ESports: ESports industry shifting to new turf after bans on Battlegrounds Mobile India (BGMI) and PUBG

South Korean publisher Krafton Inc's PUBG Mobile and Battlegrounds Mobile India (BGMI) received a verdict for discontinuation in September 2020 and July 2022 respectively.

In addition, competing title Garena Freefire was banned in February this year. The three games were peaking in profit through in-app transactions and tournament prize money, among other metrics.

Before it was banned in July, Battlegrounds Mobile India had prize pools worth ₹1.5 crores for a single tournament. "BGMI has had a significant impact on the pace of growth for eSports in India," said Abhishek Joshi, co-founder at tournament organizer CriticalX Esports.

"The size of the game's ecosystem was massive enough for organizers to ditch every other title and still be profitable." 

So how did the esports industry cope with significant bans?

Due to the bans on the most prominent gaming titles in India, the industry has shifted its focus to Valorant, Pokemon Unite and Call of Duty Mobile. Indian titles like World Cricket Championship (WCC) and Real Cricket are also on the growth radar.

It is to be noted that the BGMI and PUBG Tournaments made profits in astronomical figures, which makes it difficult for current titles to compete. However, the tide is changing.

The industry has adopted a multi-game strategy that is reportedly effective for long-term growth. Penta Esports' Khurana mentioned how a game thrives on a life cycle, so companies are better off expanding their interests. 

"We, as tournament organizers, have started pivoting to the rest of the competitive titles and they're working out well for us," Joshi added. Last week, the Valorant India Invitational tournament held in Hyderabad had a prize pool of $100,000 (about ₹81 lakhs). 

Valorant, a product of American game publisher Riot Games, is a PC gaming title, and India has only served as a mobile gaming market. Another tournament, named Pokemon Unite India Open, boasted a prize pool of ₹22 lakhs. 

Despite Pokemon Unite's Japanese roots, the tournament is sponsored by Chennai-based Skyesports. Other titles attracting engagement and profit include US-based Activision's Call of Duty Mobile. 

"The gaming industry has also evolved and more gamers are playing on PC. Some of the Valorant tournaments in India are now rivalling the viewership that BGMI and PUBG used to get," stated Rushindra Sinha, CEO of Global Esports. 

Penta is now considering games like Japanese Capcom's Street Fighter and other racing games for upcoming eSports tournaments. In April, Riot Games released an international model that would reform gaming teams, making them structurally more similar to IPL franchises than before. 

Teams can buy, loan and transfer gamers among groups, which could enhance the revenue system and partnership models. It is expected to come to India soon. 

Rohit Jagasia, founder and CEO of Revenant Esports, believes that the number of franchises will positively affect viewership and advertising, two ways of expanding the industry.