egaming: ETtech Explainer: Esports set to reach new heights in India in 2024
Prize money disbursement in esports tournaments this year is expected to surpass the Rs 30-35 crore mark cumulatively handed out in 2023 as such events continue to grow in reach and scale, and organisers remain upbeat.
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Tournament organiser (TO) Skyesports alone has announced a target pool of $2.5 million (Rs 20 crore) to be paid out to winning teams in 2024. Game publisher Krafton, which disbursed Rs 3.8 crore in 2023, also said both the prize size and scale of its tournaments shall be higher in 2024 with more penetration in tier-2 and tier-3 cities. US game publisher Riot Games, which debuted in India with its first official event in December 2023, said its domestic league calendar is solid for 2024. Startup Upthrust Esports, which ran 10 championship IPs in 2023 for a cumulative prize pool of Rs 1.5 crore, said it will add three more to its portfolio in the coming fiscal.
Here’s an explainer on how the esports business is expected to evolve in 2024:
Scale of esports tournaments
“Our BGMI tournaments drew over 54,000 on-ground spectators and 110 million viewers for the live broadcast (in 2023),” said Sean Hyunil Sohn, CEO of Krafton India.
“We also saw a substantial rise in the prize pool for tournaments in the industry with Krafton India’s BGMI (Battlegrounds Mobile India) tournaments contributing to a total of Rs 3.8 crore… With new games on the horizon, we will continue to explore newer Esports tournament formats,” he added.
Discover the stories of your interest
The likes of Krafton, Riot Games, Jetsyntheses, and Reliance Digital are investing big to take the online gaming world offline. Popular video games such as Battlegrounds Mobile India (BGMI), Valorant, Counter Strike, Dota, and Pokemon Unite are appealing to the masses in India, as millions of people participate either by playing them or viewing their favourite players compete in championships.
These championships, which were primarily held online on YouTube or streaming platforms like Loco and Rooter, have lately become larger than life offline local area network (LAN) events held in stadiums, just like physical sports – a phenomenon popular in the West.
As per market estimates, in 2023 organisers disbursed a cumulative prize pool of Rs 30-35 crore in both online and offline tournaments, the biggest in India’s e-gaming history.
What lies ahead
Going forward, experts said the esports tournament ecosystem shall focus on three areas – making these events a gaming-cum-entertainment feast, pivoting towards profitability, and attracting more brand sponsorships, especially from non-endemic names.
“The year 2023 has shown that LAN events have the potential of attracting massive footfall,” said Siva Nandy, CEO of Skyesports. “Naturally, TOs will continue to surprise and entertain audiences with more celebrities and singers performing at LAN events… We shall also focus on making the business at least 10% Ebitda positive. To achieve this, as a TO, our aim is to work with over 50 brands this year,” he added.
Ashwin Suresh, founder of game streaming platform Loco, said TOs will also look at monetisation through ticketing, food and beverage spaces, larger advertising deals, and by adding VIP programmes as fans show readiness to pay for premium content.
“We are at the cusp of a huge paradigm shift in esports consumption as we speak,” he said. “Loco hosted its first VIP subscription LAN tournament streaming in 2023 which was completely behind paywall for online viewing. And, we witnessed 3-4% conversion rate, which is higher than the 1% global benchmark.”
Shift from online to offline
The popularity of LAN events is expected to steal the thunder of online competitions in terms of viewership and participation, executives said.
“Running an online IP is comparatively easier and profitable… A mid-size online tournament could be held in a budget of Rs 15 lakh, whereas a LAN event could range from anywhere between Rs 50 lakh to Rs 3 crore,” said Kartik Sabherwal, founder of Upthrust Esports.
However, he added, “Online does not bring any uniqueness and that’s why in the short term, we shall expect lesser interest there as popular teams refuse to compete or brands become reluctant to advertise.”
The professional esports or e-gaming industry in India (which is different from online gaming) was nearly a $40-million (Rs 333 crore) market in India in FY23 and is expected to scale up to $100 million by FY28, according to a study by venture capital firm Lumikai.
