the Summit (BTS), an esports production company, highlighting moments from their Smash Ultimate Summit 6 in March 2023 before shutting down forever.

Major esports organization 100 Thieves has laid off a significant number of its staff while also selling its energy drink business, Juvee, and spinning off its game development studio. 

Across the gaming industry, an estimated 8,800 people have been laid off in 2024 alone, with an additional 10,500 in 2023.

And it’s hard to see, as for many people, this was a passion industry. Thousands of people would put hours upon hours of work, often for less than market pay and some long nights.

Now, it’s hard to imagine esports as a career, with Digiday saying,

“The gaming industry, once a dream industry for many, is no longer seen as a viable career path for those looking to subsist off of more than just passion.”

But what caused esports to fail? Money. 

It’s the crux of many industries, but esports in itself was never able to become profitable. For a long time, esports has been carried out by companies looking to use it as a marketing channel. Bring new sales and players through these massive events that essentially just promote the game.

However, It’s upsetting how many talented people lost their jobs working in an industry they loved and cared about so deeply.

For me, working in the gaming industry and esports was a dream. But now, it’s unlikely that it will ever hit the heights it saw from 2020 to 2023. 

However, I still believe a rebound will happen, and I’m not alone in this sentiment.

YouTuber Going Indie discusses the problems esports currently faces in its market, and the ways that it can, and should change to better grow and prosper in the future.

Esports isn’t done yet. While the next few years will surely be some of the most difficult the industry has ever seen, there is still hope.

I’m excited to see the new directions these events take, and how fans respond to the ever shifting landscape that their favorite players continue to navigate.

D’Anastasio, C. (2022, December 8). The hype around esports is fading as investors and sponsors dry up. Los Angeles Times. https://www.latimes.com/business/story/2022-12-08/esports-hype-fading-investors-sponsors-dry-up

Lee, A. (2024, February 6). After a wave of industry layoffs, careers in esports are looking less viable than ever. Digiday. https://digiday.com/marketing/after-a-wave-of-industry-layoffs-careers-in-esports-are-looking-less-viable-than-ever/

obsidian publish. (n.d.). game industry layoffs - 2024. 2024 - game industry layoffs - obsidian publish. https://publish.obsidian.md/vg-layoffs/Archive/2024

Šimić, I. (2024, March 26). Esports layoff Tracker 2024 - esports insider. Esportsinsider. https://esportsinsider.com/2024/03/esports-layoff-tracker-2024