SHANGHAI — On Friday, thousands of esports fans gathered under the dramatic green spotlights of Shanghai’s SPD Bank Oriental Sports Center to watch domestic esports teams TYLOO and LVG battle it out in the Asian Champions League (ACL) final of first-person shooter Counter-Strike 2.

With a member of each team’s five players proudly draped in a Chinese national flag, it was ultimately the veterans TYLOO who emerged victorious with a 2-0 win, clinching the Hero Esports CS2 title. In doing so, they secured a spot in the upcoming Esports World Cup (EWC) in Riyadh, Saudi Arabia, this July and August.

The ACL Grand Finals 2025, organized by prominent Chinese esports company Hero Esports, kicked off on Friday. It marked the first time Asia’s premier multi-title esports tournament and the Sweden-hailing DreamHack gaming festival had taken place in China.

Over three days, the event hosted competitions in nine top-tier esports titles including Dota 2, CS2, Teamfight Tactics, CrossFire, Honor of Kings, and League of Legends. Fifteen million yuan ($2 million) in prize money was up for grabs, attracting more than 3,000 overseas competitors and over 100,000 spectators​.

Beyond nurturing top-tier professional players, the ACL aims to support grassroots esports development, providing opportunities for casual gamers to showcase their talent on a global stage. Prior to China’s debut event, the open qualifiers for CS2 took place across 32 Chinese cities in February, drawing over 1,000 amateur teams from across the country to compete.

Speaking at a media event on Friday, Wang Xinyi, CEO of the ACL, discussed the growing significance of the competition to the Chinese gaming market. “It’s very important for the gaming ecosystem because it gives them hope, and gives them a chance to qualify.”

In the lead up to this summer’s Esports World Cup in Riyadh, Saudi Arabia has implemented a fan engagement program, where qualifying teams will have the opportunity to bring their supporters to the event. Furthermore, Saudi Arabia’s tourism authority has outlined plans to increase tourist arrivals from China.

“I think the EWC and ACL collaboration is an important part of that,” said HRH Prince Faisal bin Bandar bin Sultan Al Saud, Saudi royal and honorary chairman of the ACL, at the media event. “We are both establishing ourselves as global esports hubs.”

According to the 2024 China Esports Industry Report, Shanghai remains China’s preeminent esports hub, hosting 17.8% — the majority — of the nation’s offline tournaments. The city also leads in club infrastructure, housing 50 of China’s total 195 professional esports organizations by the end of 2024.

The domestic industry generated 27.6 billion yuan ($3.8 billion) in revenue in 2024, marking 4.62% year-on-year growth, with an estimated user base of 490 million — a figure that has remained consistent over the last five years. Livestreaming constituted the highest income share at 80.8%, followed by tournament-related revenue at 8.75%.

Esports enthusiast and Shanghai university student, 20-year-old Hu Aozhe, told Sixth Tone that his passion for gaming began when he was introduced to League of Legends as a child. “It was my first gaming love, and BLG remains my favorite team,” he said, referring to the esports organization owned by video-streaming platform Bilibili.

Hu’s enthusiasm for esports mirrors China’s growing embrace of the discipline, and he talked about how the ACL has been transformative for esports in the region. “This tournament offers teams crucial benefits — significant prize money, global exposure against international powerhouses, and invaluable competitive experience that helps sustain professional operations.”

His perspective underscores how the institutionalization of esports, including via its Asian Games debut in 2022 and international tournaments such as ACL and EWC, is reshaping societal attitudes toward the pursuit.

“Where parents once viewed games as a harmful influence, they now see esports athletes representing their countries with honor,” Hu said. This cultural shift is echoed by 25-year-old civil servant and avid gamer Yan Xianze, from the northwestern Xinjiang Uyghur Autonomous Region, who spoke of an ongoing generational divide. “To our elders, gaming equaled laziness. For Millennials and Gen Z, games have become an indispensable part of life.”

Yan, who watched his first esports tournament in 2014, sees ACL’s “Creating the Impossible” motto as reflecting competitive gaming’s shared spirit with traditional sports. “That drive to achieve the impossible exists across sports — whether it’s a soccer comeback or basketball buzzer-beater,” Yan told Sixth Tone. “But esports’ version carries special meaning today. With fast-paced lifestyles and mounting pressures, young people crave those miraculous moments they rarely experience in daily life.”

Yu Daoming, a 26-year-old student from China’s central Hubei province and a long-time CS2 player, has followed numerous global tournaments dominated by Western teams. “While these matches are thrilling, there’s always a tinge of regret when no Chinese teams compete on the main stage,” he told Sixth Tone.

“It’s not about a lack of talent or investment, but rather about establishing mature professional systems and major international tournaments,” the seasoned gamer said in relation to what he thinks China’s esports scene needs most.

Wang, ACL’s CEO, concurs, saying that as a global esports hub, Shanghai’s esports sector needs its signature IP. “We’re working to create an annual flagship event that merges ACL’s competition with DreamHack’s festival — this could become Shanghai’s defining esports property,” he said.

Zhang Lei, co-CEO of MAG Studio, a subsidiary of leading digital entertainment group NIP, spoke of how large-scale events like ACL boost esports’ development as well as stimulate growth across related sectors, including tourism, cultural promotion, and consumer markets. “Such integration not only generates substantial economic and social benefits for host locations but also contributes innovative models for diversifying Asia’s esports industry,” Zhang added.

This cross-industry momentum aligns with various technological breakthroughs in gaming, with recent advancements in virtual and augmented reality evolving new esports categories and propelling them into the mainstream.

MAG Studio, for example, is pioneering a new breed of “mixed reality” multiplayer combat sport. Using lightweight VR headsets, these games pit players against each other in intense virtual arena battles whereby arm gestures translate to in-game actions: a sideways motion launches a laser attack, while raising them activates an energy shield.

Behind the scenes, AI is increasingly acting as an invisible orchestrator, significantly lowering the barrier to game development and esports participation. Meanwhile, AI coaching systems provide personalized training solutions for under-resourced players.

But as these technologies empower players and creators, HRH Prince Faisal spoke about the need for stronger regulation in the industry to ensure that AI is not used to hijack gameplay. “It means we’re going to have to be more vigilant on how we empower young men and women. But (AI) also gives them tools that, if used right, can grow this industry quicker than ever,” HRH Prince Faisal told Sixth Tone.

For fans like 21-year-old Wei Xiongwei, esports’ real magic lies in its captivating offline narratives. After three days of intense competition, even his favored team’s loss in the League of Legends finals couldn’t dim his admiration for the contestants.

“In many matches, teams often face adversity, requiring a key player to step up, turn the tide, and lead the team out of difficulty,” Wei said. “Finding hope in despair not only showcases the players’ mental toughness and resilience but also highlights esports’ unique charm.”

Additional reporting: Fu Xiaoqing and Chen Yongyi; editor: Tom Arnstein.

(Header image: TTG celebrates during the Hero Esports Asian Champions League 2025 after winning the Honor of Kings tournament, in Shanghai, May 18, 2025. From @英雄亚冠ACL on Weibo)