Research on eSports and eSports Industry in China

Yang Yue

Abstract

Abstract：eSports is a worldwide cultural phenomenon rising rapidly since the beginning of the new century, attracting a large number of participants and spectators. Its main body is teenagers. Under the influence of many factors, this cultural form is sweeping the world, resulting in a very extensive and profound economic and social impact. eSports are born from electronic games. After decades of development, the eSports industry is moving towards the development road of professional sports and competitive sports. The first round of the industry circle, which began in 1998, has entered the second round of industrial wave, and the center of the world eSports industry is also transferred to China. At present, we should not only realize the new opportunities that eSports bring to economy, science and technology and sports, but also follow the laws of economy, sports, and the law of social development, and handle many negative problems in the development of eSports and eSports industry. Key words: eSports; eSports industry; sports

especially within the youth demographic 1 The Necessity of Research in across different countries, and can provide a eSports and eSports Industry platform for engagement with the Olympic 1.1 eSports is becoming a worldwide Movement. Secondly, competitive ‘eSports’ could be considered as a sporting activity, and cultural phenomenon the players involved prepare and train with an Electronic sports or eSports is a kind of intensity which may be comparable to athletes worldwide cultural phenomenon rising rapidly in traditional sports. Third, in order to be since the beginning of the new century. It recognized by the IOC as a sport, the content attracts amounts of participants and spectators, of ’eSports’ must not infringe on the Olympic main body of which is teenagers. With many values. Fourth, a further requirement for integrated factors, this kind of culture is recognition by the IOC must be the existence increasingly popular across the world and of an organization guaranteeing compliance brings extremely widespread and profound with the rules and regulations of the Olympic influences. Movement.” The International Olympic Committee With the decision announced, the question announced that eSports should be recognized has finally been settled which the International as a kind of sporting activities in the sixth Sports Academia has discussed and debated session of the summit on October, 2017. The for about 20 years. ESports has been officially IOC gave four points about eSports as follows. marked the label “sporting activity” and it “Firstly, eSports are showing strong growth, 1 accelerates the speed that eSports becomes an 33% of their leisure time on eSports and other officially sports item. online games on average. About some deeply Compared with international sports addicted game players, games even occupy organizations, General Administration of more than 90% of their free time which Sport of China officially selected eSports as squeezes and replaces most of their time of the 99th formally competitive sports item as doing traditional sports activities. Not only the early as November 18, 2003. Moreover, situation in China, in the countries represented eSports was changed to the 78th item later in by Germany and the United States which have year 2008. ESports became an item in Asian well-developed traditional sports industry, indoor martial arts games in 2017 and it will eSports industry has a huge impact on the be an officially competitive sports item in the number of viewers, ticket sales, and effective 19th Asian Games in Hangzhou 2022. broadcast time for traditional sports projects Thus it can be seen that eSports has won the using television as the main broadcast medium. recognition and attention of domestic and According to a survey conducted by Frank N. international sports organization. People have Magid Associates in America, the average gradually deepened scientific recognition annual increase exceeds 100% in the number about eSports. As a result, Time is propitious of US e-sport audience in 2015-2017, and for normative studies about competitive correspondingly, the degree of attention of eSports activities. traditional sports has dropped by 15% in 1.2 The influence of eSports industry can’t college students, which shows a direct relationship between the two opposite changes. be ignored Therefore, ESPN, which had always neglected From the point of industry, the first round of eSports, set up a dedicated eSports reporting the eSports industrial circle, which began in team in 2016 and the U.S. professional sports 1998, has currently entered the second round league represented by the NBA, establish of industrial wave, and the center of the world eSports departments or directly invest in eSports industry is also transferred from South eSports companies so that they can use the Korea to China so that it brings new attention about eSports of young people to opportunities and challenges for the ensure more data flow of them. Thus it has development of sports industry in China. become a prominent issue for sports managers 1.2.1 The scale of eSports industry is huge in various countries to face the increasing and attracts high social attention encroachment of traditional sports activities In 2017, the scale of China’s eSports by eSports and attract teenagers to traditional industry reached more than 40 billion yuan. sports again through eSports. Besides, the number of eSports users reached 1.2.3 eSports has more and more scientific 260 million and the number of potential users and technological content was 450 million. At present, eSports industry From the current trend of global technology is far more than a lot of traditional sports in development we can see that the major powers terms of market size and the number of users, are fiercely competing with high technologies and there is still a lot of room for growth in such as artificial intelligence, 5G, and the future. next-generation chips. With the increasing 1.2.2 ESports has a huge impact on the investment in technology and the increasingly traditional sports industry close relationship between technology and According to our survey in 2017, domestic consumption, whether scientific and young people aged 16 to 25 years old spend 2 technological achievements can be rapidly technology. transformed into actual social needs becomes 1.3 The negative effects of eSports on the key to the continuous development of adolescents are increasing high-tech industries in various countries. In “ Children can easily indulge in video fact, at present eSports products have always games” is the focus of social issues in the past been chosen as the first application of various 20 years. With more and more developed new technologies. Taking the most popular communication technology, more and more artificial intelligence technology as an convenient gaming ports, and a wide variety example, the State Council of China issued a of online games, this problem has become guideline on developing artificial intelligence increasingly serious. ESports games base on in July,2017 which established China's hi-tech online games and have broader scale of development strategy represented by artificial audience. Besides, eSports games are more intelligence technology. And in November of attractive to adolescents so that the games the same year, in StarCraft competition inevitably affect teenagers. This kind of between AI and human held by Sejong negative influence can be divided into two University in Seoul, South Korea, the player levels: The first comes from the negative Stork created 4-match winning streak over AI. influences of online games on adolescents. Stork defeated AI and won honor for human, The second is the problems in the which also brought him 5 million won bonus. development of eSports industry which is not The result of this competition is in stark good for the healthy growth of adolescents. contrast to the situation in which humans have The core of all these problems is the issue of repeatedly lost in the chess match and triggers adolescents. a continuous attention and research boom of 1.3.1 Common issues between eSports and the AI researchers both at home and abroad. traditional online games: games bring The researchers generally believe that negative problems to adolescents about human’s victory in the eSports games is not a their health and social psychology coincidence which has a profound meaning of 1. Health problems of adolescents. Online technology. Compared with traditional games (including eSports games among them) “intellectual game projects” (represented by have caused great obstacles to adolescents' chess and card games), e-sport games can healthy lifestyles. For example, for primary better display human’s creative thinking and and middle school students, the internationally display the variability, possibilities, and accepted standard is that the daily complexity of human’s capabilities, which is entertainment screen time is no more than 2 the ultimate rivals to artificial intelligence. hours. ESports players, whether playing Currently, not only artificial intelligence games or watching live games on the Internet, technology, but also other cutting-edge will greatly increase their entertainment screen science and technology, such as block chain time, thereby strengthening their unhealthy technology, big data technology, quantum sitting posture. According to our survey in communication technology, new visualization 2017, domestic young people aged 16 to 25 technology, smart wearable technology, etc., spend 33% of their leisure time on eSports and have all chosen eSports as their primary other online games on average. This inevitably application. ESports has become the largest takes up time of young people's participation experimental field and the most direct in other normal sports activities. Although application carrier for human frontier China's administrative departments have 3 successively introduced “Development problems shows that currently the maturity of Standards of Online Game anti-indulgence eSports industry still needs to be improved, System”, “Real-Name Authentication Program and attention must be paid to the protection of Online Game anti-indulgence System” and and arrangement of athletes. some other control measures. And most 2. Problems against sports morality in professional game developers have also eSports competitions. In the current eSports developed some anti-obsession settings. industry, there have been a series of social However, there are still lots of problems. For problems that are against sportsmanship and example, it is undeniable that currently the age sports laws, such as income malformation, of juveniles in contact with electronic games unrealistic comparison, upside down income tends to be younger, the methods of contact between anchors and athletes, and cheating in with games are more difficult to monitor, play order to obtain clicks. What’s worse, it’s games or watch games for too long and the showing a growing trend. In terms of the root interest of games is difficult to transfer, etc.As reason, the emergence of these problems is not a result, they are all of the most anxious health only about economic reasons for the problems. transformation of the payment model in 2. Social psychology problems of platform economy, but more the lack of social adolescents. ESports games, like online games, education within the industry and social can cause problems that teenagers tend to be supervision. The emergence of these problems caught in psychological problems such as not only affects the healthy development of escapism, emptiness and even violence. the industry itself, but also imbues adolescents Taking into account the immense attention of with bad values and morals, which also needs eSports games and live broadcast stars in the us to pay attention and alert. majority of adolescents, the unpleasant game 1.4 eSports industry management policy behaviors such as depression, indulging, still needs improvement vulgarity, money worship and cheating will At present, it is still an important bring negative influences to them. Therefore, proposition placed in front of sports managers it is imminent to prevent and stop these in various countries about how to overcome negative effects. the negative effects of eSports on healthy 1.3.2 The negative problems of eSports lifestyle of teenagers and solve the industry during its own development outstanding social problems in the eSports 1. Problems appear in the industry, bring positive impact of eSports on professionalization of eSports such as younger economic growth, technological progress, and age, short sports life, etc. We have found sports cultural education.) through preliminary investigations of However, judging from the reality, there are domestic eSports clubs that most domestic still relatively serious problems in the absence eSports players currently retire in their of management of eSports industry in China. twenties, with very short exercise cycle and 1. There are many departments involved in lack of follow-up protection. The the management of China’s eSports industry high-intensity training of professional eSports now. The power is scattered and the main athletes for at least 50 hours a week often body of departments is unknown. However, leads to physical exhaustion, nervous fatigue, the policies introduced by various departments and even the use of stimulants, resulting in are mostly emergency policies. The continuity, bad social influence. The emergence of these directionality and effectiveness of the policies 4 are not satisfactory. connotation with practice. 2. Research of eSport policy is still lagging 2.1.1 "eSports" defined in Chinese behind. Due to the interdisciplinary attributes The most typical and authoritative and the lag of academic research about definition of the word “eSports” in Chinese is eSports, the industry management of eSports that General Administration of Sport of China has been always lack of effective theoretical officially approved eSports as the 99th official support. After the IOC made sports sports competition in November 2003 (eSports verification for eSports and in the background was changed to the 78th item later in year of the sports management organizations in 2008). This is the first time that "ESports" has developed countries which have focused on been proposed by the government and has the healthy development of eSports, the call been widely recognized and used in the for management of eSports industry with industry. sports management methods has become At present, the statement made by sports increasingly high. What’s more, the eSports management departments generally holds that management department has also put forward there are two characteristics of eSports that are higher requirements for the research on the “electronics” and “sports”. “Electronics” basic research about theory of eSports. refers to its methods, which means any sport Unfortunately, currently the academic research needs appropriate equipment and venue. on eSports management policy is still weak, ESports is based on information technology as and the discipline construction of eSports is the core of various hardware, software and the almost blank. Therefore, eSports industry that environment created by it, which is similar to has great influence on teenagers and lack of traditional sports but indeed the difference. effective theoretical support, currently need “Sports” refers to the essential characteristic policies and social focus urgently. To meet of sports, that is, confrontation. As a sports new situation and requirements, the sports item, confrontation is the most basic feature. community has the responsibility to start ESports have multiple classifications and researches on the new sports industry format projects, but the common core must be represented by eSports as soon as possible. confrontation and competition. There are also some other different 2 The Concept of eSports and its definitions of eSports in our society. Evolution: from Games to Sports Defined by Baidu encyclopedia: ESports is ESports has been through several stages of a sports item in which the electronic game development since its birth with only a few competition reaches the “athletics” level. years. Its form, characteristics and modes have ESports is the use of electronic equipment as always been in development and changing. sports equipment, and the intellectual Understanding of eSports is also constantly confrontation between people. It can exercise deepening and improving. Therefore, at the and improve the participants’ thinking ability, beginning of research, it is necessary to reaction ability, eye and limb coordination. systematically manage the changes in the Besides, it can develop willpower and foster concept of eSports. the team spirit. 2.1 The concept of eSports and its evolution Defined by Tencent: ESports is: eSports is a For a long time, “ESports” has no clear and digital entertainment culture of sports industry strict definition. It is more like an agreed-upon that is based on games and goes beyond term, and it continues to expand its games. It has unique commerciality and user

