The esports industry has experienced rapid development over the past decade and a half, becoming an undeniable cultural phenomenon worldwide. In particular, MOBA games represented by 《英雄联盟》(League of Legends, abbreviated as LOL) not only provide players with competitive enjoyment but also inject powerful momentum for capital, driving the flourishing growth of various esports platforms and events. However, with the influx of capital and the rise of the pan-entertainment industry, all this has entered a stage of gradual decline. The rise and fall of Panda TV, and the competition between Douyu and Huya, mark the end of the “era of wild capitalism,” and the favorable conditions, location, and people for the esports industry seem to be undergoing changes as well.
Chapter 1: The Rise of Esports and Capital Investment
Early esports: from grassroots to professionalism
The early esports industry had a relatively grassroots start, especially in the Chinese market. Many players participated in competitions for games like StarCraft and Dota, driven by their love of gaming. However, the true rise of esports began with the release and promotion of League of Legends. After League of Legends officially entered the Chinese market in 2011, esports gradually evolved from a niche circle into part of mainstream culture. Particularly starting in 2013, the LPL (Chinese professional league) steadily took shape, and League of Legends became the cornerstone of China’s esports industry.
Capital is pouring in wildly: The Rise of Panda TV and Esports Streaming Platforms
2015 was a turning point for the esports industry in China. The influx of capital transformed esports from purely competitive events into a much larger industrial chain. Panda TV, as one of its representatives, became a product of excess capital. Founded by Wang Sicong (one of the founders of Panda Live), it quickly rose to prominence, attracting a large audience and user base with its innovative content and massive investment. However, this was also a typical example of “barbaric” capital flowing into the market – the frantic pursuit of capital often lacks patience and long-term vision. While Panda TV’s financial and human resources resulted in certain achievements in the short term, it ultimately declared bankruptcy in 2019 due to management issues and over-reliance on capital.
Live Streaming Platform Competition: A “Capital War” Between Douyu and Huya
The fall of Panda TV did not lead to a decline in the esports live streaming industry, but rather spurred the rise of platforms like Douyu and Huya. The two major live streaming platforms quickly became leaders in the esports industry, and their competition intensified. Douyu initially gained prominence through the broadcast of League of Legends professional matches and the signing of top streamers, establishing itself as a benchmark for esports live streaming. Huya, on the other hand, gradually narrowed the gap with Douyu by increasing investment in esports events and diversifying its platform.
During this process, capital once again played a significant role. Bilibili successfully went public in 2018, and Huya also conducted an IPO that same year. The rapid flow of capital led to high concentration within the industry and resulted in intense competition between platforms regarding anchors, copyrights, and other aspects, forming a “capital war.”
Chapter 2: The Convergence of Pan-Entertainment and Esports
The Trend of Pan-Entertainment: Capital Flows Towards Diversified Entertainment Projects
With renewed investment from capital in the esports industry, the content on esports platforms is gradually becoming more entertainment-focused. Esports anchors are no longer limited to match commentary and event broadcasts; they have begun to expand into various forms of entertainment such as singing, dancing, and interactive live streams. The platform’s content has become richer, gradually forming a content ecosystem centered around esports but incorporating diverse entertainment elements.
However, the trend of pervasive entertainment has also brought problems – esports’ original focus on gaming culture is gradually being marginalized, replaced by a trend that prioritizes entertainment above all else. This trend has caused some viewers who were originally deeply passionate about esports culture to feel alienated, and capital has begun to shift its attention to other entertainment sectors. The excessive influx of capital and the pursuit of profit are causing the essence of the esports industry to gradually become blurred, and the core value concept centered on competition is beginning to weaken.
The Rise of the Pan-Entertainment Industry: Capital Retreat and Transformation
As short video platforms, live streaming platforms, and other pan-entertainment industries have risen, capital has gradually shifted funds from esports to a broader range of entertainment content. In this process, giants like Tencent, Alibaba, and ByteDance no longer rely solely on esports projects as a source of profit but have increased their investment in areas such as film, music, and short videos. Particularly the rise of ByteDance, through the explosive growth of platforms like Douyin, has overshadowed esports.
Chapter 3: The “Break in Continuity” of the League of Legends: Era Dividends Fade
Since League of Legends entered the Chinese market in 2011, it has almost become synonymous with the esports industry in China, creating countless professional players, teams, and events, and fostering a massive esports ecosystem. However, more than ten years have passed, and as a leading project in Chinese esports, League of Legends is entering a stage of “generational shift.” Especially in recent years, League of Legends’ influence has been gradually declining, and even showing clear signs of recession.
Layering of Player Groups The most noticeable change is the generational shift in the player base. Initially, esports’ rapid development relied on the support of a large number of young players, many of whom became professional players or viewers because of League of Legends. That generation of internet-addicted youth almost grew up under “demographic dividend,” immersed in the competitive appeal of LOL and thus driving the industry’s rapid expansion. However, as time passed, these players gradually matured, entered society, and began to shift towards other life and career paths. At the same time, the new generation of young players’ interest in League of Legends is not as fervent as it used to be, and esports audiences are showing a clear age bias and declining interest.
3.2 The “Weakness” of Game Content League of Legends, after numerous updates and revisions, while still retaining a certain competitive appeal, has shown signs of struggling to innovate. Annual version updates, hero balance adjustments, and the introduction of new gameplay mechanics have seemingly failed to fundamentally address players’ need for novelty. At the same time, the MOBA market is becoming saturated, and other game genres (such as Honor of Kings and Peacekeeper Elite) have rapidly risen in popularity, diverting a large number of players who previously played League of Legends. This competitive landscape has kept League of Legends perpetually in the role of a “follower.”
Conclusion: Where will the esports industry go from here?
The esports industry is more like a skyscraper that sprung up seemingly out of nowhere. Excessive capital wanders within the internet sector, searching for the next trend, and esports has become one of their targets. Relying on China’s demographic dividend, the esports industry achieved tremendous success in a short period, but this success isn’t built on a solid foundation. Over-investment of capital, talent shortages, and weak game content – these issues are all hindering the healthy development of the esports industry.
Before college, I didn’t play many games. League of Legends accompanied a generation’s growth. Having watched so many finals, as an outsider, comparing Chinese and Korean players, especially Faker, domestic players always feel hesitant and fearful during major tournaments. I understand the psychological pressure on players is immense, but this industry has been developing for over ten years. Psychological issues among players should have been prioritized by teams, but they haven’t been. The gameplay in China still relies on players’ innate talent.