Page 20 - Forbes - Asia (June 2018)

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GEN.G

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China’s $32.5 billion gaming market is driving mobile esports to new heights.
BY ELAINE RAMIREZ

gaming market. With Strike, notes Weiwei Geng, Gen.G’s China
hubs in California and managing director. Powered by a tech
Seoul, Gen.G (short for revolution and rising incomes, entrepre-
Generation Gaming) was neurial young people in the early 2010s
listed as a South Korean began to reject the family businesses and
startup to watch in 2018, launched their own—including esports
and recently set up its teams. “hey didn’t worry about making
irst mobile esports team proit,” Geng says. “hat’s their passion.
of ive players in Shang- hey have money, they have resources,
hai to take on the Clash they have social connections, the network,
league of 36 teams. so they upped the standard and quality of
Arnold Hur, Gen.G’s esports 2.0 in China.”
chief growth oicer, Still, there was a stigma against
Avid esports athletes playing online battle game Clash Royale.
expects esports will dedicating so many hours to gaming.
he thriving pro gaming match regular sports in But the scene saw a profound change in
industry may have its roots popularity in China and elsewhere in 2016 ater the government, which held
in South Korea, but it has Asia, because those of any skill level can a longtime stance against gaming and
sprawled to unprecedented play. he rise of mobile is also giving rise entertainment, recognized China’s global
Tlevels in neighboring to new demographics of game players, competitiveness in the industry and
China—so much so that it has surpassed such as older users and people with dis- pledged its support to develop and invest
the U.S. market. Asia now makes up half abilities. “With esports, even if I’m bad in esports. “hen the whole scene started
of the global gaming market, according at it, I can be immediately matched with to change. People weren’t shy that they
to market researcher Newzoo. somebody at my skill level and have a were in this business,” Geng says.
While classic titles like League of great match,” he says. his year, major companies like JD
Legends have an unsurprising stronghold But pro esports is serious business, and Edward Gaming have entered the
in China, mobile esports games like making an estimated $660 million in fray, with the latter raising $15 million
Clash Royale and Tencent-owned Arena 2017, with 16% of it from China alone, from basketball legend Yao Ming, while
of Valor are propelling the country’s according to Newzoo data. Perhaps game Tencent sprawls into TV shows based on
obsession and redeining the industry. publishers used to see esports as a mar- esports players’ lives.
hirty-six percent of the world’s gaming keting ploy, but now they are inding it Despite the boom, there is a commer-
market is now on mobile devices, with critical to invest in the creation of esports cial imbalance: Chinese companies oten
183 million mobile gamers in China. divisions, Hur says. enter South Korea to build esports teams,
Such fast growth makes China’s While South Korea remains a crucial but little business goes in the other
e sports industry the new frontier for hub for esports, Hur believes that game direction, Hur says. “I think China being
game publishers like Supercell, which is publishers are putting the U.S. and China diicult, the very high entry, that scares
hoping to reinvigorate its two-year-old on equal footing when considering how a lot of the teams and companies,” adds
mega-hit Clash Royale by investing in a to design and market their games. “But I Geng. But the founders of Gen.G, who
new league in which nearly 7,000 players think in the next ive years, you’re going knew each other from the hit game pub-
compete for $1 million prize money. to have to think about Asia irst because lisher Kabam, had experience running a
For Korean-U.S. esports startup the player base, the fan base, everything 300-person oice in Beijing. Says Geng:
Gen.G, which grooms and trains gam- here is growing so quickly.” “he team knew that if you can igure it
ers to be international champions, the he rise of esports in China started out and do it right, the beneit of getting
multiplayer online battle game Clash is a with hobbyists competing in the late 1990s to China can be huge.” F
foot in the door of China’s $32.5 billion on PC games like Starcrat or Counter Additional reporting by Yohan Yun.

18 | FORBES ASIA JUNE 2018