5 values which integrates technology, sports, first is fierce competition. Fierce competition entertainment and social contact. is the essential feature of competitive sports Overall, due to the definition of eSports by that distinguishes from school physical government departments and industries, all education and popular sports. Competitive give eSports the attribute of “sports”. sports are also exclusive due to its competition. 2.1.2 “eSports” defined in English 2) The second is normative rules. In order to Internationally, the use of ensure that athletes exert their skills and “Electronic-Sports”, abbreviated “eSports”, tactics, modern athletics have formulated a refers to “eSports” in Chinese sense in 2015. large number of rules to maintain competitions In year 2005, the dictionary site on their rails. At the same time, the technical Dictionary.com officially included the proper and tactical training of athletes is based on the noun “eSports”. Dictionary.com defines normative requirements. 3) The third is “eSports” as “competitive tournament of video fairness. Competitive sports do not favor any games”, meaning “visual sports competitions” of the contestants, and clearly specify the in Chinese. In 2017, at the 6th International competition items, time, location, venue Olympic Committee Summit, “eSports” was equipment and athletes' qualifications. What’s used, which was officially recognized as more, competitive sports require the relevant “eSports”. participants of the competition to abide by a In fact, before 2015, international gaming common code of conduct. 4) Openness. community often used “competitive computer Openness enables sports to have greater games”, “competitive gaming”, “cyber games” ability to communicate and greater influence, etc. to express “eSports”. For example, the which promotes the exchange and competition most authoritative electric competition in the of sports skills and tactics, and advance the industry, "WCG" (World Cyber Games), uses fairness of events. 5) Benthamism. the term “Cyber Games”. Competitive sports have a clear utilitarian The development of the word eSports from purpose, and there will be various forms of the past word “games” to today’s “sports” benefits along with victory. 6) Uncertainty. actually reflects the changes about eSports in Sudden and unpredictable situations in the international cognition. competition often occur, which is the charm of 2.2 Changes in the connotation and competitive sports. 7) Entertainment. With the increasingly fierce competition in extension of eSports development, competitive sports have not lost 2.2.1 The connotation of eSports: eSports is entertainment characteristics. For participants, a kind of competitive sports they can obtain psychological satisfaction by Generally speaking, eSports refers to the winning or simply participating. For the process of sports activities with the main viewer, they can get relaxed, free and beautiful purpose of climbing the peak of sports feelings. Judging from the seven major technology and creating excellent sports features of competitive sports in general, performance based on the full-scale eSports are undoubtedly well-qualified. development of the body and maximizing the However, for a long time, domestic and potential of people in terms of physical foreign academics have always had a strength, psychology, and intelligence. completely different view on whether e-sport Judging from the characteristics of is a “sport” and opponents have the upper competitive sports, eSports also have general hand. The main points of the opponents are: 1) characteristics of competitive sports: 1) The 6

ESports do not have the physical performance mouse, screen, players) ,which is apparently of sports; 2) ESports cause people to fall into a lack of physical activity characteristics of virtual world and lose themselves, further large muscle groups. Moreover, the losing the subjective character of the person high-intensity hand movements on the screen himself and even contradict with the essence (especially the mobile phone games about the of sports – “Naturalization of people”. 3) screen of mobile phone) will lead to decreased There are many unfavorable phenomena that vision and strained hand muscles when using are contrary to the spirit of sports in the for a long time, which is harmful to the health development of eSports. of teenagers. Therefore, while we affirm that With these three questions, we investigated eSports have high-intensity sports the eSports clubs in Beijing, Shanghai, characteristics and are conducive to the Zhejiang, and Guangdong. We interview improvement of parts of physical fitness, we eSports managers, eSports players and eSports must also admit that current eSports have coaches. Besides, we conducted experts’ great technical obstacles. Over-playing games interview with eSports scholars and sports is definitely harmful to the healthy scholars at home and abroad. The preliminary development of teenagers about their physical conclusions are summarized as follows: and mental health. 1. eSports have characters of high-intensity Second, high-level eSports players also sports to a certain extent. First of all, not all need a lot of formal training and preparation games with competitive features can be before games. After eSports become verified as eSports. Only those games that are professional, the level of eSports for uncontroversial and have high instant professional players depends not only on operational intensity can become mature talent but also on a large number of daily eSports. In eSports competitions, professional training and preparations before the game. In eSports players are actually highly dependent recent years, professional eSports clubs at on their bodies. They need faster reaction home and abroad have increased the emphasis speed than their opponents, higher APM on professional players’ daily training, values (the number of instructions that can be coaching and auxiliary training. The systemic executed by mouse clicks and keyboard and scientific training have been continuously strokes, professional players generally require improved. With the further development of a standard of more than 200 operations per eSports professionalization, the requirements minute), more perfect hand-eye coordination for training and pre-match preparations will and a variety of training techniques. The continue to increase. physical and psychological requirements for Finally, although eSports haven’t had a players such as load intensity, physical wide range of “high-volume physical activity” endurance, depth of focus, and psychological features with the current technological bearing capacity are all very high in eSports conditions, from the perspective of competitions. In this sense, eSports really help development, the ever-changing to improve player's hand-eye coordination and globalization and information technology are develop intelligence. However, in the form of accompanied with breakthroughs in exercise and physical contact, the current visualization and wearable technology so that limitations of technology result that the in the future, the way of human-computer majority of eSports is still limited to the interaction will inevitably have breakthrough, coordination of hands, eyes and brain (key and which may lead to a physical breakthrough in

