Many big names in esports are not doing so well these days. We talk in the past tense about others. It would be very easy to put various failures of teams, websites and tournaments down to the infertility of esports. Esports is bad, it is business suicide, Ninjas in Pyjamas and the World Series of Video Games would say.
But if this is so, how come companies like SK Gaming, Meet Your Makers and ESL are not dying with them? Why are yesterday's kings today's paupers?
The answer is terrifyingly simple. Esports is full of businessmen that know business but do not know gaming and gamers that know gaming but do not know business. The early brands in competitive gaming were built by people who had the good fortune of being in the right place at the right time.
But winning on the lottery is only the first step. You need to be able to sustain the symbiosis between gaming and business and convert the success in one area into success in another.
For a gaming team, winning tournaments is simply not enough. It is a painful truth known to many former royalties. Getting first place is just two extra minutes of photographs on a podium that convert into twenty photos on a dozen of websites. If twenty photos is the best you can offer to your sponsors, then get ready to start enjoying your pauperage.
From 2001 onwards, Fatal1ty won one international event a year on average, won nothing in 2003 and 2006 and has never managed to qualify for the World Cyber Games. According to rumours, he has recently bought a $2,500,000 house in Los Angeles. That is some food for thought.
If you are a event organiser, getting a million dollars from a wealthy sponsor is not enough either. You need to know which horse to bet it on. You need to know how to build a sustainable sporting structure instead of spending money on photos of zeroes on prize cheques on websites.
How many organisations have you seen blow budgets on things they could not afford? Blinded, events fought purse wars and teams entered bidding races for players instead of waiting for everyone else to commit this financial suicide. And win, because you are the only one left.
While some companies put almost everything they had into prize money for years, ESL waited and invested into infrastructure. Guess who gave out the largest amount of prize money in Warcraft 3 and Counter-Strike tournaments in 2007?
Bad ideas, bad business models, short-sightedness and not knowing the meaning of "slowly but surely" are the failures of the first generation of esports entrepreneurs. The lucky ones that found themselves at the right place at the right time.
Time has verified what they were really worth. Only the fittest have survived. The wisest of paupers will be kings soon.
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Paupers will be kings

Open your eyes and take a look at the gloomy esports landscape. Kingdoms crumble, empires fall. This is not the sight of esports dying, it's a picture of Darwinism at its best.
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I agree in what you're saying in your article, but in most cases "professional gamers" at age of 16-20, really would have NO clue in most cases, how to represent themselves, or be the "buisnessman" they wanted to be.
Sure ! next will be CPL ? x)
Joking :) well ESWC and ESL are doing so well nowadays ! So show must go on ! XD
Interesting piece to place in the landscape you portray is CPL. They have outlived most eSport organizations, but are now in more trouble than any other eSport organization have ever survived. Have they gotten lucky or suddenly unlucky? How have they managed to build a so strong brand, only to let it torn down in matter of months? (Problems was older, but guess CPL could have done something when they surfaced)
In regards to the article, it was a fun read and the world of e-sports has steadly grown over the last 10 years. Some shining stars in the world of eSports are the WCG and ESWC. Any business model that can last longer than three years gets a huge thumbs up in my eyes.
I said that because it would be nice if the pro gamers could take over the business one day with their business degress...
I shall do evan no justice .. but khmm, if you compare this .. to what he has written..
well done kurwa mate :]
A) Interesting
B) Doesn't focus on insulting other writers.
and Carmac why would they? what could they actually gain from doing that? a normal TV show doesn't do it only movies and such, so why does it matter?
You can say that people were talking about it the day after the broadcast, but that's how far CGS will go. They will rapidly forget about it, it was something new being shown on TV and may attracted people to watch it closely, but that's all. As soon as the 'surprise/new' factor is gone, all you've got are hardcore fans and those don't give a shit for CGS right now. :|
Imo, above the general population comes the gaming and e-sports community, if those are not into the CGS, and you can clearly prove it by asking some random guy the CGS Finals top3 or even only the winner (the majority don't have a clue about it), the project still has a long way to go.
That's like creating a brand new football league in Europe, you could have the best sponsors and a large wallet but if you don't catch the fans attention, it's a useless effort..
CGS is just the next level of professionalism
and tell me why it was not a success? Imo this is how professional gaming should be done. Tournaments come and go, CPL has been here for years and now its just gone like that, can u rely on this? I would prefer the monthly salary :)
Organizations like SK do well because the people behind it are business men aswell as gamers, which as you pointed out Carmac is a winning formula =D
Brilliant move. :)
Although I'm going to agree with hotlips, it just felt too short to me.
my opinion
and u are not in that group
Many companies do aim for short-term results, and from the hundreds of really bad Team presentations I've seen I can tell most of the teams and I speak of all Teams not just of some big ones do either and just try to make a buck as quickly as possible. Nevertheless, that also depends on how they understand Marketing because if you look for short-term ROI you will not get it most of the time in eSport.
In addition, if companies mainly do Sales related Marketing then eSport can be a dangerous Territory to invest because you have to invest a lot to get something out of it on the long run and you always have to defend big investments in front of the Management / Board.
Most Teams overpromise and cannot deliver and I think that is just a lack of professionalism on the Teams side. And that is what lets big companies step out the Business for all the other Teams which is quite a sad thing since today everyone seem to be an "eSports Professional".
Fortunately, most big Companies and people working with eSport Teams and Events and the Teams itself always plan long-term relationships and that is the way to go. Besides that, many people I know behind the scenes are into eSport with their heart and soul. As bds said himself, he always wanted to develop and try to change something and those are the people not getting rich with it quickly but on the long term get their money and really move something. Moreover, we all know there is nothing better than the warm fuzzy feeling you got inside your heart when you really helped the whole thing you love develop. This should be highly respected since not everyone has pure Profit in mind, especially not that people working on eSport from the beginning.
However, in the end of the day, it is a heavy fight about every cent in the Marketing Department you want to spend or get inside the eSport if your company not already had some very successful results, Brand, PR and Moneywise. In addition, on the Team sides there are people working very hard and do really have some Business knowledge to make sure companies understand the thought behind the whole thing without even earning a living out of that, they just do what they love.
There is a hand full of real Professionals, but also people who do not have a clue about Marketing or Business in general, but they try to do their best and have some great ideas, this should also be respected.
eSport is not just selling a “Product” like a Player or Team or Event, it’s also about to let companies see what a great feeling eSport actually is, Intensity of Emotions on Events etc, unfortunately sometimes people forget about that.
Overall nice article Carmac.
Just my two "very big" cents. :D
Im waiting for your next article:)
Conter example: Mr Dallon.
So I think you got my point backward, sorry :)
This is a direction we dont want esports to go in. Bad games, bad rules , bad presentation. The only good thing is the amount of money the players get. Inferior competetive platforms (css) are chosen ahead of better ones (1.6), They chose WoW ahead of WC3 wtf?! No 1v1 dm game which is considered the pinnacle in terms of skill in esports.
Everything about it is fake from the "rent a crowd" audience banging their plastic dildos together to the "team talks" from the managers good example here http://www.youtube.com/watch?v=XhYhjmZJXG8 cgs take note- the trend in tv for the past 10 years is to be more reality focused your show looks like something from the 1980s
It isn't even a case of adaption or survival of the fittest really. It's about gaining enough success to continue the charade (keeping your sponsor), or not putting all your eggs in one basket. Your examples of success, let me dissect.
The vast majority of work is still done by people who aren't paid what so ever. The vast majority of admins for ESL and website staff for clans ensuring traffic is kept constant. Do you honestly believe SK would've been as big or successful if they hadn't had a