China Focus: E-sports sector on fast track to growth amid COVID-19

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Despite the widespread economic disruption caused by COVID-19, China's e-sports sector is thriving with more new fans and emerging business models.

For the first half of this year, China's e-sports sector saw its sales revenue reach around 71.94 billion yuan (about 10.4 billion U.S. dollars), up 55 percent year on year, according to a report jointly released by several organizations including the China Audio-video and Digital Publishing Association.

The number of e-sports users grew by about 10 percent over the same period to total 484 million by the end of June, the report said.

E-sports, which refers to organized, multiplayer video game competitions, has injected new momentum into China's gaming industry and is becoming a fresh growth point.

During the trying times of COVID-19, the industry has gained more new fans who spent more time and money on games to fill the empty hours of lockdown and isolation.

"Not all of them are enthusiastic players but they like to experience and watch competitions. During the epidemic, offline e-sports events were postponed, while online competitions surged. Many players and viewers have been accustomed to participating in and watching the events online," said Xiao Hong, CEO of Beijing-based movie and gaming company Perfect World, at a recent e-sports conference.

Together with this upsurge in popularity, the epidemic has also nurtured new business models for the e-sports industry based on technological innovation.

Applications of 5G technology and artificial intelligence (AI) have transformed the original form of the e-sports industry which involves training, competitions, watching and live broadcasts.

The technological innovation will make e-sports "hyper-interactive," said Xiao, adding that with new technologies, audiences can directly participate in competitions and even interact with the contestants in real time.

A string of game companies including NetEase, Tencent and Perfect World have increased their manpower and financial input in the e-sports sector in recent years.

Xiao said Perfect World is exploring the application of AI technology in facilitating team training and enhancing ordinary players' experience. It is also using the latest AR/VR technology to upgrade remote competitions. With virtual studios and virtual anchors, players can enjoy "deeper and richer immersive experiences."

After years of development, China's e-sports industry has formed a complete industrial chain from game licensing to content production and dissemination, driving all-around development involving related industries such as contest operation, educational training and proprietary equipment RD.

Seeing the potential in the e-sports sector, local departments have rolled out policies to support its development.

Shanghai has offered fiscal, logistical and personnel support to build the economic hub into an "e-sports capital," while Hainan, an island province in south China, will further develop the e-sports industry to promote the consumption of emerging culture and sports.

China's self-developed e-sports products have gained traction in Southeast Asia and Latin America.

"China has now become one of the most active e-sports markets in the world. Our exploration of contest systems, personnel training, business models and global cooperation has made e-sports a new language for the country to communicate with its global counterparts," said Cheng Wu, vice president of Tencent Group.

(CGTN)