The Next Generation of Sports Might Look a Lot More Like a Video Game

By Patrick Seaman
CEO @ SportsBug | Board Member & Advisor | Futurist | Author

While most of the sports world debates streaming rights, NIL deals, and what the NBA might do with Amazon, a revolutionary form of competition is quietly emerging: one that could fundamentally reshape how younger generations engage with athletics.

Phygital sports, the innovative fusion of physical competition and digital gaming, are capturing global attention. January’s Phygital Games USA qualifier event demonstrated that this movement has arrived in America with unprecedented momentum and serious competitive intent.

The event served as the official U.S. qualifier for the upcoming Games of the Future, featuring athletes who competed in real-world challenges like 2-on-2 basketball and laser tag immediately after playing their digital counterparts in NBA 2K and Counter-Strike. Winners earned the opportunity to represent the United States on the international stage.

This represents neither traditional esports nor conventional athletics. It embodies both simultaneously. For audiences under 30, this hybrid approach might just capture exactly what they’ve been seeking.

Built for the Next Generation

Younger audiences aren’t abandoning sports. They’re completely redefining what sports can be.

Gen Z (born 1997 to 2012) and Gen Alpha (born 2013 through the mid-2020s) spend more time on mobile devices than any generation before them. Nearly 70 percent say they want immersive 3D visuals and augmented reality overlays when watching sports. More than 74 percent get their highlights and updates from social media, skipping past both cable and streaming services. Their attention isn’t scattered. It’s been reshaped for fast, multimedia engagement.

Phygital formats meet young audiences precisely where they already spend their time: streaming on Twitch, competing in games, scrolling through TikTok, and working out in gyms. A competitor might dominate a round of EA FC24, then immediately sprint onto real turf for a five-a-side football match, with combined scores determining the ultimate winner. The format delivers authentic physical exertion, genuine gameplay skill, and legitimate competitive stakes while maintaining the production sophistication of premier gaming tournaments.

From Dubai to Dallas

The global momentum behind this movement continues accelerating. The next Games of the Future will take place in Abu Dhabi this December, attracting competitors from more than 100 countries. In 2026, Kazakhstan will host the games. A World Phygital Community has established itself, with qualifying tournaments emerging across five continents.

What began as a technological experiment in Kazan, Russia, has evolved into an international competitive circuit with Olympic aspirations. The inaugural Games of the Future in 2024 reportedly generated more than 3.2 billion online views. While viewership numbers for U.S. qualifiers remain unreleased, global appetite for this hybrid format is undeniable.

Market projections support this enthusiasm. Analysts forecast the global phygital sports market will expand from $1.5 billion this year to over $13 billion by 2034. These numbers represent genuine market transformation, not temporary novelty.

Why the United States Should Take Notice

For American sports leagues, media companies, and technology developers, phygital sports represent more than curiosity. They constitute a crucial test case for the future of athletic entertainment. Can hybrid sports experiences create new pathways to engage fans under 25? Can the integration of live competition and digital gameplay lower barriers to entry for emerging sports and athletes?

Industry leaders are already exploring these possibilities. Tiger Woods and Rory McIlroy launched TGL (Tech Golf League) in partnership with ESPN, combining high-end simulation technology with real-world shot execution in a studio-driven format. While not purely phygital, TGL targets the same audience seeking innovative sports experiences.

Companies like Cosm are pushing fan engagement even further, constructing immersive dome venues that surround spectators with 360-degree live feeds, transforming passive viewing into comprehensive sensory experiences.

The future of sports will be shaped by organizations that understand competition and consumption across multiple dimensions: physical, digital, and everything in between.

The Bottom Line

Phygital sports represent more than industry buzzwords. They signal fundamental transformation.

The generation that matured gaming online while training with wearable technology isn’t requesting permission to reimagine sports. They’re actively creating that reimagination right now.

Whether competitions begin with Counter-Strike and conclude with cardiovascular challenges, or start with NBA 2K and end with full-court basketball, this hybrid model demands serious attention. For sports brands, sponsors, and streaming platforms, success will require mastering both physical and digital competition simultaneously.

The smart money isn’t just watching this evolution. It’s learning to compete in both arenas at once.

Mobile Device Usage: Gen Z leads all generations in daily screen usage, averaging around 9 hours per day. https://www.mastermindbehavior.com/post/average-screen-time-statistics

Desire for Immersive Graphics: Millennials and Gen Z desire shorter, engaging content that they can consume on the go. They expect augmented reality (AR) graphics, real-time data, and exciting analysis to enhance their immersion in the game.
https://theiabm.org/news/new-study-finds-ar-graphics-sports-analysis-and-replay-crucial-for-engaging-younger-audiences

Social Media Consumption: 43% of Gen Z fans use social media platforms while watching live sports. https://www.greenfly.com/blog/social-media-in-sports/

Mexico’s first national Phygital Games & Last Year’s event in Russia: https://mexiconewsdaily.com/lifestyle/phygital-games-mexico-e-sports-competition/

Market Size Forecast: According to a report by Market.us, the global phygital sports market is projected to grow from $1.5 billion in 2024 to $13.5 billion by 2034, reflecting a compound annual growth rate (CAGR) of 24.2%.  https://market.us/report/phygital-sports-market/

Founding of TGL: Tiger Woods and Rory McIlroy co-founded TGL through their company, TMRW Sports, in partnership with the PGA Tour.  https://espnpressroom.com/us/press-releases/2025/01/inaugural-tgl-golf-season-tees-off-in-prime-time-on-espn-espn-on-january-7

Broadcast Partnership with ESPN: TGL announced a multi-year broadcast agreement with ESPN, with the inaugural match airing on January 7, 2025.  https://www.golfdigest.com/story/espn-tgl-sign-broadcast-deal-tiger-woods-rory-mcilroy-simulator-golf-league

Wired Article: Cosm is revolutionizing live sports and entertainment experiences with its immersive technology, offering viewers a realistic, stadium-like sensation without leaving their city. Its venues in Los Angeles, Dallas, and Salt Lake City use 8K and higher resolution black domes, minimizing visual distortions and enhancing the viewer experience. https://www.wired.com/story/cosm-live-sports-immersive-experiences

Ministry of Sport: Cosm’s immersive 180-degree LED display delivers a new level of sports engagement, powered by proprietary tech and multi-angle broadcasts. https://ministryofsport.com/immersive-360-degree-sports-viewing-experience-is-taking-over-the-us

Secret Dallas: Cosm Dallas is a two-story immersive venue that offers the future of sports broadcasting with a one-of-a-kind viewing experience for sports fans.  https://secretdallas.com/cosm-dome-dallas