For the Esports Development in Japan~ From the perspective of further market growth and social
significance ~March, 2020 (Reiwa 2)
Investigative Commission on Measures for Vitalizing Esports（Bureau : Japan Esports Union）（Subcontractor : KPMG Consulting Co., Ltd. Japan）(English Translation : KPMG Consulting Co., Ltd. Japan)

Preface
One of the driving forces behind the growth of the content industry in Japan has been the gaming
industry. Esports is currently the key figure of the gaming industry and the expectation toward
esports is rapidly increasing.
Japan is undoubtfully one of the powerhouses of game industry in the world but it is currently
lagging behind in terms of esports business. One of the reasons for this stems from the fact thatJapan was indeed a powerhouse of game industry, mainly console games in fact, that had resulted
in the slow domestic development of PC games, which has become the mainstream of the global
esports scene. On the flip side, however, this is a strong indication that Japan has high potential andcompetitiveness to outperform other esports-developed countries, and it is now Japan’s turn to facedevelopment of esports.
In terms of creating an environment for the healthy and multifaceted development of esports, theJapan Esports Union (JeSU) was established in 2018.
This 2018 shall be the establishing year of esports in Japan. Large events are being held, sponsors
are gathering, and companies from a wide variety of industries, including professional sports
organizations, media, and event companies, are entering esports. At the 18th Asian Games(2018/Jakarta, Palembang), where esports was adopted as a demonstration event, a Japanese highschool student attracted high attention by receiving a gold medal in a soccer video game. Since then,the social recognition of esports has been growing rapidly, with the national esports championshipalso being held in October 2019 as part of the cultural program of the National Sports Festival.
On the other hand, the global wave of technological innovation is indispensable to thedevelopment of esports. After the digitalization in the 1990s and the smartification in the 2000s, theera of AI (Artificial Intelligence) and the Internet of Things (IoT) has arrived. We are also facing theera of 5G communication. With 5G, the main battlefield may shift from PCs to smartphones and to
cloud, changing the nature of competitive gaming and the way fans enjoy it. The impact of 5G willchange the structure of the industry, which could be a threat to the industry, but this wave of
simultaneous change could also be a great opportunity for Japan to catch up in the esports field.
In response to the current circumstances, the “Intellectual Property Promotion Plan 2019,”
published by the Intellectual Property Strategy Headquarters, describes the efforts in esports asfollows. “Also, with regard to esports, which has been attracting attention as a new content field
growth area in recent years, it is necessary for related ministries and agencies to make necessary
efforts to develop an appropriate environment for sound development, such as resolving institutional
issues, as well as to study the expansion of the market to peripheral industries, the social significanceand ripple effects. And industry, academia, government, and communities must collaborate to
execute these efforts.” The stance of the government has been clarified.
"Investigative Commission on Measures for Vitalizing Esports " was established in this backdrop.
16 members including esports experts or from companies, organizations, etc. which in the future
may be included as the esports industry field due to the expansion of esports industry (which
includes: game developer, event organizer, community member / player, market participants from
related device manufacture / financial service / tourism / media / etc., local government, legal2

practitioner, participants of education / welfare) were commissioned, and has been discussing themeasures for vitalizing esports. The followings are examples of what had been discussed by the IC:
how the number of esports fans can be increased in the market, how to expand the esports footprint
not limited to

an industry but in the wider range of related-fields such as education, culture, andsociety. The result of the discussion is summarized in this report.
Japan will be hosting a series of major global events, which is a golden opportunity for Japan. The
Tokyo Olympic and Paralympic Games in 2020, followed five years later by the Osaka-Kansai Expoin 2025. It will be my greatest pleasure if the result of the discussion by the commission (long-termgoals and the growth measurement to achieve the goal, proposal regarding the social significance ofesports) is widely shared, leading to the increase of presence of Japan's esports, as well as esports
making the society more prosperous, communities more well-being, and people's lives moreenjoyable and vibrant.
Investigative Commission on Measures for Vitalizing Esports
Chair: Ichiya Nakamura

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Table of Contents
Preface ..................................................................................................................................................2
Chapter 1 Background, goal and the method of Investigative commission ................................ 5
1-1．Purpose ...................................................................................................................................5
1-2．Method ....................................................................................................................................6
Chapter 5 Recapitulation of the IC and the future considerations...............................................26
5-1．The results of IC...................................................................................................................33
5-2．Future consideration ...........................................................................................................33
1)

The necessity of guidelines for the utilization and licensing of a game title (IP：intellectual

property)...................................................................................................................................... 33
2) Establishing a foundation to transmit esports information for the realization of symbiotic
society and regional revitalization ..............................................................................................34
3)

Investigate educational values of esports and obtain evidence ............................................35

5-3．Necessary actions .................................................................................................................36
1)

Esports industry association ................................................................................................362)

Esports industrial field ........................................................................................................36

3)

Education / Research institute ............................................................................................. 36

4)

Government office ..............................................................................................................37

5)

Local government ............................................................................................................... 37

6)

Players .................................................................................................................................37

4

Chapter 1

Background, goal and the method of Investigative commission

1-1．Purpose
Esports, an emerging industry that has been attracting a growing number of people in many
countries. It has been gaining popularity in Japan in recent years and is expected to become agrowth field in the Japanese content market. According to a survey by a private company, themarket scale of esports as a part of the gaming industry, which includes sponsorship fees,
broadcasting rights and ticket sales, is estimated to be about 4.8 billion yen as of 2018 while someexperts expect that it will reach around 10 billion yen in 2022.
Moreover, esports will likely have economic ripple effects to surrounding markets andindustries, as well as the gaming industry. Furthermore, esports is expected to have social
significance in variety of fields through such economic effects.
Understanding esports in a broader perspective and by researching, analyzing, and sharing theoverall picture of the broadly defined esports market will help esports related companies andorganizations to formulate their management strategies. Also, it will be effective to organize andshare the history of development and the current situation in countries where discussions andexaminations regarding esports have been taken.
However, there have only been a few cases in Japan where people comprehensively discuss andexamine esports, much less regarding its social significance. It is important to discuss esports fromthis viewpoint to achieve healthy and multilateral development of the industry.
On this notion, the “Japan Esports Union” (hereinafter referred to as “JeSU”) has been
entrusted "FY2019 Project for Development of Environments for Creating New Content (Projectfor Research on and Analysis of Market Scale and Other Elements for e-Sports)" from the
Ministry of Economy, Trade and Industry (hereinafter referred to as “METI”), and has inaugurated
an “Investigative Commission on Measures for Vitalizing Esports” (hereafter referred to as “IC” )to carefully study the matter.
The IC mainly discussed the following two points.
(1) Estimating the market scale of esports in Japan, including economic effects rippling tosurrounding markets and industries, and conducting research on the background of how esports
has developed in foreign countries and then analyze the results.
(2) Streamlining and discussing the social significance of esports based on the current situationsof a variety of efforts in Japan. challenges, future perspectives and other issues with suchsignificance, and grasp an idea of the situation.

