Esports Feasibility Report

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 come $41.3Bn from the US and China US Total The UK Games industry has Middle East & benefited from the rise in popularity Europe Africa of the sector and is now a major $32.9Bn $6.2Bn employer, offering 30,000 full-time +19.9% Yoy +30.2% Yoy 3% 19% jobs and supporting calls for more education to help develop future talent. The result of this has seen 4% coding lessons now being integrated Latin America 2020 Total into classroom teaching agendas at $6.8Bn $174.9Bn the junior school level. Furthermore, +25.2% Yoy +19.6 Yoy UK government financial incentives 48% have been created, such as the 26% Video Games Tax Relief (VGTR), offering tax breaks for registered North America Asia Pacific UK businesses that are developing $44.7Bn $84.3Bn video games. With reports that +21.4% Yoy +17.5% Yoy 68% of games supported by the VGTR would not have been made in Source: Newzoo the UK at all without it, the success

Esports Feasibility Report is widely recognised (BBC). THE UK GAMES INDUSTRY AND OPPORTUNITIES 07 — 51

Figure 3 2018 Insights in to the UK’s Games Market Esports has the potential to develop as an area of real $4.5BN national strength in the UK, Games revenues building on our world-class #6 video games, entertainment World rank and sports sectors. The steep growth in online esports 37.3M Players audience figures and the increasing number of esports events and investments in the Share of online UK indicate the existence of a population that plays solid foundation to build on.” Men Women

Government response to the Digital, Culture, 49% 48% 38% Media & Sport Select Committee Report on 33% 22% 26% Immersive and Addictive Technologies

Mobile Console PC Games Games Games

66% 31% of paying gamers of the online spent money on population in-game items or watches gaming virtual goods in video content the past 6 months 34% 31% watch gaming of men bought video content DLC/expansion on their PC pack 4% 24% watch but play While DCMS noted in their response of 2019 of women bought less than once power-ups a month a need for greater regulation when it comes to the content of games, specifically loot boxes and associated gambling mechanics, the response also noted esports is an area of “growth and innovation for the UK”. 6% of those aware of esports watch esports video content several times per month

The government‘s response recognised The most regularly that “esports has the potential to develop as watched franchise by the esports audience an area of real national strength in the UK, is Rocket League building on our world-class video games, entertainment and sports sectors. The steep growth in online esports audience figures and the increasing number of esports events and investments in the UK indicate the 64% 49% of esports viewers of esports existence of a solid foundation to build on”. have a positive non-viewers brand attitude have a positive (Government response to the Digital, Culture, towards Audi brand attitude towards Audi Media & Sport Select Committee Report on Source: Newzoo

Esports Feasibility Report Immersive and Addictive Technologies.) THE UK GAMES INDUSTRY AND OPPORTUNITIES 08 — 51 The Rise of the Franchise Model

With such government interest and a live audience twice a year being cut short support for the esports industry, it is worth to only one appearance at the Copper Box recognising the changes and opportunities Arena in London due to the global pandemic that have arisen in the past year on both a (Jan 2020), the opportunities for fan commercial and non-commercial basis. engagement and possible training facilities being located in the Park still remain. The London Royal Ravens are the newly formed Call of Duty World League (CWL) The training schedule for the team mimics team, who are based in London as the name that of a professional (traditional) sports suggests. With the decision to invest $25M team, with hours spent training on a weekly to “buy” a league spot in the Activision basis as well as a support team, including Blizzard-owned CoD World League, Michael sports psychologist, nutritionists and “Odee” O’Dell, General Manager of the newly physical trainers. Making it to the top of the formed team has had to train and make esports ladder and staying there takes a lot battle-ready this team of Brits competing and of hard work. It takes clicks, sweat and maybe flying the Union Jack on the world stage. some tears to make the cut to not only join the team as a player but to succeed as a team. With each of the twelve teams in the CWL competing across the globe and to an The Ravens have a strong UK following international audience of millions, the which is yet untapped and the “bedroom decision to enter (and invest) in this league to podium” stories of the five players has brought international attention to competing in the CWL is an aspirational London. With plans to compete in front of story for the wider community.

Credit: London Royal Ravens Esports Feasibility Report THE UK GAMES INDUSTRY AND OPPORTUNITIES 09 — 51 The Growth of Online Broadcasting

Figure 4

European Esports Audience Growth With the growth of Audience growth (aggregate of esports online broadcast and the enthusiasts and occasional viewers) opportunity for anyone 100M to produce content 92M 86M comes a new dawn for 90M 79M engaging with brands 80M and communities.” 70M 60M

50M

40M

30M

2018 2019 2020 Source: Newzoo

The esports industry has an issue to Such staggering numbers reflect the new paradigm solve: persuading fans to leave the in entertainment with on-demand content comfort of their homes (where they provision produced not only by broadcast studios can watch live “online” tournaments) but now (as Twitch testifies) by users themselves. to travel to live “offline” events This is reflected in the growth of influencers as and experience the atmosphere a means of marketing to target audiences. of the tournament in person. With the growth of online broadcast, and While numbers watching online far the opportunity for anyone to produce exceed those that can watch in the largest content, comes a new dawn for engaging of stadia, it is the ability to broadcast to with brands and communities. millions online that holds the key to the continued growth of this sector, as well The broadcast studio at the Staffordshire as the arrival of “non-endemic” sponsors University campus at Here East is testament that want to market to this community. to this; here, undergraduates are being given the skills to understand technical As figure 4 shows, the numbers of broadcasting as well as content curation. those watching online is growing rapidly, with estimates that, by 2023, The Park’s facilities offer huge potential to the numbers watching will increase engage with a wider audience and deliver key by 10%. While other platforms have messages through live online or offline events, tried to compete, Twitch still holds as LDN UTD’s inter-borough championship has the market share of gaming (and now demonstrated with their London Digital Institute traditional sports) with a staggering initiative, which aims to highlight esports as a 205.6M hours streamed in Q3 2020 and viable career option and is backed by Mayor of

Esports Feasibility Report a market share of 91.1% (Newzoo). London and the Rio Ferdinand Foundation. THE UK GAMES INDUSTRY AND OPPORTUNITIES 10 — 51 The Rise of Esports Education

The world of esports offers huge employment potential both in the UK and across the world and these new BTEC qualifications will give learners the knowledge and skills they need to build a career in this exciting sector. We have worked closely with industry experts to create a career-focused set of qualifications that will support the rapid growth of the esports sector and offer learners a pathway into working in esports and related industries.”

