Esports are a growing enterprise built on the backs of several competitive games spanning genres, generations in software and global audiences. So, why has there been a resurgence in sports simulation now?
The FIFAe World Cup 2025 ft. eFootball begins its console and mobile qualifiers on the 18th of September this year, leading up to the main soccer Esports events in Riyadh, Saudi Arabia, this December, with an unannounced prize pool.
The FIFAe World Cup 2024 ft. eFootball had a prize pool of nearly AUD $375,000, along with a peak in streaming viewership of under 415,000 between Twitch and YouTube, making it the most popular sport simulation event of the year.
Using statistics from the previous year’s prize pool and peak viewership, as well as this year’s Esports World Cup (EWC), which saw both Rocket League and EA Esports FC break peak viewership records (accumulating around 340,000 eyes), the upcoming tournament could see a higher audience count and possibly a boost in overall revenue.
To be fair, these are rookie numbers compared to the larger esports tournaments with Tier 1 viewership (League of Legends, Counter-Strike 2), which record millions of viewers and reward every major event. FIFA, Rocket League and EA Esports FC all rank in Tier 3 but are still able to be reasonably profitable.
Only a few years ago, online discourse and the investment capital of major esports teams (known as organisations), like FaZe, crashing on the stock market fuelled claims that the sub-genre sporting enterprise had died or was dying. Now, there seems to be a boost to the sport.
I believe it is due to Saudi Arabian influence in the sport and how FIFA and EA harness major revenue streams, both active and passive.
The Influence of Saudi Arabia and FIFA/EA
Esports organisations, like all sporting clubs, generate revenue from sponsorships, merchandise, licensing, etc. Depending on the popularity of the sport and them in each region will affect how much money is spent on houses (the esports form of clubs), sponsorships/partnerships, and so on. Fan engagement and stakeholders in the sport are just as important to the Socceroos as they are to the Chiefs.
Where it differs from conventional fan engagement is the monetary barrier of entry through broadcasting.
If a particular fan cannot make it to a live match, they watch it on television. If the game is played outside of their country, it’s usually going to be broadcasted on paid television, unless free-to-air channels can secure deals which cost millions of dollars for a multi-year licence.
Esports are practically free for viewers to watch through streaming services like Kick and Twitch, whose individual channels are owned by venue organisers and esports governing bodies who gain revenue from advertising, with kickbacks to the streaming service. And since the majority of esports fans are Gen Z, they are less likely to have disposable funds to pay to watch tournaments.
Saudi Arabian stakeholders in the Saudi Esports Federation, and partnerships FIFAe (the esports branch of FIFA) and EA among others, control the streaming rights and venue of the World Cups to present Saudi Arabia as the hub of esports.
The country’s governing body also gains ticket sales from tourists and attendees, funnelling revenue into the sport and increasing prize pools each year. The kingdom has also invested over AUD57 billion into the sport, which is estimated to create over 39,000 esports-related jobs by 2030, though the Asian and United States markets are much larger in overall fanbase.
However, the sport cannot run properly without every few years a new or updated title to release alongside events. The new soccer game, EA SPORTS FC 26 is set to release soon and though it won’t be played in the tournament, EA are set to see a spike in purchases before, during and after the World Cup finishes.
Electronic Arts had a hands-off approach in the early days of esports, letting competitions use licensed titles as the developer/publisher saw a correlation between the esports events and upticks in microtransaction purchases. In recent years, they have heavily promoted FIFA players to buy ‘packs’ with playable footballers from across the game to add to your roster.
Though FIFA and EA ended their esports partnership in 2023, they still have a working relationship via licencing rights ranging from player’s likeness to simulated leagues from around the world, as well as recreations of famous football grounds and kits.
FIFAe’s and EA’s steady stream of revenue from the tournaments derive from fans buying FIFA-related merchandise and electronic player packs for team builders in FIFA-licenced videogames.
The accumulated revenue will also see itself be put into organisations who are sponsored by either group, as well as the passive use of clubs in-game essentially being free advertising for the used football club.
Overall, the Saudi Esports Federation, FIFAe and EA have created a perfect storm which may bring the sport up to Tier 2 in the next few years.