7

eSports. In fact, many fierce bodily sports about different players' ability to control the video games with virtual reality devices have game and comprehensive use of game skills. emerged on the market. Their exercise Amateur players and professional players use intensity and load energy have reached or the same mouse, keyboard, screen and other even surpassed many traditional sports items. input tools, however, the level of competition At the same time, there are also many is quite different. The underlying reason traditional sports programs that have behind this is the embodied characteristic of reentered into the consumer market with eSports. That is to say, the physical attributes eSports games. The traditional martial arts of human as the subject determine the game is a good example of a fighting game differences in subjective cognition. developed with new wearable devices. With Furthermore, this is the fundamental reason increasingly high-tech possibilities, lower why current artificial intelligence technology and lower costs and increasingly based on algorithm and speed is still unable to convenience of using, the requirements of overcome top eSports players. physical fitness about eSports will continue We can also cognize eSports from “physical to increase. literacy”. “Physical literacy” is a brand-new 2. eSports does not change but theory that has been hotly debated in the continuously strengthens the subjective international sports community in recent years characteristics of people. ESports is a new and has important theoretical and practical type of cultural phenomenon formed after significance. The theory advocates “One Body recombination of information technology and and Mind: Rethinking the meaning of physical human social activities. It is a phased product activity”; “Experience body knowledge: of post-modern society development whose Comprehending the meaning of physical main body of cultural creation is still human. activity”; “Interaction with the environment: Unlike most video games, eSports is The source of the meaning of physical special existence that is isolated from many activity”. The three components bring new electronic games. The purpose of eSports enlightenment on research of sports. A new playing is to achieve confrontation with revelation has been reached, aiming at the others, thus getting self-realization and misunderstanding caused by the “promoting satisfaction. Electronic equipment is only a model based on health” of the instrumental tool used to complete this kind of sports concept of the past decades on confrontation. Just like basketball is a tool contemporary sports and explores new for basketball sports, the leader behind significance of human beings engaged in eSports games is still the person itself. physical activities in the contemporary ESports is a typically embodied recognition. high-tech environment. Compared with The body's physical factors play a key role. ordinary online behaviors such as watching ESports is from the “special sports reality” TV, playing online games, watching short based on cyberspace and athletes participate videos, etc., eSports behavior is one of the with digital means, which breaks the most direct, active, and eye-catching ways for space-time constraints of traditional sports and humans to interact with modern internet widens the range of humans’ access to new technology environments. It is a product of cognition. On the other hand, once an science and technology. It also breaks the electronic game has become an official game, constraints of science and technology on it will show obvious individual differences people, realizes the purpose of competition in

8 the virtual environment, and already has from traditional online video games. One of elements such as “motivation and confidence” the major misunderstandings about eSports in and “knowledge and understanding” society is that it confuses eSports behavior and advocated by the theory of physical literacy. In online game behavior. Although most contents the future, if eSports production can be further of eSports come from online games, eSports improved with introduction of "body literacy" have more obvious sports features than online elements such as "physical ability" and games: 1) Different functions. The function of "physical activity willingness" into eSports online games is entertainment and social technology development, it will undoubtedly networking while the function of eSports is bring a qualitative leap to the entire industry. sports competition. 2) Different rules. ESports 3. Standardized eSports can also reflect the have clear and unified rules. It must obey a set spirit of sports. For a long time, due to poor of rules such as time, round, technique and guidance and supervision, there have been a behavior whether it is a regular game or an large number of excessively publicized ordinary player's entertainment game. In bonuses in the eSports competition, contrast, online games lack clear and unified highlighting the pecuniary benefits, plug-ins, rules, even the majority of them pursuits a cheating, and distortion of values. At the same high degree of freedom of behavior without time, in current eSports competitions, there rules. 3) Different spiritual states. eSports are also people and deeds in pursuit of competitions have a fair and equitable spirit of equality, self-discipline, positive attitude, fair sports. Players use electronic means to achieve competition, faster, higher, and stronger spirit intellectual and physical confrontation, and that fully embody Olympic sports spirits but they pursue the spirit of winning. Online guidance of public opinion digging is not games are mainly human-machine interactions enough. Furthermore, the phenomenon of or social-emotional interactions between these violations of sports in eSports industry people which means diversified also precisely suggests that it is necessary to self-satisfaction in the virtual space. 4) attach importance and bring educational Different technical requirements. ESports, as a function of sports to the development of sports item, requires a long period of eSports industry. standardized training, technical reserves, and In summary, although there are still some athletic talent. Although there are also difficult gaps between eSports and sports marked by requirements for online games, there is no large muscle groups, eSports have basic requirement for systematic training and this characteristics of competitive sports. Now the will be more apparent with more speed of progress and application is far professionalization of eSports in the future. beyond that in any historical stage of the past. 2. The composition of eSports industry is eSports that rely on science and technology different from the online game industry. The has been widely accepted by massive young biggest difference between eSports and online people and should be given more attention and games is that eSports industry is an industry exploration instead of blind blames. that is generated by spread of eSports events, 2.2.2 Extension of eSports has expanded while traditional online games are generated from online games to sports events around the game copyright and game time. 1. Behavior mode of eSports has been The main body of the eSports industry is the different from online games. eSports come spread of eSports competition events from online video games and are independent (including online and offline) whose users

9 participating in are audience rather than hardware to realize competitive sports players which has no different from the activities between people. basketball and football game industry. From From the perspective of industrial statistics the current electronic technology industry and classification, the eSports industry mainly chain, it has far exceeded the scope of general includes the eSports service industry in the online games and is more close to category of Internet game service (6422), the eSports professional sports. show industry in sports competitions and 3. The growth rate of eSports is faster than performance industry(9052), eSports live that of online games, and it has a trend to broadcast services in the Internet information greatly surpass online games. According to service (6420), eSports publishing in digital data in the “2017 China eSports Industry publications (8626), and eSports venue service Research Report” published by iResearch.com, industry in the entertainment industry (901). the year-on-year growth rate of the China The eSports industry is the collection of those eSports market was as high as 59.4% in 2017 industries. Judging from the classification of and the size of market exceeded client games cultural attributes, “eSports culture” is the and reached 30% of the entire game market intersection of sports culture and video game for the first time. Whether from the culture. perspective of increment or stock, the 2.4 Basic situations of eSports industrial value creation of the currently 2.4.1 Types of eSports representative eSports far exceeds the original With the development of eSports industry, online games itself. Of course, it is undeniable types of eSports in the world are constantly that much of the classic eSports cultural evolving and changing. eSports has evolved source is the content of original online games, from the first round of industry cycle of but once the game becomes an official shooting & survival games and real-time competition, then it is the category of strategy games to the second round which is competitive sports events instead of the scope mainly based on MOBA games and at the of online games. This is true from the early same time supplemented by real-time strategy days of StarCraft, CS to the now popular games and shooting & survival games. Along League of Legends and the King of Glory. with them are card games, sports and many 2.3 The definition of eSports in this study other types of games, they are prospering To sum up, at present, eSports has emerged together. The gaming platform has spread from online games, forming a unique direction from the PC-side LAN to the mobile-end and of sports development, with the basic arcade-side, so that more people enjoy the joy characteristics of competitive sports. In terms of eSports. of the controversial part of exercise intensity, Table 1 Type and Representative Game of it can be highlighted and maintained by eSports making strict standards for eSports. On this Types of Representative games basis, this paper proposes a definition of eSports eSports that is more suitable for current MOBA games LOL,Dota2 reality. Real-time StarCraft, Warcraft “eSports” is an evolution of human sports strategy games behavior in the information age. It is based on Shooting and Playerunknown's the content of electronic games and uses survival games Battlegrounds, CS-Go electronic interactive technologies and Card games Hearthstone

