Global annual esports revenue braced for $250m blow

The global esports market is expected to be hit by a $250m revenue blow for 2020 due to the impact of the coronavirus pandemic, according to latest forecasts.

Research undertaken by market intelligence firm Newzoo suggests global esports revenue will top out at $950.3m, having predicted annual revenue of $1.1bn in its original February forecast.

Despite growing interest in the vertical during the peak of the coronavirus outbreak due to major sports being cancelled and postponed, the industry is still set to face a financial hammer blow.

The latest forecast is Newzoo’s third since its original February report, with the firm incrementally decreasing its expectations for revenue in April ($1.06bn) and July ($974m).

In the report, Newzoo cited the non-attendance of esports events as one of the key reasons for the drop in potential revenue, with forecasted merchandise and ticket revenue set to hit $52.5m compared to the original estimate of $76.2m.

There were silver linings within the report, with Newzoo stating that despite the lower revenue, the total esports audience and number of organisers had not fallen, showing demand for the industry is still strong.

The research firm noted that in spite of the difficult financial year, its 2023 forecast remains on track, with the esports industry set to generate revenue of $1.59bn globally.