- ETF launched in 2020 to tap into esports growth
- 5G proliferation set to bolster Japanese gaming sector
The Japanese esports market grew by nine per cent in 2020 and is set to continue its upward momentum in the coming years, according to figures released by the gaming information firm Famitsu.
The study also reveals the number of esports fans attending esports events also jumped by 42 per cent to nearly 6.9 million people last year.
Famitsu is projecting a steeper growth curve, with esports revenues increasing by nearly 30 per cent year-on-year until the middle of the decade.
The reports says size of Japan's esports market is expected to grow from JP¥6.1 billion yen (US$55.6 million) in 2019 to JP¥15.3 billion (US$139.5 million) in 2023, driven by greater use of 5G services and more game providers entering the market
In 2020, the study says, sponsorship fees and advertising expenses accounted for the largest proportion of esports industry revenues, accounting for over 67 per cent of the total, with broadcast rights also showing strong growth.
Last year the Japanese government announced plans to collaborate with gaming companies and legal experts to formulate guidelines to promote esports in the country.
The initiative plans to organise largescale tournaments as well as deal with legal issues concerning the intellectual property of game developers.
To capture 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 benefitting from the growth of the e-games and e-sports industry. This includes game developers, gaming hardware and software applications, and high-speed telecom and streaming infrastructure providers.
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