China’s big esports win gives the country’s struggling gaming industry a much-needed boost, analysts say

Edward Gaming (EDG), a Shanghai-based professional esports team, won the 2021 League of Legends World Championship (Worlds 2021) on Sunday, sending euphoric fans across China – many of them university students – onto the streets. Soon after the match ended, Chinese Central Television (CCTV), the country’s biggest state television network, and state news agency Xinhua congratulated EDG in separate posts on microblogging platform Weibo.

The positive reaction is a far cry from the tirades that state media outlets have launched in the past against video gaming and its perceived harm. This is “really good news” for the gaming industry, said Cui Chenyu, a senior research analyst for games at London-based consultancy Omdia.

“This suggests that the authorities still support the development of the esports industry,” which is in line with the inclusion of esports as a medal event in the upcoming 2022 Asian Games hosted by Hangzhou, said Cui.

Cui said EDG’s win, which brings China its third Summoner’s Cup in four years, has sparked a wave of patriotism even among people who do not normally follow esports. Sean Hung, CEO of investment firm Chiron Partners and an esports investor, said that such a level of enthusiasm is usually reserved for traditional sport events.

“This is the third time Chinese people have celebrated an esports event at this scale after [the country] made its debut in the [Fifa] World Cup and the China-Japan Go rivalry in the 80s. It goes to show that this is more than a passing fad,” said Hung. “National pride is at stake in global events like this. It exposes esports to a much broader audience, and will have a long term impact on the perception and following of esports within the region.”