It's like wigga or nigga for Mexican people. Mostly, I see it used as a way to be immature and say shitty innuendoes in English class because it sounds like essay.
I dont know if somebody here have got it right yet, but I believe that "ese" means, okay, first literally: That thing. As in "that thing you've got down there." So figurativelly is a bad word; it means: Asshole. I hate it when someone, typically a stranger, call me "ese." It's usually only spoken by the lowest educated and bad mannered Mexicans, Mexican-americans, hispanics. For example: hispanic gangs, etc.
Term used mainly by Mexicans and Latin-Americans to reffer to somebody else.
Like saying "bro" or "my g", "wassgud ese" is just another way of saying so.
"Ese" meaning "that one" in Spanish, it's originally used to point someone out but later
evolved into a more colloquial term.
"aye bro, watchu doin out here mane ain't u supposed to be in the casa for the carne asada??"
"yea ese I'll be there in a bit lemme just get some shit from the store u feel?"