Companies must however be aware of the risks associated with entering a emerging industry like esports. The idea was first referred to by Andre Iguodala, a former Golden State Warrior who is now a prominent tech businessman and former Golden State Warrior.
For the NBA it was a risk worth taking. Donohue states, "It's in 2K's DNA to be innovating." He also explains that NBA owners "realize the future - this will only grow." Thus, I believe there's more risk in not doing it rather than doing it.
There are fears that esports may be obscure ideas that would only appeal to hardcore gamers, but with only a limited commercial appeal have been proven untrue. Forbes stated in the year 2000 that worldwide revenues from esports could increase to $1.1bn in 2019.
"Even in the past 3 years, all three seasons, the conversations I have are far different than what they were prior to when the league was established because it's an increase in the norm, and it's not something that's atypical;" Donohue emphasizes. As Warriors Assistant GM Kirk Lacob recently told me that esports are "absolutely starting to mature".
Donohue goes over the advantages of a league operated by the NBA office when it comes to recruiting partners. "The advantage of being the NBA 2K brand is that we have fantastic connections with many of these partners, and so we can kind of aid them in their efforts to guide them through eSports and help them understand how they can tap into eSports as a fantastic way to boost their brand."
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