ESPORTS INNOVATION & OPPORTUNITIES STARTER PACK
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ESPORTS INNOVATION & OPPORTUNITIES STARTER PACK +
WHO IS CUSTOMER
MARKET GRAVITY? STRATEGY
VALIDATED
+ DELIVERY
COMMERCIALLY
VIABLE
We design and launch new
products, services, and
experiences. We take strategies or ideas and turn them into
customer-validated and commercially-viable prop-
ositions that are ready to launch. Fast.
Deloitte was so impressed that they acquired us
to bring our services to people like you.
3
THE D5 PROCESS LEARN THE D5 MISSION
We talk directly to a sizeable number
of customers and experts, diving deep
into their lives and how the explored
D5 IS MARKET GRAVITY’S OPEN INNO- topic affects them. Our learnings con-
VATION EFFORT. TOGETHER WITH OUR verge in key opportunity areas that de-
PARTNERS AT DELOITTE, WE EXPLORE fine the way forward.
INTERESTING QUESTIONS, EMERGING
INDUSTRIES OR NEW MARKETS AND
UNCOVER KEY INSIGHTS THAT ALLOW Design 5 concepts that
will capitalize on
US TO DESIGN SOLUTIONS THAT WILL
HELP BUSINESS THRIVE IN THESE
CONTEXTS. CREATE
AND WE DO IT IN JUST 5 WEEKS. Using our insights as fuel, we ideate
concepts that are appealing and mar-
the most significant
ket-relevant. We then visualize and
BY THE END WE HAVE A CLEAR UNDER-
STANDING OF WHAT THE PROBLEM IS,
WHY IT EXISTS, AND HOW WE CAN BE-
prototype them in varying formats. opportunities for sporting
GIN TO SOLVE IT.
organizations & their
partners in eSports.
TEST
We go back to the experts & custom-
ers to show them our concepts and let
them do the talking. We identify which
concepts resonate the most, then re-
fine and iterate them.
5
WHAT IS BY THE NUMBERS
ESPORTS? THE CATEGORY
1B+ 27.5%
A form of competitive video games. Played in-venue at in revenue CAGR
2O16-2O21
a professional level, garnering a large and captive
following.
THE FANS
• Multiplayer component
• Played competitively for prizes or money
• Large online or offline audience
38OM 26
• Active and involved community audience size
globally 2O18
average age
• Infrastructure supporting tournaments
7
SPORTS SIMULATION GAMES FIRST PERSON SHOOTERS REAL-TIME STRATEGY/ONLINE
Individuals or teams compete to win and ad- 2 teams of players compete in a variety of ob- BATTLE ARENA
vance in a mixed league-tournament format. jective-based game modes to determine the
winner. Individuals OR teams, depending on the title,
compete to eliminate or conquer the other
team.
Titles include:
Madden, NHL, NBA 2k, FIFA, Rocket League Titles include:
Apex Legends, Call of Duty, Halo, Fortnite, Player
Unknown Battlegrounds, Counter Strike, Over- Titles include:
Why it’s unique:
THE ESPORTS Able to capture sports fans avidity by making the
gameplay, tournaments, and engagement feel re-
Watch DOTA 2, League of Legends, Starcraft 2
Why it’s unique:
GENRES markably similar to the real-life sport. Why it’s unique:
Evolving to become more cross-platform, as this
space was dominated by PC gamers exclusively
This category contains the most popular eSports
titles, with tournaments that consistently com-
for a long time. mand the largest prize pools.
ESPORTS IS PLURAL FOR A REASON: A
VAST NUMBER OF NUANCED GENRES LIVE
UNDER THE UMBRELLA, EACH OFFERING
UNIQUE COMPETITIVE SCENES. FOR THE RACING GAMES FIGHTING GAMES
SAKE OF THIS PRIMER, THE FOCUS HAS
Multiple individuals race to advance, usually Two individual players fight to determine the
BEEN PLACED PRIMARILY ON SPORTS based on time and placement. winner.
GAMES AS AN ACCESSIBLE ENTRY POINT
INTO ESPORTS.