Cindy Rampersaud, Senior Vice President, Pearson

Naturally, as the popularity of esports The NUEL has formed a strategic has increased, the providers of higher partnership with Twitch to develop and further education courses have the “Uni Heroes” competition, which responded, with 19 colleges across the allows rival universities to compete UK now offering BTEC esports courses to get as many minutes of content (which have been jointly launched with streamed as possible. The content the British Esports Association) and six might be traditional esports or any other universities offering undergraduate esports creative content that Twitch supports, degree courses, including Staffordshire, in return for which Twitch supports Nottingham Trent and Sheffield Hallam. streaming communities with “packages” to share with the content team. The growth is testament to the opportunities that this sector offers for Never has there been a better time to longer-term vocational opportunities. provide opportunities for both higher and further education training to ensure that Likewise, the growing number of students the UK produces talent that can fill roles involved with esports has led to the increased and drive the success of the esports popularity of the collegic esports scene, with and wider games industry in the future. the two largest organisers in the UK, namely NSE (National Student Esports) and The NUEL We will explore the opportunities (National University Esports League) hosting for wider community engagement

Esports Feasibility Report inter-university esports tournaments. in later chapters. THE UK GAMES INDUSTRY AND OPPORTUNITIES 11 — 51 A Catalyst for Community Engagement

As noted in the next section of this to form a partnership with LDN UTD, which report, a number of key stakeholders has helped boost the profile of this campaign were identified and interviews were with the ambitions of “bringing employment to conducted by the author across both the youth via esports with this partnership”. commercial and community leaders. Among the rich network of youth engagement The youth engagement mechanics that representatives, led by the LLDC team, are happening at the moment, as well as the consensus of opinion was that the planned initiatives for the future, will be a engagement the games industry has focus for this report. Through assessment established with the local communities is a of both commercial and non-commercial great platform for empowering, informing stakeholders’ interests, opportunities for and engaging the local communities. Part collaboration will be explored as to how best of this feasibility report will identify how use the existing facilities and resources to communities can be given an opportunity further enhance and improve legacy promises to contribute to this discussion and and empower and inform local communities. how opportunities are created. Finally, we will explore how any initiatives The use of the games industry as a means of that are focused around the Park can be connecting with the community is not a new amplified to showcase the achievements initiative, with a number of projects having being created as well as using youth already been established. Some of these community networks such as Catalyst in initiatives are aligned with mayoral strategies the Communities and Badu Sports to share for greater social integration, such as LDN these success stories to engage with more UTD's inter-borough esports championship. It members of the youth communities in the is the strategic decision-making that laid the four home boroughs of Waltham Forest, foundations for the Rio Ferdinand Foundation Newham, Hackney and Tower Hamlets. Esports Feasibility Report THE GAMES INDUSTRY CLUSTER CASE STUDIES 12 — 51 The Games Industry Cluster

The mere existence of a creative agglomeration is not enough for the benefits of clustering to emerge. The other crucial ingredient is connectivity between firms within a cluster, with collaborators, business partners and sources of innovation elsewhere and, finally, with firms in other sectors that can act as clients and as a source of new and unexpected ideas and knowledge. These layers of connectivity are underpinned by a dense web of informal interactions and networking.”

Esports Feasibility Report Nesta, creative clusters and innovation report THE GAMES INDUSTRY CLUSTER CASE STUDIES 13 — 51 A Global Phenomenon

There seem to be very few countries in the games production is socially enabled. With its developed world that cannot boast some location in London, and access to stakeholder form of games industry hub or cluster. talent (both academic and the wider community groups), the Park seems to have the resources The reasons for the development of these to build out a games industry cluster. As shown areas might stem back decades, for instance, in figure 5, a hub can connect a number of that Tokyo was the birthplace of SEGA, Capcom different stakeholders and introduce new and Nintendo, or more recent hubs created opportunities locally and further afield. through the introduction of incentives or super- fast network connectivity such as Malmo in This section will investigate the benefits Sweden. While the games industry is a global of building out a hub both commercially marketplace, it's production output stems and for the wider community and from local talent and the creative process of how this can be achieved.

Figure 5 - Hub Local connectivity and Global Games Regional opportunities Industry Global

Game Developer Global Associations Media

Games and Arts and Cultural Creative Economy Organisations, Organisations NGOs

Universities and Regional / Tertiary Education National Media

Game and Research Digital Makers Funding Bodies

Schools and Community Groups Colleges HUB and Networks Local Government Informal Digital Residents Maker Groups Organisers Local Businesses

Game and Sub Groups Citizens and Digital Makers Neighbours

Source: Creative Territories, Good Hubbing Guide Esports Feasibility Report THE GAMES INDUSTRY CLUSTER CASE STUDIES 14 — 51 Case Study European “Incubators”

An incubator has been characterised incubator models of the Baltic Sea region as “providing support to startups to are classified as either for-profit or not-for- improve the probability of survival of the profit, with the latter having the objective portfolio companies and accelerate their of creating new jobs and income. development” (Pauwels et al., 2006). The Dutch Game Garden (DGG) is Incubator models include business such an example. It was set up by innovation centres, university Taskforce Innovation Utrecht to provide incubators, research incubators and an incubator model for graduates to independents supporting high potential prepare themselves to run commercially ventures. The overall objectives of viable game production companies these different models include: over a short-term mentoring period.

e Regional ecosystem development After an acceleration period, a business model and a defined growth model, the e Educational and alumni support companies migrate to an incubator. The outcome of the model is that DGG e Investment scouting (focused helps pitch games for investment on scouting and developing and negotiates a shared deal. startups for investment) The issues faced with this model include In the Baltic Sea region alone, there are 24 the time needed for micromanagement initiatives for games-focused incubators of incubator companies as well as the – six in Finland and Sweden, respectively – linearity – without a fix entry point, with most of them focused on supporting some companies were waiting months regional ecosystem development as well until Incubation Day to know if their as educational and alumni support. The endeavours had been successful.

Figure 6 - The Games Incubator 1 1 Landscape in Europe 1 1

1 4 2 4 1 1 2 1 1 1 1 1

Denmark Estonia Finland Germany Lithuania Latvia Poland Sweden

Regional ecosystem development / students and alumni support Students and alumni support Regional ecosystem development / investment prospecting Regional ecosystem development

Source: Zambon Esports Feasibility Report THE GAMES INDUSTRY CLUSTER CASE STUDIES 15 — 51

Credit: Plexal

Other incubator models in Europe include business, production and administration “Gamefounders”, a Tallin-based initiative skills, results can be achieved. launched in 2011 as a public call for projects to implement a local accelerator. But as the success of Plexal has shown, with clearly thought-through collaboration, Operational costs were covered by the the Park could provide resources for Estonian government alongside private fostering future talent while supporting investment. Gamefounders engage with UKIE’s ambitions, as well as engaging with different local audiences by organising the wider stakeholder communities. events for school kids through to university students as well as running a monthly As detailed in Appendices A & B, a decision game developer meeting. The initiative to support the esports sector as a whole resulted in the creation of 50 gaming can receive governmental and region companies in Estonia, kick-starting the backing, as the case studies of Katowice in native industry with exponential growth. Poland and Copenhagen in Denmark testify. In the case of the latter, the government- There are, of course, limitations to the devised esports strategy is helping bolster incubator and accelerator models, including the industry while working with sports the time commitment, misalignment associations to create a “healthy and safe between programmes and startups’ product. framework for the sports, with a focus on community and physical activity”. The If incubators can establish a cycle of learning Katowice regional development project and growth, this can equip entrepreneurs has supported a wider transformation in to assess internal productivity based on the regional economy while developing a measurable outcomes. Coupled with finding world-renowned partnership with ESL to

Esports Feasibility Report the right partners that can support with host the annual Intel Extreme Masters (IEM). THE GAMES INDUSTRY CLUSTER CASE STUDIES 16 — 51 Case Study United Kingdom