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1-2．Method
As described in the following (1) and (2), JeSU has implemented the research and analysis onesports within domestic and foreign countries and streamlined the social significance of esports inJapan.
（１） Research and analysis on esports within domestic and foreign countries and streamlining
and discussing the social significance of esports(A)

Estimating the market scale of esports in Japan, including economic ripple effect tosurrounding markets and industries
Esports will likely have economic ripple effect to surrounding markets andindustries, as well as the gaming industry. Therefore, we will estimate the market
scale of esports in Japan, including economic ripple effect to surrounding markets
and industries. When estimating, we will discuss on which market and industry (asexamples listed below) to be included as the surround field.
Moreover, investigation of the size and market share of companies (who entered
the market, etc.) at the time of the survey, and the degree of difficulty in entering
new markets by categories will be conducted.
【Examples of markets and industries which may be included as surrounding
fields】① Market expansion
Gaming ware / chairGaming PC / mouse

Esports-related merchandiseSpeaker, monitor, telecommunications equipment, network environment,anti-cheat device, etc.

② Universal designDevices for disabled (PC, mouse, etc.)



Healthcare, health promotion③ Human resource development, interdisciplinary researchAcademy, Highschool, UniversityGame and IT system developer training, Industry-Academia
collaboration, etc.

④ Generating new industry
Tournament management, certification authority, consulting serviceFinancial serviceOrganize professional team, community business, league management,
etc.

⑤ Regional revitalization
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・ Training facility management, event venue (stadium) management, etc.
⑥ Cool Japan, international relationship
・ Event tour, promotion of travel industry, integrated resort, etc.
(B)

Background of how esports has developed in overseas countries
Prior to starting the discussion on domestic esports, we thought it would be
effective to conduct research on the background of how esports have developed inforeign countries where discussions and examinations regarding esports has beentaken. Therefore, documentary search and interview was conducted for U.S., Korea,
E.U. and China, which advances in the dissemination of esports. As for theinterview, information was gathered efficiently through phone call or email from 2
or more people involved in esports from each country / regional, and a local
interview if necessary.
For each country / region, research was conducted by perspectives listed below. In
addition, research on the business environment surrounding esports (population
change in each country / region, state of network infrastructure, technologicalinnovation and societal implementation status of devices, involvement of thegovernment for regulation and promotion) will be conducted.
・ Background of how esports and its surrounding fields have developed
・ Guidelines for quality assurance of esports competitions, formation of unified
organizations
・ Relationship between the operator of the esports competition and thecompetition participants (players)
・ Status of government involvement in policies（２） Streamlining and discussing the social significance of esports based on the current efforts
taken in Japan, challenges, future perspectives and other issues with such significance.
Based on above (1), streamlining and discussing the domestic esports based on thecurrent efforts, challenges, future perspectives and other issues with such significance,
and understand the implications.
The results obtained in (1) and (2) will be widely announced in the future to promote
the dissemination and awareness of esports.

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Source：https://www.meti.go.jp/press/2019/08/20190830001/20190830001-1.pdf

Figure 1 The economic impact and social significance of esports

Based on the above arrangement, discussions were conducted within the inaugurated IC.
Concerning the broad industries and markets field which esports may have influence on, we hadrecognized the necessity of wide range of experts to be participating as the members of the IC andjoining the discussion. Therefore, 16 members including esports experts, and companies ororganizations which in the future may be included as the esports industry field due to the expansionof esports industry (which includes: game developer, event organizer, community member / player,
market participants from related device manufacture / financial service / tourism / media / etc., local
government, legal practitioner, participants of education / welfare) were commissioned to the IC.
(Chart 1)
JeSU, together with KPMG Consulting, the subcontractor of this project,served as a bureau of the IC. The discussion was held five times starting from September 2019 toFebruary 2020 in Tokyo. (Table 2).
The discussions, documents and agendas were open to the public.

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Chart 1 Members of the IC

Name
Anjo

Organization
Ph.D, Technical Sales Manager, Intel Japan K.K.

Kenichiro
Kato Takahiro

Assistant Manager, Tokushima Prefectural Government (President, Taskforce forthe promotion of esports in Tokushima Prefecture)

Daisuke

Producer of TV show “eGG”, Nippon TV

Kobayashi
MasaruVice President, Global Investment Research, Goldman Sachs Japan Co., Ltd.

Sugiyama
Haruhiko

Domestic and Inbound Travel Executive Division, Japan Association of Travel

Takai

AgentsTomohiro

Partner, Nishimura & Asahi

Takagi
YoshioAssociate Professor, Faculty of Health and Sport Sciences, University of Tsukuba

Takahashi
Eichi Tanaka

Occupational Therapist, Yakumo National Hospital

Kana Tani

Professional Player (Tanukana)HajimeProfessional Player (Tokido)

Taniguchi
Naonobu

Producer Lead of C4LAN

TaharaYoichi

Representative Director, XENOZ Co., Ltd. (SCARZ) / Owner, Professional esports

TomoriTeam SCARZ

FusukeRepresentative, Gaming Community Network

ToyotaIchiyaPresident, iUniversity

Nakamura[Chair]JunichiCEO, JCG Co., Ltd.

Matsumoto
Yasuyuki

Secretary General, Computer Entertainment Supplier's Association (CESA)

Yamaji9

Chart 2 Outline of the discussion by IC

Date

The main topics of discussion

Discussion

September 24 ,2019

・ Purpose of the IC / About the discussion topics

Day 1(Tue.)