Titles include: Titles include:
Formula 1, Forza, TrackMania Street Fighter, Super Smash Bros., Mortal Kom-
bat, Marvel vs Capcom, Dragon Ball Figther Z
Why it’s unique:
Most racing games are ‘simulated’ at the high lev- Why it’s unique:
el – not necessarily on a controller. Played in a ‘double elimination bracket’ format –
allowing for dramatic comeback storylines. OTHER
Popular titles that do not fit into any other cat-
egory: Hearthstone, Chess, Catherine
9
THE ESPORTS ECOSYSTEM FANS
The cohort of individuals who play and view eS-
BROADCASTERS
The organizations and groups responsible for
THE STAKEHOLDERS THAT INTERACT TO BRING ESPORTS ports games and tournaments, both online and the televising and transmission of eSports tour-
TO LIFE FOR FANS. in person. Fans range from casual players, to naments & events. They facilitate advertise-
avid tournament attendees and amateur com- ments during broadcasts and produce supple-
petitors. mentary media assets.
TEAM SUPPORT SPONSORS & PARTNERS
GAME DEVELOPERS Support staff responsible for the needs of pro- Organizations or groups who dedicate mone-
& fessional players. They provide coaching, treat tary or physical resources to tournaments. They
PUBLISHERS injuries, and take care of team-home mainte- provide marketing, broadcast and logistical sup-
nance and provisions. port.
SUPPORT TEAM PARTNERS
& SPONSORS
PROFESSIONAL PLAYERS VENDORS
The cohort of individuals who compete, play, Organizations who either physically or digitally
and stream professionally in eSports games, develop kiosks and points of sale with tourna-
tournaments, and events. Likely part of a team ment and gaming related products. They are
and backed by support, professional players un- responsible for providing tournament and gam-
dergo rigorous training. ing-related merchandise.
PROFESSIONAL FANS
PLAYERS VENDORS
TOURNAMENT ORGANIZERS TOURNAMENT PRODUCTION STAFF
Individuals responsible for organizing the mov- Staff responsible for technical, and logistical el-
ing pieces that come together to create a suc- ements of running the tournament. They man-
cessful tournament. They determine format & age stage and stream production equipment.
ruleset of tournament, organize logistics, man-
age vendros, and settle disputes around DQ’s,
TOURNAMENT cheating, and glitches.
TOURNAMENT PRODUCTION
ORGANIZERS STAFF
GAME DEVELOPERS & PUBLISHERS
The organizations and groups responsible for
BROADCASTERS
creating, developing, and distributing video
games. Games are designed for both competi-
tive and casual play, and developers are often in
dialogue with fans and tournament organizers
to improve gameplay.
11
Most eSports titles are not virtu-
MAINSTREAM al counterparts of a real sport, but
rather grassroots competitive scenes,
often bolstered through support of
ESPORTS the game’s original publisher.
These games are often among the most
purchased video game titles, and com-
mand large international followings.
13
OVERWATCH
A competitive shooter created by Blizzard,
played in teams of 6. Teams attempt to com-
plete objectives to earn points, all the while
dodging and interacting with the enemy team.
Format
The Overwatch League’s teams are permanent
franchises representing major cities across the
globe. There are now 20 active franchises - a
number expected to grow, that share a fierce hun-
ger for the Overwatch League championship, as
well as for the USD $3.5 million in performance
bonuses at stake in the inaugural season. As the
league transitions to a home-and-away model,
and with the immense success of trial “Home-
stand” events, OWL looks to grow its momentum
moving forward.
1O.8M 18k
league final in-person
viewers viewers
15
FORTNITE
The game that brought the now iconic “Battle
Royale” competitive format to the forefront.
100 players compete for resources and guns
on an ever-shrinking island, with the last one
standing winning. Game-modes within this
competitive space include ‘duos’, a competi-
tion between 50 teams of two.
Format
Fortnite hosts seasonal online tournaments, now
including the Fortnite World Cup open to anyone.