Credit: Ubisoft Newcastle

The UK has a rich heritage of game Molyneux (creator of Populous, Black and development, with nodal hubs forming White, and other “God-like” games) citing the in Guildford, Slough, Leamington inspiring location as the reason for setting Spa, Newcastle, Edinburgh, up Bullfrog studios in the early 1980s. Manchester, Bristol and London. It would seem that the early days of gaming Elsewhere, Dundee boasts Rockstar North, acted as a vacuum, with a smaller talent developers of the Grand Theft Auto games pool (compared to today) being attracted to as residents, and Leamington Spa is home opportunities and through natural attrition to Codemasters and Ubisoft, generating employees left to form their own studios. huge revenue for the UK games scene as well as being a significant regional employer. In the context of Ubisoft being located in Newcastle, it is access to talent that Stéphane As to how and why gaming hubs have Catherine, the company’s EMEA Customer developed across the UK, the reasons are Management Vice President, cites as the mixed. When Codemasters’ co-founder reason for the location, “thanks to the 55,000 was asked why he chose Leamington, he students at the city’s two universities”. stated: “It has great shopping, restaurants (Source: Tech Nation) As gaming companies and nightlife. Over the years, developers grow, local educational establishments setup their own companies and existing respond with the development of vocational international games companies setup branch courses to provide a flow of talent as well offices here so now it is quite a thriving as attracting fee-paying students. community.” (Source: Leamington Spa: At the heart of the UK games industry) It is this close relationship between education providers and games industry employers that The same seems to be true of Guildford, aka is encapsulated in the case study of Dundee

Esports Feasibility Report “The Hollywood of video games” with Peter City Council‘s new entertainment centre. THE GAMES INDUSTRY CLUSTER CASE STUDIES 17 — 51

From the heritage of Rockstar North to delivery aspects of this project, with 4J Studios (the console developer of a view to opening up a new graduate Mojang’s Minecraft), the city of Dundee talent pipeline to the esports industry.” is producing top games industry talent, (Source: Esports Insider, Sept 2020) particularly through Abertay University, which is renowned as being Europe’s top The examples given above of the UK video destination to study computer games. games cluster or hub development support the notion suggested by Nesta that there This relationship between the provision are three principal factors influencing of talent and local opportunities is self- hub development in the UK. These are perpetuating, the result of which is the City’s co-location, network connectivity and decision to build a 4,000-seater multi- links with local education providers. purpose arena that is “esports ready”. This is best encapsulated by Professor Gregor Here East and the wider Park are perfectly White, Dean of Abertay University’s School placed to continue to forge strong links of Design and Informatics, who stated: between education providers (Pearson / Staffordshire University / UCL) and games “Bringing forward this exciting partnership- studios and developers both present in led development for Dundee, which the Park or potential future tenants. This has the potential to make a significant will provide vocational opportunities either contribution to the future development through scholarships, graduate programmes of Scotland’s digital economy, Abertay or wider community educational has an international reputation for campaigns (see further Commercial excellence in the video games sector and Stakeholders section for identification is ideally placed to lead the educational of potential educational partnerships).

Figure 7 - Games industry cluster and university presence

Source: Nesta (2014), ONS (IDBR 2013) Esports Feasibility Report THE GAMES INDUSTRY CLUSTER CASE STUDIES 18 — 51 Case Study Tax Incentives

How can government tax incentives be used to foster cluster development on a geographic basis? The author will use international examples to identify where these measures have been put in place and the outcomes.

North America United Kingdom

Various tax incentives schemes exist in The UK Video Games Tax Relief is both the US and Canada to attract and available on qualifying UK production support the video games industry, ranging expenditure, allowing qualifying from 40% of eligible labour and marketing/ developers to claim back up to 20% of distribution costs being offered to games certain production costs. The scheme has publishers locating in Ontario with a max drawn comment, with some suggesting marketing/distribution credit of $100,000 it promotes tax avoidance for the larger per project, to tax credits of up to 25% on AAA producers, however the scheme has wages and production costs with a minimum the support of UKIE, with CEO Jo Twist spend of $100,000 (and a $5M cap on stating “the scheme played an important credit) for those based in Rhode Island. role in making the UK one of the best places to make games in the world”. As this report has already identified, the development of clusters is not driven purely Gyeonggi Province, Korea by financial incentives, with access to talent and inspirational surroundings also being This is the metropolitan area surrounding driving factors for the choice of location. As Seoul. Home to the Korean games Brendan Sinclair notes: “Puerto Rico’s 40% industry – and one might argue the tax credit on income and production costs home of esports – the region generates tops even Quebec’s incentive offerings, £4Tn in games industry sales from but there’s no comparison between the businesses based in the region and is two talent pools developers would have building two esports training centres for access to.” (GamesIndustry.Biz) However, amateur players by 2021. Furthermore, the lure to land developers is driving government support of up to £4M is these incentives to boost GDP as well as available to companies via the Gyeonggi

Esports Feasibility Report providing employment opportunities. Game Academy startup program. STAKEHOLDER THOUGHTS FROM THE PARK 19 — 51 Stakeholder Thoughts From The Park

The more players there are the more beneficial it becomes. Collaboration can work but the success has to be shared.”

Esports Feasibility Report A commercial stakeholder interviewed STAKEHOLDER THOUGHTS FROM THE PARK 20 — 51

Overview

In undertaking this report, the author interviewed several stakeholders across both commercial and non- commercial categories. We will first look at the comments and thoughts raised by the commercial stakeholders to the questions associated with the potential opportunities that an esports cluster might offer their businesses.

These stakeholders have been categorised into 3 areas:

e Venues

e Commercial tenants and educational tenants (including UKIE, BEA & The NUEL)

e Community Groups (social enterprises / legacy teams)

In assessing the thoughts and opinions of the stakeholders, questions were kept as consistent as possible across these groups and a list of those interviewed can be found in Appendix C. Where possible, similar comments and concerns between these groups were identified as a means of understanding the successes and areas for improvement of past and present initiatives as well as hopes

Esports Feasibility Report and ambitions for future endeavours. STAKEHOLDER THOUGHTS FROM THE PARK 21 — 51

Venue

Let us first turn our attention to venues. the stakeholders, the author cannot cite The key stakeholders identified in individuals’ comments, but there was a this category were as follows: consensus of opinion that venues in the Park are working individually with their e London Stadium own commercial remits and objectives rather than being a collective resource e LLDC that could form elements of a Park-wide initiative to realise games industry- e 3 Mills Studios related business opportunities.

In collating the keywords from the Furthermore, resources within those stakeholders responses, the author produced businesses are at capacity and do not a word cloud from the output with the have the scope to dedicate time to frequency of the keywords being reflected Park-wide initiatives unless these were in the size of the font. The answers related to presented to the individual stakeholders what is holding back their businesses from with associated action plans. contributing to or being associated with more esports-related business and supporting In the context of certain stakeholders the notion of an esports cluster at the Park. questioned, it was the presence of existing relationships with their own The prominent keywords in figure 8 partners that meant the remit for games include “individualism” and “ownership”. industry business growth was limited, In order to respect the confidentiality of owing to contractual agreements.

