Abstract
Online gaming has become a principal form of entertainment and communication in the modern digital world. Multiplayer online battle arena (MOBA) is one of the major genres, leading with a popular game League of Legends (LoL) which has over 100 million players worldwide. This type of reach and influence is unprecedented for the gaming industry, which companies attempt to capitalize on by creating a competitive environment, e-sports, around MOBAs, and other games. In turn, this helps to grow the game, attract audiences to watch the players similar to athletic events, and ensure a significant level of economic profitability. MOBAs in the digital age have an impact on developing new internet and communicating technologies to enhance the viewing and gaming experience. Furthermore, their economic impact is expanding as the games are generating billions in spending as well as partnerships. Finally, the social impact is profound as the gaming communities grow and more people are engaged with the game, potentially having mental, physical, and social well-being influences. Introduction
In the digital age of the 21st century, gaming has become a principal form of entertainment, with multiplayer online competitive games becoming both a social phenomenon and increasingly recognized as a sport (otherwise known as e-sports) (OppenheimerFunds, n.d.). Multiplayer online battle arena (MOBA) is a complex subgenre of real-time strategy video games that have become increasingly popular due to the competitive experience and accessibility it offers (Segal, 2014). This topic was selected due to the overwhelming popularity of MOBAs in social circles among young people and their profound cultural effect which is beginning to rival the film and music industries. Gaming is a form of entertainment that utilizes the latest technology to create an immersive experience, the penultimate objective of any media which is to recreate and expand on reality. Online games are consistently evolving and taking advantage of modern technologies to improve the competitive aspects, viewer entertainment, market share, and social benefits in the modern digital age as evident in the example of League of Legends, currently the largest MOBA platform in terms of the player base and viewership.
Literature Review
Technological Impacts
The gaming industry has a highly symbiotic relationship with digital and communication technology. It is both affected and depends on various technologies while at the same time driving the technological development in various spheres as both hardware and software developers rely on the $135 billion that the gaming industry generates annually with a 15.2% annual growth (Fortune Business Insights, 2019). However, a technology that is highly significant for the industry is connection technologies that allow for faster internet speeds such as 5G and fiber optic internet.
The era of 5G internet is close as proper telecommunication infrastructure is being implemented fully in the next few years. By extension, this is the promise of 5G gaming which is the future of the industry and consoles. In an increasingly digital, connected world, 5G internet has significant potential allowing for rapid communication among devices and transfer of information. From a gaming perspective, faster speeds allow for low latency, allowing for rapid relay of data. This helps to offload computational workload from hardware and for processing being done on remote servers. In other words, there will be better access to modern games for people with lower-end devices (Bradley, 2019). It will lead to a better experience for players such as improved connectivity and faster, skilled gameplay.
In addition to remote processing, the advent of 5G internet can allow gaming to move beyond traditional PCs such as mobile or live streaming platforms, which further open up access to the medium (Kronfli, 2019). Recently, Google released its first iteration of a live streaming platform Google Stadia, while Riot Games announced mobile versions of its League of Legends MOBA, already demonstrating the willingness of the industry to move in this direction. Developers can create and use advantages of the faster internet speed technologies to create new gaming models and modes which appeal to a greater audience and build a larger player base. Furthermore, from a technical standpoint, such technologies will help to reduce lag, server crashes, and improve communications among players – all highly important aspects of gaming (Morris, 2018).
The development and application of 5G and high-speed internet technologies discussed in the previous section are being used by developers to create new methods of competitive play and viewership. This includes technologies such as virtual reality (VR) services and multi-perspective live streams which can enhance the viewing experience and bring in larger audiences (Smith, 2019). VR technology is the most realistic and practical technology currently on the horizon, with the headsets becoming more widespread among the population and more affordable. This can be considered the next stage of player attraction and revenue creation in the esports model. VR allows for customization and the creation of competitive content, which would fit in with the genre and gameplay of MOBAs. However, it would be most appealing to esport audiences, no longer limited by the functionalities of observing the matches from a 3rd person perspective controlled by a camera operator (Boffard, 2016). Virtual reality will allow for a whole new level of immersive experience in viewership and gameplay which will increase the popularity of gaming and MOBAs.
Economic Impacts
To develop and support a game’s lifecycle, a significant amount of financial resources is required. Many of the most popular games on the planet are also owned by publicly traded companies either directly or through parent corporations, requiring fiscal profitability for investors. Using the large popularity and audience, MOBAs can create significant economic profit through various types of business deals centered around the game which then contributes to further expanding the game’s influence and player base.
