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eSports SWOT Analysis 2022: Strengths Outnumber Weaknesses

PESTLEanalysis Team
PESTLEanalysis Team
Table of Contents
Table of Contents

Our eSports SWOT Analysis casts a light on Strengths, Weaknesses, Opportunities and Threats of the competitive online world of multiplayer gaming.

If you have stumbled upon this article on the internet, chances are you are a diehard esports junkie and you might even compete. Whatever the case, in this esports SWOT Analysis, we will try and see what makes this form of competition so viral in the world.

Simply put, esports is basically the shorter version for electronic sports which means that it is basically utilizing video games. These games can be between two people, they can be multiplayer or even between teams. These games are mostly a part of professional competitions rather than casual.

This industry wasn’t very popular a couple of decades back because gaming was primarily used for entertainment. However ever since gamers started live-streaming their video game matches they noticed that people actually spent time keeping up with the competitors.

Ever since the onset of 2010, esports saw a rise in popularity and acceptance as a viable industry. This was when actual game developers and enthusiasts began proper funding to host such competitions for gamers all around the world.

Undergoing a thorough SWOT Analysis for this genre of gaming will allow us to understand just how successful this industry truly is and what sort of potential it offers. Most of you might have an idea of the SWOT analysis template but in case you are new to the term, it is basically an acronym standing for strengths, weaknesses, opportunities, and threats.

SWOT is a tool used to study various entities such as a company, a business, an industry, or even a country in terms of its business attractiveness. Before we move ahead in the analysis, it is important you have a few things noted.

The first two factors i.e. the strengths and weaknesses of the SWOT are called internal factors whereas the latter two i.e. threats and opportunities are called external factors.

Internal factors can easily be controlled and influenced by the entity being analyzed in the SWOT framework, whereas the external ones are out of any influence of the entity and can only occur on their own, often unprecedented even.

This can be understood using an example. If esports are easy to access for people, this is a strength for the industry because it has fostered the necessary infrastructure to make it available for participants. Hence this is an internal factor of the company.

Now if we think about the fact that the evolving consumer trends might shift people’s focus away from esports to some other form of competing in the future, this would be a threat and an external factor. The industry can’t possibly stop this trend from emerging.

Now that you have a clue of what we are discussing, let’s move ahead and see where esports stand in the light of this analysis tool.

esports-swot-analysis-strengths

What are some of the biggest strengths of esports?

In every example of SWOT analysis, you come across, you will find that this portion is where every company tries to focus most. Having a good amount of solid strengths can protect the business from unforeseen troubles in both the external as well as internal environments.

Here are some of the biggest strengths this industry can boast of at the moment.

People Enjoy It

Just like any other sport in the world, esports also has a very big following. People all around the world are keen to watch online gamers compete in these competitions.

This has largely impacted the popularity and hence growth of this industry so vastly because, at the end of the day, it is fostered by people who both play games and those who watch various streaming events.

If people lose interest or move to other activities, this industry cannot function very well, can it?

Easy Access

Anyone can become a part of watching esports through any online streaming platform; all you need is an internet connection in order to join the audience.

Platforms like YouTube and Twitch have made the process even easier. What person do you know that does not visit YouTube daily on their smartphone or computer? Because it is so easy to view, the amount of viewers just increases on a daily basis.

In 2021 alone, it was estimated by experts that about 84 million viewers will watch esports during the year! This number is expected to grow even further this year.

Prone to Covid-19

It is obvious that businesses that use online platforms actually did better during the pandemic compared to others because of their electronic infrastructures.

Esports like any other online-based entertainment saw a huge rise in popularity owing to the fact that it is all electronic. Where traditional sporting events suffered a lot in terms of postponement and cancellations, this form of sports became even more popular.

Anyone anywhere can log into an esports game provided they have an internet connection. So many people got into the trend during quarantine.

Before covid-19, it was projected the industry would generate a revenue of 1.8 billion. Now, this number seems very underwhelming because it will surely surpass it owing to the pandemic.

Anyone Can Play

Unlike traditional sports, anyone can take part in an e-sporting event. All they need is some basic equipment in the shape of a computer, hard drives to back up the gaming data, and other accessories like a keyboard or a mouse.

Logitech is very popular with esports enthusiasts because they offer all sorts of equipment that a gamer could possibly need. One doesn’t need any significant training or practice to play a game online. This makes the barriers extremely low for people to participate in the industry.

