Do you know the potential of e-sports? We'll tell you everything about the e-sports world that has the world in a frenzy! (Part 1)

"eSports" is short for electronic sports. It refers to competitive computer gaming played by individuals or teams. Overseas, fans enthusiastically watch top players compete, much like spectating soccer or baseball. In recent years, tournaments with prize pools exceeding 2.2 billion yen have been held, broadcast on TV, and become a popular phenomenon. This wave is now reaching Japan. This Design Talk features: - Akira Baba, a leading authority on digital game studies and former professor at the University of Tokyo Graduate School - Nobuyuki Umezaki, Representative of the professional gaming team "Detonation Gaming" - Gousuke Yakushijin, a lawyer specializing in the e-sports field - Daichi Nakayama, world champion of the popular fighting game "Tekken" and professional gamer The discussion will be moderated by Seiichiro Kakei of the Japan e-Sports Association. We will cover the current state and future outlook of esports, which is beginning to occupy a corner of global sports marketing, across two parts: Part 1 and Part 2.

 

The scale of "eSports" is enormous

Kakei: When I first encountered "electronic sports" (eSports) ten years ago, its existence was virtually unknown to the world. To promote eSports, I left Dentsu Inc. six years ago and established specialized associations and companies. Only recently has it started to be discussed in various forums.

In Japan, "sports" typically evokes images of physical education or athletic activities. Overseas, however, the term carries stronger connotations of "competition" and "enjoyment," encompassing activities like chess and billiards. Therefore, competitive games played on computers fall under the category of eSports. Games like Dragon Quest, designed for single-player experience, do not qualify as eSports.

The most popular eSports globally today are team-based games where players attack and capture the opponent's base. Some games boast player populations reaching 75 million. This places them fourth or fifth in terms of participation among all sports, including soccer and baseball. It's estimated that there are over 100 million eSports players worldwide.

Recently, we've seen developments like the popular soccer game "FIFA" purchasing marketing rights from the J.League, and professional soccer team Manchester United attempting to acquire an esports team. In education, esports has been adopted into the curriculum at public high schools in Sweden and Norway. Professor Baba, what are your thoughts on these trends?

Baba: Well, when I first started teaching a course on games ten years ago, it was really tough. Ten minutes before class started, I was called to the dean's office and asked, "Is it really okay to teach a game course at the University of Tokyo?" I replied, "Of course," and first had them observe the class. They then said, "You can continue next week," and that's how it's continued to this day (laughs).

Academically speaking, sports are classified into two types: "physical sports" like soccer or baseball, which require full-body physical exertion, and "mind sports" like Go or chess, which demand mental prowess.

However, eSports incorporates elements of both physical and mental sports. Naturally, soccer and baseball also require mental effort, but eSports demands various physical abilities like concentration, the drive to improve, and explosive power. eSports is a completely new sport that combines these two elements. To put it dramatically, it's the cutting-edge sport of mastering computers.

Kakei: In Japan, Tokyo Anime & Voice Acting College launched its "eSports Professional Gamer World Course" this April. Apparently, students flocked to it at an incredible pace. Seeing that, at least two other vocational schools I know of will open eSports departments next year.

Mr. Umezaki, you teach at a vocational school. What kind of things do you teach in your classes?

 

Umezaki: At Tokyo Anime & Voice Acting College, I teach a weekly class called "Pro Gamer Training." We teach the skills needed to become a professional gamer. Most students are young people around 18 or 19 years old aiming to go pro.

Kakei: Mr. Yakushijin also teaches, right?

Yakushijin: Yes, I teach "Manners and Contract Basics," conducting manners training and ethics training. Since pro gamers are essentially self-employed, tax knowledge like filing tax returns is essential. I also teach basic legal knowledge, including copyright. I regularly work with professional soccer and tennis players, so I have a package of knowledge required for pro athletes. I believe it's meaningful to pass this knowledge on to kids aiming to become pro gamers.

