hereeast.com Esports Feasibility Report Games industry growth opportunities for Here East and Queen Elizabeth Olympic Park Report by Here East and LLDC delivered in partnership with Arena Consultancy Esports Feasibility Report 01 — 51 Contents Executive Summary ��������������������������������������������������������������������������������������������������������� 02 Introduction ������������������������������������������������������������������������������������������������������������������������� 03 The UK Games Industry and Opportunities ������������������������������������������������������������ 05 The Games Industry Cluster ������������������������������������������������������������������������������������������12 Stakeholder Thoughts From The Park �����������������������������������������������������������������������19 Recommendations and Next Steps ��������������������������������������������������������������������������� 29 Methods of Research ������������������������������������������������������������������������������������������������������ 35 Appendices ������������������������������������������������������������������������������������������������������������������������� 40 Credit: Shutterstock Esports Feasibility Report 02 — 51 Executive Summary 2021 marks 9 years since London hosted the 2012 Olympic and Paralympic Games. Since the closing ceremony of the 30th Olympiad in August 2012, there has been an exponential growth of the video games industry, aided by advances in technology, including mobile gaming. The global games market has more than doubled in value from $70.6Bn in 2012 to $180.1Bn in 2021 and with such growth come several questions for Here East and London Legacy Development Corporation to consider when reviewing plans for the next decade at Queen Elizabeth Olympic Park. Can the growth of the games sector as sustaining the growth momentum of provide commercial opportunities to attract the Park as a whole, to support the games anchor tenants who are leading game cluster through hosting esports tournaments development and who can benefit from and engaging with local communities. both the presence of talent at Here East (for example, Staffordshire University's esports The future of the Park can be viewed through postgraduates) and collaborate with games a series of recommendations/next steps developers such as Sports Interactive? that explore each solution as well as the Likewise, can the popularity of gaming and complications and resolutions associated with esports be used to engage with the wider them. Could the introduction of a dedicated host boroughs to support legacy promises internal and external communication of providing education and vocational expert help address some of the immediate opportunities to the local communities? issues identified to prevent businesses operating as “silos” with a lack of collective The success of the LLDC and Here East in voice? Could such measures help deliver developing a growing esports community commercial opportunities that could see underpinned by academia is allowing for anchor tenants arriving at the Park to help the development of unique opportunities, realise both commercial and wider community none more so than the introduction of engagement opportunities? How can the unique scholarships that draw upon both the cyclical relationship between community, commercial and education sectors to provide education and opportunity development help new pathways for successful applicants. support commercial aspirations? Additionally, through an existing relationship with both But it is the engagement with the wider tenants and associations such as UKIE community stakeholders that, if harnessed, (Association for UK Interactive Entertainment) can help sculpt how the video games and the British Esports Association, a and esports sector can be leveraged to community focused education programme provide unique opportunities that can could be devised to help support the pathways educate, engage and inspire, and help fulfil to foster talent and make the Park a cluster legacy promises. Through interviews with for games industry opportunities. The good commercial and community stakeholders, news is that LLDC, Here East and other Park the opinions of those who can influence, as partners have rich experience in collaborating well as those who are influenced by the Park to create strong education and skills are noted. Furthermore, with such iconic programmes that support talent pipelines in landmarks in the Park as London Stadium, other growth sectors at the Park such as built the Copper Box Arena and the Podium, environment, digital technology and creative there are numerous possibilities for utilising business and so are readily able to bring this Esports Feasibility Report these publicly accessible buildings, as well experience to bear in the games industry. 03 — 51 Introduction Credit: Getty Images As a centre of innovation with dark in the world, given the large online viewership fibre low latency network connectivity there are both commercial and community- and strong transport connections, the focused benefits for clusters forming where Park is perfectly placed to build on the ideas can be exchanged, teams can engage work already undertaken to attract with their fans and publishers can collaborate games industry stakeholders. with their communities. As detailed later in this paper, such clusters have developed Furthermore, on an international level, the internationally and have led to the growth Park can develop existing relationships with of fresh opportunities, such as academic esports teams and publishers to position courses being developed in partnership itself as a destination for supporting and with local games industry employers. developing the games industry. As shown in figure 1, it is the close relationship Given the location of the Park in London, between publishers producing commercially in conjunction with the history of hosting successful games and the competitive tournaments at the Copper Box Arena, the side of gaming (aka “esports”) that can help presence of publishers already at Here East sustain an ecosystem including education, as well as “local” tier 1 esports teams such as opportunity and commercial prosperity. Fnatic, Excel and the London Royal Ravens all having a home in London, the component While the locations of publishers, tournament parts exist for further collaboration to develop Esports Feasibility Report organisers, teams and events can be anywhere a games industry cluster at the Park. 04 — 51 The Olympic and Paralympic Games can rightly claim to be the greatest show on Earth. They leave a host of indelible memories but also long-lasting benefits for the cities and countries that host them.” Tony Blair, 2004 Since the IOC chose London to host the 2012 communities. The Good Growth Hub, based Olympic and Paralympic Games, promises on the Park, will not only provide advice and were made to offer long-term opportunities support to the huge pool of young talent that to the local communities as part of the exists on and around the Park but it will also legacy of the Games. With the continued reach out to employers and emerging sectors success of Queen Elizabeth Olympic Park in like esports to understand their long-term attracting world-renowned businesses, this talent needs and provide a long tail of suitably is an opportune moment to understand the qualified and skilled employees for the future. potential that the games sector could offer to both fulfil legacy promises and build on The Park has already attracted the attention the digital industry footprint that has already of the UK games industry and can boast developed at Here East. The Park has huge several tenants that are proud to call the potential to support the UK games industry Park their home, including Sports Interactive as well as amplifying London as a global and Staffordshire University’s esports leader in game development and publishing. degree campus. Furthermore, the Copper Box Arena has hosted several esports This potential can be realised by attracting tournaments, including the inaugural commercial stakeholders to support and Call of Duty homestead for the London develop pathways that provide greater Royal Ravens in 2019, as well as Clash vocational opportunities for youth of Clans and Minecraft tournaments. Figure 1 Credit: www.stakrn.com Esports Feasibility Report THE UK GAMES INDUSTRY AND OPPORTUNITIES 05 — 51 The UK Games Industry and Opportunities Credit: Shutterstock The games industry can be viewed from a commercial standpoint as a dominant force in the entertainment sector. With UKIE reporting that the esports sector in the UK (“The value of esports in the UK”, 2020, UKIE / Olsberg SPI with Nordicity), excluding publishers and tourism spillovers, earned an estimated £60m in revenue in 2019, with year-on-year growth in Europe at 19.9% (Newzoo), the potential opportunities that this sector offers to both commercial Esports Feasibility Report and wider stakeholders is unparalleled. THE UK GAMES INDUSTRY AND OPPORTUNITIES 06 — 51 The Growing Popularity of Gaming The UK games industry is a cornerstone of the country’s cultural landscape and continues to work hard to create new, innovative and exciting content that consumers want to experience, and that helps to drive the industry forward year-on-year.” Jo Twist, UKIE Figure 2 2020 Global Games Market Per region with year-on-year growth rates $44.0Bn 49% China Total of all consumer spending on games in 2020 will