Writer: Lincoln Warstler
2 min read August 2022 — What many saw as a trendy fad that deserved little attention is now turning into a multibillion-dollar industry and it’s taking hold in Pennsylvania.
By 2025, the global esports industry will generate revenues over $1.86 billion with a total viewership of 640 million people, according to Newzoo. This growth is significant compared to the nearly $1.38 billion in revenues and 532 million viewership for 2022. In 2017, revenues totaled to $696 million with an audience of 385 million.
Pennsylvania’s first-ever professional esports team emerged in 2017 when the Pittsburgh Knights and the Philadelphia Fusion were established. Since then, the Knights and Fusion have both become known as world-class teams that have consistently ranked in the top of their respective gaming competitions. Both organizations grew quickly and acted as a catalyst for the industry across the state.
For example, just a year after being founded, the Pittsburgh Knights garnered the attention of the Pittsburgh Steelers, who decided to invest in the team by purchasing a stake of the ownership. A year later in 2019, the Knights had Pittsburgh native and multiplatinum-selling artist Wiz Khalifa join as a strategic partner. In Philadelphia, Fusion Arena, a $50 million, next-generation esports arena, is being pursued by The Cordish Companies and Comcast Spectacor, with the primary tenant being the Philadelphia Fusion esports franchise.
Institutions of higher education have begun to take note of the industry’s rapid growth. Schools such as Drexel University, Slippery Rock University and Harrisburg University have added programs related to esports, reflecting the potential for a career in this industry. “There are a number of careers in the field around tournament organization, pre- and post-production, and more that will only increase as the industry expands. We believe there are great career opportunities for those who want to enter the industry without competing at a competitive level,” said Eric Darr, president of Harrisburg University of Science and Technology, with Invest:.
College Magazine recently ranked Harrisburg University of Science and Technology at No. 8 on its Top 10 list of colleges with superior esports programs. Since 2018, Harrisburg University has hosted the Harrisburg University Esports Invitational, welcoming 32 teams, and its varsity esports team HU Storm has won three national collegiate championships.
The emergence of the esports industry has also been bringing new jobs and business models to the market, a trend that was rapidly sped up by the pandemic. Hitmarker reported that the total number of jobs in the global esports industry was 41,314 for 2021, versus 4,638 in 2019.
In 2020, in the midst of the pandemic, 30-year-old high school dropout Josh Fabian founded Metafy, a first-of-its-kind online service that allows members to book one-on-one practice sessions with some of the top esport athletes in the world. The Pittsburgh-based company raised $34 million from investors and accumulated an overall worth of $105 million in just two years.
Wayne Kimmel, managing partner for venture capital company SeventySix Capital, is among those who see a future in the industry, particularly with in-person gaming. “You’re going to see more and more in-person gaming than you’ve ever seen before,” said Kimmel with Invest:. “Companies like Nerd Street Gamers, just one of our portfolio companies, are leading the charge to bring this overall infrastructure to the world of esports. There are just not a lot of places here in the United States to go out and play video games against somebody in a physical location. We’re in the business of building out that experience.”
It’s an experience that also offers big windfalls for competitors. At the 2019 Fortnite World Cup, a 16-year-old from Pottsgrove, Pennsylvania won $3 million from a $30 million prize pool.