The attraction to its competitive scene is largely
due to the games ubiquitous nature as the first ti-
tle to be played competitively across all platforms,
making it one of the most accessible esport
games ever. Despite criticism from pro players,
the game continues to be popular and partner
with brands for exciting in-game activations.
1OOk $1OOM
concurrent in prizes
viewers awarded
17
APEX LEGENDS
A competitive shooter created by Respawn
Entertainment and published by EA. In a Battle
Royale environment teams attempt to compete
across the map to be the last ones standing.
Format
Mimicking the likes of Fortnite, Apex Legends
has created seasonal updates with slightly longer
cycles. The game promises to be more ‘compet-
itively focused’ in its build, and with the backing
of popular streamers and professionals the title
has already exploded in popularity. Large tour-
naments such as the Australian Apex Open in
April-May of 2019 with prizes of over $35,000, as
well as the large amounts of teams signing full
rosters speak volumes about towards the game’s
momentum.
5OM $92M
users in in revenue
one month across
platforms
19LEAGUE OF LEGENDS
A fast-paced, competitive online game that
blends the speed and intensity of an RTS with
RPG elements. Two teams of powerful cham-
pions, each with a unique design and play-
style, battle head-to-head across multiple bat-
tlefields and game modes.
Format
The League of Legends World Championship
(also known as LCS) is a yearly international
tournament that brings together the top teams
from each league in a battle for the Summoner’s
Cup and the title of World Champion. Previously,
teams had to qualify, but to encourage long-term
investment and commitment the LCS is moving
towards a franchise buy-in model. The LCS has
also created a Challenger tournament circuit to
support player development and growth.
8M
season 2
championship
viewers
21HOW ARE SPORTS
ORGANIZATIONS
GETTING
INVOLVED?
23SOCCER BASKETBALL HOCKEY
The FIFA eWorld Cup contin- The NBA 2k League gives The NHL experimented with
ues to grow in popularity teams autonomy and reign the eSports scene with the
internationally as EA ab- over their team development, launch of their World Gam-
sorbs more licensing deals marketing, and management, ing Championships, the suc-
SPORTS INVOLVEMENT with leagues into the com- lending them a similar fan cess of which has prompted
petition. avidity to individual fran- an elevated focus and ef-
OVERVIEW chises. fort towards the initiative
moving forward.
FOOTBALL FORMULA 1 ADDITIONAL SPORTS
Through the participation eSports athletes signed by Sports with less developed
of every NFL team and their F1 teams are treated like sports video game titles
affiliated eSports fran- legitimate racers, given lag behind, but are still
chise, the NFL has managed professional coaching and undertaking efforts to cap-
to make the Madden Bowl a development, and are in- italize on eSport opportu-
wild success, broadcasting volved in design and engi- nities.
on sports networks, as well neering decisions.
as the Disney Channel.
25SOCCER 29M 322k KEY TAKEAWAYS LOOKING AHEAD
2O18 viewers concurrent
viewership* Larger than the sum of it’s parts As FIFA continues to grow, we’ll see an emergence of
FIFA, EA, and involved organizations have done a national FIFA teams, as evidenced by the NFF’s 2018
stellar job of ensuring global alignment as the eSport esports tournament.
continues to explode. Each disparate league, or tour-
nament, is treated with care to deliver a unique expe- The NFF used the tournament for scouting purposes
FIFA HAS MANAGED TO BLEND DISPARATE LEAGUES IN A UNIFIED rience while still ensuring that these events roll up into and selected three players for its esports team. The
the flagship property, the FeWC. federation hosted the event to drive attention to the
FASHION UNDER ONE GLOBAL TOURNAMENT UMBRELLA - THE FEWC. Nations League match, with 250 attendees buying
THIS HAS ALLOWED THE FIFA ESPORTS COMMUNITY TO BECOME Closer league connections tickets for the soccer match as well.