10

Sports games Freestyle, FIFA OL the spring and summer games, each of which Others is divided into regular games and playoffs. 2.4.2 Summary of domestic and foreign The top eight teams in regular season will be major competitions of eSports promoted to playoffs and continue to compete 1. Domestic Tournaments for the season championship and high bonus. 1) China Mobile eSports Games, is In 2016, with strong online media publicity, abbreviated as CMEG. It is the first official especially the online live platforms, LPL mobile eSports sponsored by the Sports witnessed an astonishing 5 billion viewers. Information Center of General Administration The number of audience of League of Legends of Sport of China, in association with Datang finals was 43 million, exceeding the Game 7 Telecom Technology & Industry Group, of NBA Finals which had 31 million viewers. advocating the participation of whole people 5) King Pro League (KPL) is Tencent’s and green health. The competition is highest-standard promotion event of King of conducted both online and offline, containing Glory. three stages: preliminary, promotion and final. 2. International Tournaments Each year, it is held in many competition 1) World Cyber Arena (WCA) regions. The World Cyber Arena, founded in 2014, 2) eSports Champion League, is is a global eSports. Relying on its mature abbreviated as ECL. It is a competition set up system, it has built an eSports ecosystem by China’s eSports Development Center, around game ecology and is committed to which is supported by General Administration promoting the vigorous development of of Sport of China and Beijing Municipal eSports events and eSports industry. It also People’s government. In the Shijingshan took over the WCG at the low tide of District of Beijing, long-term eSports international eSports public opinion and competition halls are established with the goal continues to promote the sport spirit of World to create the world’s largest eSports Cyber Games. tournaments. 2) The International DOTA2 3) National Electronic Sports Tournament, Championships (Ti), founded in 2011, is a is abbreviated as NEST. It is hosted by the global eSports event. It is hosted annually by Sports Information Center of General Valve Corporation in Seattle, USA. As an Administration of Sport of China, and International high-level competition, it enjoys undertaken by Shanghai Hua’ao eSports the largest scale and highest amount of bonus. Information and Technology Co., Ltd., Ti 5’s total 5-million-dollar bonuses makes Zhejiang Daily Digital Cultural Group DOTA 2 board the peak of public opinion, Co.,Ltd., and Xiamen C&D Co., Ltd. The while Ti 6’s total bonus is more than 20 tournament is divided into two stages: online million dollars with unprecedented influence. and offline games, with its scale and length on The champion alone can enjoy more than 9 top in China. million dollars of prize, which surpassed the 4) League of Legends Pro League, is bonus of Tennis Four Grand Slam Singles abbreviated as LPL. It’s the highest-level Champions that year(3 to 4 million dollars). professional games of League of Legends in 3) Cyber athlete Professional League (CPL), mainland China. It is also the only official founded in the United States in 1997, which channel to the global finals in Chinese has currently engaged in the largest mainland division. The annual LPL consists of professional eSports leagues around the world.

11

Meanwhile, it is approved as a professional In February, 2018, with the support of IOC, game tournament league in 30 countries, and Intel held an eSports competition just before has successfully run dozens of events around the Pyeongchang Winter Olympics in Korea. the world. The competition was for Blizzard’s “StarCraft 4) Electronic Sport World Cup (ESWC), II” and Ubisoft’s “the Ultimate Summit: The originated in France, is formerly known as Olympic Road” and the latter is the official “Lan Arena”, along with the CPL and WCG licensed game of the 2018 Pyeongchang (canceled), which is regarded as three eSports Winter Olympics. events in the world today. The ESWC is also 2.4.3 International organizations for an international cultural event initiated by 11 eSports members including China, and has more than At present, the international organizations 60 partners. In the 40th anniversary of the of eSports can be divided into league and establishment of diplomatic relations between championship systems(赛会制专有词汇没查 China and France, it also became an 到) based on different competition systems. “e-diplomacy” with the feature of unique 1. League-based system is expected that information age. there will be a competition for a relatively 5) World Electronic Sports Games (WESG). long period of time. It should be conducted at WESG is a world-class eSports tournament different times as far as possible to cater for created by Ali Sports in 2016. The event broadcast needs so that the audience will covers 125 countries and regions in the world. always have games to watch for a certain 6) League Of Legends World Championship. period of time. The representative of the The League of Legends Global Finals is the system is the MLG League: Major League largest annual game in the League of Legends Gaming. MLG is the top eSports organization competitions. The Global Finals is of highest currently enjoying great popularity in North honor, highest quality, highest skills, and America's eSports field. It is responsible for highest reputation in all League of Legends organizing various large-scale online and competitions. The global finals have held the offline games covering Europe and the United s1-s7 (s is the acronym for season), seven States. It is also the largest professional video sessions in total so far. The global finals game alliance in the world. generally start between September and 2. Championship system, emphasizes that in October. The contestants of teams are from the a short period of time, a large number of top level of each major competition area. Only players will be gathered, and a large number those teams that perform well in the of matches will be conducted and the rankings professional leagues of each year are eligible will be decided directly. The representative of to participate. Each division decides its the system is GSL: the full name is Global number of places in the finals according to the StarCraft II League which uses the league scale and level. Its global finals in 2017 were ranking system to allow players to compete in held in Beijing Bird's Nest and caused a good faith and have tournaments(活动赛) at sensation. the end of the year to determine the real 7) Intel Extreme Masters (IEM). IEM is the champion. first global-scale elite eSports tournament. In 2.4.4 Classification and latest development 2006, Intel Germany and ESL teamed up to trends of eSports tournaments create the IEM Extreme Masters and began 1. Ways of viewing games. According to the implementing European-based global events. ways that users view matches in eSports

12 events, they can be divided into two modes: eSports events, it can be divided into online watching and offline watching. first-party events and third-party events. Before 2016, the entrance to the eSports WCA (formerly WCG) and ESWC are events was still based on online live typical third-party events that have started the broadcasts. The proportion of users who can first wave of eSports. However, due to the personally go to the site to watch offline lack of stable sponsors and the rise of the first matches does not exceed 10%. However, since party, at present, third-party events are at a 2017, we have been delighted to find that with low tide. For example, a large number of the increase of the size of major eSports well-known past third-party events such as the events, social acceptance of eSports, the rapid WCG eventually fell to the point of being development of the clubs, and the canceled. establishment of eSports towns, eSports At the same time, with the systematic offline watching is gradually active. development of eSports, especially eSports Regarding “League of Legends” as the main has developed into a huge game industry game, the domestic eSports are carrying out independently, the first-party participants of the home-court campaign of eSports Union in developers and operators of eSports have order to learn more from the development begun to pay attention to business model of professional sports and promote the opportunities, and rely on their absolute development of eSports industry to offline advantage of intellectual property rights, they sports in China. Judging from the actual effect, rapidly focus on the operation of electric the localization and home-court development competition events. The schedule, rules, and of eSports club not only enlarge the scale of bonuses organized by the copyright owner of eSports industry, but also improve the stability, this game surpassed the traditional third-party geographical characteristics and goodwill of mode and opened the second round of clubs. Moreover, expect for satisfying the development of eSports industry. The local eSports users’ viewing requirements, the development boom is typically represented by home-court development of eSports will also Riot company's LPL and Tencent-led KPL. promote the local eSports industry and From the point of commercial value, the venue-supported shopping districts. The local current first-party-led events have almost eSports supporting industry will develop surpassed past third-party events. For example, rapidly. What’s more, the business district in the past, the sponsors of third-party surrounding the main stadium will also competitions were mainly computer hardware indirectly benefit from the competition. manufacturers (such as Samsung Electronics, eSports viewers can conduct more consuming the main sponsor of WCG), and the first-party and entertaining activities in supporting games attracted a large number of commercial areas before and after watching non-electronic consumer products in addition games which can further develop the to continuing to attract hardware commercial value of eSports venues. It can be manufacturers within industry. For example, said that the transition of eSports from online the sponsorship of fast-moving consumer game to offline game has broken the pattern goods and even auto makers has greatly that eSports industry relies solely on events, enhanced the commercial value of eSports and promotes wider expansion of eSports events. industry whose trend is worthy of recognition. 2. Organizer. According to the organizers of

13

3. Research of eSports Industry people and become initial eSports memories Development of this generation. During this period, become the first generation of eSports memories to old 3.1 Six stages of eSports industry players. During this period, the games that development and its technical made the old players feel warm were characteristics CAPCOM’s “Street Fighter”, “Metal Gear”, The development of eSports is closely and SEIBU’s “Raiden”. linked with the development of electronic Comments on Stage 1: The arcade-side era information technology, among which the is the embryonic stage of eSports. During this access port of video games is the most critical period, eSports industry is mainly technology. Each change of the port will bring concentrated in the game hall, game copyright about the remodeling and upgrading of and game equipment industry, and eSports eSports industry ecosystem. From this industry is still in its infancy. perspective, till today, there have been five 3.1.2 Phase 2: PC-side LAN time advances in eSports technology, and eSports (1998-2008) industry has also experienced five stages of Representative games in this period include development and is moving toward stage 6. “StarCraft”, “Warcraft 3” and 3.1.1 Stage 1: Arcade-side times (1970-l998) “Counter-Strike”, etc. Important events In 1971, the world’s first arcade was born in include ECG, ESWC, and CPL. the computer lab of Stanford University. The What must be mentioned here is: Even arcade is a business-specific game machine today, when we talk about eSports, we have to that is put in public entertainment venues. It mention one country, South Korea, and one originated in American bars and games on it game, StarCraft. It can be said that the are called arcade games. initiator of modern eSports is precisely South The inventor of arcade game is Americans, Korea and the first game with global influence but it is Japanese that really make arcade in modern eSports is StarCraft. games popular around the world. Among In 1998, the global financial crisis broke out. arcade games, the most representative game is Although this crisis had brought about a huge the shooting game SPACE INVADERS negative impact on South Korea’s national released by TAITO in 1978. In 1980, a economy, it unexpectedly allowed South large-scale game called “The Space Invaders Korea to develop a new sports industry--the Championship” was held which was a great eSports industry. This year, government of sensation at the time. At the same time, it was South Korea established the strategy of also the beginning when competitive games building itself a powerful cultural country and became the mainstream type of game. established the Ministry of Culture, Sports and In 1981, Nintendo’s “Donkey Kong” Tourism in Korea. It has unwittingly found debuted. The main character Mario debuted and promoted the globalization and and became the image of the Nintendo industrialization of eSports. Corporation’s long-lasting representative. The eSports industry developed rapidly Mario is also the arcade character which during this period and unlike the arcade era, China’s first group of game players can access large eSports events have mushroomed. For to. Since then, along with the popularization example, the MLG was established in 2002 of television, two Contra brothers, developed and the IEM was established in 2007, but the by KONAMI, entered the family of ordinary most famous of all was the World

