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

Investigative Commission on Measures for Vitalizing Esports【Method】
The discussion was held five times, starting from
September 2019 to February 2020, to discuss mainlyon the following three themes.
 Estimate the long term goal of the Japan esports
market scale, including economic effects rippling
to surrounding markets and industries.
 Conduct research on the background of how
esports has developed in foreign countries andthen analyze the results.
 Propose the mid to long term actions, essential tothe further development of esports.
 Propose of the mid to long term actions for theestablishment of social significance.

Members of the IC
Ichiya Nakamura

President, iUniversity [Chair]Anjo Kenichiro

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

Kato Takahiro

Assistant Manager, Tokushima Prefectural Government (President, Taskforce for the promotion of esportsin Tokushima Prefecture)

Daisuke Kobayashi

Producer of TV show “eGG”, Nippon TV

Masaru Sugiyama

Vice President, Global Investment Research, Goldman Sachs Japan Co., Ltd.

Haruhiko Takai

Domestic and Inbound Travel Executive Division, Japan Association of Travel Agents

Tomohiro Takagi

Partner, Nishimura & Asahi

Yoshio Takahashi

Associate Professor, Faculty of Health and Sport Sciences, University of Tsukuba

Eichi Tanaka

Occupational Therapist, Yakumo National Hospital

Kana Tani

Professional Player (Tanukana)Hajime Taniguchi

Professional Player (Tokido)

Naonobu Tahara

Producer Lead of C4LAN

Yoichi Tomori

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

Fusuke Toyota

Representative, Gaming Community Network

Junichi Matsumoto

CEO, JCG Co., Ltd.

Yasuyuki Yamaji

Secretary General, Computer Entertainment Supplier's Association (CESA)【Observer】
KPMG Consulting Co., Ltd. JapanMETI Media and Content Industry Division, Commerce and Information Policy Bureau
CAO Intellectual Property Strategy Headquarters
MIC Information and Communications Bureau Promotion for Content Distribution Division
CAA Representation Division
JSA Policy Division

2The economic impact and social significance of esports

Cool JapanInternational
relationshipSocial
significanceMarket・Industry（Economic impact） MerchandiseMarket formation andexpansion

Integrated Resort
Promotion of travel industry
Event tour
Event venue(Stadium)
Regional
revitalization

Gaming ware/ chair

Anti-Cheatsystem / device
Telecommunications equipment
Speaker
Network environment
MonitorEsports market Gaming PC /・Sponsorship・Media rights・Advertising
・Merchandise / Ticket・Game publishing fee

Training
facility

Professional team Tournament
Community
businessLeague
management

management
Certification
authority
Consulting
serviceFinancialservice

Generation of newmarket / industrymouse

Health care
Health promotionDevices for disabled(PC / Mouse etc.）

Training professionals
Educational
utilization toacademy, highSchool anduniversity

Game / IT System
Developer training

Universal design
Create symbiotic society

Industry-Academiacollaboration

Human resource development / IoT
education
Interdisciplinary research
Utilization of diverse human resource

3

The scale of Japanese esports direct market (long-term goal)
The IC has set the goal of the Japan esports direct market to reach 60 to 70 billion yen by 2025
Furthermore, IC has confirmed that the market scale can expand even after 2025
Forecast and the long term goal ofJapan esports direct market (100 million yen)

600～700【Estimation Assumption】
2025
Fans91442018Estimate～～2022
2025
Forecast Long term goal（Estimation）

Valuepercapita

2,300-2,600
million2,700- yen /capitaSame level of pervasiveness as Korea /Same level of fans as NPB
Value per capita calculated by the

5丁目
maximum growth rate within esports
advanced countries (=2.3x)（1,150 yen / capita in 2018）

Opinions were raised suggesting to aim further
enhancement of the value of esports“Utilize digital technology to establish new culture of supporting andviewing games, or enhancing the added value of esports will encourage
the purchase of higher-priced content and items”

Direct market : Income from event operation, team management, etc. (sponsor / advertisement, media rights, merchandise / ticket, copyright license fee, etc.)
Ecosystem domain : Business with event entertainment at its core (spectate, view, equipment purchase, construction business, host event, etc.)Ripple effect domain : Business which
utilizes the customer attraction of events (food and beverage services, retail, information and communication, etc.)

Source:Calculated the spending per capita based on KADOKAWA Game Linkage（direct market excluding prize money(4.4 billion)/fans(382million)）

4

The scale of Japan esports market including ecosystem and ripple effect domains(long-term goal)
The IC has set the long-term goal of the market scale by 2025 (including economic activities in the ecosystem domain
and economic effects on the ripple effect domain) to reach 285 to 325 billion yen（100 million yen）

2,850~3,250
Ripple effect domain
Ecosystem domain
Direct market

695

1,600～
1,800650～750

182112442018
EstimateEvent hosting→ Construction materials used to build facilities→ Transportation fees of workers, electricity consumption, etc.

