The government has an ambitious plan to expand Japan's esports industry with the private sector to help revitalize regional economies and increase social participation by people with disabilities, with an eye to generating ¥285 billion ($2.6 billion) in economic benefits a year by 2025, sources close to the matter said.

The global esports market is estimated to be worth ¥100 billion, with the United States, China and parts of Europe seeing fast growth. In Japan, however, competitive gaming hasn't really caught fire as a sports event, and the video game market remains dominated by single-player titles designed for smartphones and the gaming consoles of Nintendo Co. and Sony Corp.

The Ministry of Economy, Trade and Industry will work with companies and legal experts to draw up guidelines for promoting Japan's esports industry, which lacks expertise in organizing large tournaments and dealing with intellectual property rights and other legal issues related to game developers, the sources said.