The short-sided format was added to the Olympic schedule last week, along with mixed relay races on the track and in the pool and BMX Freestyle.
Though happy with the move, it does not mean the Cleveland Cavaliers star will represent Team USA in Tokyo.
"I think it's great for basketball," James is quoted by ESPN. "For us to be able to add another category to the Olympics, another basketball category, I think it's pretty great.
"I'm not very good in a three-on-three thing, I'm more of a five-on-five guy.