Commentary

E-sports: Unpacking an unusual evolution

E-sports appears to be carving out its own identity in OOH entertainment. How significant that niche will become remains an interesting question.

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May 30, 2022 by Kevin Williams

In looking at immersive entertainment in the out-of-home scene, it's safe to say that competition, the historical basis of much if not most gameplay, has evolved into e-sports.

A true understanding of how out-of-home entertainment can embrace and profit from this genre, however, remains a matter of serious discussion.

While e-sports is a relatively new segment of OOH entertainment, it has embodied the tournament/competitive socializing element of the amusement business to the extent that it has created a perception that nearly all OOH entertainment competition falls under this term.

Veteran observers, however, are well aware that this perception is false, which leaves the question: What role does e-sports play in today's and tomorrow's OOH market?

A look at the record

Some history is in order.

Amusement actually cut its teeth in the origination and adoption of competitive play in an industry that established collection and promotion of players' stats, first with Taito's "Space Invaders" in 1978, and its highscore chart.

In 1991, the first Capcom "Street Fighter 2" competitions brought the first big gaming championships and prize league competitions. As the originator of the connected machine tournament, Capcom supported international league and final championship live events defined by Incredible Technologies' "Golden Tee Tournament Edition" in 1997.

The industry can actually trace its roots in social competition back further to the pinball and bowling league engagements.

Which leaves the question: Why is it that e-sports is not a major pillar of the amusement business?

Where we are today

There have been rare flashes of inspiration in the amusement trade towards embracing e-sports, best illustrated by the Konami "Bemani Pro League," now in its second season.

The importance of the establishment of the modern tournament and championship community that drives many of the most popular e-sports tournaments in arcade gaming is illustrated in the likes of the EVO, the Evolution Championship series.

EVO, for its part, has evolved into a multi-format tournament that has come on to generate streaming and live event status. Its success was such that, in 2021, the competition was acquired by a joint venture of Sony Interactive Entertainment and RTS, spun out of talent and media agency Endeavor Group.

EVO then reverted to an online championship that year, focusing on PlayStation console gaming competition during the lockdown, but plans to return to mass live events this year.

Investment continues

Meanwhile, significant investments in e-sports continue.

Saudi Arabia's Public Investment Fund, created by the government to stabilize major investments in technology, has invested $500 billion in e-sports in addition to videogame publishers such as EA and Take-Two.

Savvy Gaming Group, owned by the Saudi fund ESL Gaming which is now merging to become ESL Faceit Group, aims to become the leading competitive gaming platform.

The race scene

Then there's the racing scene factor.

The U.K. saw the announcement that a new "Formula 1 Racing Experience" that will be developed and opened in London, with e-sports as a major component. The development sees partnership with F1, organizers of Motorsport Games and Kindred Concepts.

Motorsport Games studios is working with F1 on the race experiences based on its rFactor platform.

Kindred Concepts will be working with Landsec on the development and operation for a Q4 2022 opening of a site comprising some 60-motion race-rigs. This racing facility venture is focusing on competitive socializing and will be opened in One New Change, a retail and hospitality mall next to St Paul's Cathedral in London.

The announcement of this partnership towards launching an F1 motorsports entertainment experience comes a matter of months after the announcement of the "Ferrari Experience."

The sportscar manufacturer and Formula1 team have partnered with media attractions developer Simworx and facility designer Katapult to create an experience venue that will comprise an e-sports hub, along with simulator rides and a hospitality component.

The motorsports race-rig (simulators) scene has also mushroomed.

The first real multi-player amusement racing game can trace its crude start to Atari Game's "Gran Trak" 1974 release, but it would not be until the 1987 Namco smash "Final Lap" that multiple cabinets could be linked up in competitive racing, a maximum of eight racers, head-to-head.

Network racing competition was championed by the 1996 "San Francisco Rush — Extreme Racing" by Atari Games, one of the first to incorporate a true tournament mode.

Sim-racing has since blossomed, with race simulator centers opening, now infused by the e-sports mantra. This latest investment will hope to place it firmly on the social entertainment map.

E-sports appears to be carving out its own identity in OOH entertainment. How significant that niche will become remains an interesting question.

(Editor's note: Extracts from this blog are from recent coverage in The Stinger Report, published by Spider Entertainment and its director, Kevin Williams, the leading interactive out-of-home entertainment news service covering the immersive frontier and beyond.)

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About Kevin Williams

Along with advisory positions with other entrants into the market he is founder and publisher of the Stinger Report, “a-must-read” e-zine for those working or investing in the amusement, attractions and entertainment industry. He is a prolific writer and provides regular news columns for main trade publications. He also travels the globe as a keynote speaker, moderator and panelist at numerous industry conferences and events. Author of “The Out-of-Home Immersive Entertainment Frontier: Expanding Interactive Boundaries in Leisure Facilities,” the only book on this aspect of the market, with the second edition scheduled for a 2023 release.

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