・ Research of the market scale

14:00～16:00

・ Free discussion

Discussion

October 29, 2019

・ Further discussion topics

Day 2(Tue.)・ Precondition for the research and the growth of

13:00～15:00
Discussion

December 10, 2019

Day 3

(Tue.)
15:00～17:00

esports market scale
・ Setting the long-term goal of esports market
scale
・ Proposal for the market growth・ Confirmation of the theme for the discussion ofsocial significanceDiscussion

January 15, 2020

Day 4

(Wed.)
13:00～15:00

・ Confirmation on the long-term goal of esports
market scale
・ Confirmation on the proposal for the growth ofesports market
・ Proposal related to social significanceDiscussion

February 18, 2020

・ About the report

Day 5(Tue.)・ Further actions after the dismiss of the IC

15:00～17:00

Summary of the IC

10Chapter 2 Market scale research and discussion
In the following research and discussion, esports fan will be categorized as “Hardcore fan” and“Casual fan,” depending on the degree of involvement to Esports (Figure 2).
The definition of hardcore fan is: play or view esports for long hours and actively gathering esports
related news. On the other hand, definition of casual fan is: play or view esports in low to medium
frequency and is passive on gathering esports related information.
Hardcore fans are an important driving force for transitioning casual fans to hardcore fans. Hardcorefans will draw in other players into the game by inviting friends or sharing information to surroundings.
Also, fans will take advantage of the opportunity to play and view esports by forming community suchas amateur teams and hosting small events.

Figure 1 Fan Definition and Hardcore Fans

2-1．Definition of the esports market considering its growth
1) The stages of esports market growth.
The business field of esports will expand gradually as the esports market grows. In this report,
businesses formed during the growing process after the commercialization phase will be the main
target when estimating the market scale.
The growing process of the esports market can be categorized into 3 phases (starting, growing,
maturing) (Figure 3). The starting and the early growing phase can be defined as the stage ofculture formation, where the relationship of community formed by individual players and ingame friends are tightened through Lan parties or offline events held in PC Bang.
The growing phase and onwards can be defined as the stage of competition andcommercialization. During the growing phase, more tournaments will be hosted by thecommunity grew in the starting phase. The attractiveness of esports will attract more money tothe market through sponsorship and broadcasting rights. As the degree of completion andattraction increase, more businesses such as facility, games and product development, andmedia services will emerge. And esports ecosystem will start circulating.
In the maturing phase, the underlying technologies of esports cultivated through esports' ability
to attract customers, as well as its nature of competition will be utilized by other industries, which
11will lead to economic ripple effects and innovation.

Figure 3 The evolutionary process of the esports market

2) The overall view of the business as an esports market
Esports market can be categorized as “ecosystem domain where event entertainment is placed
as core element” and “ripple effect domain influenced from economic activity of ecosystemdomain” (Figure 4). Ecosystem domain will be prioritized for estimating the market scale.
The “experience,” “watch,” and “support” framework defined by the Japan Sports Agency in
the Second Sports Basic Plan is applied to the “ecosystem domain.”
Business for participants in esports competitions (teams / players) are included in "Experience"(sponsor / advertisement, tickets, merchandise, prize, social tipping, etc.).
Among the esports fans, "watch" is mainly targeted towards businesses (advertising,participation fee income) conducted by hardcore fan groups (streamers, LAN party organizers).
“Support” includes business (sponsor / advertisement, media rights, copyright license fee,
facility usage fee, equipment sales, etc.) conducted by operators (event organizers, game
publishers, event facility / training facility, related device manufacturers, etc.) which supports thecompetition or view of games.
"Ripple effect domain" includes businesses (food and beverage services, retail, informationand communication, etc.) which utilizes the customer attraction of events.
Furthermore, "transfer domain” is located further out of the ripple effect domain. It includes
business which have transferred the technology accumulated through esports (technology transfer
in medical care, industry-academia collaboration across different fields, utilization of esports forfinance / insurance business, etc.).

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Figure 4 The overview of the business in the esports market

3) The flow of money within the esports market
The flow of money in esports market is explained below (Figure 5). The esports market can bebroadly categorized as the ecosystem domain with event entertainment as its core element, andthe direct market and ripple effect domain.
The blue squares within the ecosystem domain and the direct market represents the market
players, and the arrows represent the flow of money between players.
The red arrow indicates the flow of money for the items in the direct market, which are definedin the reports of Newzoo and KADOKAWA Game Linkage, and the dotted red arrow indicatesthe flow of funds contained in the direct market. The flow of funds contained in the direct market
is separated to prevent double counting with items in the direct market. For example, tournament
prize is basically contributed from sponsorship fees in Japan, and if both are included in thecalculation, these sections will be double counted (and this trend is expected to continue for the
next few years). Therefore, it is excluded from the calculation of the direct market.
The blue arrows represent the flow of money in the esports ecosystem domain.
Outside the ecosystem, the ripple effect domain is represented. The blue circle are examples
of industries that benefit from the ripple effect.

13

Figure 5 The capital flow within the esports market

Reference) Expansion of the esports surrounding market components
Based on the image of the expansion of the components that form the esports surrounding
market, the market is classified into 6 fields (Figure 6).
The four layers (from direct market to transfer domain) are visualized in figure 4. There also
are the classification mappings for the six fields.

Figure 6 An image of the esports market expansion

2-2．Estimation of the market scale
1) The flow of money within the esports market: direct market
The flow of the money in the esports direct market is emphasized below (Figure 7). The redarrows indicate the flow of money for the items in the direct market, which are defined in thereports of Newzoo and KADOKAWA Game Linkage. The dotted black arrow indicates the flow14

of funds contained in the direct market. The flow of funds contained in the direct market isseparated to prevent double counting with items in the direct market.

Figure 7 The capital flow within the esports market : direct market

2) Forecast of the business scale in the direct market
Japan's direct market is expected to reach 9.1 billion yen by 2022 (Figure 8). The value reported
by KADOKAWA Game Linkage is used here.1
2018 is the actual value and 2019 is the estimated value. CAGR from 2018 to 2022 is 20%.

Figure 8 Forecast of the Japanese esports direct market scale

1

The value of Newzoo used in this foreign research does not include prize money, therefore the prize

money was excluded from the value of KADOKAWA Game Linkage to equalize the conditon.

153) The flow of money in the esports market: ecosystem
The flow of the money in the ecosystem domain is emphasized below (Figure 9). The blue
arrow indicates the flow of money within the ecosystem flow.

Figure 9 The capital flow within the ecosystem

4) Summary of ecosystem market scale estimation logic
The estimation of the market scale of the ecosystem domain was roughly estimated based on
the business elements captured in the flow of money in the market.
In this report, there are two major logics used to calculate the ecosystem domain (Chart 3).
The first method for estimation is by multiplying "sales per economic entity or per economictransaction" with "the number of cases." If the sales figures are not available in other reports, they
are calculated independently and multiplied by the number of players (number of cases). For
example, esports related equipment manufacturer's income is calculated by the purchase amountper player multiplied by the number of players.
The second method is by multiplying "the market scale of similar foreign market" with "esports population in Japan / esports population in foreign country." For example, the social
tipping income is estimated by multiplying the ratio of the esports viewers in Japan and U.S. withthe social tipping market scale of U.S. Furthermore, when estimating the social tipping market
scale in Japan, ratio of U.S. online population and esports viewer is multiplied. The reason U.S.
esports viewer / U.S. online population is multiplied is because the usage of social tipping is notjust limited to esports, it is also utilized in online streaming in general.

