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NEXTGEN

A PROPOSED NATIONAL
CYBER GAMING COMPLEX

A Thesis
Submitted to the Faculty of the
College of Engineering, Computer Studies, and Architecture
Lyceum of the Philippines University – Cavite

In Partial Fulfillment
Of the Requirements of the Degree
Bachelor of Science in Architecture

September 2020

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College of Engineering, Computer Studies, and Architecture

Bachelor of Science in Architecture

ABSTRACT

NEXTGEN

A PROPOSED NATIONAL
CYBER GAMING COMPLEX

Joseph Adrian P. Bautista

Proponent

Ar. Alma J. Libranda

Research Adviser

The researcher conducted this study to provide an architectural design for a gaming
complex that are varied of many gaming experiences, not only limited to fun, hypness of
the game and entertainment but it involves the creativity, learning and collaboration with
the different presumed users, this proposal is also dedicated with a unique place to
socialize, and to compete. The study focused on how the Nation Cyber Gaming Complex
will impact the economic growth and the envisioned growth of E-Sports in the
Philippines.

This research contemplates the future developments required in the information

and communication to suite the demands of online gamers and eSports industry. Some of
the modern developments which can add greater facilities to the next generation eSports
industry for enhancing the future players demands are also discussed. This proposal aims
to explore some of the potential future benefits of eSports in the field of education,
training, learning and to become a professional gamer.

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CHAPTER 1

THE PROBLEM AND ITS BACKGROUND

1.1 BACKGROUND OF THE PROJECT

ESports (also known as electronic sports) are organized video games which have
become a worldwide sensation, otherwise known as a phenomenon that provides space to
a fundamental element in today's popular digital youth culture. While the study of
computer games, in general, has gained acceptance and support in the academic world
especially as a means of instructions, the scientific investigation of computer gaming as a
source of learning, also called as eSports, is still on its way towards familiarity to people.

The term eSports refers to ‘competitive tournaments of video games, especially among
professional gamers. Hence, these eSports require skills, strategies, tactics, concentration,
communication, coordination, teamwork, and intensive training similar to traditional competitive
sports. In addition, Snavely (2014) stated that the eSports system represents a unique manifestation
of traditional sport development through a digital medium. The evolution of video games from
coin-operated arcade games to team-based objective games introduced new elements of
competition which increase the potential for skill development and mastery Zhouxiang (2016).

In this sense, computer gaming is accepted as a mere leisure activity; thus, parents and
other adults do not encourage and support the activity in the same manner which garner their
attention to the negative effects of playing such sort of game including online games addiction and
social isolation. Going back to its historical track, its popularity which has been developed from a
mere “pustahan” (betting) to official tournaments resulting players to even enhance their skills as
they measure and compare their abilities with and against other players. From there, various
organizations have developed competing systems to handle these players and make it possible for
them to compete. These competitions are, indeed, held under sport-like forms, as ‘sports’,
with new label ‘Electronic Sport’ or ‘eSports’. In fact, eSports is considered as an official

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sport in various part of the world such as Korea, China, Russia, Hungary and Denmark,
eSports is considered as an official sport (Jonasson & Thiborg, 2010).

To further elaborate this eSports, discussed the fundamental similarities that exist
between physical and digital games; nevertheless, there are also differences in the
activities which pertain to the setting of the game Snavely (2014). Additionally, video
games are often described as a simulation or a virtual reenactment of a real event.
Influenced by George Dickie’s definition of art, Kutte Jo ¨nsson (1976) highlighted that
eSports competitors spend a significant amount of time playing video games, practicing
for competitions. The kind of commitment is similar to the time spent by athlete’s playing
physical sports, as mastery of certain skills takes years to achieve.

Despite the similarities, stated one characteristic which separates a game from a
sport is the physical application of skill. Similarly Freeman and Wohn (2017). The
traditional definition of modern sport involves that it is a physical, competitive and
institutionalized activity Jonasson and Thiborg (2010).

In the Philippines, the growth and popularity of esports started in the 2000s. This
was a time when other countries were already investing in the esports league. Initially,  the
esports business in the country was dominated by amateurs. Amateur players and video
game enthusiasts are known to frequent local internet and computer shops in the country
to play video-games. For players, these games are just hobbies that can serve as
entertainment after class hours or during the weekends. During this time, nobody saw
esports as a platform to play professional and earn lucrative deals.