Diversity of Games

Esports is not limited to a particular niche or genre of games. All sorts of games are available because there are people around the world who are willing to invest their time and effort into watching as well as playing these different games.

Whether you prefer multiplayer online battle arena (MOBA) games like League of Legends or you like traditional sports such as Fifa, there is something for everyone to follow.

This also makes this industry so widely popular because all gamers and watchers alike find something to suit their tastes.

It Connects People

Where communication has become so easy with connectivity tools such as emails and social media, esports has also developed into a platform that does the same.

People from all around the world get to connect with each other through these games. They all come from so many different countries and regions. They connect frequently to play various games and often many become friends with each other during the process.

What are some of the biggest weaknesses of esports?

No SWOT table is complete without talking about the dreaded weaknesses, is it? Well, it is important to be aware of the weaknesses of the industry so that they can be dealt with in a timely fashion before they become huge problems.

Gaming Disorder

This is actually a term coined by the International Classification of Diseases. What it means is that people who develop this disorder become so inherently obsessed with gaming and competing online that they let it take over their entire lives.

This affects their personal relationships and their health.

Joint Pain

Gaming is not an ergonomically friendly activity for people to engage in. If people play video games for only a small amount of time during their daily routine, it isn’t as serious but those who do it for a living or because they want to compete, often get what is called carpal tunnel syndrome.

This can become very painful if not treated in a timely manner.

Lack of Physical Activity

Gamers generally tend to become very inactive owing to their long hours spent playing online games. This makes them miss out on necessary exercise. One can develop a myriad of diseases from the lack of exercise such as obesity.

This is why it is always useful to have an energy drink nearby to motivate you to get up and go out to enjoy some physical activity.

Sleep Disturbance

Many people who engage excessively with online gaming have reported facing difficulty in sleeping. So this activity seriously needs to be monitored before it becomes detrimental to one’s sleep schedule.

esports-swot-analysis-opportunities

What are the biggest opportunities esports can explore?

As long as there are opportunities for an industry to dive into, the weaknesses can be mitigated and strengths can always be amplified and increased.

Growing Industry

The esports industry is not done growing yet. They still have a long way to go. This means there are endless opportunities for people to take part and add to the industry.

It is estimated that by 2025, esports will surpass the 3 billion dollar mark in terms of the worth of the gaming industry.

Mobile Gaming

At the moment, the gaming experience is mainly focused on having PCs or laptops because the software of the games is heavy to be run on mobile phones.

However mobile gaming is a very interesting space for this industry to seep into. Everyone uses a smartphone and they are much more portable. One doesn’t have to be locked up in a proper gaming room all the time to be able to play.

Experts predict that mobile gaming can make up 45% of the total population of e-gamers.

esports-swot-analysis-threats

What are the biggest threats looming over esports?

Like any other business, esports also have certain threats that can reduce the chances of success. Here are some of the most relevant threats they need to be on the lookout for.

Lack of Security

Because of the sudden COVID-19 boom, the industry still has a lot of work to do to increase security.

Most gamers and gaming experts cited that the biggest threat to the success of esports was the utter lack of any detection system to weed out frauds.

Cases of cheating, hacking, and even cyber-attacks put a question mark on the attractiveness of the industry. This is a valid reason for people to not play online.

Discrimination Against Women

Because of the prevailing patriarchy in most parts of the world, women still get discriminated against in this industry which is heavily male-dominated.

Although there are so many women who like to play online and many even take part in professional competitions, this factor becomes a demotivating factor for young girls to take part.

It is 2022, if we still have spaces where women are not welcomed by their male counterparts, just how far can the industry go without half of the population on board?

Esports SWOT Analysis: Final Thoughts

If you have read your way through this article, not only have you learned what esports are, how they work and why they are so popular, you have also learned how a SWOT analysis is conducted.

In this SWOT analysis, we have worked out how the four major factors impact the industry. The strengths of the industry far outweigh the negative factors.

It is a promising industry with a lot more to explore. That being said, the cons should be mitigated as much as possible because it is important to take care of people’s mental and physical health.

The threats over the industry can easily be eliminated by working actively towards the inclusion of more women and employing more resources for raising security. Overall, it is a safe conclusion that with a little regulation and some strong policy work, this industry can add a lot to economies around the world and that esports aren’t dying off anytime soon. If anything, they will only increase and become better.



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