Figure 8 - Venue stakeholder “negative” keywords communication priorities relevance ownership individualism limitations engagement resources suitability voice collective Esports Feasibility Report STAKEHOLDER THOUGHTS FROM THE PARK 22 — 51

Credit: Copper Box Arena

By contrast, when the same group were “collaboration” between stakeholders as well asked how they felt about both bringing more as “Park-wide”, and “relationships” between esports business to the Park and what it the same groups. The notion that the sum might mean for them, a number of key themes of the parts is greater than the individuals emerged. One of these was the opportunities was a common theme that the author noted that such an idea might bring to the Park as from the interviews with the stakeholders. well as the chance for greater collaboration All the stakeholders shared a mutual interest between the business stakeholders to realise in knowing more about these opportunities this potential. Keywords, as can be seen in but the communication channel needs figure 9, include “(improved) communication”, to be improved to realise them.

Figure 9 - Venue stakeholder “positive” keywords park-wide

initiatives collaborations communication opportunities relationship potential partnerships adaptations Esports Feasibility Report STAKEHOLDER THOUGHTS FROM THE PARK 23 — 51

Commercial Tenants

When the author spoke to the commercial referenced six weekly meetings that tenants as to why esports-related are chaired by the Park, but if the rigour opportunities had not been realised, of commercial interests meant that the some similar keywords to those of commercial stakeholder could not attend the venue stakeholders emerged. then, more frequently than not, they would not send another representative. This meant “Ownership” was cited as a reason why that, owing to a lack of central ownership of initiatives had not taken off to date and those Park-wide initiatives, the momentum a “central voice” is needed to bring the would slow down, making re-engagement Park’s collective resources together to six weeks later more problematic and both communicate their potential and any initiatives would lose appeal. spearhead Park-wide opportunities to host more esports-related business. The central tenet that emerged from speaking to the commercial stakeholders was the While the vast majority of the commercial need for the Park to provide a dedicated stakeholders were interested in games representative who could “own” the remit industry-related opportunities, their of realising Park-wide opportunities and resources are limited in terms of champion the collective commercial commitment to whatever these opportunities stakeholders’ interests. This would provide may be (either for commercial gain or definitive accountability to represent the community engagement). Two stakeholders collective voice of the Park’s stakeholders.

Figure 10 - Commercial stakeholder “negative” keywords communication

facilities short-termism confidentiality commercial engagement accountability partnerships ambitions

resources ownership silos transportation voice competition thinking individual direction connected collaboration Esports Feasibility Report STAKEHOLDER THOUGHTS FROM THE PARK 24 — 51

As is to be expected, there is undeniable behind the cluster development was aligned support among the commercial with commercial, educational and wider stakeholders in the Park to realise community initiatives then it would succeed. fresh business opportunities and wider stakeholder engagement that One of the key phrases that arose from the the development of an esports cluster interviews summarised the commercial would offer. As identified previously, the viewpoint on cluster development: stakeholders questioned realised that developing a Park-wide initiative would “The more players there are the more need collaboration among the network beneficial it becomes. Collaboration can of business in the Park but, if this was work but the success has to be shared”. “owned” by an entity, such actions would (A commercial stakeholder interviewed) unite the stakeholder network to create opportunities for the wider communities In addition to this quote, two other quotes through education, vocational placements were noted by the author as summarising the and sharing success stories. collective commercial stakeholder thoughts on the development of an esports cluster: It was agreed that the current facilities “[The cluster concept] needs a vision holder at the Park, including the network of to bring together the collective stakeholders businesses, can provide the bedrock for the [and] meaningful long-term opportunities development of a cluster and if the rationale need to be affordable and achievable.”

Figure 11 - Commercial stakeholder “positive” keywords connectivity

education opportunities network community resources voice shared-success collaboration sponsorship incubator legacy communication engagement confidentiality Esports Feasibility Report STAKEHOLDER THOUGHTS FROM THE PARK 25 — 51

Education Sector

With regards to the education sector- collaboration with the esports industry but related stakeholders, the author noted reasons for not having a presence at interviewed both those that already the Park were due to a number of factors have a presence at the Park and those including the location, existing partnerships that support the esports and video with other entities or other locations offering games educational sector while not more cost-effective lease options. having a presence at the Park. The author notes that, while it would be Unsurprisingly those stakeholders who have a advantageous for key stakeholders to presence realised the opportunities for further be brought in to the Park on a permanent collaborations that such a cluster would offer basis, there was a rationale for a core but noted that individualism without collective network at the Park to develop an esports engagement would hamper any aspirations. cluster proposition in conjunction with “external” stakeholders who would support Those stakeholders without a presence on the cluster on partnership agreement the Park supported the notion of further rather than having a base at the Park.

Figure 12 - Educational stakeholder “postive” keywords innovation education mentoring resources collaboration community opportunities legacy connectivity talent incubator network

Figure 13 - Educational stakeholder “negative” keywords alignment costs voice disconnected competition communication inclusion connectivity individualism financial accountability short-termism Esports Feasibility Report STAKEHOLDER THOUGHTS FROM THE PARK 26 — 51

Community Action

A strong alignment exists between the games industry and the legacy promises of the London 2012 Olympic and Paralympic Games - both need a strong and engaging relationship with their community. The popularity of gaming and esports is due to both the ease of access for the community to “consume” media online as well as the pleasure that gaming provides to gamers, be they occasional players or aspiring esports professional.

The development of any esports/ the popularity of the games industry could be games cluster at the Park needs to align used to provide opportunities for the youth to a “tripartite” arrangement between communities and highlighted the initiatives commercial interests, academic learning that the community outreach teams are and wider stakeholder inclusion. As the already running. These include the work thoughts of those working in the academic of Catalyst in the Communities, the LLDC sector have indicated, the relationship team as well as Badu Sports and Jonathan between businesses and the talent pool Silman at the college of Haringey, Enfield being “produced” by local stakeholders and North East London, among others. such as Staffordshire and Loughborough Universities can be highly mutually From the conversations with these youth beneficial. However, the opportunities engagement teams, it became apparent that such a relationship can offer is still that the appeal of engaging with youth limited in terms of the appeal to the wider communities via gaming exists, but it was community that is at the heart of legacy agreed that there is a strong need to consider promises and fulfilment. A wider question what is being communicated for fear of exists as to how the development of an providing opportunities for select groups esports or video games cluster can provide and neglecting others. Several initiatives opportunities for the youth communities in exist that bridge commercial opportunities the four host boroughs of Waltham Forest, and wider community engagements, Newham, Tower Hamlets and Hackney. including Badu Sports collaboration with SI Games, Youmeus.tv, run by Catalyst in the As Appendix D details, the author had the Communities, E20’s Football Foundation, honour of joining the Youth Engagement as well as Here East‘s own projects, such Network Meeting taking place online on 1 as Insight Sessions and scholarships in

Esports Feasibility Report December, 2020. The meeting discussed how conjunction with commercial partners. STAKEHOLDER THOUGHTS FROM THE PARK 27 — 51

Young people will find the skills they develop here to be applicable to the esports industry of the future, but also transferable to other areas of our local economy.“