16Chart 3 Summary of ecosystem market scale estimation logic5) Details of ecosystem market scale estimation logic
Below is the list of detailed estimation logic for each market players in the ecosystem domain(Chart 4). The estimation pattern (2) explained in the preceding clause is utilized only for the social
tipping market, and the others are all estimated by estimation pattern (1).
Chart 4 Details of ecosystem market scale estimation logic

6) Market scale estimation result of the ecosystem domain
As a result of the estimation, the market scale of ecosystem domain in 2018 is estimated to be
11.2 billion yen, around 2.5 times larger than the esports direct market, and the total esports
market estimated to be 15.6 billion yen. (Figure 10)。
The pie chart on the left represents the composition ratio of the six areas of social significance,with market formation being the highest. The pie chart on the right is the breakdown by eachbusiness, with esports related equipment being the largest. Console in esports related equipment
category includes the sales from software purchase.

17Figure 10 Market scale estimation result of the ecosystem domain

Reference) Breakdown of domestic direct market and the ecosystem domain
As a reference, breakdown of the direct market and the ecosystem domain is estimated.
(Figure 11)。The flow of money in the current domestic esports market is dominated by sponsors/ advertisement and esports related devices.

Figure 11 Breakdown of domestic direct market and the ecosystem domain (2018)

Reference) Figure 12 Flow of money in the domestic esports market : 2018
The largest flow of money within direct market and ecosystem domain represented in Figure
5 is highlighted below. (Figure 12).
Green is sponsor / advertising expenses of 3.7 billion yen, blue is related equipment of 7.4
billion yen, and yellow is passenger transportation/accommodation business of 1.4 billion yen.

18

Figure 12 The capital flow in the domestic esports market (2018)

7) Relationship between market scale and number of fans in the direct market and ecosystemdomain90% of the revenues that make up the esports’ direct market and ecosystem domain can be
expected to grow in proportion to the increase in the number of esports fans (Figure 13). In the
direct market, an increase in the number of fans is expected to have a direct impact, except for
copyright licensing revenue. Ecosystem domain will also increase its scale as the number of fansincreases, which will lead to the increase of people who purchase related devices or visit
tournament and arrange accommodation.
From the above, it can be said that the number of fans is an important driver in the growth ofboth the direct market and the ecosystem domain for esports.

Figure 13 Relationship between market scale and the number of fans in the direct market and ecosystemdomain19

2-3．Long term market scale goal
1) The estimation method of the direct market in long term
If the Japanese esports ecosystem domain grows at the same rate as the direct market, themarket scale of the entire ecosystem in 2022 can be estimated to reach 32 billion yen.

(Figure14).

In order to set the market scale goal of esports, comparison of goal of the number of fans aswell as “value per capita” (calculated by dividing the market size by the number of fans) withother domestic sports and foreign esports market will be necessary. Therefore, the long term goalof the market scale will fluctuate depending on where number of fans value per capita is set to.
As for reference, number of fans in 2018 is 382 million, market scale is 4.4 billion yen, andvalue per capita is 1,150 yen.

Figure 14 The estimation method of the direct market in the long term2) Setting goal of fan amount and value per capita
In Figure 15, the left image shows the population of other sports, and the right image shows
the growth forecast of value per capita in the advanced esports countries.
As for the springboard of discussion, fan amount has been set to 23 million to 26 million (ifthe esports popularity grew to the same level of Korea or the same spectator of professional
baseball), and value per capita has been set to 2,700 yen (referred from the maximum growth rateof 2.3x within the advanced esports countries).
Within the breakdown of value per capita in U.S., media rights and sponsorship / advertisement
is expected to have the highest growth. The reason for this is due to the rise of online streaming
platforms, and sponsorship / advertisement from other industries joining the market.

20

Figure 15 Setting goals for the number of fans and value per capita

3) Long term goal of the direct market
The IC examined the combination of the fan amount and value per capita for the springboardof discussion by referring to the market scale of domestic sports and the scale of esports market
in advanced esports countries (Figure 16)。

Figure 16 Long term goal of the direct market

As a result of the discussion, the long-term goal of the direct market was set to reach 60 to 70
billion yen by 2025 (Figure 17)。Furthermore, IC has confirmed that the market scale can expand
even after 2025, for example by utilizing the digital technology to establish new culture of
supporting and viewing games, or enhancing the added value of esports itself will encourage thepurchase of higher-priced content and items.

21

Figure 17 Forecast and the long term goal of Japanese esports direct market

4) Market scale including ecosystem domain and ripple effect domain (long term goal)
The overall long term goal of the market scale by 2025 (including economic activities in theecosystem domain and economic effects on the ripple effect domain) has been set to reach 285 to
325 billion yen. (Figure 18)。
For the estimation of the ripple effect domain, "Input-Output Tables" published by the Ministryof Internal Affairs and Communications has been utilized. The direct market and ecosystemdomains were categorized according to the items on the "Input-Output table" and applied for theestimation.

Figure 18 Forecast and long term goal of the Japanese esports market including the ripple effect domain5) The industries within ripple effect domain which will receive effect from esports market
The development of the esports market will benefit industries in the ripple effect domain which
is outside of the esports ecosystem. (Figure 19). There are wide varieties of industries within the
ripple effect domain which will benefit from the expansion of the market.

22

Figure 19 The industries within ripple effect domain influenced by the esports market

When observing the breakdown of the ripple effect domain, the economic activity seems tohave the greatest impact on the personal service and professional and business service. (Figure 20).
In addition, since the market for esports related devices in the ecosystem domain is large, thescale of information communication devices is also large in the ripple effect domain.

Figure 20 Breakdown of the ripple effect domain

Reference) Setting value per capita: comparison with other professional sports2
Below is the comparison of value per capita with other sports in Japan and other countries,
for reference. (Figure 21). The current value per capita of esports is lower than that of other2

Esports は競技の総称であるため、各スポーツと 1 対 1 の比較はできないが、ここでは敢えて Esports

として合算している。

23

professional sports in Japan and U.S.. Esports market has the potential of increasing the value
per capita.

