There is already a lot of money in esports, so I'll go out on a limb here, and say that it's only a matter of time before it becomes mainstream.
A stadium. For video games.
The barrier to entry is just so much lower for video games when compared to professional sports - nearly anyone can play and get good enough to compete against the pros without even leaving their house. Personally I prefer "real" sports over their virtual counterparts, but millions of people disagree with me - and that number will only continue to grow. I think eSports are going to grow dramatically over the next 5 years.
That's the only point. Not much of one.
The internet is a pretty big stadium.
But just watching someone else play Fallout 3? Talk about a lack of immersion. I don't get it...
I think it's just like any physical sport - having knowledge about a game and watching someone skilled play is interesting. People watch to learn and get better at something they find interesting. That said, watching someone play Fallout definitely isn't what gamers think of when you mention "eSports" - generally eSports refers to some level of competition, which is why real time strategy games and first person shooters are so popular - both require a lot of skill and knowledge of the game to be good at.
Getting back to the "Official Video Game Olympics" - there are actually some pretty serious competitions out there. Certain game developers have been known to self-host their own tournaments for millions of dollars in prizes (League of Legends and Call of Duty being two examples). There's also plenty of companies making a profitable business out of running these tournaments: ESL in Europe and Major League Gaming in the US being two of the bigger names out there right now. So in fact, the competition and prizes are very real, so anyone interested in a game may be interested in seeing who's going to win $1,000,000.
It's nice that I don't have to invest the time it takes to get up to speed to know what's going on if the commentary's good -- and it's a solid, mindless contrast to TV for me (which has been phenomenally engaging lately. it's impossible to read emails and watch house of cards, which isn't true for game streaming :D)
1. People like to see someone of a very high level play a game that they too play.
2. You often get to see someone playing a game that you never heard about. For instance: The recent speed running marathon streams have showed a lot of obscure and old games.
3. And most important: People are entertained by the commentary from the streamer.
If you just run a game with no commentary you will be hard pressed to get any viewers. It is more that with the younger generation games have become a huge part of culture and to see someone playing games you play as well and chatting give the viewer a social experience. There is chat too and the streamers often address people in chat. If you look at the most popular personalities on YouTube many of them are gaming related. People spend a lot of time playing today's very immersive, social, and large scale games so it follows that they can be entertained by personalities involved with them.
I'll often leave a stream on in the background at work, or watch someone playing while I'm rocking my son to sleep.
With video games its a bit similar. If you played the game or something similar before you can appreciate whats going on but otherwise you will be completely lost and everything feels pointless.
Competitive game players watch replays and streams to increase their level of play in e.g. RTSs, etc.
When players do watch a streamer play a single player game, it's usually because the game has recently been released, and they want to make an opinion on whether or not they should buy it. Or because they enjoy the streamer's personality and commentary. They're not watching Fallout 3, they're watching TotalBiscuit play Fallout 3.
It's not very fun watching someone play Fallout, but it's entertaining watching someone play Fallout role-playing as a homicidal maniac that uses nothing but his bare fists. The sheer difficulty is impressive, and if coupled with a talent for presentation/humor it can be a pretty fun time.
I don't really get it, but she came up with the idea and started doing it by herself. There must be some sort of attraction to this thing.
1. Sometimes you just want to veg out and watch something, not be an active participant. You can enjoy the game without putting in any effort.
2. There's a community aspect to it. In a single-player game like Fallout you get to see someone else enjoying and talking about what you enjoy, and you can interact with others who share the same interests.
3. Many of the people who stream are really good players. Almost no one reaches that level of play so for most people watching a streamer is the only way to experience it. They can also offer insights and help make you a better player.
It is kind of weird and not traditional... but it does make sense to a young'n like me.
I never understood how people could watch soccer/football and not get bored to death until the rise of esports. Now I often watch the league games for my favorite team and most of the world championship games.
What I find astonishing are Youtube "clip shows" on cable channels. These are "shows" where the hosts screen videos they found on Youtube and talk about them or rip them apart. I don['t get the appeal but apparently they fill the air time. Something which was a curated set of videos about a particular video game might actually have appeal to me, either from a shopping (I wonder if I would like it) to a mastery (I wonder what other people do at that stage) kind of thing. Not saying it would make money but I would be tempted to watch it. Some of the Eve commentary would make for an excellent show as well.
[1] - Blizzard however is doing what they can to make it unnecessary much to the demise of the 'fun' aspect.
Think of it this way: imagine if Kasparov and Fisher live streamed all of their chess practice, informal competition, and formal competition. Odds are chess fans would line up to watch.
It's just like that, but with strategic online games instead of strategic board games.
Also, some of the streamers are practically comedians, so they sometimes watch for general comedy and enjoyment as well. Or a mix.
Other way around, I think. Competitive video games ought to be called "competitive games," like chess. The whole "e-sport" label is stupid: "sport" has always meant a primarily physical competition, and competitive games of the sitting-down type--chess, checkers, Go, Scrabble, etc.--have been their own thing, with leagues and tournaments and titles, for decades or centuries before video games came around. Video games are more dependent on quick thinking and reflexes, but they're still primarily mental competition--see also speed chess, etc.
But competitive video gamers are too full of themselves to be happy rubbing shoulders with something as unhip as chess. They insist that they deserve the same (arguably equally undeserved) acclaim and money and fandom as sports, so they keep pushing the "e-sports" label and all the associated silly trappings and theatrics. After two decades of fruitless flailing, it seems like it might finally be about to stick, more's the pity.
When they play Minecraft, they make up their own commentary and they're dying to have their own show.
http://www.twitch.tv/giantwaffle is primarily a minecraft streamer, and he generally doesnt curse and explains what hes doing. Beware, he does do nightstreams with Lirik, including cussing. He'll announce these, though.
Single player / non-competitive games (such as your example, Fallout 3) are indeed much less exciting and get less viewers. There are also streamers that aren't very good at playing anything, but they're entertaining in one way or another and have built up a following that just watched them play whatever.