Sam Read, EM3’s Sector Specialist in Games and Immersive Tech

Despite these collective ambitions, a number Communication of challenges emerged when interviewing community focused stakeholders as detailed The first commonality in barriers to success in Appendix D and highlighted below: that emerged from the various stakeholder interviews noted that communication between Engagement social enterprise initiatives and the Park could be improved, with the suggestion that a better One interviewee raised concerns that understanding of central community-focused local schools do want to engage with campaigns when they are initiated would allow local companies but do not know how greater contribution from wider stakeholders. to. Likewise, local boroughs have their own initiatives and there is a lot of The second trend addressed communication replication and disjointed messaging. with community networks as a key area of focus, with the need at times to “package” Another interviewee suggested that a message to the youth networks to entice the forums that do exist to engage them to the Park for activities such as with C-level stakeholders at the basketball competitions, after which one- Park have limited engagement. on-one sessions could take place. The suggestion is that youth groups are reluctant Funding to come to the Park or engage with social enterprise organisations owing to a fear of Another common concern raised by the “being lectured”, but when an opportunity is stakeholders was funding support and, as with “wrapped up” in a more “socially acceptable” any business, resources need financial (or proposition, acceptance rates are higher. Value in Kind) support from external sponsors. The success of non-Park led initiatives such In addressing some of these points, reference as LDN UTD, British Esports Association can be made to existing schemes that are and the NUEL are reliant upon third-party engaging with communities and how they can funding. This can lead to highly successful help understand effective communication partnerships aligned with common goals, strategies. Two such initiatives are Digital such as The NUEL’s partnership with Amazon Schoolhouse and Into Games. Details of both

Esports Feasibility Report for the Amazon University Esports project. of these initiatives can be found in Appendix E. STAKEHOLDER THOUGHTS FROM THE PARK 28 — 51

For a smaller games company, UKIE helps bridge that resource gap. With their network and combined experience, we are able to scale our resources as we need them in a way that we just couldn’t do on our own.”

Maria Sayans, CEO of ustwo games

Both examples are run by UKIE, the UK these are a response by the government Interactive Entertainment Association Limited, to DCMS’ Select Committee Report on who is the UK trade association for the video Immersive and Addictive Technologies, games business. Two contributing factors published in June 2020, which identified to their success are their partner network, gender inequalities in the games industry. including AAA publishers such as Nintendo, The pledge of these initiatives includes: SEGA, Riot Games and many others. With such a strong network, coupled with a strong pool e to promote and foster diversity and of human resources specialising in different inclusion in the games industry, where but complementary sectors, this provides everyone belongs and ideas can thrive. a robust base to identify opportunities for wider community engagement. Furthermore, e to inspire games businesses to as a not-for-profit, their revenue stream is champion and foster diversity and based on a subscription model across three inclusion within their organisations. tiers: student, partner and full membership, with members being offered a range of e to drive meaningful cultural and support services that have been carefully behavioural changes that create a more identified to realise opportunities. diverse and inclusive games industry.

“For a smaller games company, UKIE helps The details of the Tech Talent Charter bridge that resource gap. With their network include similar pledges to provide greater and combined experience, we are able to equality in the games industry workforce. scale our resources as we need them in a way that we just couldn’t do on our own”. Finally, as the British Esport Association’s Maria Sayans, CEO of ustwo games. collaboration with Pearson Education has indicated, the appetite for learning about As detailed in the next and final chapter, the video games and esports industry is recommendations and ideas will be ever-growing. No longer is it the privilege considered as to how these barriers can of those in higher education to study be overcome between Park stakeholders esports but now those students in further (commercial, education and venue bodies) education can learn about what this and the wider communities, to centralise industry can offer them at the age of 16. and realise genuine opportunities across education, engagement and employment. If Such opportunities need to be shared with these three broad areas can be aligned with community stakeholders in conjunction a centralised strategy, then the development with ambassadors who will be well received of a cluster at the Park has huge potential. by youth networks to legitimise such opportunities. If the collective ambitions The appetite for engagement does not of these collaborations can provide ”light need to be contained in a standalone bulb” moments for tomorrow’s talent project but can be coupled with other then this can be deemed a success. initiatives across education, industry and commercial interests, such as Raise the Further recommendations and suggestions

Esports Feasibility Report Game and Tech Talent Charter. Both of will be discussed in the next and final chapter. RECOMMENDATIONS AND NEXT STEPS 29 — 51 Recommendations and Next Steps

This report highlights the importance of the relationship that exists between four factors: Commercial, Community, Education and Opportunity (see figure 14). These need to be aligned to ensure there is development of a cluster and continued success. It is through clarity of message and the selection of the right partners to help communicate these opportunities that will determine success and

Esports Feasibility Report reach among the community. RECOMMENDATIONS AND NEXT STEPS 30 — 51 Internal and External Communication Strategies

There is an opportunity for a collective voice that brings together all of the Park stakeholders individual activities and creates a consistent and amplified narrative. This would help ensure opportunities for all stakeholders reach the broader marketplace as effectively as possible.

To achieve this the following actions will be considered:

e Create a dedicated, specialist individual/team to deliver the “central voice” that can publicly draw attention to specific audiences and champion the shared message. Education e Development of a “Park-wide” package/offering as part of a sales and marketing strategy. This can be used to create campaigns that will drive new business opportunities. Cluster Community Opportunity Success e Devising cross-commercial partnerships to “win” business that can support the overall objectives of an esports and video games cluster at the Park. Bringing the Park Commercial & stakeholders together to collaborate Employment and prevent “siloing of businesses”.

e Develop a formalised outward communication strategy to celebrate Park-wide endeavours, achievements, and collective contributions to Figure 14 - Attributes

Esports Feasibility Report the overall cluster objectives. for cluster success RECOMMENDATIONS AND NEXT STEPS 31 — 51 Commercial Partnerships Identification and Selection

The Park has a reputation for successfully drawing internationally renowned partners to it and already has businesses within the games industry such as Sports Interactive, Staffordshire University, Pearson College and BT Sports.

When reviewing the opportunities to identify, engage and grow commercial partnerships there are some key actions that we will consider:

e Create a dedicated communications team to identify opportunities for bringing external partners to the Park, that will support existing education and engagement initiatives as well as fostering new schemes that may lead to having a presence at the Park.

e Research and identify partners to align with to deliver Park-wide central initiatives.

e Create youth engagement partnership opportunities; devising initiatives that can be utilised for external commercial business involvement. See figure 15, Microsoft (Minecraft Education Framework project)

Figure 15 - Minecraft Strategic development Education Edition Soft skills Credit: Stephan Reid, Microsoft

Connect with Establish your Be strategic Roll it out colleagues esport program

Start with students Get focused Grow, grow, grow Pilot and review

Esports Feasibility Report Stakeholder engagement Managing esport pilot RECOMMENDATIONS AND NEXT STEPS 32 — 51 Wider Stakeholder Community Engagement & Opportunity Pathways to Foster Talent

A dedicated esports engagement strategy is needed to maximise the growth potential of this sector and provide opportunities for the Park to engage further with host borough communities on new opportunities emerging through a significant esports cluster. The strategy will address: the relevance of the message, the means of communicating those messages and ease of engagement for the target audience.

This strategy can benefit from use of the opportunities. By working with commercial existing mechanisms that LLDC, Here East partners and using already available and other Park partners have in place for resources on the Park, this can facilitate stakeholder and community engagement. the development of an education and In particular, the existing relationships with skills programme that showcases ‘home- youth networks will be a real strength in terms grown’ talent and opportunities. This is of communication about the games business. precisely what the Good Growth Hub sets out to deliver. The LLDC, Here East The growth of a “hub” is dependent on and other Park partners have developed local talent. With the collective resources successful mechanisms for engaging that the Park has, as well as the legacy with employers and attracting local young vision that is at the core of the Park’s remit, people into other growth sectors located comes the potential to create pathways at the Park, including built environment, for greater learning and development digital technology and creative business.

