Electronic Sports Industry in China: An Overview

242 Pages·2023·5.046 MB·English

by  Peng Duan, Xiaohui Wang, Allan Yijia Zhang, Bin Ji

Peng Duan · Xiaohui Wang ·
Allan Yijia Zhang · Bin Ji
Electronic
Sports
Industry in
China
An Overview
Electronic Sports Industry in China
· · ·
Peng Duan Xiaohui Wang Allan Yijia Zhang
Bin Ji
Electronic Sports Industry
in China
An Overview
This Book is the Output of the Grant Supported by TiMi
E-sports, Tencent Interactive Entertainment Group.
Peng Duan Xiaohui Wang
Communication University of China Communication University of China
Beijing, China Beijing, China
Allan Yijia Zhang Bin Ji
Tencent Interactive Entertainment Group Tencent Interactive Entertainment Group
Shenzhen, China Shenzhen, China
ISBN 978-981-19-9287-2 ISBN 978-981-19-9288-9 (eBook)
https://doi.org/10.1007/978-981-19-9288-9
© The Editor(s) (if applicable) and The Author(s), under exclusive license to Springer Nature
Singapore Pte Ltd. 2023
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Foreword
Introduction to Electronic Sports Industry Textbook
Electronic sports or E-sports is a digital entertainment activity that combines tech-
nologies, sports, culture and social and has unique commercial and user value. With
its rapid rise in this century, E-sports now has developed into an emerging sector
having huge growth potentials and innovation spaces. As its size continues scaling
up and the connected effect gets expanded, China’s E-sports industry led the globe in
the growth rate of 2020, its output totaling about RMB 75.198 billion and bringing
new momentum for national economy.
As a new cultural phenomenon, E-sports is adequately politically, economically,
culturally and socially qualified for playing a role of information technologies to re-
participate in organising human social activities. The emergence and transmission
of E-sports culture embody the richness of sub-cultural phenomena and significance
of multi-cultural space and have a positive effect on improving people’s competitive
spirit, intelligence, aesthetic taste, etc.
However, during the COVID-19 pandemic, China’s E-sports industry was faced
with many problems, such as lots of competitions suspended, management difficulty
and brand devaluation, all causing impediment to its progress. Even so, Chinese E-
sports users are increasing, the user circle is extending, and the online market share
is sharply raising, all of which lay a user foundation for the industry. Moreover, new
technological advances like 5G, VR and AR provide much more opportunities for
the innovation and progress of China’s E-sports industry.
This book on one hand will describe a series of studies on development status-quo,
characteristics and trends of China’s E-sports industry and analyse the key problems
to help the industry avoid potential risks, seize development chances and promote
industrial drivers. On the other hand, it will provide feasible plans and strategic
suggestions for the high-quality innovation and development of the industry. In
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vi Foreword
addition, this book aims to guide readers to think from many aspects, think across
disciplines, improve their professional qualities and help readers gain necessary
abilities to observe, judge, analyse and practise. As a result, this book can be not
only used by colleges and universities as a fundamental textbook, but also used by
E-sports-related researchers, as well as by E-sports enthusiasts as reference material.
Beijing, China Peng Duan
Beijing, China Xiaohui Wang
Shenzhen, China Allan Yijia Zhang
Shenzhen, China Bin Ji
Preface
As the third-party statistics showed, the views of the “Honour of Kings” E-sports
amounted to 73 billion in 2020 alone, which is a mind-boggling figure in every sense.
I take pride in such a feat accomplished by the E-sports product itself. This figure
also reminds me that apart from our team members, a remarkably sophisticated and
efficient industry chain lies behind it. As the copyright owner of this E-sports, we
know all too well that every decision we make and every tiny product change will
permeate a broad spectrum of enterprises and practitioners in this chain.
The figure of 73 billion also means that with the world’s population now hitting
eight billion, our E-sports product is viewed approximately ten times per capita annu-
ally on a global scale. The content-based product not only aims for consumption but
also acts as a carrier to convey our goodwill messages, which I hope can be heart-
ening and morale-boosting to viewers, fitting seamlessly into Tencent’s unwavering
philosophy of “Technology for social good”. Honour of Kings is not just a game—
we have the social responsibility to pass on Chinese history to young people, seeing
education as society’s responsibility.
When making every decision, I must weigh various factors, considering a multi-
tude of practitioners in the industry chain and a sea of users influenced by the content. I
have witnessed the whole evolution of E-sports from mainframes, and PCs, to mobile
devices that prevail today, which has been gradually recognised by and garnered the
attention of mainstream society. In an era of mobile E-sports, trailblazed by the
“Honour of Kings”, a complete series of spin-off tournaments has emerged, such
as the Honour of Kings International Championship (KIC), the King Pro League
(KPL), the KPL G-League (KGL) and the National Championship, enriched by
college competitions and the world’s first Honour of King Woman Open. Events in
other parts of the globe are also being incubated and inaugurated. Among them, the
KPL, an international top-notch mobile E-sports icon, participates in the meteoric
rise and boom of mobile E-sports and, more importantly, is the founder of this realm.
And this constitutes merely a tiny fraction of TiMi E-sports’ wide range of sophis-
ticated E-sports products, including Call of Duty: Mobile (CODM) and QQ Speed,
with more products of different categories on the horizon. All this means that an
