What Is the Video Gaming and Esports Industry?
February 12, 2026
Read Time 4 MIN
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.
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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.
| Category | Video Gaming | Esports |
| What it is | Playing video games | Organized competitive gaming |
| Who takes part | Anyone who plays | Competitive players, teams, and leagues |
| Why people do it | Fun, social play, progress | Winning matches and titles |
| Where it happens | Console, PC, mobile | Streams, leagues, live events |
| How money is made | Game sales, in game spending, subscriptions, ads | Sponsorships, ads, media deals, tickets, merchandise |
How the Industry Makes Money
Gaming used to be mostly a one time purchase. You bought a game and you were done.
That still exists, but the center of the business has shifted. Many of today’s biggest games are built to run for years. They add new content, new modes, and new seasons. Players can choose to spend over time on extras like cosmetic items or season passes.
Esports adds another set of revenue sources. Brands sponsor teams and events. Streams and broadcasts sell ads. Large events sell tickets and merchandise. For some titles, a strong competitive scene can keep the community active longer.
Global Gaming Revenue By Platform Type
Source: Inkwood research, as of 2024. For illustrative purposes only. Not intended as a forecast or prediction of future results.
ESPO | VanEck Video Gaming and eSports ETF
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.
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Important Disclosure
This is not an offer to buy or sell, or a recommendation to buy or sell any of the securities, financial instruments or digital assets mentioned herein. The information presented does not involve the rendering of personalized investment, financial, legal, tax advice, or any call to action. Certain statements contained herein may constitute projections, forecasts and other forward-looking statements, which do not reflect actual results, are for illustrative purposes only, are valid as of the date of this communication, and are subject to change without notice. Actual future performance of any assets or industries mentioned are unknown. Information provided by third party sources are believed to be reliable and have not been independently verified for accuracy or completeness and cannot be guaranteed. VanEck does not guarantee the accuracy of third party data. The information herein represents the opinion of the author(s), but not necessarily those of VanEck or its other employees.
Prior to using any AI tools, please consult your compliance and legal departments to assess and mitigate potential risks associated with its application in your specific regulatory environment.
Please note that any content generated by an Artificial Intelligence (AI) system has not been subject to a human review, and thus no assurance can be made as to its accuracy. Please exercise caution when using AI systems and verify the content produced through such systems wherever possible.
Holdings will vary for the VanEck Video Gaming and eSports ETF and its corresponding Index. For a complete list of holdings in the ESPO ETF, please visit: ESPO - VanEck Video Gaming and eSports ETF - Holdings.
An investment in the Fund may be subject to risks which include, among others, risks related to investing in video gaming and eSports companies, software industry, internet software & services industry, semiconductor industry, equity securities, communication services sector, information technology sector, depositary receipts, small- and medium-capitalization companies, issuer-specific changes, special risk considerations of investing in Asian, Chinese and Japanese issuers, emerging markets issuers, foreign securities, foreign currency, market, operational, cash transactions, index tracking, authorized participant concentration, no guarantee of active trading market, trading issues, passive management, fund shares trading, premium/discount and liquidity of fund shares, non-diversified, and index-related concentration risks, all of which may adversely affect the Fund. Emerging market issuers and foreign securities may be subject to securities markets, political and economic, investment and repatriation restrictions, different rules and regulations, less publicly available financial information, foreign currency and exchange rates, operational and settlement, and corporate and securities laws risks. Small- and medium-capitalization companies may be subject to elevated risks.
Investing involves substantial risk and high volatility, including possible loss of principal. An investor should consider the investment objective, risks, charges and expenses of the Fund carefully before investing. To obtain a prospectus and summary prospectus, which contains this and other information, call 800.826.2333 or visit vaneck.com/etfs. Please read the prospectus and summary prospectus carefully before investing.
© Van Eck Securities Corporation, Distributor, a wholly owned subsidiary of Van Eck Associates Corporation.
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Important Disclosure
This is not an offer to buy or sell, or a recommendation to buy or sell any of the securities, financial instruments or digital assets mentioned herein. The information presented does not involve the rendering of personalized investment, financial, legal, tax advice, or any call to action. Certain statements contained herein may constitute projections, forecasts and other forward-looking statements, which do not reflect actual results, are for illustrative purposes only, are valid as of the date of this communication, and are subject to change without notice. Actual future performance of any assets or industries mentioned are unknown. Information provided by third party sources are believed to be reliable and have not been independently verified for accuracy or completeness and cannot be guaranteed. VanEck does not guarantee the accuracy of third party data. The information herein represents the opinion of the author(s), but not necessarily those of VanEck or its other employees.
Prior to using any AI tools, please consult your compliance and legal departments to assess and mitigate potential risks associated with its application in your specific regulatory environment.
Please note that any content generated by an Artificial Intelligence (AI) system has not been subject to a human review, and thus no assurance can be made as to its accuracy. Please exercise caution when using AI systems and verify the content produced through such systems wherever possible.
Holdings will vary for the VanEck Video Gaming and eSports ETF and its corresponding Index. For a complete list of holdings in the ESPO ETF, please visit: ESPO - VanEck Video Gaming and eSports ETF - Holdings.
An investment in the Fund may be subject to risks which include, among others, risks related to investing in video gaming and eSports companies, software industry, internet software & services industry, semiconductor industry, equity securities, communication services sector, information technology sector, depositary receipts, small- and medium-capitalization companies, issuer-specific changes, special risk considerations of investing in Asian, Chinese and Japanese issuers, emerging markets issuers, foreign securities, foreign currency, market, operational, cash transactions, index tracking, authorized participant concentration, no guarantee of active trading market, trading issues, passive management, fund shares trading, premium/discount and liquidity of fund shares, non-diversified, and index-related concentration risks, all of which may adversely affect the Fund. Emerging market issuers and foreign securities may be subject to securities markets, political and economic, investment and repatriation restrictions, different rules and regulations, less publicly available financial information, foreign currency and exchange rates, operational and settlement, and corporate and securities laws risks. Small- and medium-capitalization companies may be subject to elevated risks.
Investing involves substantial risk and high volatility, including possible loss of principal. An investor should consider the investment objective, risks, charges and expenses of the Fund carefully before investing. To obtain a prospectus and summary prospectus, which contains this and other information, call 800.826.2333 or visit vaneck.com/etfs. Please read the prospectus and summary prospectus carefully before investing.
© Van Eck Securities Corporation, Distributor, a wholly owned subsidiary of Van Eck Associates Corporation.