Credit: Queen Elizabeth Olympic Park Esports Feasibility Report RECOMMENDATIONS AND NEXT STEPS 33 — 51

Credit: Ben Cremin

In developing a community engagement strategy, the following actions will be considered:

e Engage with the existing youth networks recorded) in conjunction with a content and partner relationships already programme that informs, engages and identified either via schools, existing inspires a target audience, real pathway partners (e.g. Badu Sports), or via opportunities can be showcased ambassadors/influencers to gain an understanding of what the community e Develop a programme of events that is aware of and what they want to can inspire and engage the youth know more about within esports. community networks. Leverage the relevant connections within the Park’s e Consider the means of communication, network that can be approached work with known engagement groups to support this initiative. to devise a means of reaching out to the community and consider how best to e Assess existing initiatives such as engage - identify where the touch points those of LDN UTD, Badu Sports, Rio are. Use milestone community events Ferdinand Foundation, Good Growth such as the national Careers Week as Hub, East Summer School etc to a mechanism for engaging with the understand how an engagement community. Provide opportunities for strategy at the Park can complement their thoughts and opinions to be heard. these existing initiatives as well as identifying other pathway opportunities e Utilise the Park resources such as the Copper Box Arena, London Stadium e Already in action - nine scholarship and the Podium as platforms for programmes being delivered at Here community engagement. Host in-person East, commercially funded and focused

Esports Feasibility Report events (that can also be streamed and on building key skills in esports. RECOMMENDATIONS AND NEXT STEPS 34 — 51 Games Industry Incubator

Investment in a community- focused or commercial-focused incubator, in conjunction with an education/awareness programme would provide opportunities for a wider community catchment and further support the development of a games cluster at the Park.

For this opportunity we will consider the following actions:

e Review opportunity and feasibility to develop an esports/games industry accelerator/ incubator at Plexal with a view to encourage partnerships with investors, associations, and be the catalyst for growth.

e The incubator concept could be considered in partnership with either existing Park stakeholders or those imminently arriving.

Credit: Plexal Esports Feasibility Report METHODS OF RESEARCH 35 — 51 Methods of Research

Underpinning the entirety of this research is the following question. What would be the commercial and community benefits of developing an esports / games industry cluster at Here East and the wider

Esports Feasibility Report Queen Elizabeth Olympic Park? METHODS OF RESEARCH 36 — 51

SCR Modelling

In researching this question, the author will undertake both comparative analyses of other hubs as well as collecting empirical data from stakeholder interviews. This paper will draw conclusions from this data collection and document a series of suggestions that could be considered to aid the development of a cluster for commercial gain, as well as greater stakeholder engagement.

A McKinsey framework has been adopted The use of this model in the context of to identify how the suggestions can this research is explained below: be adopted around three aspects: Situation e Situation (S) The collective stakeholders at the Park e Complication (C) are attracted to the idea of being more involved with the games industry. e Resolution (R) Complication

The commercial stakeholders are time poor and have their own agendas and associated complications that they need to focus on. They are not aware of how the other businesses in the Park are involved with the Games Industry and they feel “siloed”.

Resolution

The introduction of a new resource that is dedicated to understanding the collective ambitions of the various stakeholders in the Park and can provide both an internal communication resource as well as publicise the work externally.

While this is a fairly simple model, the author feels that adopting this framework will provide clarity for recommended next

Esports Feasibility Report steps, along with associated timelines. METHODS OF RESEARCH 37 — 51

Stakeholders

The speed at which the games industry and in particular the esports sector is growing is unprecedented, with CAGR expected to reach 10.5% between 2021 and 2026 (Mordor Intelligence). Such growth offers fresh opportunities for those investing in this sector, but drawing comparisons with other business sectors to understand future trends would be inappropriate. This is owing to the phenomenal growth of this new form of digital entertainment and investment from non- endemic entities such as venture capitalists, with reports from Deloitte (Business Insider) of YoY investment from VCs rising to $4.5 billion in 2018 from just $490 million the year before.

Given the above, a decision was made to Staffordshire University, etc) or indirectly conduct interviews with “stakeholders” across (London Stadium / 3 Mills Studios). two categories, namely commercial entities and community representatives. It is the The questions devised for each interview balance of interest between financial success were structured around a past, present and (comparable to “Shareholder Theory”, a term future model to help understand what effect coined by Milton Friedman in the 1960s) and being associated with the Park has had on a business considering the wider community either business operations or community (Stakeholder Theory, as defined by Edward engagement. In posing these questions, Freeman in 1984) that is the central tenet of it provided the interviewer with a broad the London Legacy framework and defines the understanding of the combined benefits of legacy promises made to the host borough businesses being located at the Park and what communities in the London 2012 Olympic foundations are in place for games industry and Paralympic Games hosting manifesto. growth. Besides, the answers provided an insight into how businesses are using the The initial list of stakeholders identified popularity of gaming to engage with local for interviews was compiled between the audiences and create opportunities. author and Lauren Archer from Here East and included a broad range of entities In assessing the success of this method across both commercial and community of research, the author has to recognise focused groups working with the youth age that the research was limited to a relativity groups around the four host boroughs. At small number of interviewees and a lack of the heart of those stakeholders selected engagement with some of the stakeholders was their involvement with the games selected due to commercial commitments

Esports Feasibility Report industry, either directly (Sports Interactive/ or a reluctance to share their thoughts. METHODS OF RESEARCH 38 — 51

Community Groups

Given the rich heritage of the London Legacy commitments, the author was invited to join the Youth Engagement Network Meeting in early December 2020. This was an opportune moment to engage with several different youth community groups representing a wide variety of organisations including West Ham F.C., Badu Sports, Catalyst in the Communities and a number of local schools and colleges.

The general consensus from the Firstly, how are the voices of the youth groups being call, and subsequent follow up heard and which groups should be the focal point conversations with those attending of engagement? Any “polling” questions need to be the meeting, was that the games carefully devised to not marginalise communities industry is hugely popular and relevant (for example, those that might not have PCs or to the youth communities in the host consoles) and there has to be an incentive for boroughs. Some stakeholders on the the community groups to share their thoughts. call, including Badu Sports and Catalyst in the Communities, are already using Secondly, how should the idea of “polling” the the games industry to engage, inform community be introduced to these groups? and enlighten youth community groups Should this be through targeting groups and on the opportunities that the industry “offline” engagement, e.g. group chats or to a could offer them as a vocation. wider audience via an online mechanism?

While the ambition of some of the It is the popularity of gaming culture that groups is evident from both the is driving the world of esports and this is a meetings that the author attended golden opportunity for engagement with and subsequent calls/meetings, youth networks; recommendations will be a number of complications were made in the following chapters as to how

Esports Feasibility Report revealed during the research. the above questions are addressed. METHODS OF RESEARCH 39 — 51

Clusters

One of the key drivers of this research was to understand the opportunities of creating a games industry/esports cluster/esports hub (or cluster) at the Park. How would this be achieved; what would the benefits be to the immediate community on a permanent basis and visitors on a temporary basis? The idea of attracting specific industries to a designated location has been used across the creative industries and most recently with the UK creatives services tax relief, which has seen several Hollywood blockbusters movies being shot in the UK.

