Overview

E-sports are a hot topic among the younger generation these past few years. With games such as Dota2, League of Legends, and Fortnite becoming household names with the help of live-streamers, it has become a fast-expanding industry that cannot be ignored.

With the most recent Dota2 annual tournament boasting a purse of 40Mil USD in 2021, it is not a surprise to see corporations, governments, and startups trying to break into the e-sports industry. However, Japan are currently behind China, Sweden and USA in promoting e-sports as a ‘proper’ sport. This is partly due to most Japanese gamers focusing on console-based single player games like RPGs over online multiplayer games.

However, things are looking better for e-sports communities in Japan. Some government bodies - such as the city of Fukuoka - have established an E-sport Association as part of their plan to promote the industry, and since then we have seen a rise in e-sports startups in Japan. In this article, we will be sharing 4 Japanese startups in e-sports with the mission to popularize the sport among Japanese youth.

Startups

1. 株式会社RATEL

Founded in 2018, RATEL has the mission of making e-sports the top entertainment in the universe. It has been involved in various aspects of e-sports in Japan; organizing offline and online tournaments of popular games such as Apex Legends, CoD Mobile, and Valorant; as well as partnering with V-tubers in livestreaming tournament play. This led to a funding round netting them 120Mil USD in 2021. This investment has allowed them to develop a voice chat application for mobile users called “VOLBLOX”, with the aim to be “The Discord of Japan”.

With the e-sports audience growing into 7.43 million in 2021, it is expected that RATEL will continue to grow and lead the e-sports scene in Japan.

2. Gecipe Inc.

Gecipe Inc. realizes that E-sports would not be the industry it is today without the support of the younger generation. They believe that e-sports will be as common as playing baseball and soccer among the youth in the future.

This is why they came up with services e-Sports GYM and e-Sports English. E-Sports English is a form of English class for children where they can learn the language by playing multiplayer games. This will not only grow their interest both in the games and language, it will also prepare the younger generation to take the international stage. Meanwhile, E-Sports GYM - created with sponsorship from Tokyo Metro Co., Ltd. (Yes, the one who built the metro in Tokyo) - is a membership-based gym where members can enjoy different e-sports titles such as League of Legends and PUBG, while learning under the guidance of pro players.

3. Wellplayed Rizest Inc.

It is not a myth that most of us learned about e-sports from live-streamers, either on Twitch or Youtube. Live-streamers has been the most important factor as to why e-sports bloomed in recent years. Wellplayed Rizest Inc. grabbed this opportunity and has become the main player when it comes to creator support and influencer marketing for Japanese live-streamers in e-sports. Not only that, they are also organizing local and international tournament events, noticeably PUBG.

With the e-Sports market in Japan projected to be expanding into 18Billion JPY, it is not hard to imagine this startup will continue to grow in the industry.

4. REJECT Inc.

Although Japan has significantly less professional e-sports team compared to China and the USA, things have been moving forward. REJECT Inc. is a professional e-sports team brand in Japan, with presence in Identity V, PUBG Mobile and Rainbow Six. In addition, they also have a few popular streamers under their brand, which further expand their presence nationwide. With sponsorship from brands like Tokyo Metro and steelseries, they have also started selling merchandise on their online store. With more and more Japanese youth breaking into the e-sports scene and becoming professional players, REJECT Inc. is set to have a huge impact in the future of the industry.

Summary

Japan is certainly lagging behind other first-world countries in the e-sports scene. However, with the establishment of Japan esports Union (JeSU), and the startups mentioned in this article, it offers us a positive perspective into the future of e-sports in Japan. With even the Ministry of Economy, Trade and Industry (METI) publishing an official document summarizing and exploring the current market status and future projection of e-sports in Japan, it is safe to say that the industry is being taken seriously and growth is the only way for Japanese e-sports.

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