Summary

Japan is the third-biggest eSports gaming market in the region. ESports are associated with different video game genres, with the most popular being first-person shooters, real-time strategy (RTS), fighting, multiplayer online battle arena (MOBA), and others. According to our research, while Japan is a leading player in video games, having created the Super Nintendo and Sony's PlayStation, the gaming trailblazer has taken its time to embrace eSports. Also, the Japanese have traditionally preferred solo gaming, and that solitary preference is slowly changing to be more communal. In terms of fan base, Japan's eSports online viewership is concentrated among the younger set—the 18–24 year olds, in contrast to China and South Korea's eSports fan bases that span a wider age range. About half, or 48%, of survey respondents in Japan have watched eSports online, with men being more likely to be exposed to eSports. Around 56% of male respondents and around 40% of female respondents have watched esports online. In Japan, around 36% of respondents spent 2 or more hours at a gaming competition that is streamed live online and watched professional gamers. In terms of participation, around 10% of respondents from Japan have taken part in an international gaming tournament, and around 12% have taken part in domestic gaming tournaments. For Japan, 28% of respondents prefer a mobile device to watch others play video games, and around 46% will use a mobile device to play video games online. There are some popular streaming platforms in Japan, including YouTube, Niconico, Twitcasting, Twitch, Openrec.tv, and many more. YouTube is the most popular, with approximately 71% of Japanese respondents using it. On April 20 (Reuters), Japan's largest esports park opened, with proponents hoping it will help transform the country behind video game classics such as Super Mario and Zelda into a champion that can take on China in competitive gaming.

According to the research report "Japan eSports Market Overview, 2028," published by Bonafide Research, the market is expected to add USD 111.69 million by 2028. Streaming is expected to dominate the segment share during the forecast period. The growing emphasis on fan engagement is likely to fuel demand for live sports events. Furthermore, the rise in smartphone users is expected to fuel demand for live sports tournaments. Media rights are making a significant contribution to the country's esports industry. Fans can now track live esports activity across the country thanks to easy access to communication technology. Media companies pay exorbitant fees to win the exclusive rights to broadcast live streaming of major sporting events. In recent years, the sale of broadcasting and media rights has been the most important source of revenue for most esports organizers. The revenue generated by the sale of media rights is used to fund major sporting events, renovate stadiums, and contribute to the grassroots development of esports. During the forecast period, sponsorship is expected to grow rapidly, followed by advertising. As the number of viewers grows, the sponsoring team invests in the platform to strengthen its brand image. Similarly, various gaming platforms include in-app advertisements to boost revenue generation.

The Japanese government announced plans to collaborate with gaming companies and legal experts to formulate guidelines to promote eSports in the country. Given the potential of the esports market in Asia, Japan’s Nikko Asset Management launched an e-gaming exchange-traded fund (ETF) in Hong Kong in 2020. The fund invests in a range of companies that are benefiting from the growth of the e-games and e-sports industries. This includes game developers, gaming hardware and software applications, and high-speed telecom and streaming infrastructure providers. As junior high school students across Japan enter high school, a new type of specialty institution will open its doors. Dubbed "Esport High School" in English, the school is called Esports KoutouGakuin. The school is supported by telecom giant NTT’s esports outfit as well as the esports team owned by Tokyo Verdy, the Japanese professional soccer team. Esports High School has 40 Galleria XA7C-R37 gaming PCs with Intel Core i7-11700 processors and Nvidia GeForce RTX 3070 graphics cards.While the school’s site doesn’t list what exact games students will play, the genres listed are what you’d expect: FPS, third-person shooter, RTS, and MOBA.

There have been 2,604 Japanese esports players that have been awarded a total of $27,412,662.09 USD in prize money across 1,723 tournaments. With $4,560,774.83 USD won, PlayerUnknown's Battlegrounds Mobile was the highest awarding game, accounting for 16.64% of all earnings by Japanese players.Shuma "kakip" Kakinuma is the highest-earning Japanese player with $1,228,551.54 USD in prize money won overall, all of which was won from playing in Shadowverse tournaments. Some of the top Japanese esports games are PlayerUnknown's Battlegrounds, Shadowverse, Fortnite, Rainbow Six Siege, Hearthstone, Brawl Stars, Street Fighter V: Arcade Edition, Apex Legends, Clash Royale, Clash of Clans, and many more. Some of the top Japanese esports players are Shuma Kakinuma, Ryutaro Okumoto, Hajime Taniguchi, Sato Kenta, Wataru Ishinashi, Kanamori Tsunehiro, and many more. There are some esports tournaments in Japan, including the Shadowverse World Grand Prix 2021, PUBG Mobile Japan League Season 1, Shadowverse World Grand Prix 2018, PUBG Mobile Japan League Season 2: Phase 1, PUBG Mobile Japan League Season 2: Phase 2, Brawl Stars World Finals 2022, Clash of Clans World Championship 2022, Hearthstone World Championship 2021, Japan League 2021, Clash Royale League 2021 World Finals, and many more.

ESports is a fast-growing market within the world of gaming, mainly driven by increasing digitalization, the growing use of smartphones, and rising awareness of gaming. Faster and better technology is opening up new opportunities, and the COVID-19 pandemic has been fueling the demand for eSports. The market is expected to grow steadily as more teams, tournaments, and companies form, creating a broad platform for sponsorship and advertisement.Due to the rising number of live-stream viewers and greater profitability, both the prize money from tournaments and the amount of money invested in different teams are projected to increase.

Health and Addiction Concerns for eSports Impede the Market's Growth Gamers may experience metabolic disorders resulting from light-emitting diode computer monitors and psychological problems related to gambling addiction and social behaviour disorders. The health effects of electronic sports players have been studied, and it was discovered that they are more likely to suffer musculoskeletal injuries in the back, neck, and upper extremities. In addition, spending excessive time in front of a computer monitor can cause metabolic disorders. Most of these issues arise from sedentary lifestyles and poor posture, which are common among these players. Furthermore, the introduction of electronic sports college scholarships is a source of concern, as young people can now justify their excessive use of games as being the next electronic sports stars, even if their chances of becoming the one are extremely slim.

Considered in this report
• Geography: Japan
• Historic year: 2017
• Base year: 2022
• Estimated year: 2023
• Forecast year: 2028

Aspects covered in this report
• Japan esports market with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Revenue Streams:
• Sponsorship
• Media Rights
• Merchandise & Tickets
• Publisher Fees
• Digital
• Streaming

By Device Type:
• Mobile (Smartphone, Tablet)
• PC (Laptop, Desktop)
• Gaming Device (Console, Handheld Devices)
• Other (VR, Smart TV, etc.)

The approach of the report:
This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and list out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, and annual reports of companies, analyzing the government-generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers into regional aspects, tier aspects, age groups, and gender. Once we have primary data with us we started verifying the details obtained from secondary sources.

Intended audience
This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to the esport industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.