Inside the world of gaming and Esports in SA

Esports and gaming are taking the world by storm, and South Africa is slowly but surely making its mark in this booming industry. With big brands like Mercedes Benz and Red Bull sponsoring gaming events and businesses, the industry is rapidly evolving. One of the most popular games in the world right now is Fortnite, a game that has generated more revenue than Facebook and Google in a single year. Recently, CNBC Africa had the opportunity to sit down with Barry Louzada, the Co-Founder of Mettlestate and a former professional gamer, as well as Rizik Khan, a young gamer who has created a YouTube channel dedicated to Fortnite. The conversation shed light on the current state of esports in South Africa and the potential for growth and development in the industry. When asked about the transition from being a pro gamer to other career pursuits, Barry explained that as a gamer gets older and takes on more responsibilities such as starting a family or pursuing a full-time job, the amount of time available for gaming decreases. In South Africa, it is still uncommon for individuals to earn a full-time salary solely from playing games, which means many gamers have to balance other commitments alongside their passion for gaming. Rizik, on the other hand, being a young gamer, has the luxury of more time to dedicate to gaming. Barry highlighted that esports in South Africa is still in its early stages compared to more established markets like Europe. He drew a comparison between soccer in South Africa and football in Europe, emphasizing the need for a shift in mindset regarding esports as a legitimate sport. While esports may not be on the same level as traditional sports yet, it offers opportunities for careers beyond just playing games, such as coaching, web development, or tournament organizing. In terms of the business side of esports, Barry mentioned that there are multiple tournament organizers in South Africa hosting million-rand competitions with sizable prize pools. Recent tournaments have attracted significant interest, with one event offering a prize pool of 100,000 rand. These numbers indicate a growing interest and investment in the esports industry in the country. Shifting the focus to Fortnite, Rizik shared his experience with the game and the appeal it holds for players. Fortnite's engaging gameplay and rewarding victories make it a popular choice among gamers. Rizik admitted to spending around 10 to 14 hours a day playing the game, showcasing the dedication and passion many gamers have for their craft. He also highlighted that Fortnite's revenue model primarily relies on in-game purchases and the sale of cosmetic items rather than advertising or sponsorships. Data consumption is a crucial consideration for gamers in South Africa, with Rizik revealing that he goes through approximately 30 to 40 gigabytes of data per month while gaming. Access to stable and high-speed internet is essential for competitive gaming, with many gamers opting for fiber connections to ensure optimal performance. Rizik emphasized the importance of unlimited data plans to maintain a competitive edge in the gaming landscape. When it comes to spending on in-game items, Rizik mentioned that most cosmetic purchases are optional and do not provide a competitive advantage. He emphasized that players do not necessarily need to spend a significant amount on these items, highlighting the importance of responsible spending within the gaming community. As new data regulations come into effect in South Africa, gamers can expect more transparency and fairness in data usage policies. As the world of esports and gaming continues to evolve, South Africa is poised to carve out its space in this rapidly growing industry. With a dedicated community of gamers and increasing interest from both players and investors, the future looks bright for esports in the country. The potential for careers, economic growth, and innovative opportunities makes esports a promising avenue for South Africans passionate about gaming.