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What is Break-Even Analysis or Revenue

Handbook of Research on Pathways and Opportunities Into the Business of Esports
For a particular business model, how much revenue is necessary to cover both basic fixed costs as well as the variable cost per unit facing the firm? After the break-even point any new revenue can start contributing to profitability.
Published in Chapter:
Pwning Noobs for Fun and Profit: eSports and Entrepreneurship
Timothy B. Michael (University of Houston-Clear Lake, USA) and Melissa A. Williams (University of Houston-Clear Lake, USA)
DOI: 10.4018/978-1-7998-7300-6.ch003
Abstract
The last decade has seen tremendous growth in the use of social media, and online gaming has embraced streaming, allowing for more and more spectators each year. Streaming can generate viewership and ultimately revenue for more accomplished gamers. Individuals can stream live and record their exploits across a variety of gaming experiences, and this provides an opportunity for eSports athletes to turn their hobby into a growing source of income. In addition, elite players can find national or global sponsorships and contribute to charities on the basis of gaming tournaments and worldwide events. The landscape for creating entrepreneurship opportunities is developing over time. This chapter discusses the practical considerations for building a business around game streaming, sponsorship, and competition. The chapter should be beneficial for both beginning and accomplished gamers.
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