2024: A Year of Evolution in the Gaming and Esports Ecosystem

Authored by Rohit Agarwal, Founder & Director, Alpha Zegus

PC Gaming:

In 2024, the PC gaming domain continued to be dominated by Valorant, leading in terms of prize pools, tournaments, players, esports teams, and organisations. However, the year also saw the introduction of two new games—Counter-Strike 2 (CS2) and The Finals. While these titles had limited tournaments in 2024, there is significant anticipation for their growth and expansion in the esports ecosystem in 2025. As a result, the PC gaming space, which was predominantly driven by Valorant, is likely to see a shift toward a more competitive environment with three prominent titles leading the charge.

Additionally, the potential release of GTA VI could create excitement, although it may not have a competitive angle.

Mobile Gaming:

The mobile gaming sector in 2024 was marked by mixed expectations. There was significant hope for the return of Free Fire, fueled by renewed activity on its Instagram and PR channels. Despite rumours in late 2023, Free Fire did not make a comeback in 2024, leaving a large segment of the gaming community disappointed.

BGMI remained the dominant title in mobile gaming; however, there was a noticeable decline in audience interest and viewership compared to the previous year. This decline is attributed to several factors, but it is worth noting that Krafton diversified its portfolio by introducing new titles such as Road to Valor and others, catering to diverse gaming genres.

The anticipated release of Valorant Mobile did not materialise in 2024, but there is optimism that it may launch in the first half of 2025.

Monetisation and Industry Milestones:

From a monetisation standpoint, 2024 remained consistent with 2023, with prize pools and tournament scales showing no significant growth. However, one monumental achievement for the esports industry was the recognition by the Government of India, including acknowledgement from the Prime Minister.

Several state governments, including Bihar, Tamil Nadu, and Telangana, actively organised esports tournaments and initiatives, promoting esports culture at a grassroots level. While this recognition has not yet translated into direct monetisation, it signals a promising future with centralised and localised support.

The distinction between RNG (Random Number Generator) games and esports remains unresolved, with no significant changes in tax regulations.

Global and Local Collaborations:

In 2024, the gaming ecosystem witnessed increased collaboration between Indian and international creators, players, and organisations. While this overlap did not directly impact economic or commercial aspects, it contributed positively to exposure and growth opportunities.

Organisational Achievements:

For Alpha Zegus as an organisation, 2024 was a highly positive year, marked by substantial growth in both turnover and profit margins. This success was driven by two key trends:

Experiential Marketing: Numerous brands invested in offline marketing strategies, such as setting up experience zones in college festivals, pop culture events, malls, and stores to engage their audience directly.
Snackable Content Production: Brands increasingly focus on producing short, shareable content with better social ROI than traditional, highly fabricated content.

A significant milestone for Alphazega was its collaboration with Mercedes AMG, bringing the luxury automobile brand into the gaming ecosystem—a long-held dream come true. Additionally, the organisation conducted over 120 events across various scales, expanding into regions like Inaquilim Koti and the Northeast, including Shillong and Guwahati, showcasing a commitment to reaching gamers in underserved areas.

Closing Thoughts:

While 2024 may not have seen a monumental economic or commercial shift compared to 2023, two key positive outcomes emerged:

A reduction in dependency on one or two dominant titles in the gaming ecosystem, with new games entering both the PC and mobile gaming sectors. This paves the way for fresh players, teams, esports organisations, prize pools, and innovative formats.
Recognition and support from both central and state governments, not only acknowledging gaming culture but also promoting and organising events around it.

These developments signify a bright and promising future for the gaming and esports industry.

2025: Anticipated Trends, Developments, and Forecasts

Expanding Titles and Opportunities:

Looking ahead to 2025, I anticipate the emergence of multiple titles in both PC and mobile gaming ecosystems. This expansion will foster the growth of more esports players, teams, tournaments, prize pools, and organizations, ultimately creating significant employment and career opportunities. This is a development I am highly optimistic about and fully expect to materialize.

Global-Local Collaboration:

Another trend I foresee is a stronger overlap between Indian gamers and creators with their international counterparts. A recent example is how creators like Mr. Beast, KSI, and Logan Paul visited India, with Mr. Beast collaborating with Indian creators like CarryMinati and engaging with the local community. When the world’s biggest YouTuber recognizes and acknowledges India, it highlights the growing global awareness of Indian content culture. In 2025, I expect an increase in international creators reaching out to Indian creators for collaborations, driving mutual growth and exposure.

Economic and Commercial Outlook:

From an economic perspective, 2024 served as a correction year for the industry, with markets regulating prize pools, player salaries, and other financial aspects. This correction sets the stage for a fresher, more balanced approach to unit economics in 2025. This stabilization is a key positive outcome anticipated for the upcoming year.

State-Level Esports Initiatives:

Building on the momentum from 2024, I predict that more state governments will actively engage in esports initiatives. While states like Bihar, Telangana, and Tamil Nadu have already taken the lead, I foresee over 15 to 20 additional states joining the movement. Whether driven by the fear of missing out (FOMO), a need to catch up, or genuine interest, this increased participation will undoubtedly benefit the esports ecosystem.

Esports World Cup and Competitive Outlook:

On the international stage, I am optimistic about India’s performance in the 2025 Esports World Cup. With stronger teams and better preparation, I believe we can achieve more impactful outcomes.

Market Corrections and Challenges:

One critical tailwind for 2025 is the continuation of the market correction initiated in 2024. If this correction proves fruitful, we will be well-positioned for sustainable growth. However, if the process remains incomplete, it may take additional time to stabilize aspects such as player salaries, prize pools, and overall business practices in the esports segment. The sooner these corrections are resolved, the better positioned we will be to capitalize on opportunities in 2025.

Esports and Content Creation: Gender Equality and New Generations

Progress in Gender Equality:

On a slightly tangential yet important note, I want to highlight the significant progress in gender equality within esports content creation and personality development. The ratio of men to women in this space has improved drastically to the extent that the demarcation of “male gamer” versus “female gamer” has become less pronounced. Both are increasingly viewed through a similar lens, showcasing how far the industry has come in addressing gender biases. While a few instances of bias remain, the overall landscape has shifted positively.

That said, there remains a notable gap in the number of professional female gamers. This may stem from limited tournaments or opportunities tailored to women in esports. To bridge this gap, the ecosystem needs to focus on creating dedicated platforms for professional female gamers or fostering an inclusive environment where mixed-gender teams can compete together. Addressing this will pave the way for greater equity and diversity in professional gaming.

Role Models for the New Generation:

Another exciting development is the emergence of role models for the new generation of gamers. A few years ago, during the era of first-generation gamers, there was a lack of figures or benchmarks to guide aspiring players. Gamers were navigating uncharted territory, carving their own paths without any clear framework.

Today, the second generation of gamers benefits from established figures across professional gaming, content creation, and esports management. These role models provide a roadmap, inspiring the new generation to pursue their passions and shape their careers with greater confidence and clarity. This evolution brings immense potential for exponential growth in the gaming industry as these new gamers leverage the guidance and opportunities available to them.

In conclusion, while there are areas that need improvement, such as fostering more opportunities for women in professional esports, the progress made in inclusivity and mentorship is remarkable. These advancements give me great optimism for the future of gaming and esports.

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