December 2, 2024

Reality Check

The Future of Esports in the Age of VR and AR

As virtual and augmented reality technologies rapidly advance, the esports industry stands on the precipice of a revolution that will redefine how games are played, watched, and experienced.

By Greg Smith

December 2, 2024

Esports lives behind screens. In arenas across the world, thousands of fans watch the planet’s best gamers compete in digital worlds they can never truly enter. A League of Legends teamfight erupts on massive displays while spectators squint at tiny figures hunched over keyboards below. The most immersive competitive medium in entertainment history remains stubbornly two-dimensional—but not for much longer. With the advent of Virtual and Augmented Reality (VR and AR), this is set to change dramatically.

Virtual and augmented reality are about to shatter these barriers, transforming how we play, watch, and experience competitive gaming. This isn’t about better graphics or bigger prizes. It’s about stepping through the screen and into the game itself.

A New Reality: The Numbers Don’t Lie

The signs of this seismic shift are everywhere. Recent Kantar research shows 32% of gamers in both China and the United States—two of the world’s largest esports markets—are actively engaging with VR technology. Meanwhile, AR is capturing imaginations across generations: among those familiar with the technology, 75% consider it “innovative,” 84% find it “interesting,” and 78% say it is “engaging.”

Most tellingly, younger audiences are leading the charge. A staggering 42% of Gen Z and 43% of Millennials report having used AR, compared to just 24% of Gen X. As these digital natives ascend to dominance in the gaming world, the demand for immersive experiences will only accelerate.

The physical-virtual barrier is crumbling as new technologies solve long-standing challenges in human perception and spatial awareness. Motion simulation platforms synchronize virtual movement with physical sensation. Advanced AR overlays merge digital information seamlessly with the real world. The result is an emerging ecosystem that could fundamentally transform the multi-billion dollar esports industry and unlock new opportunities across the broader gaming and entertainment landscape.

A staggering 42% of Gen Z and 43% of Millennials report having used AR, compared to just 24% of Gen X. As these digital natives ascend to dominance in the gaming world, the demand for immersive experiences will only accelerate.

Training 3.0: Leveling Up Player Development

For professional teams, these technologies offer unprecedented opportunities to enhance player development. Traditional training setups, no matter how sophisticated, have always been limited by their inherent disconnect from the actual competitive experience. VR and AR change the game entirely.

“Integrating VR with esports isn’t just about enhancing how we play; it’s about revolutionizing it,” explains Sam Rhodes, President of North America for DOF Robotics. “Imagine a world where the physical and virtual blend so seamlessly that the sensory disconnect we often feel with traditional gaming vanishes. This is the future we’re building—one where every twist and turn in a game is matched by real-world motion, bringing unprecedented realism to the gaming experience.”

Rhodes emphasizes the transformative potential of combining VR with motion simulation systems: “This technology allows us to create immersive environments that replicate real-world physics and motions, offering users a deeply engaging and realistic experience.”

This evolution in training methodology comes as hardware barriers rapidly fall. Meta’s new educational VR headset, released in October 2024, enters the market at $299—a fraction of what teams currently invest in traditional training setups. 

Ryan Brennan, Sr. Business Development Manager for XR at SHI International Corp, a global minority & woman-owned IT reseller, highlights the broader implications: “We’re seeing a significant uptick in the adoption of VR in educational settings, which directly translates to how we envision its integration into esports training. The same principles that enhance learning and skill development in schools—like simulating complex environments and providing immediate feedback—are crucial for training esports athletes.”

Imagine a world where every juke, every skill-shot, every split-second decision can be practiced and perfected in a hyper-realistic simulation indistinguishable from the real thing. For esports professionals, that world is coming into focus.

Fan-tasia: The Ultimate Spectator Experience

But the most radical transformation may come in how fans experience competitive gaming. Today, even the most advanced tournament setups face a fundamental limitation: the physical disconnect between spectators and the digital battlefields where matches unfold. 

Picture instead a near-future scenario where fans can literally step inside the game. Using VR, spectators could stand virtually beside their favorite pros during pivotal matches, or review winning strategies by walking through immersive 3D replays. AR enhancements could transform live events into breathtaking fusions of the real and digital, with data overlays, dynamic camera angles, and larger-than-life holographic displays bringing fans closer to the action than ever before.

“VR and AR aren’t just adding dimensions to gaming; they are fundamentally redefining the learning and engagement paradigms,” says Raymond McCarthy Bergeron, Director of Technology Innovation at InVision Communications. “With retention rates significantly higher in immersive environments, we’re not just playing games; we’re experiencing them in ways that deepen our connection to the content.”

McCarthy Bergeron also underscores the potential for these technologies to revolutionize live event experiences: “By leveraging virtual and augmented reality, we can dramatically extend the reach of live events from a limited physical audience to a global online presence. These technologies allow us to maintain the vibrant atmosphere of live events while making them accessible to millions around the world, effectively democratizing access to experiences that were once geographically constrained.”

These technologies have the potential to turn esports into the ultimate spectator experience, one where the line between observer and participant blurs. For an industry always seeking to strengthen fan engagement and drive event ticket sales, this is the holy grail.

These technologies have the potential to turn esports into the ultimate spectator experience, one where the line between observer and participant blurs. For an industry always seeking to strengthen fan engagement and drive event ticket sales, this is the holy grail.

Barriers to Entry: The Infrastructure Challenge

Of course, realizing this bold vision requires more than just plummeting hardware costs. To truly bring VR and AR into the esports mainstream, significant infrastructural hurdles must be overcome. 

“The main hurdles in adopting VR and AR in esports go beyond the initial cost of the hardware,” Brennan notes. “There are challenges with the limited field of view and the extensive infrastructure requirements. This involves not just the upfront investment in headsets but also integrating these technologies with high-powered PCs and high-frame-rate monitors. Moreover, managing these devices for appropriate and secure usage presents another layer of complexity that organizations must navigate effectively.”

High-bandwidth networks capable of handling massive VR/AR data streams are a must. Venues will need to be reimagined with dedicated spaces for immersive gaming setups. Robust systems for hardware maintenance, software troubleshooting, and ensuring user safety need to become standard. And all of this must be achieved at a scale and price point that makes sense for an industry built around live events.

These challenges are formidable, but so are the potential rewards. Esports organizations that start laying the groundwork for a VR/AR-powered future today could gain a significant competitive advantage as the technologies mature. Whether through pilot programs, R&D investments, or partnerships with leading hardware and software providers, proactive planning will be key to positioning for success in this new era of immersive esports.

The Road Ahead: A Call to Action

The esports industry stands at a crossroads. Down one path lies a familiar future, an extension of the status quo where competitive gaming remains a decidedly two-dimensional affair, constrained by the screens that have always defined it. 

But another path is emerging, one that leads to a radically reimagined landscape where the physical and digital merge in stunning, immersive ways. This is the future that VR and AR promise—and it’s coming into focus faster than many realize. 

For esports companies, the implications are profound. The question is no longer if this VR/AR revolution will reshape the industry, but when. And in an intensely competitive field where innovation is the name of the game, “when” could well mean the difference between thriving and merely surviving.

The time to start preparing is now. The technologies are advancing, the audience appetite is growing, and the competitive advantages for early movers could be game-changing. The virtual starting gun has been fired.

The future of esports will be written by the bold, the visionary, the ones who dare to imagine a world beyond the screen—and then build it. Will you be among them?

Categorized in: EsportsNext Magazine