Prize money disbursement in esports tournaments this year is expected to surpass the Rs 30-35 crore mark cumulatively handed out in 2023 as such events continue to grow in reach and scale, and organisers remain upbeat.
![]()
Tournament organiser (TO) Skyesports alone has announced a target pool of $2.5 million (Rs 20 crore) to be paid out to winning teams in 2024. Game publisher Krafton, which disbursed Rs 3.8 crore in 2023, also said both the prize size and scale of its tournaments shall be higher in 2024 with more penetration in tier-2 and tier-3 cities. US game publisher Riot Games, which debuted in India with its first official event in December 2023, said its domestic league calendar is solid for 2024. Startup Upthrust Esports, which ran 10 championship IPs in 2023 for a cumulative prize pool of Rs 1.5 crore, said it will add three more to its portfolio in the coming fiscal.
Here’s an explainer on how the esports business is expected to evolve in 2024:
Scale of esports tournaments
“Our BGMI tournaments drew over 54,000 on-ground spectators and 110 million viewers for the live broadcast (in 2023),” said Sean Hyunil Sohn, CEO of Krafton India.
“We also saw a substantial rise in the prize pool for tournaments in the industry with Krafton India’s BGMI (Battlegrounds Mobile India) tournaments contributing to a total of Rs 3.8 crore… With new games on the horizon, we will continue to explore newer Esports tournament formats,” he added.
Discover the stories of your interest
The likes of Krafton, Riot Games, Jetsyntheses, and Reliance Digital are investing big to take the online gaming world offline. Popular video games such as Battlegrounds Mobile India (BGMI), Valorant, Counter Strike, Dota, and Pokemon Unite are appealing to the masses in India, as millions of people participate either by playing them or viewing their favourite players compete in championships.
These championships, which were primarily held online on YouTube or streaming platforms like Loco and Rooter, have lately become larger than life offline local area network (LAN) events held in stadiums, just like physical sports – a phenomenon popular in the West.
As per market estimates, in 2023 organisers disbursed a cumulative prize pool of Rs 30-35 crore in both online and offline tournaments, the biggest in India’s e-gaming history.
What lies ahead
Going forward, experts said the esports tournament ecosystem shall focus on three areas – making these events a gaming-cum-entertainment feast, pivoting towards profitability, and attracting more brand sponsorships, especially from non-endemic names.
“The year 2023 has shown that LAN events have the potential of attracting massive footfall,” said Siva Nandy, CEO of Skyesports. “Naturally, TOs will continue to surprise and entertain audiences with more celebrities and singers performing at LAN events… We shall also focus on making the business at least 10% Ebitda positive. To achieve this, as a TO, our aim is to work with over 50 brands this year,” he added.
Ashwin Suresh, founder of game streaming platform Loco, said TOs will also look at monetisation through ticketing, food and beverage spaces, larger advertising deals, and by adding VIP programmes as fans show readiness to pay for premium content.
“We are at the cusp of a huge paradigm shift in esports consumption as we speak,” he said. “Loco hosted its first VIP subscription LAN tournament streaming in 2023 which was completely behind paywall for online viewing. And, we witnessed 3-4% conversion rate, which is higher than the 1% global benchmark.”
Shift from online to offline
The popularity of LAN events is expected to steal the thunder of online competitions in terms of viewership and participation, executives said.
“Running an online IP is comparatively easier and profitable… A mid-size online tournament could be held in a budget of Rs 15 lakh, whereas a LAN event could range from anywhere between Rs 50 lakh to Rs 3 crore,” said Kartik Sabherwal, founder of Upthrust Esports.
However, he added, “Online does not bring any uniqueness and that’s why in the short term, we shall expect lesser interest there as popular teams refuse to compete or brands become reluctant to advertise.”
The professional esports or e-gaming industry in India (which is different from online gaming) was nearly a $40-million (Rs 333 crore) market in India in FY23 and is expected to scale up to $100 million by FY28, according to a study by venture capital firm Lumikai.
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