The South American eSport market
According to SuperData Research, the global video game industry is worth about $105 billion. But video games aren't just a bunch of kids playing around in their bedrooms, they're also, more importantly, a massive global eSports market. While the North American market is the most powerful of all, the eSports industry is becoming less and less centered on it. Latin America, for example, which represents only 4% of the global audience, has a card to play. This is especially true since the South American eSports market is the fastest growing.
Latin America, an eSport market with great potential
Latin America has 110 million players in all categories, which is as many potential prospects for the eSports industry. The continent even ranks fourth behind China, Europe and North America in terms of the number of players. Among the countries with the largest market shares in South America are Brazil (30%), followed by Mexico (19%), Colombia and Argentina.
In these countries traditionally dominated by soccer, e-sports are the second most popular sport. In 2016 alone, the video game market in Latin America grew by 20%. Much of this momentum is located in mobile games, with a 56% year-over-year growth rate. In addition, unlike other emerging markets, Latin America is also experiencing growth in console sales, with a 9% increase in sales. Finally, mobile and PC games each account for $1.4 billion in revenue. This shows the potential of this continent in terms of eSport competitions!
eSport in South America is gaining momentum
Like Lyon Gaming, which is none other than the Latin American champion team on League of Legends and one of the most appreciated on the international scene, eSport in Latin America is on a roll. Sponsors are jostling to have their logos flocked to the jerseys of the most talked-about eSport teams (Kultec, Supermex, Intel, Asus, Arean etc.).
In addition, more and more big media companies are relaying eSports events, like the Argentine branch of Mediapro - an organization originating from Spain -, which produces and markets the rights to one of the main eSports events in South America, the Copa Latinoamérica Sur Clausura. This tournament alone was broadcast on the encrypted channel ESPN+.
It should be noted that if the Latin American continent wants to one day dethrone its northern neighbor, it will still have to overcome some of its shortcomings. Indeed, retailers and wholesalers in South American countries often receive new video games with a delay, as most of them are not manufactured on the continent. Also, many games that are popular in the United States are not popular in Latin America. Another major problem is the price of games and game consoles. Video game stores have to pass on their expenses from the various taxes to the prices of the products they are trying to sell. As a result, there are variations in the prices of games and consoles ranging from 25% to 250%!
Finally, some South American governments strongly despise consumerism and consider imported technologies as an expression of monopoly or colonization by other countries. This is notably the case in Ecuador, Venezuela or Bolivia. But the South American eSport market must believe in its chances!
