Has the esports industry hit its ceiling?
MANILA Philippines — In recent years, esports has been positioned as an industry with untapped potential, supported by growing audiences both online and on-ground.
But as parts of the gaming sector face budget cuts and layoffs, the question arises: has esports reached its ceiling — or is there still room for growth?
For years, partnerships in esports were largely built around endemic brands —companies that create the tools players need to compete, from devices to connectivity. For many traditional brands, the space remained difficult to understand.
“It’s virtually non-existent in my opinion. Before, brands that were ‘sponsoring’ esports events were basically just running their own brand or product initiatives and just using esports as another way to draw a crowd,” said Jab Escutin, general manager of the Philippine national esports team, Sibol, and a long-time esports executive.
Escutin has been an advocate of educating Filipinos about the esports industry through his social channels. His most recent post on esports and its relationship to sponsors explains how the industry survives with not just partnerships that are endemic.
Recalling the early years of Filipino esports, Escutin notes how non-endemic participation was often limited to visibility rather than long-term partnerships.
He added, “Not all sponsors are looking for the same thing. Whether they are endemic brands that live within the ecosystem or non-endemic brands looking for lifestyle and reach, you have to bridge the gap between their goals and your community.”
As leagues and teams grew their audiences, that gap began to narrow.
“I would say we are getting a lot more momentum when it comes to sponsorships as leagues and esports teams begin to have bigger fanbases,” Escutin said.
The presence of non-endemic brands, he added, reflects a broader shift in how esports is now being perceived.
He added, “It’s a step in the right direction. It’s a signal to non-endemic brands that they have untapped opportunities and audiences that they can also engage through esports.”
For the country's biggest esports league, the Mobile Legends Professional League (MPL) Philippines, that shift required a change in how esports was presented to potential partners.
“There was always that challenge of why esports wasn’t able to capture different brands. If brands don’t understand esports, they feel like it’s just gaming — as something they can explore for maybe one year and then move on.” said Lee Viloria, head of business development and partnerships, esports, Philippines at Moonton Games.
Over time, the league adjusted its positioning, shifting itself into a broader esports and entertainment platform and making it easier for brands to connect with audiences beyond gaming.
“Technically, at its core, MPL Philippines is a sporting event. It’s an esports tournament. But how the league has evolved is that we are going out of just the niche gamer target market,” said Viloria.
Despite growing interest, one of the biggest challenges remains internal alignment within brands.
Viloria added, “Sometimes there’s interest on the agency or managerial level. But when the conversation reaches the actual approvers, that’s where there’s hesitation. They don’t get how they can benefit from the platform.”
To address this, MPL Philippines leaned into experience rather than explanation.
“When they actually sit down and watch the game, that’s when they say, ‘I understand now.’ That’s when they get excited. Sometimes presenting a deck isn’t enough. It’s really when they experience it firsthand,” explained Viloria.
Such presence of an established league has changed the stakes in how esports is perceived, not just as a one-off industry that thrived during the pandemic but one that is here to stay in the long term.
“A formal and continuous league with a long-term plan is a lower risk compared to one-off tournaments with no proven track record or a strategic roadmap. Having the MPL gives other leagues a blueprint to follow, although very challenging to replicate,” said Escutin.
This evolution has changed how esports convinces future partners on what the industry can offer.
“Gone are the days that advertising was just about slapping logos. We’re not a one-size-fits-all platform. We want to get to know what their objectives are and position ourselves as a platform that they could consider and align with their objectives,” said Viloria.
She added that this approach has opened the door to industries once seen as outside esports.
“In the end, our community still consumes food, personal care, financial services — normal everyday products. That’s why non-endemic brands are very important to us. It signals that the league is growing,” said Viloria.
For Escutin, that broader mix of partners is the key to long-term sustainability as well as fuel momentum for the esports industry in the country.
“The long-term viability of sports entertainment events like esports involves different revenue buckets. Having a healthy diversity of endemic and non-endemic sponsors is a sign that it is self-sustaining. I hope that it triggers a FOMO effect on brands that have not tried to reach out — or at least makes them curious enough to research,” Escutin said.
As more industries explore the space, leagues like MPL Philippines are increasingly positioned as a bridge — connecting traditional brands to an ecosystem that is becoming more structured and more accessible.
“We still have a lot of work to do in educating different industries,” Viloria said. “But every season, more brands are starting to see the value of what esports and gaming can actually offer.”
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