Player13 
Valve’s Dota 2 annual Championship, The International, has had a history of breaking prize pool records.
The very 1st International was held in 2011 as the world’s introduction to Dota 2, sequel to the popular Warcraft 3 mod, Defense of the Ancients.
The 5-man teams invited to that 1st Championship were pro teams with years of history competing with each other in the original DotA tournament scene, but for far less money. The 2011 championship offered them a cut of a $1.6 million dollar prize pool, the then largest prize pool in esports at the time, with a cool $1 million going to the top team out of 16 contenders.
In 2012, Valve hosted the 2nd International tournament with the same $1.6 million prize pool, but with more teams fighting for a qualifying spot.
Last year, Valve created an interactive booklet called the Compendium, to accompany The International 2013 (aka TI3), that included special in-game cosmetic items exclusive to owners. It sold for $9.99 USD with a special kickback — $2.50 from each sale would be added to the prize money going to the competing teams.
On top of that, stretch goals were put in place for the size of the overall purse — with new bonuses released for each milestone reached through Compendium purchase contributions.
The combination was effective, with the 3rd International (TI3) boasting the biggest esports purse of all time at $2.874 million dollars, half of that going to the first place winners.
Compounding the Compendium Effect
This year, Valve have outdone themselves once again, incentivizing the growth of the TI4 prize pool with another bonus-laden Compendium, but introducing the new concept of Compendium levels.
Last year, gamers could only purchase multiple Compendiums to further contribute to the pot, sometimes gifting extra copies to friends. This year, players are able to buy points that also contribute 25% of their revenue to the TI4 pot, as well as boosting one’s own Compendium level and unlocking further rewards.
The end result of all this cross-incentification has been astonishing, blowing even Valve’s expectations out of the water.
Stretch goals for this year’s prize pool had been set by Valve for up to $6 million dollars, more than double last year’s pot. This target was reached in only 11 days out of the 70 leading up to the 2014 Championship finals.
Valve then released another set of contribution stretch goals at intervals of up to 10 million dollars. And with more than a month till the TI4 finals, that goal is expected to be reached, as currently the prize pool sits at $9.6 million dollars.
This is 6 times Valve’s own base contribution of $1.6 million, with their cut of all Compendium and points sales at $24 million.
Love/Hate for Top Heavy Earnings
As much excitement that has been generated for this year’s TI prize pool, Valve’s top heavy method of growing the esports scene for Dota 2 isn’t without its’ critics and suggested flaws.
Last year’s already incredible $2.8 million prize pool was split among the top 8 teams, the bottom 8 teams earning nothing more than the all-expenses paid trip, despite some of them fighting hard to qualify for an invitation. Many wonder how this year’s $9-10 million+ purse will be divided among the invitees.
It is also difficult for teams who do not perform in the top 3 of other big tournaments throughout the year to make a living through prize pool earnings. Many have to rely on sponsorship from an esports organization, whose salaries are not regulated by Valve.
Players and esports personalities have expressed frustration with Valve’s once-a-year injection of money into the esports scene, hoping they could foster an environment that better allows talented players to sustain themselves financially throughout the year.
Some have pointed to Riot Games’ league competition model for its’ MOBA League of Legends, with LCS guaranteeing the qualifying pro teams a base salary, so long as they follow the guidelines it sets. This model is more akin to the league systems found in professional sports, allowing players to focus on honing their talents at the game.
Pro- Capitalism
The criticism of Valve’s top heavy model of earnings distribution isn’t anything new, as concerns were voiced even after the first International tournament in 2011. However, Valve seems unwavering in its belief in supporting the esports scene indirectly by creating avenues for profit-sharing and not getting involved in managing the teams and tournaments.<
Pro players are able to partner with Steam workshop artists to release branded cosmetic sets, providing them with a portion of the sales. And tournament organizers can sell tickets for in-client access to live games, with perks unavailable to fans watching via online streams.
The ticket-sales concept, along with the yearly hype for The International, has definitely encouraged the growth of professional Dota 2 in its own way. Many of the top teams and esports personalities have noted that there are now an over-saturation of tournaments, with schedules sometimes clashing, allowing lesser known teams more space for entry. Also, many new team sponsors have entered the Dota 2 scene since the last International, picking up amateur teams competing in local tournaments.
Only time will tell whether Valve’s “organic growth” approach to esports will sustain competitive Dota 2 over the years.
For now, all we can do is enjoy the hype.