14

Championship “WCG” established in Korea in Comments on Stage 3: Due to the immature 2000. technology and market conditions, domestic WCG was called "eSports Olympics". At game companies still focus on online games that time it was the dream of global eSports during this period. eSports are still dominated players. Since the event was sponsored by by foreign games while domestic companies government of South Korean and large Korean only act as agents. companies, the level of the game was quite 3.1.4 Stage 4: The age of mobile games high. The first competition itself in 2001 (2015-2017) attracted 174 players from 17 countries. The In 2015, with the popularization of smart games included Quake, FIFA, StarCraft, and phones, the age of eSports on mobile phones Age of Empires and became the first global came. In particular, Tencent’s “King of Glory” eSports competition. won the recognition of the majority of players Comments on Stage 2: Although the current as the first domestic independent intellectual WCG has been canceled, the road of the sports property game, occupying more than 90% style of eSports development, which has the market share of China’s MOBA mobile games leader of government, participant of hardware which presented a situation of “universal manufacturers, supporters of clubs, and events reunification”. The representative game of the as the core, is still worth reviewing and same period also included " CrossFire ", etc. learning. Till now, South Korea is still the The events included KPL and CFM. country with the highest professional level and During this period, China surpasses South the most complete industrial model of eSports. Korea for the first time, becoming the 3.1.3 Stage 3: The age of online games fastest-growing eSports country with the (2008-2015) largest number of players in the world During this stage, eSports is gradually (according to Tencent’s eSports survey, separated from online games and the center of China’s eSports users will exceed 200 million the world's eSports industry began to for the first time in 2017). gradually transfer to China. Comments on Stage 4: “King of Glory” is With the rapid growth of popular online an excellent domestic mobile game. It still has eSports industry in China, a more mature the largest scale of players now. At the same game system was gradually formed. time, “King of Glory” is also the most Representative games in this period included controversial game in society. “League of Legends”, “Dota” and What this article needs to emphasize is that “Hearthstone” etc. The events included IPL , from the perspective of the sports attribute, CFPL, TGA and so on. sports style and future development direction, Compared with the previous stage, we do not support mobile phone as basic tool MOBA-type games in eSports gradually to do eSports. The reason is simple and replaced real-time strategy games (RTS) and straightforward: The screen is so small that it became the leader in this period. Domestic brings great damage which is contrary to the eSports industry of China begun to learn from development direction of eSports as a sport. mature experience of South Korea and eSports 3.1.5 Stage 5: The era of multi-port industry chain gradually improved. Domestic convergence development (2017 till now) large online game companies represented by The arcade side, PC side, and mobile side Shengda, Tencent and NetEase continued to are in common prosperity. eSports industry grow. has developed rapidly. Games such as “King

15 of Glory”, “CrossFire: Shooting King” and 3.1.6 Stage 6: New ports and new other games represented by KPL, CFM have technologies taken the lead and lead eSports industry events New ports and new technologies will to surging. At the same time, the access become the most important factors affecting methods for many games are also being the next generation of eSports in the future. extended to various ports, such as the current 3.2 The current problems of eSports hottest “PlayerUnknown's Battlegrounds” industry in size and structure in China which has multiple games on mobile phone 3.2.1 Industrial size and has PC-side games for all as well as the Since the current domestic special statistics traditional arcade-side way of playstation and on eSports industry have not yet been carried Xbox to access. It has formed a variety of out, our data sources are mainly from events that are prosperous during the stage. professional organizations and game At this stage, Western traditional sports platforms. leagues (such as the NBA) begin to attach According to the “2016 eSports Industry importance to and invest in the development Report of China” (summarized version) of their own eSports games based on published by the GPC and CNG Data and the traditional sports such as basketball, tennis, calculation of CNG Data, the market size of boxing and combating. These games have China’s eSports games reach RMB 50.4 been developed based on traditional projects billion in 2016 which increase 34.7% of which which are in line with the Olympic spirit, the mobile eSports revenue is RMB 17.1 billion rules of sports events, and can also promote with an increase of 187%. The increase of the integration of traditional sports and eSports exceeds the growth rate of actual sales eSports. So it has broad prospects for revenue of game market in China, 2016 by 8 development which is worthy of attention. times, and is the fastest growing segment. In addition, along with chances created by “The 2017 eSports Development Report of StarCraft Ⅰ Recast, StarCraft Artificial China” released by Penguin Intelligence & Intelligence Competition, and Intel Extreme Tencent eSports shows that in 2016, the scale Masters at the PyeongChang Winter Olympics of China’s eSports market reached RMB 23.6 in Korea, the real-time strategic hardcore billion. It is estimated that the scale of eSports eSports with StarCraft as their target have also industry in China will reach more than RMB returned to the mainstream trend. 40 billion in 2017 and the number of eSports Comments on Stage 5: The development of users in China will reach 220 million in 2017. hard-core eSports games based on large screen, eSports is currently in an period of explosive such as real-time strategy games, sports games, growth both in the market size and the users’ and shooting games with current stock scale. technology conditions, remains the mainstay 3.2.2 User scale of eSports industry. From the perspective of “The 2017 eSports Development Report of the development trend of technological China” released by Penguin Intelligence & applications, the arcade platform has a broader Tencent eSports shows that 2016 is a prospect of sports applications. It could be a breakthrough year for domestic eSports eSports platform that is most likely to achieve industry. As an emerging industry in which the “stand up and play”. Mobile-based games still Internet and competitive sports are combined, require us to continue to observe and wait for eSports industry is worth more than 20 billion technological breakthroughs. yuan with actual user size of 170 million 16 people and potential user size of 450 million, eSports games as the core frame of operation, which has made it an important part of the which can be divided into two components: domestic game industry. eSports core industry and eSports derivative 3.2.3 Characteristics and watching habits of industry. Among them, core industry of users eSports includes the organizers, players, clubs “The 2017 eSports Development Report of and sponsors. Derivative industries of eSports China” released by Penguin Intelligence & include live broadcasting platforms, venue Tencent eSports shows that the age of 30 is the services, brokerage services, anchor watershed for eSports users. The proportion of comments services, etc. (Table 2). users under the age of 25 is 64%, and the ratio From the perspective of industry structure of men and women is close to 8: 2. Students of eSports, the current eSports industry is group is mainly part and the proportion of characterized by the fact that the growth rate white-collar workers is high, and users of the derivative industry exceeds that of the infiltrate into the public. eSports users have core industry. the largest number in second-tier cities and Table 2 Composition and Structure of E-sports have the highest penetration rates. Industry About feelings of eSports events, the user's eSports Revenue of Revenue attention is no longer limited to the experience Competition eSports Proportion of the screen. It is changing to many Industry （%） dimensions, including the game’s competitive, Chain professional, and recreational atmosphere, eSports Core Clubs 18.9 event scale, event atmosphere, event Industry awards(表达) and so on. eSports users focus Copyright 11.6 more on the competitiveness and Players 6.9 professionalism of the event (including Sponsor 7.1 performance of players and commentary Content 7.4 levels, etc.), and there has been a gradual Production reduction in the material incentive for the eSports Live 23.5 event. Derivative Broadcasting According to the report, nearly 65% of Industry Platforms users are interested in electric games in 2016, Venue 10.9 and 77.6% of users agree that eSports is a new Services sport. About the viewing habits, 40.6% of Brokerage 5.2 eSports users choose to watch games with Services their friends, and the social attributes Anchor 5.3 generated by viewing games with Comments acquaintance become the user's first choice. Services 79.8% of users choose to watch games at eSports 3.2 home, and 84.8% of eSports users will still do Education things related to the game even the game is Note: According to the survey data of over, such as reviewing, sharing and so on. iResearch “2017 eSports Ecology Research”. 3.2.4 eSports Industry Chain Take eSports players as an example. At At present, eSports industry chain mainly present, the income of eSports professional revolves around the overall operation of the players in China mainly comes from the salary

