Things to know about investing in esports or video gaming industry.

The first thing you need to know about investing in any gaming or gaming-related company is that the market numbers up for grabs are huge.

Courtesy Newzoo.com. For more info just click on the image

So what? I hear you cry.

I too, am over tech companies boasting how"big" a potential market they are in.

In my mind, the rubber meets the road when they start to get a chunk of that massive market and, even more important, when they show they have the right technology to easily scale it into something truly substantial.

Esports Mogul [ASX:ESH] believes it is one such company.

According to Jamie Skella, Chief Operations and Product Officer, the Australian secondary investor market definitely has a bias toward returns at the expense of initial user numbers, especially if you compare the local share market to that of the United States.

"The Australian investor market does not seem to value user numbers so much as revenue numbers," he told me in a recent interview.

Skella points out that for Esports Mogul, differentiation is one of their key priorities that he believes will drive those revenue numbers, starting in the first calendar quarter of next year.

"In the responses we get from esports teams, some see huge amounts of value in what we do differently and what we do better," he said.

Skella said they have three or four competitors worthy of mentioning.

"Faceit , is probably our biggest competitor in North America, along with smashgg and a couple of others, that get close to (our) comprehensiveness."

But having four or so competitors in a global market, isn't exactly mission impossible.

For those old enough to remember, Avis car rentals built a very successful business by admitting that they were second to Hertz.

“When you’re only No. 2, you try harder.”

My point is, you don't have to be number one to be a success and in a four to six horse race, placing can still be very profitable.

With about $33 billion dollars on offer in the PC-based gaming sector, moderate success would be fine.

Of course it is never smooth sailing in the digital ocean.

The esports business has had its ups and downs over the past few months and so it is worth reading the following ASX announcements:

Revised incentive program to better attract and retain key executive talent globally

Update to Extraordinary Meeting – Withdrawal of Resolutions

Clarification on Recurring Revenue & Future Board Expansion

I found Jamie Skella a fascinating person to interview, but mindful of people's time I have broken the interview into two parts.

Segment one is an overview of the business and its strengths.

Segment two is more focused on their development of the Mogul platform, an new anncouncement regarding this was made to the market on (04/09/2019)

Hope you enjoy the interviews, and as always, get in touch with your thoughts, comments and suggestions.

SEGMENT TWO

The InsideMarket Private Fund does not own shares in ESPORTS MOGUL at the time of publishing this post. We also have not received any payment from the company for this coverage. Disruptive technology stocks should be considered very speculative, high-risk, and extremely volatile. There are significant risks inherent in developing new technologies that are not discussed here. You should always seek professional advice before considering any share purchase or sale. Please read our full disclaimer.