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Hello reader,
When I first heard of esports, I thought it was a gimmicky fad. Who would want to watch someone else play a video game when they can just do it themselves?
That all changed for me during the Covid-19 pandemic.
Without other sports to watch on TV, as the world went into lockdown, I started seeing the appeal and spent more time than I’d care to admit watching streamers play NCAA Football 14. I needed my sports fix, and watching someone else playing an American football video game answered that need.
However, once the world started returning to normal, my interest in the streams waned.
Southeast Asia’s esports sector enjoyed significant growth during the pandemic as viewers – and investors – tuned in. But the market is tougher now, as today’s featured story explores.
Today we look at:
- How can esports firms survive amid funding downturn?
- Singapore’s platform workers to enjoy new protections from January 2025
- Other newsy highlights such as Zomato acquiring Paytm’s entertainment ticketing business and AWS announcing US$6.2 billion of investment in Malaysia.
Premium summary
Game over?
Image credit: Timmy Loen
After seeing a surge in funding at the height of the Covid-19 pandemic, Southeast Asia’s esports startups are facing a slump.
The region may be home to 277 million gamers, but only two esports companies have raised funding since the start of 2023.
- Correction: According to Darang Candra, director of Southeast Asia research at video game market intelligence firm Niko Partners, audience size grew by less than 10% in 2023 compared to 17% in 2022.
- Balance is key: Performing well in competitions is key for an esports brand to make a name for itself, but a balanced business portfolio is crucial for securing VC funding, Carlo Chen-Delantar, partner at VC firm Gobi Partners, told Tech in Asia. Managing players, creating content, and selling merchandise are some of the different revenue streams esports firms can explore.
- Two-player game: TK Nguyen, CEO of Vietnamese esports company GAM Entertainment, says esports firms need support from game publishers to stay sustainable in the long term. One example of such cooperation? Riot Games’ proposed revenue sharing model for its flagship product League of Legends.
Power to the platform people
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