What Is the Video Gaming and Esports Industry?

Key Takeaways:

• Gaming is a mainstream form of entertainment with a large global audience.
• Business models have shifted toward ongoing spending inside games.
• Esports adds a spectator layer that can deepen engagement around leading titles.

What Is the Video Gaming and Esports Industry?

Gaming is already part of daily life for billions of people. It shows up on phones during commutes, on consoles at night, and on PCs with friends on weekends. It is also showing up in a new place. Live competition.

That is where esports comes in. Esports is competitive gaming. Players and teams compete in organized matches and tournaments. Fans watch online and at live events. Some follow teams the way they follow traditional sports.

Gaming is the big category. Esports is one part of it.

Newzoo estimates the global games market at $188.8B in 2025 with 3.6B players.

Global Forecasted Players & Game Revenues Into 2028

Source: NewZoo, as of 2025. For illustrative purposes only. Not intended as a forecast or prediction of future results.

Video Gaming vs. Esports: What’s the Difference?

A simple way to think about it is this.

Gaming is what people do. Esports is what some people compete in and what many people watch.

Source: Inkwood research, as of 2024. For illustrative purposes only. Not intended as a forecast or prediction of future results.

The Video Gaming and Esports Network

This is not a single business. It is a network of companies that support how games are made, played, and watched.

• Game developers and publishers create games and build franchises.
• Platforms and storefronts distribute games to players.
• Hardware companies sell consoles, PCs, chips, and accessories.
• Creators and streamers turn games into daily content.
• Leagues and tournament organizers run competitive events.
• Fans and players drive the whole cycle through time spent and spending.

When a title becomes a hit, the impact can spread across this whole network. More players can lead to more content, more viewing, and more spending.

Why Gaming and Esports Are Considered Growth Industries

Gaming keeps growing because people keep choosing it. It is social. It is interactive. It works across devices. It travels globally.

There is also a business reason. Many games now earn money over a longer period. That can create steadier revenue than the old “launch weekend” model.

Esports fits here because it can turn a game into something people watch year round, not only something they play.

Approaching the Video Gaming and Esports Opportunity

For investors, the challenge is focus.

The industry includes publishers, platforms, and hardware firms that earn meaningful revenue from interactive entertainment. It also includes large companies where gaming is only a small side business. Those can dilute exposure if your goal is to target the theme.

That is where a dedicated approach can help.

VanEck Video Gaming and eSports ETF (ESPO) seeks to track the MVIS Global Video Gaming and eSports Index, which is built around companies involved in video game development, esports, and related hardware and software.

One design choice matters here. Companies must derive at least 50% of revenue from video gaming and or esports to be eligible for the Index. This rule is meant to keep exposure tied to the companies most directly connected to the theme.

For investors who want access to gaming and esports without relying on a single title or a single stock, ESPO offers a focused way to get exposure across the space.