Figure 21 Setting value per capita : comparison with other professional sports

Supplement) Comparison of the market
When comparing major reports on esports, the values of the actual and forecast on esports
market scale differs (Chart5). For the value of Japanese esports market, data presented by
KADOKAWA Game Linkage, which has continuously grasped the changes of the market andhas been adopted in the report published by Ministry of Internal Affairs and Communications,
is utilized. For the foreign market, the data published by Newzoo, which extensively
investigates the market size, number of viewers, etc. is utilized.

24

Chart 5 Comparison of the market

2-4．Report on foreign country research
The result of foreign country research is summarized in the report (Attachment 1). The thesis is
as below.
Chapter 1 Summery of esports advanced country research
1 1．The KSF(Key Success Factors) of esports market development in advanced esports
countries
1 2．The growth pattern of the market in advanced esports countries
1 3．Summary of foreign research
Chapter 2 Information of each country
2 1．U.S.
2 2．China
2 3．Korea
2 4．Germany
2 5．Poland

25

Chapter 3 For the long term growth of the Japan esports market (proposal)

3-1．Preconditions for sustainable growth of Japan esports
The prerequisite of sustainable growth of esports market in Japan is the enhancing of the valueof hardcore fans by increasing its number, which leads to the generation of revenue from event
business itself. Furthermore, the continuous expansion and preservation of hardcore fans isnecessary. (Figure 22).
((1)-1) During the starting phase, community is formed by individual players, in-game friends,
social media relation and online events. Online gatherings in LAN parties and PC bangs are utilized
as a means to strengthen the cohesion of the community. The continuation of the online gathering
will lead to fans developing into a hardcore fan.
((1)-2) During the early growing phase, more events and tournaments will be held due to the
backdrop of the hardcore fan base provided by the community. The attractiveness to customer willcall in funds from sponsors and media, and at that point esports can be realized as an event business.
After the mid growing phase, ((2)-1) the event attraction will maintain and expand the number of
hardcore fans. ((2)-2) The community will turn casual fans and developing fans to hardcore fans,and it will feed more fans to events and tournaments.
The repetition of this cycle will lead to a sustainable growth of esports.

Figure 22 Preconditions for sustainable growth of Japanese esports

3-2．Course of plan for sustainable growth of Japan esports
After Analyzing the four stages required for the sustainable growth of esports explained in theprevious section, the course of plan for the sustainable growth can be summarized to five points
regarding the current state of Japan. (Figure23).

26

Figure 23 Course of plans for sustainable growth of Japanese esports

The five points of course of plan are "improve game attraction," "improve event attraction,""improve the economic status of professionals," " transform fans to hardcore," and "lower the barrierof legal system / rules" (Figure 24). The IC has discussed the above 5 points.

Figure 24 Course of action for the development of Japanese esports market

3-3．Proposal for the development of Japan esports market
The proposal that were discussed by IC are summarized in “Growth measure list” (Attachment2). The proposal of measures against growth is classified by the five course of action which was
explained in the previous section and clarified the subject which will play the central role incarrying out the proposal.

271)Improve game attraction
In this section, the following proposals and its concrete actions have been presented: select andfocus on certain titles to create popularity and competitiveness, develop titles that can be played
from any device without being tied to consoles or mobile devices in order to attract a large numberof fans, develop necessary technology for esports to gain global competitiveness.
2)Improve event attraction
In this section, the following proposals and its concrete actions have been presented: increase
the attractiveness of events by formalizing esports as an official sport in regional sports
competitions, host esports world championships in Japan, hold themed competitions orcompetitions that are easy to watch in short amount of time, produce star players, constructinternational rules for tournament management.
3)Improve the economic status of professionals
In this section, the following proposals and its concrete actions have been presented: support
the amateur players, improve the economic status of professional players by promoting"corporate teams" or applying a minimum annual salary in league.
4)Transform fans to hardcore
In this section, the following proposals and its concrete actions have been presented: necessityof "environment preparation" which will help fans to transform into hardcore fans, developmentof hardcore fans through esports related welfare presented by companies.
5)Lower the barriers of legal system / rules
In this section, the following proposal and its concrete actions have been presented: necessityof guidelines for facility management, esports event, and utilization / licensing of intellectual
property (IP).

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Chapter 4 Discussion on the social significance and its permeation (proposal)
4 1．Course of discussion on social significanceThe IC has proceeded the discussion for social significance of esports regardingthe "value of sports" defined in the "Second Basic Sports Plan" by the Japan Sports Agency(Figure 25), and "Sports and Sustainable Development (SDGs)" (Chart 6), which summarizes theroles of sports to achieve the common goals of the international community determined by the UN
Summit, "Sustainable Development Goals (SDGs)."～Sports can change and create the future Enjoy Sports, Enjoy Life ～The “fun” and “joy” of sports are the core of the value of sports. If all people spontaneously engage
in sports for self-fulfillment, and shine with the power of sports, positive and vibrant society and a worldof strong bonds will be created.
1.

“Life” will be changed by sports!
Enjoy the maximum value of sports by ”experiencing” sports.
Everyone can enjoy the value by ”experiencing,” ”watching,” ”supporting” sports.
Life can be fun, well-being, and vibrant by making sports part of the life.

2.

Change the “society” with sports!
People can contribute to the development of society by sharing the value of sports, and changing people's
consciousness and behavior.
Sports can contribute to the realization of a symbiotic society, a well-being and long-lived society, andrevitalization of the economy and local communities.

3.

Connect with the “world” by sports!
Sports can contribute to the realization of "a world that respects diversity," "a world that issustainable and resistant to adversity," and "a world that is clean and fair."

4.

Create the “future” with sports!
With the 2020 Tokyo Olympic and Paralympic Games as an opportunity, we will develop a national
movement that connects people through sports and promote the Olympic and Paralympic movements.
During the period of this plan, the “sports participation population” will be expanded and the sports
world will promote cooperation and collaboration with other fields to realize a “100 million sportssociety”.
Source：https://www.mext.go.jp/sports/content/1383656_002.pdf

Figure 2 The value of sports

Figure 2 Sport and the Sustainable Development Goals (SDGs)
Goals

Role of the sport

Goal 1. End poverty everywhere in all
forms

Sports can be used as a means of teaching and practicing
transferable skills for social, and living, that can lead tohappiness, economic participation, productivity, and resilience.

Goal 2. End hunger, achieve foodsecurity and improved nutrition, andpromote sustainable agriculture

Sports programs associated with nutrition and agriculture cancomplement programs that tackle hunger and support education.
Beneficiaries can be educated to be engaged in sustainable foodproduction and balanced diets.

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Goal 3. Ensure healthy lives andpromote well-being for all at all ages

Exercise and sports are important elements of an active lifestyleand mental well-being. It can also help prevent risks such as
non-communicable diseases and can serve as an educational
tool for sexual and reproductive and other health issues.