Kakei: So you're becoming a sole proprietor. Does the pro team "Detonation Gaming," led by Mr. Umezaki, also employ players?

Umezaki: Yes, we have players we employ directly, and others who operate under a contract system similar to other professional sports.

Kakei: Mr. Nakayama, you're active as a self-employed individual, a professional Tekken gamer, and also as an instructor.

Nakayama: That's correct now. But from age 20 to 23, I worked for three years at Namco Sugamo as an instructor specializing in "Tekken," conducting private lessons and group training sessions. Now that I'm freelance, I participate in events and training sessions at game centers across the country, handle tournament operations, and provide live commentary.

 

What was holding back the spread of eSports in Japan?

Kakei: Overseas, esports draws tens of thousands of spectators and features tournaments with prize pools reaching billions of yen. Why hasn't it caught on to that extent in Japan?

Baba: In Japan, games are often seen as "toys for children," but it's different overseas. Statistics vary, but the average age of gamers in the US is 34 to 37, and in France, it's 41. In Europe and America, games have formed a diverse and rich culture as adult leisure.

Furthermore, as evidenced by the fact that two of the world's three major game console platforms originated in Japan, Japanese gaming has developed primarily around dedicated game consoles. As a result, the adoption of PC-based online games lagged behind, leading to a kind of 'Galapagos syndrome'.

Kakei: So, you're saying that situation is changing recently.

Baba: Yes, for example, more and more people are watching videos of amazing skills by top players uploaded to sites like "NicoNico Douga" and feeling surprised and impressed. Furthermore, people have started creating their own games as "doujin games." I get the impression that Japan, which was isolated, is gradually moving closer to global standards.

Kakei: From a legal perspective, are there any factors hindering the spread of e-sports?

Yakushijin: To hold "prize-money tournaments," which are essential for pro gamers, we need to navigate several legal hurdles.

First is the "gambling offense" under the Penal Code. If entry fees collected from participants form the source of prize money, it could potentially constitute a gambling offense. Second is the Entertainment Business Act. For example, if a game center—a business subject to this act—hosts a tournament, the center is explicitly prohibited from offering "prizes" like cash. Third is the Act Against Unjustifiable Premiums and Misleading Representations. For instance, if a game company hosts a prize-money tournament and restricts participation to game purchasers, it could be seen as using the prize to induce game purchases, potentially violating this act. The final one is the "Copyright Act." This isn't limited to tournaments with cash prizes, but holding a game tournament for profit without a license from the game company could constitute copyright infringement. When organizing a game tournament, it is necessary to collaborate with the game company that owns the rights to the title being used.

Kakei: How can we overcome these challenges?

Yakushijin: The Entertainment Business Act falls under the jurisdiction of the National Police Agency, while the Act Against Unjustifiable Premiums and Misleading Representations is overseen by the Consumer Affairs Agency. Typically, if you properly identify the legal issues and relevant statutory provisions during the planning stage and then inquire, they will provide an opinion on whether your event is subject to regulation.

Regarding copyright, since holding a tournament serves as promotion and helps build the community, some manufacturers will license their games for free. Rather than organizing a tournament arbitrarily, adopting a "contractual mindset" and coordinating with all parties beforehand makes the project easier to realize and ensures the content aligns with the overall interests. In practice, the key legal points are being clarified, and many tournaments are now being held in Japan. Business challenges remain regarding securing operational funds and prize money, but there are no major legal hurdles.

Kakei: So the issues are being resolved. In Japan, we now have the League of Legends Japan League drawing crowds of 2,000 spectators. Tickets for its summer season were reportedly snapped up in a scramble, selling out in no time. With sponsors like beverage and computer manufacturers on board, it seems clear that esports is gaining traction in Japan.

Next, I'd like to hear about the reality of professional players and the future of esports.

*Continued in Part 2

You can also read the interview here on AdTae!
Planning & Production: Aki Kanahara, Dentsu Inc. Event & Space Design Bureau