As competitive games increase in size and viewership, to the point of major MOBAs, it results in higher market capitalization and profits. League of Legends has remained at the top of the most played online game for several years, with recent player counts reaching close to 100 million people. League of Legends is a free-to-play game, and virtually no gameplay mechanics or elements have to be bought. Only cosmetic or customization aspects such as “skins” for characters are hidden behind a paywall. Nevertheless, in 2018, the game resulted in an unheard of $1 billion in microtransactions revenue, generated by the millions of people playing and watching the game (Jacobs, 2015).
Such consumer practices are driven in part by culture as a relationship is formed between in-game objects and players. There is a socio-cultural trajectory that makes digital commodities a symbolic experience for consumers in the game (Macedo & Vieira, 2017). As a result, of its increasing base and expanding lore and gameplay, MOBAs such as League of Legends can consistently bring in record-shattering revenues which pay for further game development, competitive championships, and the overall existence of companies that oversee this form of entertainment. League of Legends continues to be profitable, but its influence and profits are being eroded by competitors such as the Fortnite and PUBG franchises which have both also attracted hundreds of millions of players and similar numbers in spending. Riot is expanding its League of Legends franchise to new game modes as well as mobile gaming to economically compete with other major online gaming platforms in the MOBA or battle royale genre (Perez, 2019).
As the game grows in size and financial revenue, it is more likely to attract greater advertising revenue, marketing brand partnerships, and game growth. MOBAs such as League of Legends can generate advertising revenue from its numerous media channels such as on YouTube or via product placement during broadcasts of its competitive esports championships. The company running League of Legends, Riot Games, partners with numerous companies to promote its products and for sponsorships, some of which are unrelated to gaming at all. For example, for its 2019 League of Legends World Championship, Riot partnered with fashion designer Louis Vuitton to produce themed clothing and accessories while State Farm, an insurance and financial conglomerate, sponsored analytics during its broadcasts (Park, 2019).
It also partnered with the firm Nielsen that measures TV viewership to evaluate its audience and brand outreach potential. The impact of this is significant since 60% of esports viewers in the U.S. state that they do not watch regular television regularly, preferring online gaming instead (Takahashi, 2019). This follows the transition of modern business models where the value of corporations is no longer determined by tangible assets, dropping to below 20% at the beginning of the century (Krier & Swart, 2017). Brands are the most valuable product on market capitalism and League of Legends is an example of a gaming company that has been able to build significant brand equity due to its intellectual property and trademark through the game.
Games are becoming an efficient method of economic profitability, with MOBAs leading the way in the so-called “live-service” model which consistently updates the game with new features, and often new ways for players to spend money. Furthermore, the relationship that these platforms have with advertisers continues to support both the game and its affiliated developers and professional players. MOBAs are becoming a brand in itself, which has profound cultural and economic impacts in the long-term societal influence in which competitive gaming tournaments can rival athletic championships in terms of viewership and sponsors.
Social Impacts
As MOBAs grow in popularity alongside the general gaming industry, there are prominent concerns for social, mental, and physical health that the gaming medium can have. As it becomes a leading form of entertainment and communication for young people who may spend numerous hours a day engaged in this activity, game addiction is a vital concern. It is a disorder that has been identified and classified by the World Health Organization and the APA. Young people can spend an excessive amount of time gaming to increase their levels in the hopes of obtaining recognition, and potentially make it on the e-sport stage. However, for most people it is highly detrimental, impacting their physical and mental health with a highly sedentary lifestyle while causing them to forgo other commitments such as education, jobs, or relationships as similar to other non-substance addictions (Nuyens, Deleuze, Maurage, Griffiths, Kuss, & Billieux, 2016). While those concerns are merited, they usually apply to a small percentage of the gaming population. The exact statistics are not clear, with the prevalence of internet gaming disorder affecting approximately 1.6% of gamers, with another 5.1% being at risk, mostly younger males (Müller et al., 2015).
Gaming has become an inherent part of the social fabric, whether one awaits the release of a new title in a franchise, watches e-sports alongside millions of other fans, or simply likes to play Candy Crush on your smartphone during a lunch break. A recent data-driven survey of gamers presents that 40% of gamers concretely believe gaming has improved their emotional health, while 93% disagree with the common sentiment that gaming promotes antisocial or violent behavior (Anderton, 2018). Considering that at least 1/5 of the population in the United States reports some sort of mental health issues, ranging from stress to clinical depression, gaming presents itself as a good outlet rather than the cause of social problems. Gaming can be an entry point into social situations as an icebreaker as at least 66% of people say they made 5 or more friends while gaming. Meanwhile, 33% of gamers answered that their careers were inspired by gaming, not necessarily in the industry, but the numerous worlds one can explore in a gaming environment which relate to real-world professions (Anderton, 2018).