However, are there other benefits and Can these examples provide insight as to opportunities associated with locating how the creation of a cluster can lead to at the Park? In answering this question, success and what this represents from several other locations around the world both a commercial standpoint and the wider have developed clusters and the report community stakeholder opportunities? will look at how these clusters first formed and the benefits that they have The report will focus on a selection of experienced from being located where clusters across the globe and these have they are, as well as the benefits they have been selected based on the following types: offered to the local and wider community. e Incubators While no two locations are the same, and a number of factors can affect the e Naturally forming success of a business being located in that area, comparisons will be drawn e Transformative from identifying other locations as well as the complications and resolutions Because this report needs to be concise that were experienced in developing and “cherry-pick” cluster examples, such clusters. The report will aim to a small selection of clusters will be look at the different reasons for these selected across Europe, Asia and North clusters developing and how the cluster America. These will be representative of

Esports Feasibility Report has matured since conceptualisation. the three cluster types listed above. APPENDICES

40 — 51 Appendix A Case study Katowice: transformed economy

Credit: ESL / Maciej Kolek

The city of Katowice in southern Poland concentrate on the esports industry, hosting was built around the coal industry, which the world-renowned Intel Extreme Masters prospered until resources were depleted (IEM) at the Spodek Arena in 2013, run by ESL. and the city needed to transform its economy to a new industry. The Katowice With 11,000 people attending the event, Special Economic Zone was created the success can be attributed to a in 1996 to support and accelerate the number of different factors including: restructuring of the economy and consists of 2750 ha in 48 municipalities. e A central European location with good transportation links to a proven With 25,000 students graduating from esports fan base (IEM features LoL, Katowice’s universities each year, access CS:GO and StarCraft) all of whom are to talent is plentiful and, combined with hugely popular in Eastern Europe. excellent technical facilities, has meant brands such as Deloitte, Ernst and Young, e Support from the regional government and and IBM have opened offices in the city. The local authorities to host the tournament, transformation project is known as “The Zone with Katowice’s city council allocating 12.5 of Culture” and has resulted in 450 business million PLN (3.38 million USD) towards IEM entities currently operating in the zone Katowice promotion; a state-of-the-art investing PLN 42 billion (11.35Bn USD) in the stadium hosting 11,500 people in a city area as well as creating 80,000 new jobs. with a reputation for technical innovation.

With a decision to focus on technology as e A large student population of 25,000-

Esports Feasibility Report part of the transformation, the city agreed to people with a love of esports. APPENDICES 41 — 51 Appendix B Case Study Blast Pro Series, Danish esports and governmental support

Credit: Blast Pro Series

Blast Premier is a world-renowned esports has led to a national strategy for esports, tournament organiser/broadcaster with with an emphasis on healthy environments its roots firmly planted in Copenhagen, for gameplay, and its success is acclaimed Denmark – the city in which they formed as a driving force for positive growth. and from which they still operate. Such is the support for esports from the With a close association with two Danish government that the Prime Minister of internationally recognised teams, Astralis the country at the time, Lars Løkke Rasmussen, and North, both of whom compete in the inaugurated the final day of the Blast Pro Tier 1 Counter Strike Global Offensive Series esports competition in November esports world circuit, Blast is in the fortunate 2018. He addressed the finalists as follows: position of being able to run tournaments to a homegrown Danish fan base. Such is “You have not wasted your time. Your the popularity of esports in Denmark, as explanation days are over. You’re truly well as the fan base for these two teams, sportsmen, following your dreams: e-gaming that the Danish government has a vested pioneers! The game has brought people from interest in supporting the esports industry. all continents and religions together. You are the inspiration for the world of tomorrow.” So much so, that the previous Danish Minister for Culture, Mette Bock stated: The Prime Minister’s thoughts reached a “We must ensure a good framework for the wide audience, with the tournament being sport. Esports is in fast-paced sporting broadcast in 17 languages via Twitch, and economic development, where Danish as well as on terrestrial channels to over

Esports Feasibility Report sportsmen are in the world elite.“ This support 120 countries across five continents. APPENDICES

42 — 51 Appendix C Stakeholder Communication Completed Interviews

LLDC

London Stadium

British Esports Association

Blast

Staffordshire University

3 Mills Studios

NUEL

Plexal

London & Partners

QEOP

Badu Sports

LDN UTD

London Games Week

Singapore Sports Hub

Loughborough University

Here East

UKIE

SI Games

Esports Feasibility Report FACEIT APPENDICES

43 — 51 Appendix D Youth Engagement Network

Meeting 1 December 2020

Unicef Education The Yard Theatre

East Village Management Parents Youth Badu Sports Education on Career soft skills that opportunities for Stratford Circus gaming provides young people

Catalyst in the Communities

We Are Spotlight Communication of We Are Kaizen Opportunities

Leaders in Community

Ape Media Education Aspirational Heroes BTEC via BEO West Ham degrees via Royal Ravens, the Staffordshire Premiership stars Community Coaching Academy Their Opinions URW Let's hear their voice Newham

The Yard Theatre Local Resources and Hackney Quest Ambassadors

Newham Music

UCL LDN UTD Copper Box Arena Rio Ferdinand Here East E20 West Ham FIFA Use as a platform Royal Dock for comms / voice

Esports Feasibility Report London Legacy APPENDICES

44 — 51 Appendix D Key Takeaways From Discussions With Stakeholder Groups

The good news stories

e SI Games using the community for ideation

e Here East Strategic Forum

e Here East Insights where businesses are explaining the opportunities Scholarship Programmes for Here East

e British Esports Association plans Beyond the Box Initiative offering greater engagement

e Tenants are made aware of their community engagement roles at the time of discussing tenancy contracts

The issues

e “Different and separate initiatives”

e “Limited resources”

e A collective voice that celebrates success is missing?

e “Siloed businesses”

e “Lack of sharing knowledge”

e “Missing a Park-wide strategy”

e Finding a platform for engaging with the communities in a collective way

The possibilities

e A collective voice that can centralise all the Park-wide initiatives

e An overarching PR / marcomms entity that combines all stakeholder success stories as well as developing Park- wide propositions for short - (events) and longer-term opportunities

e Using Here East or the CBA for regular

Esports Feasibility Report community engagement sessions APPENDICES

45 — 51 Appendix E Community-led Initiatives

Digital Schoolhouse Into Games

Digital Schoolhouse is a not-for-profit UKIE This not-for-profit organisation initiative, aimed at school children to enable describe themselves as: “We are them to realise the creative freedom of a non-profit that supports people video games development. They describe in finding rewarding careers in themselves as a not-for-profit programme the games industry. Our projects which enables primary schools to experience connect education and industry while free creative computing workshops from providing guidance for learners from their local schoolhouse. Combined with primary school upwards. We primarily ingenious computing, the programme work with underrepresented groups.” also engages thousands of students with its pioneering and immersive careers The central objective of the project is education. Schoolhouses are not charged to help youth communities get “into for their participation in the programme, games” by providing them with the nor for the support that they receive. education, skills and opportunities to open fresh opportunities for seeking UKIE, in partnership with Nintendo, is a career in the games industry. “future-proofing” the video games industry The scheme offers a number of by providing engagement and opportunity services, including mentorship realisation for the digital talent of the future. programmes from industry This is achieved through three pillars: professionals and Videogames Ambassadors programmes, which Education - providing information facilitate talks and workshop about what computing offers through sessions where ambassadors visit exploration and innovation. schools and groups to explain more about what a career in the Skills - enabling teachers to use computing to games industry might offer. harness their own creativity in the classroom. The organisation has partnership Inclusion and diversity - by enabling all agreements in place with UKIE, students to have the skills to succeed Music Week and collaborate

Esports Feasibility Report in the video games industry. with Activision Blizzard. APPENDICES

46 — 51 Appendix F Draft community “polling” questions created by the author and shared with the LLDC

How often do you play video Have you ever considered a career in the games each week? games industry? If no, is that because a) you are not interested b) you are interested What do you play games on? but don’t know how to gain the skills Mobile / console / PC? needed for a role c) something else? If yes, what role would you be interested in? Do you own an Xbox / PlayStation? If you have considered a career in Do you own a PC that you game on? the games industry, do you know what subjects are needed to pursue If you do game, what games do you play? a career in the games sector?

