How Data Science Shapes the eSports Industry

Photo by Florian Olivo on Unsplash

The definition of “sports” has shifted throughout history, constantly evolving to suit modern tastes. Ancient Greeks raced chariots; Ancient Romans spectated gladiator fights. Today, you won't find these sports outside of a museum. The topic of this article is a sports evolution on the horizon and approaching — fast. Here’s a hint: What has 3.24 billion players worldwide and draws hundreds of billions in revenue annually? Video games. 

The Emergence of eSports

In 2021, the International Olympic Committee announced the first Olympic Virtual Series: five gaming events staged before the 2022 Summer Olympics. This development may come as a surprise, but competitive gaming, or "eSports," is not unlike a long-accepted Olympic event: sharpshooting, which values fine motor skills over strength.

Most video games aren’t competitive, of course. However, technological advancements and explosive popularity have made some video games exceptions to the rule. In 2022, 180 million people played League of Legends. Many traditional sports are far less competitive: for example, tennis, with a player base of 87 million.

The eSports Economy

Hundreds of professional gamers now make a living by playing eSports. Thousands of influencers earn an income by streaming eSports and participating in amateur competitions. As a result, the eSports industry benefits from a diverse array of stakeholders: game developers, players, streaming platforms, advertisers, and viewers.

Newzoo reports, “eSports is set to generate nearly $1.38 billion in revenues by the end of 2022.” It estimates that “global eSports revenues will exceed $1.86 billion by 2025, representing a healthy CAGR of +13.4 percent.”

Data Science in the eSports Industry

Inextricably linked to eSports' future are the technologies that make competitive video games possible. Compare League of Legends to Pong, the first commercial video game. The former supports over 700,000 concurrent players, on average. The latter? Just two. League is leagues ahead of Pong when it comes to popularity, watchability, and really, everything else. That’s all thanks to technological advancement, most notably in a cutting-edge field that has utterly transformed video games since Pong’s release: data science.

Data science is the extraction and application of valuable insights from electronic information. It’s also the most crucial plank in the developmental bridge, so to speak, from early video games to modern eSports. Discussing every application of data science in eSports would require a much longer article, so we'll summarize. Data science has revolutionized eSports by ...

• Simulating complex, realistic in-game environments
• Generating live statistics and highlights for eSports streaming platforms
• Recommending targeted content to eSports viewers

Looking to the Future

Early investors have pounced on eSports as an emerging market with a promising future. Notable brands such as Red Bull, Louis Vuitton, and Intel sponsor eSports players, run commercials during eSports competitions and sell eSports-themed merchandise. Some have even partnered directly with eSports organizations. In 2019, appraisers valued three such eSports organizations above $100 million: Cloud9, Team Liquid, and TSM.

Ultimately, the eSports economy is thriving, with diverse stakeholders contributing to its success. Data science — a relatively novel practice with plenty of room to grow — plays a pivotal role in the development and advancement of eSports, revolutionizing the way games are played, watched, and enjoyed. As we look to the future, the growing investment and partnerships from prominent brands indicate that eSports isn't just here to stay but to grow.

About Synaptiq

Synaptiq is an AI and data science consultancy based in Portland, Oregon. We collaborate with our clients to develop human-centered products and solutions. We uphold a strong commitment to ethics and innovation. 

Contact us if you have a problem to solve, a process to refine, or a question to ask.

You can learn more about our story through our past projects, blog, or podcast.