Meanwhile, gaming has been associated with benefits as well including social and health. Video games, especially real-time, strategic games such as MOBAs can have cognitive benefits. With time, players develop improvements such as coordination and concentration abilities. Furthermore, people can benefit from increased problem-solving and multi-tasking skills which can then be useful in real-world activities (Mitchell, 2016). Social benefits are evident as well since players form communities and friendships over modern games. League of Legends has extensive player bases that form clans and friendships, including in real life that enjoys playing or watching the games together. It is a common activity and passion that fosters fellowship formed both online and offline, with the help of existing communication technologies. It helps with pro-social behaviors and personality traits which benefit building healthy relationships for individuals (Tassi, 2012).
Analysis
The research in this paper uses a majority of popular media articles such as news websites and gaming-oriented platforms, with support from academic studies. Therefore, there is some scrutiny regarding the conclusions made based on the information. However, the relatively recent and rapidly developing nature of the topic has produced few academic-level studies at this time. The generating public excitement regarding e-sports and MOBAs may be a weakness of a majority of the literature as it attempts to capitalize on the readership trends of the topic. The topic can have profound implications for digital communications and professionals. It demonstrates that communications and entertainment have shifted drastically towards a more interactive and involved medium such as gaming. In turn, this has led to the emergence of whole communities and organizations in which people network over a similar topic of the game. The game has certainly attracted a specific demographic of teenagers and young adults, which view the game as a distraction from real life, a pastime with friends, and even a competitive event in which the most skilled can earn a living. At the same time, it also creates a digital divide by alienating those without access to proper hardware for gaming as well as encompassing a whole generation into the digital world that distances them from reality.
Although MOBAs as a genre have been in existence for more than a decade, it is only in recent years that they have acquired significant popularity as the gaming industry transitioned from local platform play too expansive multiplayer online experiences. MOBAs commonly combines elements from other genres including fantasy, strategy, action, and fighting games. This makes the MOBA genre attractive to a wide variety of players of different interests and skill levels. As popularity expands, companies developing MOBAs, such as Riot Games that produces League of Legends, take advantage of the growing player base and overall recognition of gaming as a form of media and entertainment. This is further supported by live streaming and e-sport tournaments which combined garner millions of viewers simply watching the game being played by others (Alexandra, 2019).
The growth, both economic and practical in its size and player base, that MOBAs, particularly League of Legends has demonstrated has made a sensation in the esports and gaming entertainment industry. Investors are highly supporting stocks of game publishers and media which are heavily tied to the esport ecosystem. The Chinese tech conglomerate Tencent which owns the developer of LoL, Riot Games, has experienced significant returns (Pei, 2019). The continued growth and longevity of League have allowed it to make a pathway for gaming and MOBAs in the extremely competitive and highly volatile world of digital media. Using new technologies and feedback from its players, Riot Games is producing new content which is tapping into its base, increasing focus on quality content in gaming and entertainment which results in consistent consumer engagement and spending. The esports industry in the MOBA genre faces several hurdles going forward as it seeks to further monetize its multimillion viewership and brand-loyal players to meet demands from investors and costs to produce content and esport franchises.
Esport heavy gaming genres such as MOBAs will continue to experience growth primarily through its competitive scene. As a result, companies in the industry must invest heavily into technology to perpetuate the rise of esports and potentially revolutionize the entertainment experience for casual viewers. Technologies such as 5G and high-speed internet combined with big data are the backbone of providing the experience, including the availability of both playing and watching on mobile devices. Currently, most full-scale MOBAs are only available on PCs, but Riot Games has recently announced that a scaled-down adapted version of League of Legends will be ported to mobile. Meanwhile, augmented reality and virtual reality revolutionize the visual experience of the game, creating a whole different level and scale of entertainment. Therefore, the future of the cultural and economic impact of MOBAs in the digital age will be dictated by economic advancement, affected by quality and cost efficiency (Ayles, 2019). As new technologies become available or are rapidly developing, game publishers are seeking to implement these into the game or viewing experience. Esports is different from traditional athletics and its unconventional ways should be capitalized upon to attract new audiences through these unique non-traditional methods.
Conclusion
Online gaming has emerged as a leading medium of entertainment and communication in the digital world. This paper, using the example of a popular MOBA, League of Legends, has demonstrated how the gaming industries both utilize and affect the development of digital and internet technologies, generates tremendous economic impacts, and have profound social influences. The gaming industry is projected to continue growing, considering the economic profitability and overwhelming social support it receives. It is important to recognize this medium of digital communication and begin instituting a certain level of regulation and oversight as the industry encompasses more people as both players and audiences.
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