Do you watch gaming content online? Are you aware you can now study a BTEC in the games industry? What platforms do you watch content on, e.g. YouTube / Twitch / Is this something you would be Facebook Live / Instagram, etc? interested in know more about?

Have you watched or would you watch non- Would you like to see more gaming events gaming influencers playing games, e.g. happening in Stratford for, example previews celebrities/musicians/sports personalities? of new games or interviews with the games publishers about game development? Are you interested in Artificial Reality and Virtual Reality? Are you interested in joining local games tournaments online if all Can you estimate how many different the hardware (consoles or PCs and roles and positions contribute to making monitors were available to use? a video game ready for the public to play, e.g. Fortnite and FIFA 21? Would you like to see more career opportunities in the games industry

Esports Feasibility Report Can you name any games publishers? being offered in Stratford? 47 — 51 References

Page 2 Page 14 giants-avoiding-millions- in-uk-tax-sony-sega https://resources.newzoo. “Understanding a new com/hubfs/Reports/ generation incubation Page 27 Newzoo_2018_Global_Games_ model : The accelerator” Market_Report_Light.pdf https://esportsinsider. https://www.researchgate. com/2020/02/amazon- Page 4 net/publication/283536940_ university-esports-launches/ Understanding_a_new_ https://www.stakrn.com generation_inc ubation_ https://ukie.org.uk/our- model_The_accelerator members/why-join Page 6 http://baltic-games.eu/ Page 28 https://newzoo.com/ files/bgi_game_incubation_ products/reports/global- https://publications.parliament. in_europe_2020.pdf uk/pa/cm201719/cmselect/ games-market-report Page 15 cmcumeds/1846/184604.htm Page 7 https://www.gamesindustry. Page 34 https://www.bbc.co.uk/news/ biz/articles/2019-05-02- https://esportsobserver. newsbeat-46757989 danish-government-launches- com/cxmmunity-eg esport-strategy-to-foster- https://www.gov.uk/government/ growth-and-tackle-toxicity https://www.gamesindustry.biz/ publications/government- articles/2021-01-13-payload- response-to-the-digital- Page 16 studios-launches-incubator-for- culture-media-sport-select- underrepresented-developers committee-report-on-immersive- https://www.mcvuk.com/ and-addictive-technologies/ business-news/leamington- https://esportsinsider. government-response-to- spa-at-the-heart-of-the- com/2020/12/enterprise-m3- the-digital-culture-media- uk-games-industry pledges-228k-investment-in- esports-facility-basingstoke sport-select-committee- https://technation. io/ report-on-immersive-and- news/ubisoft-newcastle addictive-technologies Page 37 Page 17 https://www.mordorintelligence. Page 9 com/industry-reports/ https://theconversation.com/ global-games-market https://newzoo.com/ the-uk-games-industry-is- products/reports/global- bigger-than-ever-but-it-may- https://markets.businessinsider. games-market-report not-be-sustainable-32459 com/news/stocks/tiga-research- Page 11 shows-uk-video-games- https://esportsinsider. industry-on-course-for-growth- com/2020/09/nlae- in-2021-1029962163?op=1 https://esportz. in/rio-ferdinand- esports-arena-dundee foundation-joins-mayor-of- Page 41 london-to-address-youth- https://www.nesta.org.uk/report/ unemployment-via-esports a-map-of-the-uk-games-industry https://esportsinsider. com/2019/04/denmarks- Page 12 Page 18 ministry-of-culture-announce- new-esports-strategy https://creativeterritories. https://www.gamesindustry.biz/ dcrc.org.uk/2015/07/02/the- articles/2013-05-22-gaming- https://www.talkesport. good-hubbing-guide-is-here tax-credits-a-developers- com/news/prime-minister- guide-to-free-money of-denmark-rasmussen- https://media.nesta.org. inaugurates-finale-of- https://www.gamesindustry.biz/ uk/documents/creative_ blast-pro-series clusters_and_innovation.pdf articles/2013-05-22-gaming- tax-credits-a-developers- Page 45 Page 13 guide-to-free-money https://www.digitalschoolhouse. https://issuu.com/ https://www.theguardian. org.uk/about creativeterritories/docs/ com/games/2019/oct/02/

Esports Feasibility Report good_hubbing_guide revealed-global-video-games- https://intogames.org/about 48 — 51 Glossary

3 Mills Studios - film studios located LLDC - London Legacy next to Queen Elizabeth Olympic Park Development Corporation

Badu Sports - a social enterprise that focuses LDN UTD - London United is a British on education and community development grassroots esports association using sports as a tool of engagement Nintendo - an international video BEA - The British Esports Association games publisher as well as a console manufacturer. Best known for Super Mario Black and White - a God-like video game produced in 2001 by Lionhead Studios NSE - National Student Esports - the official and published by Electronic Arts body of university esports in the UK

Capcom - an international video games Offline - an event that is broadcast on the publisher known for StreetFighter internet and is held in front of a live audience

Catalyst in the Communities - is an ethical Online - an event that is broadcast on not-for-profit social enterprise working the internet without an audience with the host borough communities Park - Queen Elizabeth Olympic Park

CoD - Call of Duty Payload Studios - an independent games studio based in London Codemasters - an international video games publisher Populous - a video game originally produced in 1989 by Electronic Arts and Bullfrog Copper Box Arena - a 3,000-seater arena located at Queen Elizabeth Olympic Park Rockstar North - a games studio and producer of Grand Theft Auto CS:GO - Counter-Strike Global UKIE - Association for UK Offensive - a PC-based game which is Interactive Entertainment one of the most popular esports titles The NUEL - National University Esports CWL - Call of Duty World League League which is one of the biggest Dutch Game Garden - a games university esports organisers in the UK industry incubator SEGA - an international video games DCMS - Department for Digital, publisher known for Sonic the Hedgehog Culture, Media and Sport StarCraft - a military science fiction game owned by Blizzard Entertainment EMEA - Europe, Middle East and Africa Twitch - the Amazon-owned platform Enterprise M3 - a local enterprise partnership that has a large market share of video covering a region from Newbury to Guildford games and esports online viewership Gamefounders - a Tallin based UCL - University College London games industry incubator ustwo games - a BAFTA award- Guildford - town 35 miles southwest of winning independent game studio London with a population of 500,000 VGTR - Video Games Tax Relief HBCU - historically black

Esports Feasibility Report colleges and universities YoY - Year-on-year