17 in clubs, bonus obtained from competitions, developers and operators’ intermediaries are the dividends of eSports live broadcasting involved, and other third-party eSports platform and income from the endorsement of organizations are in survival of the fittest, the products, and the income level of e-sports concentration of eSports industry continues players is above the industry’s average level to intensify. eSports resources are which is as much as millions. In sharp contrast, increasingly monopolized in a few large the income of the eSports anchors is far higher companies which increases our concern than that of the eSports players, and they are about the possible oligopoly structure in the often able to reach the million-level level, future of eSports industry. even some famous anchors will reach tens of 4 The Importance of the Development millions. Therefore, an interesting of eSports Industry phenomenon appears that in order to attract viewers, current ly large live broadcast 4.1 eSports industry is an important driving platforms offer eSports teams and eSports force for national science and technology players with generous rewards and contracts innovation of dividends. A large number of professional players have diverted themselves to become 4.1.1 eSports is the closest partner for eSports anchors. This kind of derivative technological innovation eSports industry with webcasting as its ESports is an emerging industry with strong medium has great economic and social technical characteristics. Every upgrading of influence and must be highly concerned. The information technology will bring a leap to the economic phenomenon of the current eSports eSports industry. This is the most prominent industry that players prefer to be anchors is feature of eSports industry that distinguishes it also worthy of our further observation and from other entertainment industries. reflection about its reasons to assess its overall ESports is also the primary application area impact on eSports industry. of the latest modern science and technology. 3.2.5 Main Problems in eSports Industry As mentioned above, not only artificial Although the growth rate of eSports intelligence technology, but also other science industry in China has been rapid in recent and technology, such as modern years, there are still problems in it. For communication technology, chip technology, example, it has problems such as relatively new visualization technology, big data simple profit model, insufficient reserve of technology, wearable technology, etc., all of professional talents, unreasonable industrial them choose eSports as the first breakthrough, structure, and scattered enterprise power which must have unique reasons. which require to be settled urgently. Recalling the history of the development of Comparing with mature business operations eSports from birth to today, we have found in Europe and the United States, the that the development of eSports and eSports commercialization of domestic eSports events industries depends on the technological is still in its infancy. Problems need to be revolution first, and secondly on the change of further solved such as the professionalization business models. While the base of business level of eSports, the underestimation of model changes is still technology. For eSports business value, and imperfect business example, mobile technology determines the ecology rules. possibility of charging model of eSports In addition, we have noticed that as game platform, and the eSports industry brought by the information technology revolution has 18 evolved into new industrial chains such as is not only a field of experimentation for new webcasts and Internet cafes. technologies, but also a new kind of ESports and technology are mutual cause information consumption behavior that can and can promote each other. Every major transform various new technologies into the scientific and technological revolution will potential of consumption at the fastest speed. bring about the transformation and promotion The basis of information consumption is the of e-ports, which will lead to the birth of a innovation of information technology. Every number of popular games and events. For scientific and technological revolution or example, the popularity of local area network overturning technological innovation will technology has spawned the excitement of bring about a revolution in information competitive games such as StarCraft, Quake, consumption upgrades or in information and Delta. Every major eSports game launch consumption methods, such as smart phones, or version upgrading will certainly lead to lots the Internet, mobile 4G, and artificial of gamers to update their own computers, intelligence. mobile phones, peripherals and other Encouraging eSports is to encourage equipment, for example, due to the higher investment in social innovation through social hardware requirements ,the hot consumption, and to absorb the risks of single PlayerUnknown's Battlegrounds in last year country investment in science and technology. has made Internet cafes , which have been Consumers’ pay and active consumption are declining over the past several years ,to the most effective ways to encourage become overcrowded once again. “Internet technological innovation. The significance of café” is created by a new generation of eSports consumption is here. It has a great hardware devices. influence among young people, a great It can be said that, compared with other potential for consumption, a significant effect traditional service industries with low on science and technology transformation, and technological sensitivity such as traditional it is an important starting point for digesting sports, culture, and entertainment, eSports is innovation risks, encouraging the entire the closest and most faithful partner in modern society to innovate in science and technology. social science and technology innovation. It is also a new type of information 4.1.2 eSports is an important component of consumption industry emerging in a new era information consumption, and it is an which is of great significance in the long run. important point for national science and 4.2 eSports industry can become the “new technology innovation under new historical kinetic energy” of traditional sports conditions. industry The report of the 19th CPC National Congress proposed that innovation is the ESports has caused a huge impact on the primary driving force for development and the traditional sports industry. According to our strategic support for the construction of a survey in 2017, domestic young people aged modern economic system. We must 16 to 25 spent an average of 33% of their understand the importance of scientific and leisure time on eSports and other online games, technological work from the perspective of which inevitably squeezes the time of safeguarding the country’s long-term strategic traditional sports activities. This is not only significance. From the analysis of the content the case in China. In the developed countries of eSports technology, we can see that eSports represented by the United States which has developed sports industry, eSports have also 19 had a huge impact on the number of audiences, active port of eSports also has a breakthrough ticket sales, and broadcast of traditional trend. In the future, eSports projects may have sports. the characteristics of “high-volume physical Because of its convenience, economic effect, activity” and become a new sports item. Our and high entertainment, eSports has occupied advocacy of “Let players stand up” has a large number of young people’s time for become a new idea for some game developers. traditional sports programs. This is a great Of course, these types of games are currently challenge to traditional sports and must be constrained by cost and technology and are in effectively guided. However, we should see the early stages of development. The the progress of technology and government and industry planning communicating methods brought about by departments can pay close attention and give eSports, which has brought new opportunities support in proper time. for the traditional sports industry. From the perspective of school sports, the From the perspective of communication, content of scenes contained in eSports is when people watch the Olympic Games, they easier for young students to accept, and are often not limited to their own favorite eSports has created a series of Internet individual projects, but will extend to other technologies that are more flexible and more projects. This spillover effect of convenient. Therefore, eSports also has the attention has important practical significance ability to become an important auxiliary tool for today’s Olympic movement. Bringing and extension method for traditional physical eSports into the Olympic Games will enable education. more young people to pay attention to the 4.3 eSports industry is an important Olympic Games themselves. It can increase breakthrough for China's international the influence and attention of the Olympic sports discourse power Games in the younger generation and increase the experience and love of the young people As a new type of sports, eSports has a for the Olympic Games and the Olympic spirit. unique cultural heritage. In particular, It can help young people re-understand the although China is a major consumer of significance of physical activities and the eSports and has the largest number of players value of traditional sports programs which is in the world, the majority of popular eSports conducive to inheriting and promoting the games are still foreign intellectual property Olympic spirit and culture in a new products. This shows that it is necessary for us technological environment. to study the cultural basis of eSports. Apart One of the major categories of eSports from its competitive characteristics, eSports events is sports games. Sports games are the also has profound cultural connotations. For carriers and important propaganda means of example, the latest eSports project “Stranded traditional sports. In our previous research, we Deep”(commonly known as Winner, Winner, noticed that the current Western sports powers Chicken Dinner) since 2017 is based on the have begun to emphasize and play an active American writer Susan Collins’ “Hunger role in eSports’ popularity, skills reserve, and Games”. Although videogame companies in practical use of traditional sports. China have gradually developed eSports Nowadays, VR, AR and wearable games such as “King of Glory” with ethnic technologies are increasingly mature. Judging cultural characteristics, the confusion of from the trend of technology development, the historical figures has also caused much debate. In addition, we also see that, unlike traditional 20 sports, the life cycle of the eSports project eSports which has been accepted and valued itself is very short, but the gameplay is by the International Olympic Committee and relatively mature and fixed, such as real-time other sports organizations, and high-tech strategy, shooting, multiplayer tactics, sports, giants in developed countries have entered etc. Each type of gameplay actually inherits eSports for discourse power in the sports some of the classic games in history, and market (for example, Intel and Ubisoft forms a rolling development model that is organized the PyeongChang Winter Olympic unique to eSports with classic game culture as Games eSports exhibition match in a very its core. Therefore, it is also necessary to short time after the IOC recognized that it was research on the classification and cultural a kind of sports). It is necessary for eSports framework of eSports culture. people in China to stand on a strategic level More importantly, the construction of and pay attention to the development of local Chinese eSports culture is an important step eSports companies and culture from now on, for China to rely on the rise of China in the grasp the historical opportunity of the second future and establish China's eSports rights for wave of eSports industry, and grasp the international sports. discourse power in international sports from For a long time, most of traditional sports three aspects: the development of eSports represented by the Olympic Games come from game projects, the selection of eSports Western cultural content. As a sports power, international event projects, and the the future of sports in China should not only development of eSports international have the responsibility to maintain sports competition rules. order, but also have the strength to make rules. 5 The Core of Negative Problems of At the same time as China develops rapidly, eSports: The Causes and Solutions of international sports discourse power of China “adolescent issues” should be matched with economic discourse power and political discourse power. 5.1 The causes of negative effects of eSports In today's world, the rise of China is an on adolescents indisputable fact. During the “Thirteenth As mentioned above, this negative impact Five-Year Plan” period, economy in China can be divided into two levels: The first kind still maintained a medium-to-high-speed of negative impact comes from the negative growth. Its economic aggregate ranked second impact of online games on teenagers; the in the world, and its contribution to world second negative impact is that it has some economic growth exceeded 30%. On the other harmful influence on the healthy growth of hand, China has the largest number of Internet teenagers .The core of all these problems is users at present around the world, and the the “adolescent issues”. application and popularity of “Internet Plus” Among them, the second impact is the are among the highest in the world. The scale internal management of the industry, which of eSports industry in China is also the largest can be solved through the internal in the world with a rapid growth rate. It can be management of the industry. At present, many said that China has the strength to lead the eSports clubs have begun to attach importance world's eSports trend. to the logistical support for young players, Therefore, in the case of a dominant career development after retirement, and external condition and the background that the professional ethics constraints. In the future, new generation of sports represented by this problem will be more easily solved with 21 the maturity and regulation of the industry. to purchase games products, and ultimately However, the first kind of influence is the causing teenagers to consume too much time issue that has the greatest social controversy on games. The unfavorable situation affects and cannot be overcome within the industry. the available time of young people engaged in Only through economic, cultural, normal sports and other healthy psychological, and social analysis at various entertainments. In this process, the claims of levels can the causes be clearly identified, and producers and consumers of eSports industry this article will focus on it to analysis. are different, and the transaction itself is fair. 5.1.1 Economic aspect It is unfair to use the ethical standards to From the perspective of economics, the blame the producers. However, the extra eSports service industry is unlike traditional losses borne by consumers are spillovers, service industries, which have low labor post-event and difficult to quantify at the same productivity and rely mainly on labor input. time, so they need some kind of compensation The eSports service industry has the mechanism to make up for it. There are many characteristics of typical economies of scope, similar phenomena in the Internet economy, economies of scale, and incremental benefits. such as "big data and privacy", "privacy for This also means that eSports products (such as convenience", etc., they are essentially the content of competition and games themselves) same type of problem. have highly interesting, low-threshold and 5.1.2 Cultural aspect low-cost features. The most important ESports is a typical cultural product. economic factor that causes this kind of Content of eSports game and information product characteristics is that eSports products online have their own high-entertainment and are the same as online games. The price high-interesting cultural qualities. The essence formation mechanism is an asymmetric of this culture is entertainment, which is a sharing mechanism. That is, players are often typical “happy consumption”, which is to free when they acquire, but they will continue satisfy spiritual and psychological needs. This to increase their fees in the process of playing cultural product is characterized by the desire games and watching live broadcasts. to maximize psychology and spiritual Therefore, it constitutes a highly viscous, satisfaction of consumers. It has low price low-elastic，and price formation mechanism.） elasticity and its pricing is out of cost. In the Internet economy, such products are Moreover, it is easily addictive. everywhere. In the production process of such 5.1.3 Psychological aspect commodities, the goal of manufacturers is to Fundamentally speaking, playing games is a attract internet data with products that can be human nature and one of the most important copied indefinitely and with almost infinite ways for humans, especially adolescents, to scale effects, and get profits through explore the world. Some scholars who study advertising and sponsorship. Although the psychology of online games believe that consumers have obtained free products, they the reason why game enthusiasts are so must provide their own data and network addicted to constantly upgrade equipment in retention time to obtain more free usage rights. virtual world is that there are “dopamine This asymmetry of production and neurons” in everyone’s head and “the consumption leads to the fact that consumers mechanism against stress generated by human are passive and dominated in eSports industry, evolution”. However, this biological science resulting in adolescents’ irresistible motivation explanation does not completely answer