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viii Preface
organisation like TiMi E-sports must shoulder more responsibility in the industry’s
service.
As an emerging and burgeoning sports industry, TiMi E-sports is developing into
a vast “super digital scenario” thanks to its technologically empowered extensibility
and emotional bonds linked by sportsmanship, with more of its value and possibilities
manifested in fuelling cultural exchange and economic growth. I hope the book,
brimming with my observations, helps readers take a closer look at the E-sports
industry.
Last but not least, I express my special thanks to Prof. Peng Duan and his team at
the State Key Laboratory of Media Convergence and Communication at the Commu-
nication University of China. Without their efforts, this book wouldn’t have been
possible. We conducted thorough fieldwork, in-depth interviews and text analysis
at a challenging time caused by the COVID-19 pandemic that interrupted healthy
global communication. I firmly believe this book can be a landmark research output to
present the vision of China’s E-sports industry. I hope the TiMi E-sports can continue
strengthening our relationship with Prof. Peng Duan and his team and co-build Digital
Creativity Institute.
Allan Yijia Zhang
GM, Tencent Interactive Entertainment
Group TiMi E-sports;
GM, Honour of King Global E-sports
Development Centre
Shenzhen, China
Contents
1 Overview of E-sports .......................................... 1
1.1 Explanation of E-sports ................................... 1
1.1.1 Definition of E-sports ............................. 1
1.1.2 E-sports Characteristics ............................ 8
1.1.3 E-sports Classification ............................. 15
1.2 Understanding of Related Concepts ......................... 18
1.2.1 Games and Online Games .......................... 18
1.2.2 E-sports and Online Games ........................ 19
1.2.3 E-sports and Athletic Sports ........................ 20
1.2.4 Overview of Mobile E-sports ....................... 22
1.2.5 Game Theory .................................... 24
References .................................................... 26
2 Development History and Status-Quo of Global E-sports .......... 27
2.1 Development Journey of Global E-sports Industry ............. 27
2.1.1 Budding Stage ................................... 29
2.1.2 Growth Stage .................................... 32
2.1.3 Maturation Stage ................................. 34
2.2 Development Status-Quo of Global E-sports Industry .......... 36
2.2.1 Industry Scale .................................... 37
2.2.2 E-sports Events ................................... 38
2.2.3 E-sports Culture .................................. 40
2.2.4 User Portrait ..................................... 41
2.2.5 Business Model (Diversified) ....................... 43
References .................................................... 46
3 Development Environment of China’s E-sports Industry .......... 47
3.1 Economic Environment ................................... 47
3.1.1 Global Economic Development Situation ............. 47
3.1.2 China’s Economic Development .................... 48
3.1.3 Rise of Virtual Economy ........................... 49
3.2 Social Environment ....................................... 50
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x Contents
3.2.1 Development of the Internet and Video Games ........ 50
3.2.2 High Acceptability Among Young Generations,
Popularization .................................... 51
3.2.3 Increased Social Acceptance, Listed as a National
Athletic Sport .................................... 52
3.3 Policy Environment ....................................... 53
3.3.1 Industrial Policy .................................. 53
3.3.2 Local Support (City Comparison) ................... 54
3.3.3 Regulatory Mechanisms ........................... 54
3.3.4 Industry Standards ................................ 67
3.4 Development of the E-sports Industry During Covid-19
Epidemic ............................................... 68
References .................................................... 73
4 Development History and Status-Quo of China’s E-sports
Industry ...................................................... 75
4.1 Development Overview of China’s E-sports Industry .......... 75
4.1.1 Industrial Composition ............................ 75
4.1.2 Development Stage ............................... 82
4.1.3 Competitive Landscape ............................ 86
4.1.4 Management Mode ............................... 92
4.1.5 Core Links ....................................... 93
4.2 Development Scale of China’s E-sports Industry .............. 98
4.2.1 Market Size ...................................... 98
4.2.2 Revenue Size ..................................... 99
4.3 Development Characteristics of China’s E-sports Industry ...... 101
4.3.1 Sustained and Rapid Development, Great
Potential for Industrial Progress ..................... 101
4.3.2 Continuous Refinement of the Industry Chain,
at the Early Stage of Industrial Development .......... 102
4.3.3 Gradually Diversified Competitive Events,
MOBA Becoming Mainstream ...................... 102
4.3.4 Innovative Development of 5G Technology,
Promoting the Upgrading of the E-sports Industry ..... 103
4.4 User Characteristics of China’s E-sports Industry ............. 104
4.4.1 Age and Gender Distribution ....................... 104
4.4.2 User Spending Power ............................. 105
4.4.3 Psychological Characteristics of User Behavior ....... 106
References .................................................... 108
5 Comparative Analysis of Global E-sports Industry ............... 109
5.1 Analysis on Business Models of the E-sports Industry ......... 109
5.1.1 Fundamental Theories of Business Models ........... 109
5.1.2 Comparison of Foreign Business Models ............. 110
5.1.3 Analysis on China’s Profit Models .................. 114
5.1.4 Future Development Trend of Business Models ....... 115