facebookIs E Sports a huge untapped opportunity for the south east asian region? What companies come to mind when riding on this growth story? - Seedly

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Anonymous

28 Apr 2020

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Is E Sports a huge untapped opportunity for the south east asian region? What companies come to mind when riding on this growth story?

Given the growth of E Sports in America, Europe, China and Korea, do you think this is an area that SEA countries should be tapping into more?

Discussion (1)

What are your thoughts?

Kenneth Lou

Kenneth Lou

28 Apr 2020

Level 14·Co-founder at Seedly

Recently due to the circuit breaker, I started playing more online multiplayer games over the weekend (eg Call Of Duty Warzone online, F1 online and FIFA Online) on my console.

Coincidentally, I just attended an online webinar by ONE ESports which carried some very interesting data points which I will share more below on how I think of this space. Hopefully you can learn from something from this.

Essentially these are the 3 main points which really hit home:

  • E Sports is popular and growing very rapidly (15.7% CAGR globally)

  • The market in South East Asia has barely started in terms of E Sports growth (due to mobile phone penetration)

  • E Sports consumers are an interesting and relatively affluent demographic (due to the nature of gaming)

I'm now thinking of creating an E Sports thematic portfolio which comprises of:

Something that is interesting which has happened to these stocks, are seeing a general YTD returns which are up. (compared to many other companies which has seen a downward trend) eg, Activision Blizzard has seen a YTD of 15% and NVIDIA has seen a 19.5% YTD.

  • Activistion Blizzard Inc, because of game development

  • Nvidia, because of graphics card processors

  • Microsoft, because of console XBOX ONE

  • SONY, because of console PS4

  • Tencent, because of League of Legends and E Sport communities

  • And more... TBC

It's abit raw for now but I will definitely spend more time to do more research in this industry.

This is generally true, mobile penetration is coming up soon in SEA and has much room to grow, similar to how eCommerce, general internet accesibility has room as well.

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