The esports bubble refers to the gap between the massive investment flowing into competitive gaming and the actual revenue the industry generates. For years, organizations operated at significant losses, subsidized by venture capital and the promise of future growth. Team valuations ballooned to hundreds of millions despite most organizations never turning a profit. When interest rates rose and investors demanded returns, the bubble showed its fragility. Teams folded, salaries dropped, staff were laid off, and the industry faced hard questions about whether its business model was fundamentally sustainable. The core issue is that esports viewership, while large, has not translated into revenue proportional to traditional sports with similar audience sizes.