TRULY INTERNATIONAL IN NATURE - A FEAT ONLY ACCOMPLISHED Tournaments and leagues are executed as similarly
to the format and structure of the real-life events they The MLS capitalized on the opportunity with the cre-
EVERY FOUR YEARS FOR THE WORLD CUP. mimic as possible, making them much more accessi- ation of the eMLS, hosting a MLS-wide tournament
ble for viewers. with each team formed by, and representing an MLS
FIFA runs the highly prestigious eWorld Cup, where players qualify globally through a series of tournaments or by organization; a tournament which will continue to
exceptional online performance, to compete at the final World Cup. Tournaments take place in a variety of acces- grow as more franchises become heavily involved.
sible formats, from international LAN events, to national online leagues. Elevating the status of eSports
The mimicry of the real events elevates the players as
The tournament is open to any player globally. It is not region or age-locked, or platform specific. ‘real’ athletes. Awards ceremonies complete with real
soccer pros, coaches, and clubs align the properties
As EA acquires licensing to more properties, they have made sure to fold these into the eWorld Cup as well. The both in the players, and viewers minds.
eChampions League will mirror the schedule and format of the actual league, with the winner taking home a
whopping $100,000, as well as qualifying for the FeWC.
*concurrent viewership is a standard
by which game engagement is commonly
measured, but represents only a frac-
tion of total unique viewers
27BASKETBALL 445k 716k 3OOk KEY TAKEAWAYS LOOKING AHEAD
mid-season hours watching social media
tournament the league followers Getting the (basket)ball rolling The NBA has announced the addition of 4 more af-
viewers
The NBA did not push teams to enter and though only filiate teams into the mix for the 2019 season: Atlanta
half of the NBA franchises were represented, those Hawks, Brooklyn Nets, Los Angeles Lakers and Min-
who did participate built the capabilities required to nesota Timberwolves.
manage a well-executed team. This strategy prevented
THE NBA, THROUGH A CENTRALIZED ORGANIZATION-WIDE PUSH, lackluster efforts which would drain the excitement the Adam Silver has referred to initiatives meant to bridge
league ended up providing. the gap between the 2k, and regular League, claiming
HAS MANAGED TO GET THE MAJORITY OF NBA TEAMS INVOLVED IN to have a ‘long-term commitment’ to growing the eS-
THE 2K LEAGUE. HAVING EACH FRANCHISE OWN AND MANAGE AN Leveraging the overarching organization ports properties.
AFFILIATED ESPORTS TEAM LENDS A SIMILAR COMPETITIVE FEEL The NBA adopted the brunt of the marketing efforts.
This ensured consistency in messaging across NBA The 2k league is also quite progressive, and fans cel-
AND FAN AVIDITY TO THE TOURNAMENT AS COMPARED TO THE NBA. properties, and gave the league a similar feel to a real ebrated as, for the first time ever, a woman was draft-
season. The centralized efforts alleviated difficulties ed into the league (Chiquita Evans was drafted to the
NBA 2k burst onto the eSports scene with the wildly successful 2017 All-Star Tournament. The winners took home and uneasiness franchises may feel, and helped them Guardian Gaming squad, Golden State’s 2k affiliate.)
$250,000, and got to play livestreamed games against NBA players such as Kevin Durant and Paul George. build teams with a running start.
The NBA 2k League has since become the preeminent eSports tournament and league for basketball video game
Getting NBA players involved
fans. With over half of the franchises represented, the 2k League is being treated as ”the NBA’s 4th league”. Each
Throughout the NBA 2k League, the NBA ensured that
of the five-player NBA 2K eLeague teams will be operated by current NBA franchises and the eLeague will mimic
actual players participated and interacted. This was
the NBA, with a regular season of games followed by a bracketed playoff system leading to the championship
seen both explicitly in the tournament, and indirectly
match-up.
on social media.
Each drafted player is given a base salary of $32,000 a year and has the opportunity to earn more from tournament
winnings and through endorsement deals.
29HOCKEY 28k 1OOk KEY TAKEAWAYS LOOKING AHEAD
concurrent players
viewers entered 2 sides of the same puck Although there have been no public communication to
“We wanted this to be another touch point and anoth- date that the NHL is looking to replicate the NBA 2K
er connection to our real game. We weren’t looking to League, it does have plans to get every team involved
start something different. We weren’t looking to start next year. There are plans to move toward a six-versus-
a different league. We wanted to have our fans, who six game rather than one-versus-one.