Goal 4. Ensure inclusive and equitable
quality education and promote life-longlearning opportunities for all

Physical education and sports activities can improve school
enrollment and attendance, and even academic performance inthe formal education system for school-aged children. Sports
based programs offer educational opportunities and life skills
that can be used beyond school, into the workplace and adultlife.

Goal 5. Achieve gender equality andempower all women and girls

Sports and sports-based community programs in particular, if
designed inclusively for women and girls to develop skills
necessary to become equal participants of society, can cause
positive shifts in gender norms and promote gender equality.

Goal 6. Ensure availability andsustainable management of water andsanitation for all

Sports can be an effective educational platform fordisseminating messages on water sanitation requirements andmanagement. If the activity and the intended outcome of sports
based programs are interrelated to water-use-efficiency, thisissue may improve

Goal 7. Ensure access to affordable,
reliable, sustainable and modern energy
for all

By utilizing sports as a forum for discussion and promotion,
sports programs and activities can support initiatives aiming at
developing energy provision systems and ensuring access toenergy.

Goal 8. Promote sustained, inclusive andsustainable economic growth, full andproductive employment and decent
work for all

The manufacturing, labor market and vocational training of the
sports industry and businesses will foster increased
employability for women and people with disabilities. Sports
can generate enhanced overall community involvement, and it
can motivate mobilization of the wider community and growthof economic activities associated with sports

Goal 9. Build resilient infrastructure,promote inclusive and sustainableindustrialization and foster innovation

Resilience and industrialization needs can be partially met bysports-centric efforts aimed at achieving relevant development
goals, such as rebuilding sports and entertainment facilities after
a natural disaster. Sports have been recognized and utilized as
an innovative means of advancing development and peace,complementing other traditional tools for development.

Goal 10. Reduce inequality within andamong countries

Promotion of sports and the development through sports indeveloping countries contribute to narrow the gap between
developing countries and developed countries. Due to its highpopularity, sports is an appropriate tool for tackling to the issue
of inequality where communities and people are difficult toreach.

Goal 11. Make cities and humansettlements inclusive, safe, resilient andsustainable

Inclusion in sports and inclusion through sports is one of themain targets of "sports for development and peace". Easy-to-use
sports facilities and services not only help achieve this goal, but
can also serve as an example of good practice in adopting
inclusive and resilient methods

Goal 12. Ensure sustainableconsumption and production patterns

Incorporating sustainable standards in the production anddelivery of sport goods will help us adopt a broader andsustainable approach to consumption and production patterns inother industries. Messages and campaigns with this purpose canbe disseminated through sports goods, services and events.

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Goal 13. Take urgent action to combat
climate change and its impacts

Sports activities, programs, and events commencing with largescale sports events involving tourism, can raise awareness andknowledge of environmental sustainability, also it can proceed
active engagement toward climate issues. In addition, by
creating a sense of unity among disaster victims, acceleration ofdisaster recovery process is possible.

Goal 14. Conserve and sustainably use
the oceans, seas and marine resources
for sustainable development

By utilizing the connection between sports activities and theocean, such as water sports, advocating the conservation andsustainable use of marine resources will be possible.

Goal 15. Protect, restore and promotesustainable use of terrestrial ecosystems,
sustainably manage forests, combat
desertification, and halt and reverse landdegradation and halt biodiversity loss

Sports can offer a platform for education and promotion
regarding the preservation of terrestrial ecosystems. Sports innatural terrestrial settings can play an important role in ensuring
the conservation and sustainable use of terrestrial ecosystems.

Goal 16. Promote peaceful and inclusive
societies for sustainable development,
provide access to justice for all andbuild effective, accountable andinclusive institutions at all levels

Sports can help rebuild post-conflict societies, uplift affected
communities, and recover from war-related trauma. By sports
supporting the rapprochement and integration of divided
communities, sports will provide a powerful communication
platform that can be used to promote a culture of peace, andfoster dialogue and social cohesion.

Goal 17. Strengthen the means of
implementation and revitalize the global
partnership for sustainable development

Sports can play a role as an effective means of making targeted
development goals realistic and achieving concrete steps toward
the implementation. Sports can catalyze, build and strengthen
multi-stakeholder networks and partnerships for sustainable
development and peace goals, involving and bringing together
amateurs, professionals, governments, and private sector.

Source：https://www.unic.or.jp/news_press/features_backgrounders/18389/

4 2．Proposal for the implementation of social significanceThe proposals discussed by the IC are summarized on “Social significance list” (Attachment 3).
1) Make life fun, well-being and vibrant
In this topic, the following proposal has been presented: promote esports throughencouragement program, provide mental and physical care services to players for thedevelopment of an environment where players' well-being and sustainable engagement to esports
can be attained, grant research on medical and educational effects of esports, and introduction ofesports to education curriculum for the demonstration of its value.
2) Realization of a symbiotic society, and a well-being and long-lived society, as well as therevitalization of the economy and local communities.
In this topic, the following proposal has been presented: measures to encourage theparticipation of elderly and people with disabilities, holding a regional competition league,
construct event facilities, referring to the fact that esports is a field that may contribute to the31creation of symbiotic society as well as "regional revitalization”.
3) Realization of "a world that respects diversity," "a world that is sustainable and resistant toadversity," and "a world that is clean and fair."In this topic, the following proposal has been presented: (with the opinion that esports can be
a common language for the international exchange of the youth as a backdrop,) develop a esports
themed tours and opportunity for international exchange, setting clear standards of requirements
for the acquisition of long-term stay visa for the professional players based in Japan to promoteinternational events in Japan.

4 3．The social significance of esports in SDGs perspective
The proposal for the realization of social significance by the IC and the coherence with the 17
goals of the SDGs is indicated in Chart 7. The IC conceive that the proposal fulfills 14 goals within
the 17 goals of the SDGs.
To penetrate the diverse social significance of esports to the society, IC will aim for the
implementation of the proposal.
Chart 7 Proposal for the social significance and the 17 goals of SDGs

※Detail of 1-17 is described in previous sector

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Chapter 5 Recapitulation of the IC and the future considerations
5-1．The results of IC
Through the discussion by the IC, the following results were derived.
The IC has set the goal of the Japan esports direct market to reach 60 to 70 billion yen by 2025,
as well as estimated the total market scale (including economic activities in the ecosystem domain
and economic effects on the ripple effect domain) to reach 285 to 325 billion yen.
In addition, the preconditions essential to the long-term growth of the market were extracted by
the IC and concreate action for each precondition were proposed.
Lastly, through the discussion of social significance, IC has confirmed the comprehension ofsocial significance that esports can achieve and the results were summarized as a proposal.

