The esports industry has experienced rapid development over the past decade and a half, becoming an increasingly significant cultural phenomenon worldwide. Particularly MOBA games like League of Legends (LoL), which is often abbreviated as LOL, not only provide players with the joy of competition but also inject powerful momentum into capital, driving the flourishing development of various esports platforms and events. However, all of this has entered a phase of gradual decline with the influx of capital and the rise of the entertainment industry. The rise and fall of PandyTV, the competition between DouYu and Huya, marks the end of the “wild capitalism era,” and the favorable conditions – time, place, people, and heaven – for esports seem to be starting to change.
Chapter 1: The Rise of Esports and Capital Injection
1.1 The Early Days of Electronic Sports: From Grassroots to Professionalization
The early esports industry started relatively grassroots, especially in China. Many players participated in competitive games like StarCraft and Dota, driven by their passion for the games. However, the true rise of esports began with the release and promotion of League of Legends. Following the official entry of League of Legends into the Chinese market in 2011, esports gradually evolved from a niche community to part of mainstream culture. Notably starting in 2013, the LPL (China Professional League) was established, and League of Legends became the cornerstone of China’s esports industry.
1.2 Capital Frenzy Influx: The Rise of PandaTV and Esports Live Streaming Platforms
2015 marked a watershed moment for the Chinese esports industry. The influx of capital transformed esports from a purely competitive event into a much larger ecosystem. PandaTV, one of the representatives, became a product of excessive capital. Invested by one of its founders, Wang Sicong, PandaTV quickly rose to prominence with its innovative content and massive investment, attracting a large number of viewers and users. However, this was also a typical example of capital “barbaric” inflow – the relentless pursuit of markets often lacks patience and long-term vision. Although PandaTV’s short-term investments achieved certain results due to management issues and excessive reliance on high fever caused by capital, it ultimately declared bankruptcy in 2019.
1.3 Live Streaming Platform Competition: The “Capital War” Between DouYu and Huya
The demise of PandaTV did not lead to the decline of the esports live streaming industry; instead, it propelled the rise of platforms like Douyu and Huya. Douyu and Huya became leading players in the esports industry, and their competition intensified. Early on, Douyu established itself as a benchmark for esports live streaming through the broadcasting of League of Legends professional competitions and the signing of top streamers. Huya, meanwhile, gradually narrowed the gap with Douyu by increasing its investment in esports events and diversifying its platform layout.
Throughout this process, capital played a huge role again. In 2018, Douyu successfully went public, and Huya also completed its IPO the same year. The rapid flow of capital led to industry consolidation and intensified competition between platforms in terms of streamers and copyrights, forming a “capital war.”
Chapter 2: The Fusion of Mass Entertainment and Esports
2.1 The Trend Towards Mass Entertainment: Capital Flows into Diversified Entertainment Projects
As capital has heavily invested in the esports industry, esports platform content is gradually becoming mass-entertained. Esports anchors are no longer limited to match commentary and event live streaming; they have begun to expand into singing, dancing, interactive live streams, and other entertainment forms. The content on platforms is becoming more diverse, gradually forming an ecosystem centered around esports but also incorporating various entertainment elements.
However, this mass entertainment trend has also brought problems – the original focus of esports culture has been marginalized, replaced by a trend of entertainment above all else. This trend has caused some fans who originally loved esports culture to feel alienated, and capital has begun to pay more attention to other entertainment fields. The excessive influx of capital and profit-seeking behavior have gradually blurred the essence of the esports industry, and the original value concept centered around competition has been weakened.
2.2 The Rise of Mass Entertainment Industry: Capital Withdrawal and Transformation
As short video platforms, live streaming platforms, and the entertainment industry have risen, capital has gradually shifted funds from esports to a wider range of entertainment content. In this process, giants such as Tencent, Alibaba, and ByteDance no longer rely solely on esports projects as sources of revenue, but are increasing their investments in areas such as film, music, and short videos. In particular, the rise of ByteDance, through the explosive growth of platforms like Douyin (TikTok), has overshadowed the limelight of esports with other entertainment content.
Chapter 3: League of Legends’ “Yellow Not Following Yellow”: The Decline of the Era’s Advantage
Since League of Legends entered the Chinese market in 2011, it has almost become synonymous with China’s esports industry, achieving countless professional players, teams, and events, and also spawning a massive esports ecosystem. However, after more than ten years, as a leading project in Chinese esports, League of Legends has entered a phase of “Yellow Not Following Yellow” – a period of decline. Particularly in recent years, the influence of League of Legends is gradually waning, even exhibiting obvious signs of recession.
3.1 The “Fracture” in Player Groups
The most noticeable change is the fragmentation of player groups. Initially, esports’ rapid development relied on the support of a large number of young players, many of whom became professional players or spectators thanks to League of Legends. That generation of “internet addiction” teenagers almost grew up under the “era’s advantage,” immersed in the competitive charm of LOL and thus driving the rapid expansion of the entire industry. However, as time went on, these players gradually matured, entered society, and began to shift towards other life and career paths. At the same time, a new generation of young players are not as enthusiastic about League of Legends as in its heyday, and the esports audience has exhibited a clear age bias and decline in interest.
3.2 The “Weakness” in Game Content
League of Legends, after multiple updates and revisions, still maintains a certain competitive charm, but the game’s own innovation in content appears somewhat lacking. Each year’s version updates, hero balance adjustments, and new gameplay introductions seem unable to fundamentally address players’ demand for freshness. Meanwhile, the MOBA market has become saturated, and other types of games (such as Honor of Kings and Game For Peace) have rapidly risen, diverting a large number of players who originally belonged to League of Legends. This competitive situation has left League of Legends unable to escape the role of “follower.”
Conclusion: Where Does the Esports Industry Go From Here?
The esports industry is like a skyscraper that sprung up seemingly overnight, with excessive capital roaming the internet sector, searching for the next big trend – and esports has become one of their targets. Leveraging China’s demographic dividend, the industry achieved tremendous success in a short period, but this success wasn’t built on a solid foundation. Excessive capital influx, talent shortages, and weak game content are all hindering the healthy development of the esports industry.
Prior to university, I didn’t play many games; Alliance essentially accompanied my growth alongside generations. I watched countless World Finals, and as an outsider, comparing ourselves to Korean and Chinese players, especially Faker, domestic players always felt hesitant during major tournaments. I also know that athletes face immense psychological pressure, but this hasn’t been prioritized by teams. Over a decade of development, these mental health issues should be taken seriously, yet they weren’t. Domestic gameplay still relies on the innate talent of the players themselves.