Esports World Cup’s prize money matches Wimbledon

South Korean gamer Josh Ahn was seen wearing a traditional Saudi thobe as he navigated through egaming arenas in Saudi Arabia on Tuesday night. His purpose was to experience dressing as a local in a place he envisions as a potential future home. Ahn, a member involved in managing the egaming team T1, has travelled to Riyadh for the world’s inaugural Esports World Cup.

Participating in the event are his players and over 1,500 gamers aiming for a piece of the noteworthy $60 million (R1.1 billion) prize pool, a record-setting amount for esports. The potential rewards surpass what professional golfers vied for in May’s PGA Championship and are comparable to Wimbledon’s winnings, indicating Saudi Arabia’s commitment to egaming, akin to its efforts in traditional sports such as golf and football.

The event, showcasing 21 games from prominent developers like Microsoft Activision Blizzard, Electronics Arts, and Tencent Holdings’ Riot Games, is anticipated to be a pivotal achievement in Saudi Arabia’s pursuit to become a global hub for esports. Crown Prince Mohammed bin Salman, an enthusiastic gamer with reported interest in Call of Duty, has made this aspiration a key component of his Vision 2030 agenda, which aims to diversify the economy by fostering new industries and opportunities for the youth.

The prince aims for Saudi Arabia to host 250 gaming companies, develop numerous locally produced games, and contribute over $13 billion (R240 billion) to the GDP by the early 2030s. Being one of the fastest-growing regions in the games industry after years of being underserved, Saudi Arabia is on a trajectory to be a significant player in the realm of esports, as suggested by analytics firm Niko Partners.

Event Boycotts

Despite its scale, the event has not been devoid of controversy. Some figures in esports and gaming have raised concerns about Saudi Arabia’s newfound prominence in esports, citing the country’s track record concerning LGBTQ and women’s rights. Notably, esports event host Stella Chung declined an offer to work at the Esports World Cup due to feeling unable to express her identity as a bisexual.

Chung stated that the decision to boycott the event was driven by a desire to support her marginalized community. While viewers tend to be less critical, many within the esports industry are deliberating on navigating the Saudi influence as financial support for esports diminishes in the West. Team Liquid, a major competitor in several leagues, has chosen to display support for LGBTQ rights by donning pride jerseys during matches.

Competitors were granted permission to wear these jerseys featuring rainbow motifs after discussions with Saudi authorities, as shared by Steve Arhancet, co-CEO of the team. This gesture is viewed as a significant statement in the context of promoting inclusivity within the esports community.

Driving Force

South Korea’s Ahn expressed that concerns surrounding Riyadh expressed by some industry members were not a significant issue for him or his team, who are making their first visit to Saudi Arabia. The primary focus, he highlighted, is on whether the Esports World Cup orchestrated by the kingdom can substantially impact the broader course of the industry.

The Saudi government is a pivotal force behind funding the event, estimated to involve a substantial sum in financial terms, stated Ralf Reichert, CEO of the Esports World Cup Foundation. Saudi Arabia’s budget projections indicate planned expenditures exceeding $300 billion (R5.5 trillion) this year, with a significant portion allocated to Vision 2030 initiatives aimed at diversifying the economy beyond oil, including mega projects like the Qiddiya entertainment city.

The operator of the Esports World Cup, ESL FACEIT Group, has secured a five-year agreement to conceptualize Qiddiya’s esports district, which is envisioned to include multiple stadiums situated adjacent to entertainment offerings such as a Dragon Ball theme park and a facility from Six Flags Entertainment Corp.

More Than Money

While the returns on Saudi Arabia’s esports investments, particularly in tournaments, may take time to materialize, the kingdom has a long-term strategy to make the Esports World Cup profitable, although details are still in development, as noted by Prince Faisal. Forecasts anticipate revenue from the video game market in Saudi Arabia, the UAE, and Egypt to reach $2.9 billion by 2028, up from an expected $2.1 billion this year.

The true value may lie in Saudi Arabia’s youthful population, with nearly 70% considered gamers who engage with video games at least biweekly. This demographic shift towards viewing esports as a potential career path rather than a recreational pursuit is viewed as a strategic investment in the future by experts such as Fadi Hilani, a senior academic and research fellow specializing in esports.

Amidst the evolving landscape of esports, Saudi Arabia’s robust initiatives signal a transformative potential for the industry and its economic implications.

Source: MyBroadband