Esports has undergone a substantial transformation over the past decade. Evolving from gaming competitions into a global entertainment and business juggernaut.
Top esports organisations are increasingly operating like tech startups, raising venture capital, signing sponsorship deals, and in some cases, going public. As investor interest grows, the distinction between competitive gaming and traditional financial markets is becoming less pronounced.
According to PwC, global esports revenue is projected to reach $1.86 billion by 2025, nearly twice the $996 million generated in 2020. This shift represents the financialisation of esports. Today, the value lies in how well teams can build a brand, engage a global fan base, and position themselves for long-term growth.
Inside esports’ economic shift
Organisations such as FaZe Clan, TSM, and 100 Thieves have pioneered a new business model in gaming: one that combines competitive gaming with influencer marketing, media production, merchandise sales, and venture capital funding. Esports organisations are no longer focused solely on competition. They’re expanding into lifestyle branding, exploring emerging technologies like Web3, and building global sponsorship portfolios.
In May 2024, the formation of FaZe Media by GameSquare, FaZe Clan’s parent company, illustrated how esports organisations are increasingly repositioning themselves as media and entertainment assets rather than purely competitive teams. Backed by an $11 million investment from DraftKings President and Co-Founder Matt Kalish, this venture underscores a broader shift in the industry from relying on tournament earnings to building diversified, content-focused revenue models designed for long-term growth.
Progressively, esports organisations are being shaped into businesses built for investors—not just their existing audience. The goal has shifted from simply winning titles to building brands that can scale quickly and grow like tech startups. But with that shift comes real pressure. Teams that used to focus solely on gameplay are now under pressure to drive revenue, provide regular updates to investors, and pursue growth even as consistent profits remain out of reach.
“In 2025, esports will solidify itself as a cultural force rather than a fleeting trend.”
Steve Arhancet, Co‑owner & CEO, Team Liquid
Diversifying revenue in the esports economy
Unlike traditional sports teams that rely heavily on ticket sales, broadcast rights, and long-established merchandise deals, esports organisations have had to build their business models from the ground up. Streaming platforms like Twitch, YouTube, and Kick have become essential direct-to-consumer channels, while brand partnerships and exclusive sponsorships now provide steady revenue streams.
Tournament winnings used to be the main source of income for esports teams, but over the years, they have made up just a small part of a top organisation’s revenue. Today, what really drives fanbase size, merchandise sales, and media footprint—metrics that feel more like those of a startup than a traditional sports team.
To grow their businesses, teams are expanding into new areas, including apparel lines, NFTs, event production, and original content creation. Brands like 100 Thieves have launched streetwear collections, while others are building in-house creative studios aiming to rival media companies like Vice and Complex.
Financial pressure and market reality
Despite all the innovation and development, turning a profit remains a significant challenge. Many top esports organisations are operating at a loss, investing heavily in top players, influencers, and high-profile partnerships. The hope is that building cultural relevance and valuable intellectual property will gain revenue in return, but it’s a market with no predictable guarantees.
Like any fast-moving tech sector, esports is feeling the pressure of market realities. In 2024 and 2025, layoffs, buyouts, and strategic shifts have become common as teams and companies adjust their aims in response to the volatile economic market.
Esports World Cup 2025 highlights market dynamics
Few events showcase the intersection of esports competition and commercial ambition quite like the 2025 Esports World Cup, currently in Riyadh, Saudi Arabia. With over 2,000 elite players, 24 games, and over $70 million in prize money, it showcases the massive scale of the esports industry.Â
In the first week, the Club Championship leaderboard, led by Redline, DetonatioN FocusMe, Heretics, VK Gaming, and Gen.G, shows which teams are gaining momentum. These organisations are judged not just by wins, but by how those victories raise their global profile and business value.
With celebrity appearances from Post Malone and Tony Hawk, alongside the unexpected retirement of Apex Legends star iiTzTimmy, the World Cup highlights how esports today combines with pop culture with competitive sports, a combination that’s becoming central to its growing financial draw.
Esports’ outlook: sustainable growth or market hype?
So where does that leave the industry? The esports industry’s evolution has become a highly profitable and globally recognised sector. However, with that has come economic pressure, investor scrutiny, and significant questions about what sustainable success actually entails.
Long-term survival may hinge on maintaining credibility within the gaming culture while adopting the strategy and discipline of a modern media business. That means tighter operations, more sustainable growth plans, and the ability to adapt as audiences and platforms continue to evolve.