22 negative issues that more emerged in eSports theoretical innovation and practice. For industry. The reason is that the composition of example, the theory of resource reorganization human mental and psychological need is very and service industry growth in highly complex. In addition to normal interconnected society that is being actively self-satisfaction, people’s psychological needs discussed in domestic economic circle is a also generate complex emotions such as new theoretical system proposed for Internet showing off, seeking novelty, comparison, and economics. This article attempts to propose jealousy in the interactive process, which can the following solutions based on this theory be found everywhere in the industry, and the characteristics of the eSports industry. especially in live game broadcast with reward. 5.2.1 The means of economics It is difficult to use ethical standards to The above economic analysis of eSports restrain them. At the same time, compared products shows that the claims of producers with adults, adolescents have less and consumers of eSports industry are psychological self-discipline and greater different. Although the transaction itself is fair curiosity, and are more susceptible to these and both parties of the transaction are not psychological factors, amplifying negative wrong, the extra losses borne by the effects in the eSports industry. consumers indeed exist. Moreover, the 5.1.4 Social aspect accumulation of this loss over time has a huge Although the current call for supervision and long-term impact on physical health and and control over eSports and online games is mental health of adolescents which is a very high and relevant policies have been significant negative externality. Therefore, formulated, in terms of actual results, society from the perspective of economic policy, it is still lacks systematic understanding and necessary to establish some kind of consumer scientific methods to guide this issue. The cost compensation mechanism in eSports regulatory and governance mechanisms for industry. However, this mechanism should be such negative impacts need to be further market-based, rather than the direct streamlined. intervention of the government that previously From the above analysis, we can see that used (The fact proved that the interventions the adverse effects brought about by eSports and regulations based on standards for the industry have intrinsic and profound economic, evaluation of producers' morality will only cultural, psychological and social reasons. interfere with market and will often be These reasons are intrinsic to eSports industry, difficult to implement in reality). In order to but the negative impacts and social construct such compensation mechanism, this governance costs that are passed on to families paper proposes to set different pricing for and societies are high. They need to be adolescents of different ages based on the attached high attention and logical solutions definition of property rights of consumer must be found. traffic. The basic idea is that the smaller the 5.2 Solutions to the negative effects of age, the longer the time, and the less physical activity, the greater the additional losses eSports industry incurred, then the higher the price the In fact, at present, the Internet economy, company needs to obtain its internet data and including eSports, has exceeded the range that the more health services that need to be traditional economics can effectively explain compensated for. Only by establishing in many aspects. The analysis of similar differential pricing based on a clear definition economic phenomena requires proof of 23 of the internet data flow of property rights, can eSports as an example, Korea was the first it be possible to reconnect the producers and country to achieve professionalization in consumers in the most appropriate manner and eSports. From the current eSports operational minimize the negative impact of eSports situation in Korea, after professionalization of industry beyond affecting market operations. eSports, ordinary players will spend more time Of course, this theoretical concept is proposed to watch events, broadcast eSports culture, for the first time in this paper, so how to and engage in charity events in stadium as achieve it depends on the deepening of healthy styles, which is very helpful to guide research in the future. eSports in a healthy and optimistic direction. 5.2.2 The means of laws In addition, according to the global eSports Our current task is not to abandon this statistics of Newzoo in 2017, 42% of the industry because of negative issues in eSports people watching streaming video games in the industry. Instead, it is necessary to ensure the world do not play games on their own and healthy development of eSports industry while they only participate in the e-sports industry as taking into account the negative social issues. viewers. Even in the most popular eSport Similar situations actually exist in other areas games, such as League of Legends, Counter of the Internet economy. For example, in the Strike, and DOTA 2, 23% of the audience only process of protecting privacy and the watch games and don’t play the game development of the big data industry, there are themselves. Especially with the trend that the same dilemmas. The foreign experience is domestic eSports expanding from online to that it should be constrained by legal means. offline, we believe that more players will For example, the Commission of European gradually spend less time on playing computer Union adopted the "General Data Protection games and participate in the offline activities Regulation" (GDPR) to determine the of eSports. In addition, the personal problems protection and supervision of personal data in in the negative effects of current eSports the form of regulations, including the rights to mentioned earlier in this paper are the delete personal data. This is the most striking problems of players’ age, short sports life, and law in the Internet economy right now. The inadequate protection, which precisely show same idea can also be introduced into the legal the need for the mature professionalization of construction of eSports industry in the future. eSports. Only in that way, the problems can be 5.2.3 The means of professional sports better solved. The international development experiences In short, the professionalization and sports and lessons of eSports show that the reason development of eSports is the ultimate that eSports industry is able to gradually solution to the negative effects of e-sports. separate from online games and embark on an This is not only the law of eSports industry independent development path is that it has itself, but also the breakthrough of the core strength of professionalization and sports. industry supervision of eSports industry in the Only by developing the eSports industry as future. In this aspect, government departments, professional sports can we develop the especially the sports departments, can play a educational function of sports and promote the greater role. spirit of sports. At the same time, we can better overcome common problems of online games in eSports games. For example, taking the developmental experience of Korea’s

