Investors were way too bullish on esports
Are esports a growing market with a huge amount of future potential? Yes. Did investors get too far out ahead of their skis with assuming that esports would quickly overtake traditional pro sports in market value? Definitely yes.
Sports-business billionaires and gaming executives had hopes that esports could one day could scale into an organization like the National Basketball Association. But after a boom five years ago, several prominent esports teams and organizations, particularly in the US, are contracting, the result of a broad economic downturn, a venture capital industry that’s no longer willing to accept growth without profits and a crypto meltdown that has undercut a significant source of backing.