Looking at a deeper angle of the study, a closer look at Philippine culture would
reveal that eSports was easily adapted by the Filipinos primarily due to their fatalism and
indolence. Thus, eSports is yet another manifestation of this Filipino flaw as discussed by
Jose Rizal in his work, “On the Indolence of the Filipinos.” Accordingly, this indolence

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was not innate to the Filipino, but was encouraged and magnified by Spanish colonizers
who desperately tried to live in the Philippines much like how they themselves lived in
Spain. In doing so, they brought over Spanish customs such as the sabong, jueteng; and in
the contemporary world, eSports.

Behind negative associations to the eSports, pointed that the apparent value and
several potential positive implications associated with the addition of eSports into
intercollegiate athletics and other organized sporting events like the Olympic Games
Jenny et. al., (2017). The eSports community must deal with lack of governmental
programs and support like establishing a centralized organizing body which must address
the continuing negative view on gaming in Philippine society. The industry also must deal
with its members and be conscious of its effect on the Philippine youth, which comprises
the majority of the eSports population (Ignacio, 2016).

The perception and the familiarity of the general population about eSports as an
unhealthy activity that is merely an addiction to computer games remain a powerful
ideology against eSports in the struggle to be accepted as an actual sports practice in our
society. Presently, while ESports have recently started to enjoy wide international
recognition, there is still resistance as to whether eSports can truly be considered as a
sport, and has been an issue for not only defining eSports, but also for drawing the
boundaries of what we understand as being sports in general (Hamari & Sjöblom, 2017).
This struggle with the negative perception and lack of perception of the majority about
eSports community directly affects the potential perceived social support eSports athletes
can get. Pilisuk (1982), in this matter, stated that social support pertains not only with the
material help and emotional assurance but as well as a continuous object of concern on the
part of other people.

With this understanding and consideration, student-athletes are no different with

eSports athletes as well as eSports athletes with StudentAthletes, in terms of mental

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capacities that are being evaluated in the field of academics and through strategies and
techniques during a game; thus, they are all equally excellent in their respective fields.

The Philippine eSports scene is still developing, however, and is not without its
own setbacks. The community still has to deal with lack of governmental support, needing
a centralized organizing body, and must address the continuing negative view on gaming
by Philippine society. The industry also has to deal with its members, and be conscious of
its effect on the Philippine youth, which comprise the majority of the e-Sports population.
The economic stability of the industry also still needs assistance, especially since issues of
gambling and match-fixing scandals are beginning to penetrate the e-Sports scene, and
also in order for the industry to keep itself in operation.

Nonetheless, eSports in the Philippines has yet to reach is peak; although it has
already shown signs of progress, there is still a lot of work to be done. The researcher
hopes that this study itself will be a step forward for the entire e-Sports community in the
Philippines-- now that there has been a chance to look back at the past, there should now
be more room to focus on the present, and make the necessary changes to it so that
Philippine e-Sports can continue to progress further in the future.

The researchers aimed to make everyone, especially those people in the academe
and in sports, to be more familiar about the positive sides of eSports and its possible
benefits to our society. Further, this study attempted to identify the benefits of eSports to
community through social support they need for them to continue operating and gradually
earning a decent perception from our society and eventually be considered as an official
sport in the Philippines.

There is no available official data on the eSports industry. This section relies on
publicly available information produced by private organizations (associations and
consulting companies), with the aim of summarizing recent evolution of the industry and
its future perspectives.

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The worldwide data on revenues and audience in the eSports industry, based on the
information provided by Newzoo (2016, 2017, 2018). Industry revenues increased by 500
million in the period from 2014 to 2017, and they are estimated to increase by almost
1,000 million during the period 2017-2021, reaching 1650 million in 2021. The main
markets in 2016 were United States (32%), South Korea (30%) and China (17%).
Germany was in the fourth place worldwide, leading European markets (11%). Spain was
in the tenth place with estimated revenues of 1 million dollar.

The expected cumulative annual average revenue growth is estimated at 24.2% in

the following years.6 These forecasts are in line with those provided by PwC in its last
report (PwC, 2018). In that report, eSports is placed as the sport segment with the highest
growth expectation, replacing football, which was the segment with the highest growth
expectation in the previous report.

Figure 1.1. E-Sports Worldwide: Market Revenues and Audiences

2014-2021 (In Millions).

Source: Newzoo (2016, 2017 & 2018).