24

6 Policy Recommendations to government departments fully learn from the Promote the Healthy Development of development experience of eSports industry in eSports developed countries, closely follow the direction of the current major developed Under current circumstances, eSports and countries to formulate eSports policy, eSports industries in China are at a critical effectively distinguish different attributes of period of rapid development. The eSports and online games, and act according development of eSports industry is of great to eSports industry’s own development law. strategic importance. At the same time, the (长句)In the future, it is necessary to combine negative impact of eSports industry is also the emerging direction of sports development becoming more and more prominent. in eSports market, and to further define the Enterprises and society are expecting related development path of eSports of competitive policies of government to lead eSports sports and professional sports. Only by industry to healthy developmental way. clarifying modes of eSports can it be possible However, judging from the actual situation, to work in accordance with the law of there are many administrative departments in development of things and formulate eSports industry in China and the power is comprehensive and reasonable guiding scattered. The recognition of the development industrial policies and social supervision of eSports in different departments is not policies. uniform. There is a game of multi 6.2 Focus on market-based solutions to administrative forces in the development direction of eSports in various government solve negative issues in eSports departments. The policy of regulatory From the perspective of economic policy, measures often depends on the intensity of departments of government in China often social public opinion at that time, and the used a controlled approach to intervene in stability and operability of policies. The eSports industry in the past. However, the erratic supervision actually shows that facts show that this kind of embargoed management departments of China still have governance means is neither reasonable nor many misunderstandings about eSports. possible to help young people leave computer Therefore, based on the previous analysis, desk and go to the stadium. This paper this paper proposes the following three believes that from the perspective of principles for the promotion of the healthy and international experience and current actual orderly development of eSports: 1) Define the situation of China, traditional government nature and development model of eSports and intervention measures are not logical and eSports industry; 2) Focus on market-based effective for eSports, which are dominated by solutions to solve negative issues in eSports; 3) innovations of enterprises, free choices of Pay close attention to the time and direction of consumers, and unique pricing mechanism. In eSports technology breakthroughs. the future, it is more important to rely on 6.1 Define the nature and development market measures and regulatory mechanism of eSports market itself to solve the negative model of eSports and eSports industry externalities of eSports industry. The starting From the perspective of government point of economic management of government management, we must clarify the character should begin with the definition of property and development model of eSports and rights, by influencing price formation, to eSports industry. It is recommended that establish a market-based consumer 25 compensation mechanism. The government support should be given to guide the entire should use market methods to solve the industry in the direction of healthier, more negative problems in eSports industry so that interesting and more positive development. we can achieve long-term and effective Policy 7 Conclusions effect. 6.3 Pay close attention to the time and eSports was born from video games. After decades of tortuous development, it has finally direction of breakthrough in eSports come into the road for professional sports and technology competitive sports. The direction is very good eSports is an industry that has a close and the road is right. Although there are still relationship with technological innovation in such problems in the development of e-sports, information consumption. At the same time, as long as they follow the laws of economy, eSports is also an athletics industry closely the laws of sports, and the laws of social related to the healthy growth of adolescents development, persist in using scientific and their development of sports habits. methods to analyze problems, and persist in Therefore, the government can encourage using the market to guide industries, then social capital and enterprises through eSports and eSports industry in China will industrial support policies to create more certainly be able to develop a healthy road eSports technical innovations that are directly with Chinese characteristics in the new era. related to physical activity. At a appropriate time of technological breakthroughs, strong

References

CNG, 2017. 2016 eSports Industry Report of China (summarized version)[R] The State Council of China, 2014. Several Opinions on Accelerating the Development of Sports Industry to Promote Sports Consumption, [Z/OL]. http://www.gov.cn/zhengce/content/2014-10/20/content_9152.htm. The State Council of China, 2016. Nationwide Body-Building Outline(2016-2020) [Z/OL]. http://www.gov.cn/zhengce/content/2016-06/23content_5084564.htm. The General Administration of Press and Publication (GAPP), 2007. The Development Standard of Internet Game Anti-Addiction System[Z].2007-4-11 The State Administration of Radio Film and Television, 2004. Notice on Prohibition of Broadcasting Computer Network Game Programs [Z],2004-4-22. The State Council of China, 2017. Guidance on Further Expanding and Upgrading the Potential of Information Consumption for the Sustainable Release of Domestic Demand[Z/OL]. http://www.gov.cn/zhengce/content/2017-08/24/content_5220091.htm. Jiang Xiaojuan,2017. Resource Reorganization and Service Industry Growth in a Highly Connected Society[J]. Economic Research, 34(3):7-11. Li Liyan, 1998. Barbarian civilization[M]. Beijing: China Society Press.

26

Penguin Intelligence, Tencent eSports, 2017. The 2017 eSports Development Report of China[R]. Ren Hai, 2018. Body Quality: A Concept of Leading Contemporary Sports Reform and Development[J]. CHINA SPORT SCIENCE, 38(3):3-11. Ren Hai, 2011. "Sports Movement" or "Elite Movement"? - Query on the Concept of "Sports" in China[J] , Journal of Nanjing Institute of Physical Education and Sports,25(6):1-6. Tan Hua,2008. The Essence of Sports[M], Chengdu: Sichuan Science and Technology Press:39. Tie Yu, Zhao Chuanfei,2017. Research on China's Electronic Sports Industry[J].Sports Culture Guide, (7 ): 100- 104. Xiong Douyin,1996. What is sports[J]. Sports History.,:8-10. Yi Jiandong,2004. Sports Concept and Sports Function Theory [J]. Sports Culture Guide, (1): 32-34. BRlCKELL A., 2017. Addressing integrity and regulatory risks in eSports: The responsibility of the whole eSports community[J]. Gaming Law Rev, 21(8): 603-609. NIEDENTHAL P M, BARSALOUL W, WINKIELMAN P, et al., 2005. Embodiment in attitudes, social perception, and emotion [J]. Pers Soc Psychol Rev, 9(3): 184-211. SKUBlDA D, 2016. Can some computer games be a sport? Issues with legitimization of eSport as a sporting activity[J]. Int J Gaming Comput Mediat Simul, 8(4): 38-52. SEO Y, JUNG S U. Beyond solitary play in computer games: the social practices of eSports [J]. J Consum Culture, 16(3):63S-655. WITKOWSKI E,2012. On the digital playing field: how we ‘do sport’ with networked computer games [J].Games Culture, 7(5): 349-374.

Page 1 Received: 2018-03-30; Revision: 2018-04-08 Fund Project: Fundamental research funding of China Institute of Sport Science(18-43). Brief Introduction of the Author: Yang Yue, Male, Ph.D. Sports Economics; Email: [email protected]. Address: China Institute of Sport Science, Beijing 100061, China.

Page 2 ①The data comes from the 2017 China eSports Development Report released by Penguin Intelligence and the WeChat ID is “BizNext”. ②The “Guide to 24 Hour Exercise for Children and Adolescents in Canada” aims to encourage children to develop a positive lifestyle and strive to achieve “three balances” of “sleep, sit and exercise” every day to ensure their healthy development. The guideline proposes that entertainment screen for youngsters aged 2-17 should not exceed 2 hours per day, while limiting other sit-in times. However, unfortunately, according to the 2016 agency survey, only 24% complete this goal. More children are still attracted to the content of the screen, especially the video games to extend the sit-in time.

27

Page 3 ①http://culture.people.com.cn/n/2015/0610/c172318-27132804.html. ②https://baike.baidu.com/item/esports Page 4 ①World Cyber Games was founded in 2000 and ended in 2013. It is a global e-sports event, known as the “eSports Olympics”. This event is conducted by the International Cyber Marking (ICM). Sponsored by Samsung and Microsoft (since 2006). ②https//:baike.baidu.com/item/esports. This is a definition of eSports generally accepted by all walks of life in China. In fact, this definition is closer to the "Elite sports" in English. ③At present, the domestic sports science community has just begun the study of physical sports indicators of eSports and has not yet formed a unified standard. The premise for the future of eSports to enter sports programs is the need for sports departments to introduce sports standards for eSports. From current recognized eSports projects, such as StarCraft, WarCraft, CS, Dota, and League of Legends, “immediateness” and “operational intensity” are the essential characteristics of main eSports games that distinguish themselves from most online games and platforms of chess games. In standardized eSports industry standards, the immediacy, the strength of hand-eye operations, and the number of strategies can all be refined into quantitative indicators through technical statistics, so that a set of e-sports unique sports standards can be formed.

Page 5 ① Embodied cognition, also called “embodiment”, is an emerging field of research in psychology. The theory of embodied cognition mainly refers to the strong connection between physiological experience and psychological state. Different from traditional cognitive theory, embodied cognitive theory emphasizes the great role of body in cognitive process. ② In paper “Body Quality: A Concept of Leading Contemporary Sports Reform and Development”, Ren Hai makes a review of “body quality” for the first time. He suggests that the concept of “body quality” not only solves the increasingly serious global problems of health brought about by lack of physical activity, but also effectively promotes the integration of sports into life, improve the overall quality of life.

Page 6 ①According to “National Competitive Industry Classifications” GB/T 4754-2017, this paper selects part of eSports industry, and marks the relevant industry classification code.

Page 9 ①At present, the national statistical department has not yet established a special statistical standard for eSports industry. Therefore, the paper quotes data and opinions of “2016 eSports Industry Report of China” by GPC and CNG Data and the “2017 eSports Development Report of China” by Penguin Intelligence & Tencent eSports. It is hoped that the statistical department will publish special statistical classification standards for eSports industry in the future.

28