This article will focus on the ways to make money by playing video games. There are many other means of joining the industry, including game develop and various business positions within the companies that create video games.
Livestreaming
Within the last few years, people have found a way to make a living by livestreaming video games as they play them. An app known as Twitch (and similar apps) have allowed millions of viewers to watch gamers play their favorite video games in real time. Through this platform, there are a few ways streamers can make money.
Ads: Like many free online platforms, one of the main revenue streams is through ads. If a user is not subscribed to a streamer, which will be described later, they may see a video advertisement every few minutes. Through this method, the streamer as well as the platform receives a portion of the ad money. This is usually paid out based on the amount of viewers for that particular streamer.
Donations: Twitch streaming is a form of entertainment. Many people like to reward this entertainment with a tip. Twitch allows viewers to donate any amount of money to a streamer, who directly receives all of it, minus taxes and a small PayPal fee. Viewers do this for one of two reasons. First, they are feeling generous and want to make the streamers feel appreciated by supporting them directly. Second, many streamers allow viewers to type in a message when they donate a certain amount of money. When the streamer receives this donation, they will read that message aloud to all of their viewers.
Subscriptions: A Twitch subscription is an interesting way of supporting a streamer. The easiest way to think of a subscription is a follow and a donation wrapped in one. For the most part, a subscription is around $5 per month. There are other tiers of subscriptions that cost more, but they are rarely used. Around half of that money is given to the streamer, and the other half to Twitch. When someone subscribes to the streamer’s channel, that viewer’s name will pop up on the stream. Users have a chance to renew this subscription, and each month the streamer will thank the user for subscribing again and mention how many months that user has been subscribed. This subscription comes with a few benefits. First, the user does not see advertisements on that channel. Second, the user will get a little icon next to their name when they chat on the streamers page. Sometimes, the users will get “cooler” icons next to their name as they subscribe to the channel longer. Finally, some streamers, especially those with a larger audience, will only open their chat to people who are subscribed. Viewers that want to contribute to the discussion will subscribe to the channel to interact with the streamer and the community.
Sponsors: Similar to advertisements, streamers are also paid by companies to show off their products and services. Streamer channels have space on the bottom as well as the screen where logos and company names are shown in order to encourage users to purchase what they are selling. These companies are almost always video game related. Streamers can make money for simply having the advertisement on their channel, or a percentage of sales for each viewer that buys the product.
eSports
Gaming at the highest levels has exploded recently with games such as Fortnite, League of Legends, and Overwatch. Each year, dozens of teams compete in a variety of games for the chance to win millions of dollars in prizes. Being an eSports athlete is similar to being a traditional professional sports athlete in terms of payment. These competitors can make money in a variety of ways.
Competitions: As mentioned above, there are hundreds of tournaments held around the world for competitive gaming. Teams are awarded based on placement, with top prizes in the millions of dollars.
Contracts: Like traditional sports, many eSports athletes receive a contract to play with a team. Based on performance or preference, they may choose to renew their contract and stick with that team or go to another team. The payment for these contracts can range from $1000 per month to over $15,000! This amount doesn’t include some of the additional sources of income, such as sponsorships and prize winnings.
Sponsorships: Teams are usually sponsored by many companies, similar to Twitch streamers. These companies are advertised in various ways. The athlete may mention their product in a video, wear the logo on the team jersey, or give them a shout-out on social media.
eSports players usually become involved with streaming and/or content creation in addition to competing. Since they have expert level knowledge of their video game as well as a platform to gain exposure, they naturally build up a large following quickly.
Content Creation
Content creation is similar to livestreaming, but sometimes uses different platforms and means of reaching viewers. YouTube is a huge player in the content creation world. Many gamers choose to record their gameplay and use it in different types of videos that will be uploaded to YouTube. Some choose to make a montage of clips, which is similar to a highlight reel. Others may record a lengthy gameplay and speak to the audience during the video about a topic that interests them. These individuals or teams make money from advertisements on their platform, merchandise, or sponsorships. Content creation has been around for a long time but is slowly becoming taken over by livestreaming. However, it is still a large component of how the industry builds revenue.