THE NHL UNDERTOOK ESPORTS EFFORTS ON A LEAGUE LEVEL TO were into eSports, to have a way to play our game and
connect to our game.” – Gary Bettman. Furthermore, individual NHL franchise teams, such as
TEST THE LEVEL OF ENGAGEMENT AND VALUE TO BE GAINED. OFF the Tampa Bay Lightning, Calgary Flames, and Winni-
THE BACK OF THE WGC’S SUCCESS, THE NHL IS LOOKING TO RAMP Testing the ice peg Jets have all run successful esport tournaments
Bettman was adamant that this was not the creation attracting fans from across their regions to participate
UP ITS ESPORTS EFFORTS, AND CLAIMS TO HAVE BIG PLANS FOR in a day of esports fun at their home arenas.
of a new league, but rather a foray into eSports as a
THE FUTURE. test. The learnings and excitement garnered from the
tournament have created momentum moving into next
The NHL recently held their inaugural NHL World Gaming Championships – with the finals taking place at the year, where the plan is to get more teams and franchis-
newly built eSports Arena inside the Luxor Hotel. es on board.
The winner and runner-up from the U.S., Canada and Europe flew to Las Vegas for a round-robin style tournament
International implications
between the six regional finalists, with the top two players squaring off in a best-of-three final to determine the first
Although hockey is a huge sport in Europe, the
NHL Gaming World Champion. Erik “Eki” Tammenpaa, an 18-year-old native of Espoo, Finland, won the $50,000
NHL has been given a unique marketing opportuni-
grand prize out of a total of purse of $100,000 awarded to the finalists.
ty through eSports to elevate the status of its teams,
players and league internationally through eSports.
Organically, NHL players are getting involved. John Wayne Casagranda, the winner of the U.S. regional, got a
call from Shane Doan, the former captain of the Arizona Coyotes, his favorite team. Casagranda, who finished third
and won $10,000 in the tournament, lives in Anchorage, Alaska, but said he travels to a couple of Coyotes games
every season, and he was invited to attend a game next season as a guest of the team. “It’s surreal” he said.
31FOOTBALL 3M #1 3Ok KEY TAKEAWAYS LOOKING AHEAD
players rated eSports concurrent
competed broadcast viewsship Broadening the goal posts The MCS 19 is set to kick off this holiday season, add-
in 2O17
The NFL broadcast the MCS on ESPN and Disney XD ing two more qualifying majors with more to come.
to hit wider audiences than ever before. This, in ad-
dition to a deal with Twitch to stream Thursday night Streaming is a great way for players to really interact
games online, some of which are to be commentated and connect with younger fans on a common interest.
THE NFL HAS DONE AN INCREDIBLE JOB OF THE SEAMLESS INCLU- by esports personalities such as Ninja, has made the Juju Smith Schuster for the Pittsburgh Steelers is a ris-
League far more accessible to a younger audience. ing star in the NFL who celebrates his touchdowns to
SION OF EVERY FRANCHISE IN THE MADDEN 19 BOWL. TO ADD TO anime and video game references, tweets about his
THE COMPETITIVE LEAGUE FEEL, MANY FINAL MATCHES ARE SLAT- Showing up on the sidelines
in-game version’s Madden stats, and streams period-
ically.
ED TO TAKE PLACE AT NFL STADIUMS AND ARENAS. Interacting with Fortnite resulted in a boost in viewer-
ship, capitalizing on cross-engagement opportunities.
The NFL is the only sport organization that runs an eSports tournament entered into by every single NFL fran-
chise/team. One of the qualifying tournaments for the final Madden 19 Bowl is the Madden Club Championship. Everyone in the huddle
Each team has an affiliated team/individual Madden player who represents the franchise in the 32-team tourna- The NFL’s success can be largely attributed to the
ment, with the top placers qualifying. voluntary participation of every single one of its fran-
chises, making the eSport feel just as complete and
Similar to the NBA approach, an online competitive league, open to all, runs throughout the competitive seasons. legitimate as its counterpart.