Estimation of the ripple field is based on the "Input-Output Tables“ (a mechanism to identify how muchproduction will spread to which industry when new demand arises in one industry)" published by the Ministryof Internal Affairs and Communications【Estimation Assumption】

230

～～

Estimation referring to the information on how economic activity in ecosystem domain
can cause a ripple effect to peripheral industries.
Example of ripple effectVisiting events→ Use of restaurants and shops
Watching events→ Spend communication expense to watch
Device purchase→ Electronic / plastic component related to PC manufacturing
Construction business375338【Estimation Assumption】

91600
～700

2022
Forecast

2025
Long term goal

Estimation of the economic activities within ecosystem domain, based on businesses
that create unique added value to esports in the following industries
Examples of economic activities in ecosystem field・Related equipment manufacture

・Transportation / accommodation business・Players / developers training institute・Event / training facility manager etc.

・Construction business（Note）Items of the ecosystem area (related equipment manufacture, Transportation / accommodation facility business, etc.) are calculated only in conjunction with an increase in the number of fans（not linked with the value per capita of direct market）*Source: http://www.soumu.go.jp/toukei_toukatsu/data/io/hakyu.htm
Source:Calculated the spending per capita based on KADOKAWA Game Linkage（direct market excluding prize money(4.4 billion)/fans(382million)）5

Proposal for the long-term growth of the Japanese esports market
Through the discussions within the IC, the proposals essential for the growth of esports market has beensummarized (for further details, see attachment 2)
Growth Policy
Classification
A

Improve gameattraction

A-1
A-2
A-3
B-1
B-2
B-3
B-4

B Improve event
attraction

B-5
B-6
B-7
B-8

C

Growth Policy
Classification

Proposal
Recommendations and proposed actions
NoImprove theC-1
economic status ofC-2
professionals

Selection of title(improve attraction)
Develop global title that can be played from anydevice
Develop necessary technology for esports
Formalize esports as an official sport in regional
sports competitions
Host global esports event in Japan
Hold themed competitions, etc.
Produce star player-Findig Diamonds in the Rough
Promote acquisition and accumulation of knowhow on event management and program
production
Seminar and gathering of professional players
Hold competitions with short run time
Establish and penetrate international rules forevent management with a certain level of quality
Secure income of players through corporate club
activity or team
Apply minimum annual salary in leagues etc.

Proposal
Recommendations and proposed actions
No
D-1
D-2
D-3Development ofD casual fans tohardcore fans

D-4
D-5
D-6
D-7
E-1

ELower the barrier of E-2
legal system / rules
E-3
E-4
E-5

Prepare environment - Entertainment facility
Prepare environment - Facility to play game
Prepare environment - Large-scale event venue
Prepare environment - Facility to view game playoffline, professionals and fans to interact
Prepare environment - Online view environment
Utilize thee popularity of team / player to expand
fan base
Corporate welfare
Establish support desk for the utilization /licensing of IP, Establish guidelines
Introduce JeSU authorization system to esports
training facility
Establish facility management guideline, introduce
JeSU authorization system to facility
Establish guideline for esports event
Liberate existing facilities

6Proposal for the establishment of social significance of esports
The IC has proceeded the discussion for social significance of esports regarding the "value of sports" defined in the"Second Basic Sports Plan" by the Japan Sports Agency (for further details, see attachment 3)
Classification of the Meaning of Society

A Make life fun, well-being and vibrant

ProposalNo.
A-1
A-2
A-3Esports incentive program
Provide mental and physical care services
Funding for evidence research topics

A-4

Introduction to the educational curriculum

A-5
A-6

B-4
B-5

Organize boot campFree Admission for parents competition
A program to create life satisfaction for the elderly anddisabled
Competition volunteers
Development and adoption of an official controller thatcan be used in competitions
Organize playoffs
Inter-city league

B-6

Setting up facilities for local competitions

B-7
C-1
C-2
C-3

Development of local information dissemination baseOrganize tours
Deregulation of visas for professional players
Esports animation and film adaptations

C-4

Establishing a place for international exchange

B-1
B-2
Contribute to the realization of a symbiotic society, and a B-3

B well-being and long-lived society, as well as therevitalization of the economy and local communities

Contribute to the realization of "a world that respects

C diversity," "a world that is sustainable and resistant toadversity," and "a world that is clean and fair."

Proposals (policy-making)7

(Reference) “The value of sports” defined in “Second Sport Basic Plan”～ 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 insports 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．Connect with the “world” by 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, and a well-being and long-lived society, as well as
the revitalization 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 is sustainable andresistant 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 thatconnects 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 sports participation society”.

Source:MEXT https://www.mext.go.jp/sports/content/1383656_002.pdf

8

Future consideration / Message for the future
Based on the discussion, IC has summarized the further discussion topics and message for the future as follows.
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, the size and the frequency of esports
event, spectator and online viewer of the event, and sponsors are expected to be increased, leading the esports
market to a virtuous cycle. For the realization of the virtuous cycle, further discussion on the necessity of guidelines
for "IP utilization / licensing" is essential.

2. Establishing a foundation to transmit esports information for the realization of symbiotic society andregional revitalization•Advanced programs are implemented in various regions of Japan for the realization of a symbiotic society andregional revitalization, but limited numbers of people are aware of the programs. For the programs to be scaled out,
the current situation must be improved.

3. Investigate educational values of esports and obtain evidence•

For the introduction esports to various education scene, investigation of educational value of esports and obtainevidence is essential.
 Introduce esports to classes, adopt esports to club activities
 Utilize gamification elements of esports to current classes
 Develop human resource including esports players
9End10