Japan has always been center stage in the gaming industry for the natural-born affinity of its population with video games and technology. Japan-based companies like Sony and Nintendo are among the world's most significant role models in the race for success in this industry. From the iconic Super Mario and Zelda franchises to the groundbreaking Pokemon phenomenon, Japan has been at the forefront of the gaming industry for decades.
Furthermore, today's gaming industry has changed a lot by adding new segments like eSports, one of the most well-promising fields in the market. According to Japanese company Kadokawa Game Linkage, the yearly revenue from the eSports market grows by 27% in Japan. The revenue accounts for over $55 million per year, and not surprisingly for those who know this market, a relevant share of this growth is due to the expansion of eSports. Other fields with massive growth include the segments of Japanese online casino games, video games, and console games.
These heavy competitors don't seem to stop the eSports field from growing and expanding in the land of the Rising Sun and overseas. As evidence, tournaments and team sponsorship account for at least 75% of the market revenue, but there are also other revenue sources, like media rights, licensing, tickets, promotional campaigns, and merchandise. The eSports industry in Japan also involves 10% of the local population participating in tournaments as fans.
Japanese people have always had a special connection to whatever is based on technology. It's not shocking if today's most active eSports players include several Japanese names. eSports have developed gradually in the world, but 2018 seems to have impressed the Japanese market with the rise of pro eSports events, like game tournaments for professional eSports players. Each tournament welcomes to participate every team for that specific eSports, which activates a large organization machine with team players, coaches, filming and technical support, casting, social media promoters, sponsorship, advertising experts, and fan groups.
The audience for each eSports event is usually impressive, which means a growth of the betting system and prize rewards. The rise of pro eSports incentivized the creation of the first Japanese eSports Union (JeSU), a specific body to regulate and release licenses to the new eSports clubs.
The experts of Kadokawa suggest that pro eSports are introducing the rise of mobile eSports, a new horizon of this industry that is expected to grow fast. The combination of scarce participation in desktop-based gaming and the parallel increase of mobile devices are the roots of mobile eSports.
Also, most desktop-based games have been converted into mobile games, such as the worldwide popular Dall of Duty and PUBG. Finally, the introduction of 5G played a role in the development of a mobile audience and endless streaming options.
Although the eSports market in Japan had some difficulties due to a lack of regulation, today the market's setting appears different with the increasing popularity of land-based shops for merchandise products. According to Kadokawa's report, the market is on the right way to grow nonstop in the following years.