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The audience grew by 130 million in the period from 2014 to 2017, and it is
estimated to increase by 222 million during the period 2017-2021, reaching 557 million in
2021. The cumulative annual growth is expected to be 13.6%. It can be concluded that the
eSports industry growth (recent and expected in following years) is mostly driven by
growth in revenues rather than in audience. Therefore, a key element for the future of the
industry is to be able to monetize the audience’s interest in eSports.

The revenues of the eSports industry come from different sources: Marketing
Support (sponsorship and advertising), Media Rights, Publishers Fees and Merchandising
and Tickets. Table 1 summarizes the data provided by Newzoo reports on the estimated
evolution of eSports revenues per stream. Marketing support revenues are estimated to
increase and remain the main source of the total revenues, 58.9% in 2018 (with a greater
increase in advertising revenues). However, these revenues are not expected to have the
greatest growth, and, therefore, they will lose weight over the total (its percentage is
60.8% in 2017). The highest growth is expected from media rights (73.7%), and
merchandising and tickets (49.9%) Publishers’ fees are expected to be maintained at an
approximately constant level. eSports is not considered to be very profitable business for
publishers in the short-term, and they are considered to be a long-term investment
(Newzoo, 2017). Therefore, the interest of the media for eSports events and the
involvement of the fans will be an important factor for the industry growth.

Figure 1.1.1: E-Sports Revenues per stream

Source: Newzoo ( 2017 & 2018).

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In fact, this interest could be explained by the observed change in the behavior of
the younger generations. Industry reports suggest that a sizeable percentage of eSports
followers are under the age of 35. For instance, PwC (2016) estimates this percentage at
68%. Being able to reach this age group is valuable for media, because it is becoming
harder to reach younger generations (i.e., millennials) through traditional media platforms
(i.e., TV). In fact, there is evidence that TV subscriptions in USA fell in 2017, while
viewers continued to move to streaming and social platforms (Deloitte, 2018). Recently,
two of the biggest streaming and social platforms (Youtube and Twitch) purchased
exclusive rights to stream some of the most popular eSports tournaments.

The second largest growth rate for revenues comes from fans’ spending in
merchandising and tickets. Considering only the enthusiastic eSports audience (people
who watch eSports more than once a month) and all revenue streams, Newzoo (2017)
estimated that each eSports enthusiast, on average, spent 3.64 dollars per year in 2017.

The annual average direct spending per fan on merchandising, tickets, or

subscriptions was 0.33 dollars in 2017, which is below the average expenditure made by
an enthusiastic fan of any of the most popular sports. For instance, according to UEFA
data, a European football fan spent an average of 34.5 euros per match in 2017. Therefore,
eSports has a space to increase this source of income in the future. This average annual
spending is expected to grow up to 43% in the year 2020 (Newzoo, 2017).

In terms of audience, reports on the eSports industry usually differentiate

enthusiastic audience and occasional audience (people who watch eSports less than once a
month). Figure 2 shows estimated and forecasted data from Newzoo reports for both types
of audience, where enthusiastic audience has had the higher growth ratio than occasionally
audience) in the recent years.

Additionally, the enthusiastic audience has a pronounced presence in Asian-

Pacific markets (51% of the total audience in 2017), but a lower share in European
markets (18%) and North-American markets (11%). However, the figures for Spain are

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remarkable. According to AEVI (2018), and based on data from Newzoo, the percentage
of enthusiastic audience was 47.3% with a total audience of 5.5 million in 2017. The
trends are expected to change in the period 2017-2021, when occasional audience is
predicted to grow by70% and enthusiastic audience – by 60%. This prognosis does not
account for the total number of hours devoted to watch eSports. According to IHS Markit
(2017), the annual growth of the worldwide number of hours is estimated at 9.8% in the
period 2016-2021, which is lower than estimated increase of audience.

Figure 1.1.2: E-Sports Size Worldwide by type 2014-202 (In Millions)

Source: Newzoo (2016, 2017 & 2018).

To summarize, the eSports industry forecasts are very optimistic about its future.
However, the outcome will depend on two key aspects. First, establishing a framework
that provides stability and allows attracting the efforts and investments necessary for
growth. Second, a more stable financial structure is required. The expected growth of the

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audience (fans’ interest) has to be translated into a higher revenues, especially those
coming from media rights and fans’ spending.