Top scorers online, and those who qualify and earn top placements at dispersed events throughout the compet-
itive season, will be invited to compete at the final Madden 19 Bowl. There, players will compete for the $100,000
first place prize or a piece of the $500,000 prize pool.
The NFL has further elevated their eSports presence with a recently released Fortnite skin pack, allowing Fortnite
players to don their favourite NFL player and team jerseys in-game.
33FORMULA 1 63k 4O KEY TAKEAWAYS LOOKING AHEAD
drivers progressed to
entered the semi-finals The real thing, nearly Formula 1 is looking to expand its eSports broadcast-
Competitive Formula 1 players compete in conditions ing efforts, striking deals with ESPN, Twitch, and plan-
more identical to the actual profession than any other ning to livestream the event on their Facebook page as
eSport. As simulations improve, players with similar well as on the main F1 site.
qualities to drivers will rise to the top.
FORMULA 1 HAS ELEVATED THE STATUS OF THE ESPORTS COMPET-
Professional development
ITIVE RACER BY LEGITIMIZING THEM AND TREATING THEM LIKE F1 teams, once they sign a player, are committed to
REAL RACERS. THE SAME COACHING AND SUPPORT STAFF USED FOR professionally developing the racer. The teams use the
REAL DRIVERS ARE OFFERED TO SIGNED PLAYERS. THESE PLAY- actual professional F1 coaches and support staff to im-
prove the racing competency of its players.
ERS ARE EVEN CONSULTED ON REAL CAR DESIGN AND ENGINEERING
CHOICES. Legitimizing and leveraging racers
F1 teams, such as McLaren, don’t just sign eSports
Each F1 team is in participation, all given the freedom to select a player to represent them, and prepare them players to elevate their brand, but these players are
however best. consulted and involved in team branding, develop-
ment, and even engineering discussions.
F1 team’s selection process spanned everywhere from online leaderboards and lap times, to intense in-person
interviews, auditions, and boot camps.
The final was held as a support category to the 2017 Abu Dhabi Grand Prix, over 24–25 November 2017.
35TENNIS GOLF BASEBALL
Tennis is the latest sport to host an esports tour- TDJ Systems, LLC releases version 2.0 of TDJ Major League Baseball is partnering with eSports
nament after French Open organizer Roland Gar- Golf, the industry’s first golf platform that brings organizer UMG to produce Fortnite tournaments
ADDITIONAL ros announced its second annual gaming tourna-
ment, which will give gamers a chance to attend
together on-course play and fantasy sports. This
blending of reality and digital sports is ushering
for active and retired professional baseball play-
ers. The eSports events will begin with the “Chal-
one of the biggest tennis events of the year. golf into the eSports arena. lengers Series” on October 1, which will be online
SPORTS The tournament will be sponsored by the French Golfers can now partner with their favorite pros
matches streamed on UMG’s Twitch channel.
Open’s main partner, multinational banking group each week and compete against friends at their
BNP Paribas and will be called the ‘Roland-Gar- local golf course, or with other players across the
ros e-series by BNP Paribas.’ country in virtual pro-am tournaments.
Players from the United Kingdom, France, Bel-
gium, Italy, Germany, China, India and Brazil will
compete in a demo-version of the unreleased
Tennis World Tour game made by Bigben Inter-
active.
The winner of each region will then travel to the
French Open in Paris on May 25 where they will
play in the finals of the tournament. With the
French Open starting on May 21, the e-series fi-
nals will be held during the opening rounds of the
tournament.
37Stay in
touch.
WWW.D5ESPORTS.COM
TRACK OUR PROGRESS ONLINE
Jeff Owen jeff.owen@marketgravity.com
Ben Blium bblium@marketgravity.com
Emma Tanaka emma.tanaka@marketgravity.com
Jeff Harris jeffharris@deloitte.ca
Luc Ryu lryu@deloitte.ca
Iain Montgomery iain.montgomery@marketgravity.com
39+
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