Japanese developer Capcom has revealed that the Street Fighter tournament at this year’s Tokyo Game Show will be a Capcom Pro Tour premier event, featuring a ¥10M ($90.3K) prize pool. Japanese players who place in the Top 8 will also have the opportunity to receive a Japan eSports Union (JeSU) pro player license.

[perfectpullquote align=”right” cite=”” link=”” color=”” class=”” size=””]The licensing system opens the door for more sponsorship opportunities in Japan.[/perfectpullquote]

In the modern esports industry, a $90K prize pool won’t turn any heads when compared to the likes of The International 7’s $24M purse. However, for an open bracket event in Japan, sponsored by a game developer, this is a landmark move. Until recently, Japanese gambling laws placed a ¥100K ($895) cap on cash prizes for events which are designed to sell a product, esports included.

Alex “Vayseth” Varga is a Japanese liaison for the fighting game community. He works with U.S. competition organizers to provide opportunities for Japanese players to attend American fighting game events, and serves as a translator at tournaments. He told The Esports Observer:

“You could see sponsored prizes in the form of flights to majors…but there were not many events, if any, that offered actual cash for winning. To my knowledge, that was limited entirely to some mobile games and card games like Magic: the Gathering.”

In February, Japan’s government started issuing licenses to top players, exempting them from the law. This opened the door for organizers to pay out large cash prizes for games including Street Fighter, TEKKEN, and Call of Duty: WWII .

Capcom’s Pro Tour event in Japan is a sign that the company is delivering on its esports intent. In a letter to investors earlier this year, Capcom CEO Kenzo Tsujimoto declared that 2018 would be “Esports Year One.”Later, in Capcom’s fiscal year 2018 financial report, Tsujimoto doubled down on his promise, stating the company would seek opportunities to specifically develop its esports business in Japan.

Aside from affirming Capcom’s commitment, adding a Pro Tour qualifier also sets the tone for other Japanese game developers moving forward.

[perfectpullquote align=”left” cite=”” link=”” color=”” class=”” size=””]”Without Capcom’s support and approval, absolutely none of this is possible.”[/perfectpullquote]

“Having official licenses and regulatory bodies in place makes it easier for sponsors to come on board as it becomes a less risky investment for them,”says Varga. “The fact that Capcom is cooperating with the Japanese government and Tokyo Game Show to make all of this happen confirms that, at least for SFV, esports are here to stay. Without Capcom’s support and approval, absolutely none of this is possible.”

The process for securing pro player licenses requires the approval of the game’s developer. While Capcom is clearly game to promote Street Fighter esports, other fighting titles may have a more difficult road ahead. Nintendo , despite its recent enthusiasm for organized competition, has blocked its properties from participation in the program, meaning that we won’t see Super Smash Bros. tournaments with large prize pools in Japan any time soon.

Related Article: Nintendo Gives Smash Bros. an Esports Upgrade at E3 2018

Each of the seven stops on the Dragon Ball FighterZ World Tour will receive a $5K prize pool bonus from publisher Bandai Namco. Japan is one of the regions planned for a stop on the circuit, but no location or date has been announced. While Bandai Namco and the game’s developer Arc System Works have been historically friendly to fighting game esports, DBFZ’s status as a licensed property could complicate the issue.

“All of the game developers and the licence holders would have to agree to make that happen,” as Dragonball is a world famous brand,” says Varga. “Everyone involved in the project in addition to the official licence holders would have to agree to allow an event of this size with prize pools which is a pretty daunting task.”

The licensing system opens the door for more sponsorship opportunities in Japan. Previously, brands were hesitant to get involved with esports events due to the winnings cap—as they were considered part of the event organizers. Now, companies can safely attach their brand to any event with a large prize pool, or offer a cash prize themselves.

[perfectpullquote align=”right” cite=”” link=”” color=”” class=”” size=””]There is a thriving community in Japan ready to support a major influx of prized tournaments.[/perfectpullquote]

For the fighting game community, Capcom’s massive prize pool (relative to previous fighting game events) will lead to an influx of Western players traveling to the region. Japan has historically dominated most fighting games, which meant the best way for Western players to level up their play was to train with Japanese players in their home region. However, the lack of tournaments with any sort of cash prize made it difficult for top players in the West to justify the trip.

Japan’s pro license system is still in its infancy, yet while other esports have been slow to grow in the region, fighting game culture has continued to thrive. Arcades largely died out in the West, but every day in Japan you will find teenagers and businessmen standing in front of a Guilty Gear or King of Fighters cabinet grinding away. Pro players like Echo Fox’s Yusuke “Momochi” Momochi have started teaching programs, cultivating the next generation of Japanese fighting game talent. There is a thriving community in Japan ready to support a major influx of prized tournaments.

For the last few years, fighting games have hovered at the edge of the highest tier of esports. A stronger business opportunity in Japan could be the missing piece that finally brings the fighting game community from a popular niche to a driving force in the industry.