Esports business ecosystem and its lifecycle: a case study of Zhongxian Esports Town in China

PurposeThis article aims to understand the evolution process (lifecycle) of an esports business ecosystem, with Zhongxian Esports Town in China as a case study.Design/methodology/approachA mix of primary and secondary qualitative data was collected. Primary data were gathered through 15 semi-structured interviews with respondents involved in the strategic development of Zhongxian Esports Town. Secondary data consisted of public policies and internal publications. Thematic analysis was applied, with four themes identified that align with four lifecycle phases.FindingsIn the birth phase (2017–2018), there was a gap between the early planning and the actual business ecosystem due to a lack of capabilities and knowledge about customers, leading to an eventual strategic focus on education. In the expansion phase (2018–2020), more stakeholders were attracted. However, conflicts and tension started to emerge among stakeholders due to limited supply capacity. In the authority phase (2020–2021), there was some evidence of authority being achieved, while new entrants forced their way into the ecosystem. In the last phase (2021–2023), the esports town encountered adverse policy changes. However, it was able to insert new ideas into the old order and therefore renew itself.Research limitations/implicationsThe study analyses in-depth an evolving esports business ecosystem, providing valuable insights into its development trajectory and adaptability.Practical implicationsThe manuscript helps inform decision-making and resource management for policymakers, business managers and other esports stakeholders.Originality/valueTo the best of our knowledge, this research is the first to help understand the lifecycle of a Chinese esports town.