In the last three decades we have been observing an exponential growth in the
eSports industry, the industry of “organized video games competitions” (Jenny et al.,
2017). Today, this industry is well-established both in terms of economic size and
participants, and it has promising perspectives taking into account the demographic
composition of its audience and its dynamic development (new games, technological
improvements etc.).

The eSports industry has more complex structure in comparison to traditional

sports, because different agents can play multiple roles. The evidence about the industry
revenues and the audience following (the fans who follow eSports in different ways) is
very promising with a cumulative estimated annual growth rate for the period 2017-21 of
23% and 13.6%, respectively. But the consolidation of this trend relies on building a
robust framework to govern both the industry, and financial and economic relationships
within it.

As popularity grows, value is affirmed. When value is affirmed, that enables it to

increase. The world of eSports is a pubescent one where it’s quickly developing into a
more mature phenomenon. A very good sign that this is something worth investing in for
the future is how niche it remains despite its gross revenue and increasing notoriety. Its
creating its own sub-market, in a way.

1.2. PROJECT GOALS AND OBJECTIVES

1.2.1 PROJECT GOALS
The main goal of the study is to provide an enormous gaming complex for Filipino
athletes that would have world-class facilities to enhance their skills and knowledge in the
field of eSports. The project will also serve as the National Cyber Gaming Complex of the
Philippines wherein the national and international e-Sports games can be held.

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1.2.2 PROJECT OBJECTIVES

Specific objectives are enumerated which include the following:
1. The study should provide a structure that will enhance the ability and capability of
every eSports athlete in the Philippines.
2. The study should provide a complex that can hold all eSports gaming events and
activies.
3. To further develop the image of eSports community in the Philippines.
4. The study should provide a complex that would mark in every eye of its goer.

1.3. SIGNIFICANCE AND EXPECTED RESULTS

1.3.1 SIGNIFICANCE OF THE STUDY

This study is essential in improving and providing a better insight for the future of
eSports in the Philippines. The proposed National cyber gaming complex will not only
benefit locally, but it will also jump start the objectives of the government that supports
our gaming community to promote its excellence, encouraging both amateur and
professional eSports athletes with its new facilities and training environment.

The proposal can help our athletes in training hard,and improving their skills for
higher competence in global and national competitions, the project will target Philippine
eSports Organizations, amateurs and professional gamers, parents,future researchers, and
groups like youth who admire to be a professional gamer someday in the future.

The researcher believes that this study is highly relevant because of its growing
impact on the Philippine youth of the 21st century, who are directly experiencing e-Sports
as it is rapidly integrated into Philippine culture.

1. Esports Athletes. It can provide information for the eSports athletes about the
current situation, the familiarity and support of the student-athletes’ community
towards eSports. Thus, it can also help in their performance and future
competitions.

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2. Esports Community. It can help the eSports community where people lack
familiarity with it. With the understanding of the community to online games,
there is a tendency to minimize their misunderstandings and misconceptions.

3. Philippine Sports Commission. This study is of great help to them to convince

the commission in providing assistance to eSports athletes who will compete
internationally. It can also help them in giving proper recognition to eSports
athletes in the country.

4. Parents. This study will help the parents to have enough knowledge about the
impacts of online gaming among their children.

5. Readers. This study will help the readers to have the understanding about the
impact of esports industry.

6. Future Researchers of Related Topic. This study will help the future
researchers to investigate and to analyze a gaming complex. Visiting sites,
interviewing people who often go at a gaming complex, organizations, facility
related to leisure, entertainment, & gaming, and having a reliable data could be a
big help for the researchers to be more accurate.

1.3.2 EXPECTED RESULTS

The expected result of the study will be an effective architectural plans and
visualizations for a gaming complex which provides comfortable settings,
futuristic design, performance and living, to support the esports athlete that would
use it. Because of these features, what it lacks is more world-class spaces for
gamers to physically gather on a grand scale.

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This study will play a vital role in the development of gaming industry over the
years. Gaming Complex can help boost the growth of esports in our country and attract a
large of numbers of investors in the field of esports. Gaming Complex will help to
upgrade the image of esports industry and can be instrument for the youths who admire to
be a professional player.

1.4. SCOPE AND DELIMITATIONS

This study is generally intented to guide the creation of the project proposal
entitled, NEXTGEN – A Proposed National Cyber Gaming Complex in Nayonlanding,
Brgy. Tambo, Paranaque City, This project will be focused on providing a gaming
complex that will help enhancing the ability and capability of every eSports athlete in the
Philippines and serves as the venue of National tournaments.

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