BEYOND Expo 2025: NIP Group CEO Mario Ho observes a transition from esports' "winter" to a period of change.

      On May 24, during the BEYOND Expo 2025 in Macao, NIP Group CEO Mario Ho took the opportunity to share his insights on the progression of the esports industry. At the Sports Tech Forum, he discussed the recent challenges faced by the sector, the journey towards sustainable growth, and how companies like NIP are adapting to these changes. As the global esports scene emerges from a downturn, Ho perceives the so-called "esports winter" not as a crisis, but rather as an essential period of transformation. He noted that NIP, an internationally listed esports group on Nasdaq, is using this opportunity to diversify its ecosystem and fast-track its global strategies.

      A reset, not a collapse

      Ho expressed at the forum, “I believe this ‘winter’ signifies more of a transformation period than an actual decline.” He elaborated that while the esports industry initially thrived by drawing significant traffic and excitement, it grew overly dependent on traditional monetization models and failed to establish a sustainable business framework. According to Ho, now is the critical time for stakeholders to reevaluate and transition from solely focusing on traffic to developing real monetization strategies.

      Going public amid industry challenges

      When asked why NIP opted to go public during a downturn in the industry, Ho referred to it as a component of a larger globalization strategy, labeling it “the dream of every entrepreneur.” He explained that the IPO was not merely a means of raising funds but also about establishing credibility, regulatory discipline, and enhancing communication with global investors. “Since our IPO, we have quickly forged strategic partnerships in the Middle East. It has bolstered trust and visibility in international markets,” he mentioned.

      Betting on the Middle East: esports’ new frontier

      NIP is making aggressive strides into the Middle East, a region Ho describes as abundant in capital and government backing. He noted that countries like Saudi Arabia and the UAE are significantly investing in esports despite the global economic challenges. He cited the success of the Saudi team Falcons, who won the Esports World Cup last year, as evidence of the region's potential.

      Regional differences

      Recognizing the varying gaming preferences across different regions, such as the popularity of fantasy and team-based games in China compared to FPS games in the US and Europe, Ho stated that NIP is tailoring content to fit local tastes. By creating a global IP portfolio, the company allows worldwide brands like BYD and Red Bull to execute unified yet locally relevant marketing initiatives.

      Building world-class teams: a faster clock

      When asked how long it might take to establish a top-tier esports team in the Middle East, Ho expressed confidence: “Esports evolves much more rapidly than traditional sports. Five years is sufficient to develop a world-class team.” He pointed out that costs in the Middle East are becoming comparable to those in China, where salaries for top-tier players rank among the highest worldwide. “Consider time as a form of capital. Professional players train up to 12 hours a day, six days a week. That’s the harsh, yet fascinating, nature of esports,” he remarked.

      Investor interest returns

      Ho indicated that investor sentiment towards esports is on the mend, particularly among the leading segments of the industry. While sponsorship funding remains robust, it is now concentrated on elite teams, leading intellectual property, and platforms capable of genuinely boosting viewership. “Previously, sponsorships were distributed broadly. Now, it’s about precision and ROI [Return on Investment],” he clarified.

      Jessie Wu is a technology reporter based in Shanghai. She covers consumer electronics, semiconductors, and the gaming industry for TechNode. You can reach her via email at [email protected]. More from Jessie Wu.