Over the past decade, competitive video gaming or eSports has seen explosive growth and is now a billion dollar industry. What started out as a niche interest among core gamers has now evolved into a serious spectator sport followed by millions worldwide.

The Early Years of Organized Gaming Competitions

The origins of organized competitive gaming dates back to the 1970s when arcade gaming tournaments started to emerge. Some of the early popular games that witnessed competitions include Space Invaders, Pac-Man and other classic arcade titles. However, it was not until the 1990s and 2000s with the arrival of new consoles and online capable PCs that organized tournaments started growing at a faster pace. Games like StarCraft, Counter-Strike and Warcraft 3 laid the foundations for some of the biggest eSports titles today. Several tournaments were organized across North America, Europe and Asia attracting sizable audiences.

This growth coincided with the increasing internet connectivity in households which allowed gamers to come together online to compete. Games inherently became more competitive and strategic as multiplayer online battles (MOBs) emerged as popular genres. Leagues and ladders started forming within game communities to facilitate competition at an amateur level on a consistent basis. Major gaming publishers also started holding invitation-only annual tournaments with prize pools in the thousands of dollars to market their latest releases.

eSports Goes Professional

The true boom for eSports  happened in the late 2000s and early 2010s. Games that really broke through commercially and competitively included League of Legends, Dota 2, Counter-Strike: Global Offensive and Overwatch. With these new titles and the infrastructure growing around them, competitive gaming transitioned from amateur hobbyist tournaments to becoming a true professional career option for many top players. Game developers also started formalizing their competitive circuits by launching franchised professional leagues.

Riot Games was a pioneer with the launch of the League of Legends Championship Series (LCS) across North America, Europe, Asia and other regions. Each league consisted of permanent partnered teams who would compete throughout the year in regular seasons and playoffs. This brought greater stability to pro circuits and caught the attention of investors and sponsors. Other developers followed suit with Dota 2 launching its The International Championship as the flagship event. Meanwhile, the earlier-mentioned games also witnessed consistent 3rd party tournaments with six and seven figure prize pools.

The success of these professional leagues and tournaments turned many top gamers into esports athletes who could earn sizable salaries and follow careers just like non-virtual athletes. The best skilled professional players now earn upwards of 6 figures annually factoring their salaries, prize money winnings and endorsements. Some top international stars have become household names in certain countries and regions such as Korea's Faker who has earned millions from League of Legends alone.

Mainstream Acceptance and Rapid Growth

With the infrastructure firmly established and the industry maturing over the last few years, eSports has entered the phase of mass market mainstream acceptance. One of the main factors driving this is the expansion of viewership on streaming platforms like Twitch and YouTube with millions tuning into tournaments and regular matches. The accessibility of watching from home rather than attending physical events drove the numbers exponentially.

Global eSports revenues now exceed $1 billion annually and are growing at over 20% YoY. Traditional major sports franchises and networks have started investing heavily after recognizing the commercial potential. We've seen teams owned by football Giants like the New England Patriots and celebrities like Shaquille O’Neal. Traditional cable networks now broadcast tournaments alongside regular sports channels. Brands from various industries have taken notice and eSports sponsorships and endorsements rival those of traditional sports.

Another breakthrough came when Fortnite exploded in popularity sparking major interest even among non-gamers. Its ease of play on consoles and phones brought in a wider casual audience to the competitive scenes as well. Events like the Fortnite World Cup selling out football stadiums cemented eSports in mainstream culture. Going forward, its acceptance among masses is set to rise further with its inclusion in international events like the Asian games cementing its status as an official sport.

This in summary is the journey of how competitive gaming went from underground hobbyist events to a legitimate billion dollar endeavor followed by millions globally. With ongoing growth and several triggers still left to activate broader audiences, eSports is likely just getting started in disrupting the traditional sports industry worldwide.

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