The International (TI) has long been the most prominent eSports event, courtesy of staggering prize pools and intense competition. Since its 2011 inception, TI has captivated millions of eSports betting and watching fans whenever it runs. Over the years, the pools have grown considerably, with fans eager to contribute and Valve employing innovative funding techniques. However, in recent years, there has been a fall in the prize money, raising questions about the tournament’s future.
By extension, this has also raised concerns about the cyber sports industry and its sustainability. This article covers all you need to know!
Historical Context of The International
The first TI in 2011 featured a $1.6 million prize pool, which was unprecedented at the time. In the following years, the amount grew exponentially, largely due to community contributions through the Compendium and Battle Pass Systems.
By 2019, it had surpassed $30 million, peaking at over $40 million in 2021. This is where the trend started to reverse, with the pool for 2022 dropping to $18 million. TI 2023 saw an even more drastic reduction to $3 million, while 2024 fell to $2.5 million.
Reasons for the Reduction in the Prize Budget
The steady decline of the pooled amount for TI winners has dampened confidence in some quarters. However, this is not a random fall, with Valve playing a role. Below, we will check out the various factors at play.
Economic Factors
The global economic climate has significantly impacted discretionary spending, including contributions to esports endeavours. Economic downturns, inflation, and rising living costs have made it harder for fans to justify spending on virtual items that fund the pool. Also, the esports industry, like many others, has faced financial challenges due to fluctuating sponsorship deals and advertising revenues. As companies tighten their budgets, the trickle-down effect is felt in the reduced prize pools for major tournaments.
Valve’s Strategic Shift
Valve, the organizer of TI, has shifted its focus away from massive prize pools to create a more sustainable ecosystem. This shift emphasises regular, smaller tournaments throughout the year rather than a single, high-stakes event. The aim is to distribute the financial rewards more evenly across the competitive scene, ensuring that players and teams can benefit from cyber sports. This way, players at GGBET also have events to bet on all year round. With time, the hope is that this approach will foster long-term growth and sustainability within the Dota 2 community.
Community Fatigue
The novelty of contributing to ever-growing prize pools has worn off for many DOTA 2 fans. Players and fans have become more critical of Valve’s approach, calling for better support for the broader competitive scene rather than focusing solely on TI. The constant pressure to add to the collection can lead to burnout and disillusionment among fans. What’s more? The saturation of tournaments and events has led to viewer fatigue, with audiences becoming less engaged over time.
Regional Pricing and Economic Disparities
The introduction of regional pricing for the Battle Pass has also played a role in the reduced prize sums. In regions with lower economic power, the cost of the Battle Pass is adjusted to be more affordable, which in turn reduces the amount contributed to the pools.
For instance, previous tournaments valued the pass at a flat rate of $10 and deducted $2.5 for prize pooling. However, this has been adjusted in regions like Brazil, which now pays $6.35, so only $1.57 goes towards the TI prize collection.
Impact on Players and Teams
As expected, the reduction in prize money has had a profound effect on teams and players participating in TI. For many pro gamers, the allure of substantial prize pots was a major motivator. If they won, they stood a chance to win big while gaining more recognition. The smaller prize values make the monetary incentives less compelling, which could decrease the number of aspiring pros. This may also affect the talent pool, as fewer players are willing to commit to the rigorous demands of a pro eSports career without promising life-changing returns.
Teams, on the other hand, face increased pressure to secure alternative revenue streams to sustain their operations. Sponsorships, merch sales, and media rights deals become even more crucial. Smaller teams may struggle to attract and retain top talent, potentially leading to a more consolidated and less diverse competition. Seeing how important the prize money is now, the margin for error during tournaments is significantly reduced.
Broader Implications for Cybersports
The reduction in the winnable amount at The International of DOTA 2 is not just a concern for the event itself. It also reflects broader trends and challenges within the industry. These changes have significant implications for the sustainability, growth, and future direction of the sport.
Sustainability and Growth
The shift towards smaller, frequent tournaments could result in a more sustainable ecosystem. That’s because the approach allows for extra fan engagement, giving players opportunities to compete and earn a living. By distributing rewards evenly throughout the year, the industry can support a larger number of teams and gamers. This fosters a healthier environment and mitigates the risks of relying on a single, high-stakes event.
Technological Advancements
The future of eSports is closely tied to technological innovations. Advances in AI, virtual, and augmented reality are expected to enhance the experience and attract new audiences. These technologies can create more immersive and interactive experiences for players and viewers, revolutionizing how the sport is consumed and enjoyed. With these improvements, we can expect new competition and revenue streams like virtual tournaments and augmented reality. Should these happen regularly, they’ll help to offset the effects of the reduced prize pools and drive growth.
Mainstream Acceptance
Esports continues to gain mainstream acceptance, with increasing viewership and corporate sponsorship. This trend will likely continue, providing new opportunities for growth and professionalization within the industry. As esports become more integrated into mainstream entertainment, they attract a broader audience and more significant investment from traditional media and corporate sponsors. This increased visibility and financial support can help stabilize the industry, making it more attractive to new players and investors, and ensuring its long-term viability.
Economic Viability
The economic model of esports is evolving. While prize pools are important, other revenue streams, such as sponsorships, media rights, and merchandise sales, are becoming increasingly significant. This diversification is crucial for the long-term viability of the industry, as it reduces dependence on any single source of income.
By developing multiple revenue streams, esports organizations can create a more stable financial foundation, allowing them to invest in player development, infrastructure, and community engagement, ultimately leading to a more robust and sustainable industry.
Reduced Prize Pools Are for the Ultimate Good
It’s true that the decision of Valve to step away from awarding large monetary prizes for The International may be less than ideal for the tournament. However, it’s generally a smart move, as reduced dependence on prizes will create more opportunities for players and teams. Also, side changes like regional Battle Pass value are positive, ensuring fans don’t have to pay through the nose to contribute.
Lynn Martelli is an editor at Readability. She received her MFA in Creative Writing from Antioch University and has worked as an editor for over 10 years. Lynn has edited a wide variety of books, including fiction, non-fiction, memoirs, and more. In her free time, Lynn enjoys reading, writing, and spending time with her family and friends.
