Do you think competition is good for kids?

My son plays SAY basketball and he gets very competitive. Last week for a tournament he went back down to 11u (he's ten but normally he plays 13U) ANYWAYS he was scoring at will most of the first half but in the 4TH they started to face gaurd him and even ran a box and 1..so all he could do was pass. SO they end up losing by 7.. my son is crying so hard and I haven't seen him cry in years. My husband carried him out the gym it was very sad. Made me ask this question to myself. However at the same time I noticed how Everyone was trying to comfort my son. Even the opposing cheerleaders were saying "sweet its ok #10 atleast you're still cuter than them" etc. All his original 13u teammates were picking him up and hugging/comforting him. That made me think maybe it is good. Because it also teaches kids sportsmanship and how to confine in each other. anyone here disagree?