5-2．Future consideration
Based on the discussion, the IC has proposed the necessity of further discussion for the following
three topics.
1) The necessity of guidelines for the utilization and licensing of a game title (IP：intellectual
property)
As described in chapter 2, if the esports market in Japan expands as targeted (direct market
size increase by 15 times), the size and the frequency of esports event as well as the spectator andonline viewer is expected to be increased. In addition, the increase of sponsors, the opportunityof exposure to the mass media, and income from the broadcasting right should lead the esports
market to a virtuous cycle.
Therefore, as one of the efforts to improve the environment for hosting esports tournaments,
the IC has examined the necessity of guidelines for "IP utilization / licensing".
Within the IC, such issues had been raised: the unclear procedure of obtaining the IP license,
the complexity of the procedure leading to the loss of opportunity of holding an esports event or
exposure to the mass media. For the improvement of the current circumstance, the establishmentof IP utilization / license guideline and approval of unauthorized utilization of IP if within theboundaries of the guideline, was proposed as a solution.
On the other hand, there are concerns on legal issues that may occur even if the event organizer
has no malicious intent. Esports in Japan is still in the preliminary phase, and the Japaneselegislation surrounding esports is still in the midst of improving (including the Premiums andRepresentations Act, Penal Code on gambling, Entertainment Business Act, etc.). In addition, thesize and composition of the organizers vary, and the awareness as well as the literacy regarding
legal compliance differs depending on the organizers.
On the game publisher's perspective, for consumers to safely and securely enjoy the game,legal issues in event which utilize their IP must be avoided. Therefore, guaranteeing thesoundness of the tournament will be necessary. In such circumstance, the approval of33unauthorized utilization of IP must be difficult. Therefore, establishing an institution which will
monitor the "holding of clean esports event" was proposed by the IC as a realistic solution.
In the U.S., a country with advanced esports market, the development of environment forhandling IPs for events/tournaments, broadcasting/streaming, and individual video uploads isbeing proceeded.
For the IP utilization / licensing, and guidelines, there is End User License Agreement (EULA).
EULA allows developers to specify the IP usage conditions of their titles and the user will be able
to use the IP within the condition. Regarding guidelines, some publishers have created "guidelines
for IP usage" in multiple languages and posted it on their websites. The guideline is intended topromote the hosting of events and tournaments by clearly indicating borders of when IP license
is necessary or not.
For the utilization of IP licensing in the area of broadcasting and online streaming, by referringto the common contract between the traditional sports in the U.S. (NFL, NBA, MLB, etc.) andthe traditional media (ESPN, etc.), discussion on comprehensive contract between publishers andthe media is proceeding. If the comprehensive contract allows the media to freely broadcast thematch highlights and video clips, confirmation on IP usage will not be necessary each time.
In order to build an environment that is easier to hold esports event while ensuring the integrityof the event, and for Japan esports market to achieve the long term goal set by the IC, thediscussion of IP utilization and license guideline must proceed based on the intention of the game
publisher.
2) Establishing a foundation to transmit esports information for the realization of symbiotic
society and regional revitalization
Advanced programs are implemented in various regions of Japan for the realization of a
symbiotic society and regional revitalization, but limited numbers of people are aware of the
programs. For the programs to be scaled out, the current situation must be improved. Therefore,
the establishment of a foundation to receive and share esports information is necessary. The
functions required by the foundation are: transmit information, connect related parties, collects
knowledge about esports through a network, and contact point for anyone that can access.
Furthermore, creation of new solutions, for realizing a symbiotic society and regional
revitalization, from the foundation is desired.
JeSU is currently in the process of establishing regional branches, aiming to establish branches
in all 47 prefectures in Japan. JeSU will proceed the establishment of regional branches anddevelopment of information network, to contribute to the realization of symbiotic society andregional revitalization.
For the preparation of Tokyo Olympics and Paralympics, venues equipped with wide screen
monitors and high-speed communication environment are developed nationwide. Promoting theutilization of such venues to esports should be necessary.
By utilizing the new trend of esports, enhancement of the flow of people and funds to local
areas and creating a community where everyone can play an active role shall be aimed.
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3) Investigate educational values of esports and obtain evidence
As described in the previous section, the IC believes that the introduction of esports into
educational scenes, such as club activities and classes, are necessary for further development ofesports. Looking back in the history of the development of traditional sports in Japan, this must
be considered.
The IC has discussed values which education and esports can mutually provide, referring to
the personnel structure of esports ecosystem. (Figure 26)。

Figure 26 Personnel structures and educational needs / values of esports

In the compulsory education curriculum of primary and secondary school, promotion of esports
as an extracurricular activity and activities in the local community is essential for the expansionof esports. In addition, for the justification of esports into classes, one needs to promote that
esports is expected to support the development of ability to think, judge, and express in classactivities.
Furthermore, the competitiveness and gamification elements of esports may be expected toplay a role as a catalyst for active learning.
In higher education (high school, college, and university), esports can be adopted into club
activity with an aim to produce professional players as well as introducing to classes for thedevelopment of human resource which will contribute to the expansion of the market.
In high schools, efforts to introduce esports into educational scene are spreading. Yokosuka
City is collaborating with four IT company and is renting high performance PCs to high schools
within the city without compensation. The aim of this program is to foster esports competitors bysupporting the establishment of clubs and vitalize the local community by attracting and hosting
esports events3. Noboru Tanimoto, the principle of Fukusho High School which is said to be thefirst public high school which has introduced esports into club activities, has stated that"communication and teamwork skills can be obtained" by esports and introduction of esports into
educational scene has created a synergistic effect such as improvement in academic achievement
as well as the establishment of independence.4

3

https://www.tokyo-np.co.jp/article/kanagawa/list/201912/CK2019120502000120.html

4https://www.gamespark.jp/article/2019/09/20/93203.html

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It is also important to obtain evidence of educational effects of esports and its impact on
traditional sports by promoting academic research on esports at universities. Especially whenintroducing esports to classes, setting the necessary qualifications and skill sets of teachers will
be necessary and prerequisite empirical research will be essential.
In order to promote such efforts, collaboration with various of schools and school personnel,
researchers involved in the field of education, relative administrative agencies will be necessary.
The IC will proceed with the investigation of educational value of esports and obtain evidence,
to promote the introduction of esports to various education scene.

