The eSports world in 2025 is not dying; it is changing. Many fans and industry watchers worry about team shutdowns and organizations leaving the scene. These concerns are not without reason, but they don’t tell the whole story. What we are seeing is not death but a necessary market correction after years of unsustainable growth and investment.
The Current State of eSports in 2025
The eSports industry has reached a critical turning point in 2025. According to Lucky Jungle casino, viewership and betting keep climbing, with millions of fans tuning in to watch major tournaments for games like Dota 2, League of Legends, and Counter-Strike.
Revenue projections show the global market will generate around $1.87 billion this year. But behind these impressive numbers lies a more complex reality that many casual observers miss.
Many organizations face tough financial challenges. Some teams that once thrived now struggle to stay afloat. However, this does not mean eSports is dying; rather, it is maturing into a more stable form after years of explosive but unsustainable growth. The bubble that formed during the heavy investment period is now finding its proper size.
Major Games Holding Strong
The most popular competitive games continue to thrive in 2025:
- League of Legends remains at the top with tournaments drawing millions of viewers
- Dota 2 maintains its massive prize pools often exceeding $30 million
- Counter-Strike competitions continue attracting global audiences
- Mobile games like PUBG Mobile and Free Fire have established themselves as legitimate eSports titles
Riot Games has completely revamped its global League of Legends ecosystem in 2025, introducing two new leagues (LTA and LCP) and adding a third international tournament to its calendar. Meanwhile, Valve’s new Counter-Strike ecosystem rules are bringing major changes to BLAST and ESL events.
Why Some Teams are Failing?
The wave of team shutdowns and organizations leaving eSports stems from fundamental business challenges, not a dying interest in competitive gaming. Many organizations took huge investments during boom times without building sustainable business models.
The financial reality hit hard. Player and staff salaries stayed high while funding sources dried up. Organizations spent like traditional sports teams but couldn’t generate similar revenue streams. When you watch traditional sports, you might pay for tickets or TV subscriptions. But most eSports content remains free to watch, limiting direct revenue from fans.
Many North American organizations, especially in League of Legends, took massive investments from cryptocurrency companies. When the crypto market crashed after COVID, these funding sources vanished overnight, leaving teams in financial trouble.
The Mobile Gaming Revolution
Mobile gaming has transformed the eSports landscape in 2025. The rise of mobile eSports makes competitive gaming more accessible than ever before. Players no longer need expensive PCs or consoles to compete at high levels.
“People can now enjoy their favorite titles without investing thousands in a high-end PC or console,” says Gianna DiMona from the University of Cincinnati’s Esports Innovation Lab, “all while having the freedom to play anytime, anywhere.”
Games like PUBG Mobile, Arena of Valor, and Free Fire have become major players in the eSports scene. The old perception that mobile gaming represents a lesser form of eSports is fading fast as these titles feature at major tournaments with substantial prize pools and viewership. Therefore, smartphones transform eSports and gaming.
Industry Consolidation Reshapes the Landscape
A clear trend in 2025 is the consolidation of eSports organizations. Smaller teams are being bought out or merging with larger organizations that have the resources to weather financial storms.
“I think that in 2025, eSports will solidify itself as a cultural force rather than a fleeting trend,” says Steve Arhancet, CEO of Team Liquid.
“The past few years have forced companies to mature and evolve, and the separation between companies that have built real businesses and those who chase empty metrics will grow even more significant.”
So, this consolidation is creating a widening gap between industry leaders and smaller organizations. Nicolas Maurer, Co-Founder and CEO of Team Vitality, observes:
“I’d probably expect a continuation of the trends we’re seeing now, with even more established positions and a growing gap between the industry leaders and the rest of the world. It’s becoming increasingly difficult to operate in this industry if you’re not a top team.”
The Publisher-Team Relationship Problem
A major issue facing eSports is the unbalanced relationship between game publishers and teams. Publishers control the games and make billions in revenue, but often share very little with the teams that promote their games through competitions.
For example, League of Legends generates over a billion dollars annually for Riot Games, but historically the company shared very little of that revenue with competitive teams. This imbalance makes it hard for many organizations to stay profitable despite contributing to the game’s popularity and longevity.
- Publishers control the intellectual property
- Teams rely on sponsorships and merchandise for most revenue
- Few direct revenue-sharing models exist between publishers and teams
- Tournament organizers often prioritize their own sponsors over team sponsors
Is eSports Really Dying Then?
No, eSports is not dying in 2025; it is adjusting to economic reality. As one Reddit user aptly put it: “Not dying. It’s just correcting itself. A lot of orgs went crazy with spending when VC money came in. Now they’re feeling the consequences of that.” Several key indicators point to a healthy future for eSports:
- Global viewership continues to grow year over year
- Fan engagement remains strong across platforms
- Mobile eSports is bringing in new audiences
- Major tournaments still attract millions of viewers
The top eSports organizations are reaching sustainability, even if maximum profitability remains elusive. The industry is becoming more mature, with business practices aligning better with economic realities.
