I wish I could say I came up with this, but I have to give credit to Marcus Howard (check out the full article here). While I did predict the fall of the professional esports industry, it didn’t occur to me that the collegiate esports system could fail, but I think Marcus is spot on.
His seven reasons are:
- Not having a realistic plan to create sustainable ROI
- Prioritizing top tier competition
- Investing too heavily in brick and mortar
- Over-indexing (and relying) on AAA games
- Incorrectly defining the target demographic as 16-24
- Misunderstanding/Misusing industry data
- Setting vanity metrics as KPIs
Our Take on Collegiate Esports
The rise of esports has been meteoric, capturing the imaginations of gamers, investors, and educational institutions alike. This article, I dive into these points in more detail, drawing insights from Marcus Howard’s observations.
The initial rush to establish esports programs often stems from the hype surrounding esports’ growth. However, without strategic planning, this enthusiasm can quickly wane. Long-term success requires a balanced approach, prioritizing sustainable practices over short-term gains.
Lack of Sustainable ROI Plans
Collegiate esports programs often receive initial funding akin to non-profits receiving grants. However, without a clear plan to demonstrate Return on Investment (ROI), these programs struggle to secure ongoing financial support. ROI isn’t just about direct revenue; it can encompass marketing benefits, student engagement, and retention. Programs must quantify these benefits to justify continued investment.
The lessons from collegiate esports are applicable beyond educational institutions. Parks & Rec departments and other organizations must also demonstrate ROI to justify investments in esports. Whether for marketing, community engagement, or other purposes, the ROI of esports initiatives must be clear and compelling.
Vanity Metrics as KPIs
Relying on metrics like social media likes and followers, which don’t necessarily correlate with meaningful engagement, can misguide program objectives. Focusing on metrics that reflect genuine engagement and impact, such as retention rates and participant feedback, can drive more effective strategies.
Collegiate Esports vs. Traditional Sports
Unlike traditional sports, collegiate esports is not a direct path to professional play. Many top players prefer to compete independently where they can earn directly. Focusing on community building and engagement rather than purely on producing professional players can ensure broader participation and support for colleges specifically. Collegiate esports is not a path to the pros like in traditional sports, therefore it must be noted that the best players may not participate with the collegiate teams.
Conclusion
Collegiate esports holds immense potential, but realizing this potential requires avoiding common pitfalls and adopting sustainable practices. By focusing on broad participation, flexible infrastructure, diverse game offerings, and meaningful metrics, programs can build a vibrant and enduring esports culture.