5-3．Necessary actions
IC has summarized the essential actions for each market player, for mid to long-term growth ofJapan’s esports market and the establishment of social significance.
1) Esports industry association
The following are the roles expected from the industry group: prepare the environment for thehealthy and multilateral development of esports by establishing guidelines and rules for facility
management and hosting tournament events, expand the scope of esports by hosting global
esports event and seminars/courses by professional players to increase the opportunities for top
players to play active role as well as interact with fans. The establishment of guidelines andregulations will not only help standardize the implementation of esports, but it will lower thebarrier of fans entering esports. Therefore, it is an important field where the esports industry
association should focus on.
In addition, the development of information sharing touchpoints and places for international
exchange will also be important efforts for the realization of a symbiotic society and regional
revitalization. At that time, for example, issuing the "Japan Annual eSports Report" could be asolution.
2) Esports industrial field
The industrial field is expected to contribute to increase the attraction of esports and the further
market growth. The following measurement are examples of actions which can be taken:
development of esports titles which can be played on multiple devices, adoption of esports as an
official sport in regional sports competitions and hosting themed competitions.
In addition, the development of official tournament controller, holding a regional competition
league, and tours based on events are effective for realizing a symbiotic society and a diverse
society.
3) Education / Research institute
Education and research institutes are expected to make efforts to permeate the social
significance of esports by such measures: introduction to educational curriculum, development36

of esports promotion programs, and grants to fund research themes. In particular, obtaining theeffect of adopting esports to educational scene is highly expected in the future research.
4) Government office
Government office is expected to support the activities of market players such as tradeassociations, industrial fields, and education/research institutes, especially from the aspect oflegal system development.
In addition to domestic issues such as the Entertainment Business Act, the following examplesof efforts are expected for the multifaceted development of Japanese esports: maintain the quality
assurance level necessary for the operation of official esports event, construction anddissemination of the international rules to gain a competitive advantage from other countries.
5) Local government
Measurement from the perspective of regional transmission, and local revitalization throughesports is expected as the role of local government. The local government will be able to provide
services optimal to each area, which will lead to the revitalization of the local community.
Adapting esports into local events, the corporation of local businesses and residents on esports,
and utilizing esports on welfare, education, and tourist attraction will be the examples of measures.
6) Players
The esports players are acquainted with the game title. In particular, professional esports
players, through their game play, are expected to embody the social significance of esports byattracting the attention of stakeholders surrounding esports. They are also expected to attract
esports fans as well as impart the attractiveness of esports through their statements supported bytheir competitive skills.

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Chapter 6

Conclusion

Predictions of the future development of Japan's esports, which is currently at the starting stage, hasbeen made during the discussion. The results suggest that the Japanese market could reach to a longterm target of 60 to 70 billion yen, which will be comparable to the size of the U.S. market whichcurrently boasts the largest direct market in the world.
This was followed by a proposal for growth measures that would allow the market to grow beyond
the forecast as well as for the social significance of esports to settle through the country and makeesports take root as a widely-accepted culture.
What shape will esports in Japan and its society be when the measures and proposals are steadily
implemented, and the long-term goals are achieved? ——。
—— Year 2030. Japan has long since become one of the "advanced esports countries."
The number of esports fans has grown to exceed 26 million, the same level of professional
baseball.
There are now esports arenas in every prefecture in Japan. More than 10 facilities, which arecapable of drawing more than 3,000 people, are hosting esports tournaments for various game
titles every night. The level of professional teams and players competing there are all high leveland succeed in the world. The event venue is crowded with young people queuing to purchasetheir favorite team's merchandise, parents and children, as well as foreign fans from abroad who
have come to support the team. The amount of money spent by fans on tickets, merchandise, foodand drink in a day is enough to buy a video game.
With the acceptance of 5G networks in the 2020s, esports competition can be viewed anytime
and anywhere by using mobile devices and VR goggles. Results of league tournaments arereported on the TV news, and the center of conversation in workplace and school is, of course,
esports. Many people are a casual esports players as well as esports fan who is attracted by theplay of the professionals and affected by the outcome of the games. ———— A video game company. The company is discussing business strategies for the production
and sales of its upcoming major title. Over the past five years, media rights, merchandise sales
and in-game advertising have become a major source of income for the gaming industry, withnew company entering the various layers of esports market. Surveys have shown that more thanhalf of users now decide which games to download after watching a live esports event. In the
production of the new title, discussions about the perspective of each player, the ease ofbroadcasting, and new ways of expressing team introductions and sponsorship advertisements
have taken place that have never been seen before in game production. ———— A regional city. The scope of esports has been expanded by the establishment ofwholesome esports event management and the guidelines for the use of IP has led to an increasein the number of companies participating in broadcasting, advertising, and league management,
and the increased use of esports in education. Events such as tournaments and social gatherings
are also being actively held by educational institutions and local governments, which is
promoting interaction between people of all ages and demographics and providing a great38

stimulus to children. In addition, the scope of PR measures has expanded to include not only the
implementation of events and internet broadcasting, but also the appointment of esports players
as ambassadors, which has contributed to raising awareness of each region and enhancing theactivities of local residents.
With these characteristics, Japan's esports have been exported as a standardized package, andthe Japanese entertainment industry has entered a new stage in its development. ———— A secondary school student in a local city. The summary of today's class is English
conversation through esports. The students were challenged to chat with a team from foreignschool and to speak with their teammates in English. At the end of the class, the students wereassigned with homework to submit two tactical plans on how to break down the enemy's team.
During the school club activity, students practiced for the upcoming National Junior HighSchool Esports Championship, but the controller didn't feel comfortable. They visited the local
esports information center and the staff informed that a mechanical engineer who works at anesports practice facility in the next town would be able to fine-tune the controller for them.
Esports training facilities can be found in any local city, where players can drop in after schoolor work. One of the most popular lessons for children to participate is an esports academy (juku)
run by professional teams. It's a place to develop the next generation of players and a valuable
source of income for the team. The dream of the student is to improve player skills and become aprofessional player. After the retirement of the career, professional player will teach at theacademy and incubate future professional players.
The staff at the information center has gave advise of get some coaching from the mechanicalengineer when asking for the adjustment of the controller. The mechanical engineer himself wasa professional esports player with the same disability as I was but who was described as
invincible. ——Such a world does not seem to be a pipe dream. The IC envision a world where the spread anddevelopment of esports makes society more prosperous, communities more well-being, and people's
lives more enjoyable and vibrant.
The IC will continue to focus on how the proposal will be implemented, how it will lead to thedevelopment of esports in Japan and the enrichment of the country, as well as continue to search forways for esports to contribute to the growth and development of Japan and the world.

39