Summary of Key Points
The third edition of the Esports Club World Cup (EWC) has moved out of the Middle East for the first time to Paris, reflecting a new strategic approach by Chinese gaming companies (represented by Shanghai Mutong Technology's MLBB) to expand their presence overseas. The strategy focuses on organic growth in the European market without excessive spending, using Turkey as a launching pad to reach Europe. By leveraging the EWC’s points system, these companies aim to address the challenge of having users in Southeast Asia but generating revenue in Europe and America, while also exploring the long-term potential of mobile esports in Europe.
I. Chinese Gaming Entering Europe: Organic Growth Without Heavy Spending
Mutong’s MLBB has not invested heavily in advertising in Europe; instead, it has relied on word-of-mouth from users to gradually build a fan base—a strategy known as “organic growth.” Why does this work?
- Changing User Demographics: Young people in Eastern Europe prefer to play games on mobile devices more than those in Western Europe. For example, at the 2023 World Championship in Romania, over 200 teams signed up for MLBB’s qualifiers, far exceeding expectations.
- The Approach is to Cultivate Habits: The company focuses on community building and organizing small tournaments to encourage player interaction. It believes that this group of mobile gamers will become the mainstream in about 5 to 10 years.
- Major Challenges: The infrastructure in Europe is still not well-developed; for instance, Team Vitality’s players experienced lagging connections while traveling from the Paris airport to the competition venue, which suggests that mobile esports needs better network infrastructure before it can gain widespread acceptance.
II. Turkey: A Bridge Between Southeast Asia and Europe
MLBB’s annual global finals (M8) will be held in Istanbul, Turkey, marking its first expansion beyond Southeast Asia. The choice of Turkey is practical for several reasons:
- Strong Esports Infrastructure: Turkish teams frequently make it to the top eight in international competitions, indicating a mature esports ecosystem.
- Geographical Advantage: Turkey’s location facilitates outreach to Europe.
- Leveraging Success from Southeast Asia: MLBB’s popularity in Southeast Asia stems from its compatibility with various devices; this advantage can be replicated in Turkey.
III. The Business Logic of Esports Clubs
While women’s teams may not earn direct revenue by winning championships, they can contribute to the club’s overall prize pool. For example, Team Vitality’s acquisition of an Indonesian MLBB women’s team might seem counterintuitive (given its focus on shooting games), but it aligns with the EWC’s points system:
- The EWC Points System: Clubs earn points across 24 sports, and a total of $30 million in prizes is distributed at the end of the year (with the champion receiving $7 million). Winning a MWI championship can earn the women’s team hundreds of thousands of dollars in additional prize money.
- Limited Direct Revenue: Although Southeast Asia has a large user base, its economies are smaller, resulting in fewer sponsorships. Most of the tournament revenues go to the players. Clubs benefit from the indirect revenue generated by these points, betting on the future success of mobile esports.
IV. The Challenge of Revenue Generation
A common issue for Chinese gaming companies expanding overseas is the mismatch between user base and revenue generation. While there are many users in Southeast Asia (e.g., MLBB has 1.5 billion downloads), revenue comes primarily from Europe and America:
- Market Data: In 2025, Chinese self-developed games generated $20.4 billion in overseas revenue, with the United States accounting for 32% and Japan and South Korea for 25%, compared to less than 9% combined from Germany, the UK, France, and other countries. Southeast Asian users are numerous but have limited purchasing power, while European and American markets are more lucrative.
- The EWC as a Bridge: European clubs are willing to participate in Chinese mobile games due to the EWC’s points system and prize money, allowing Chinese games to gain recognition among top European clubs and addressing the revenue generation gap.
V. The Future of Mobile Esports in Europe
Industry experts believe that:
- Computer-based esports will remain the mainstream in Europe for the next 3 to 5 years.
- For mobile esports to take off, two changes are needed: a shift in user preferences (with more young people adopting mobile devices) and improved network infrastructure.
Chinese gaming companies are focusing on long-term strategic planning, waiting for the right conditions to emerge before making significant moves.
In summary, Chinese gaming companies are shifting their approach from spending heavily to build user bases overseas to adopting a more sustainable strategy that involves leveraging global competitions to create revenue channels. This path is considered more stable and effective for long-term success.