Emerging Game Economies – 2022 Version
In my previous post about Regional gaming centers, – Eastern Europe and the Game Industry and The Top Game Developing Cities
I try to highlight countries and cities that have gained popularity and took advantage of the growth & wealth from Game Development. It’s been a while since I last touched this subject but wanted to quickly write something in light of what’s happening in the world (Feb 2022).
Every now and then, the market and capital trends create a thriving industry that lifts the entire country’s economy. That’s what we saw with Ukraine & Russia …. and that is what we are currently seeing in Turkey, Vietnam, and Indonesia. Turkey especially has hugely benefited from major acquisitions and consolidations in the game industry.
Turkey
Since 2017, Turkish mobile game developers have brought in billions of dollars in funding and investment, most notably via Zynga’s $1.8 billion acquisition of Peak in June 2020.
These successes inspired other Turkish companies to get into the space, sparking a surge of mobile game development in Istanbul.
The emergence of game-focused Turkish VC firms such as Ludus Ventures is one downstream effect of the expansion of the mobile gaming industry in Istanbul; another is a marked increase in income and quality of life for Turkish coders and designers willing to make games for casual gamers in faraway countries and continents. As mobile gaming continues to rise, so too will the fortunes of the Turkish mobile gaming industry.
Vietnam
Quick Stat on Vietnam – is a country of 97.8 million people (the 15th highest in the world), a home to 68 million smartphone owners, 64% of whom are on 3G, 4G or 5G. The average daily time spent in gaming is 3.9hrs — 10% more than for the average user in the US. That is huge!
That being said, there aren’t that many global-level developers in the country. Lately however, we are noticing many game development projects getting ousourced in Viatnam. Examples are VNG Corporation—CrossFire: Legends; Kayac Hanoi—Three Kingdoms Heroes; Funtap—Three Kingdoms; Bravestars Games; TOH Games;
In addition to that, French publishers Ubisoft and Gameloft as well as American publisher KIXEYE each have a branch based in Vietnam.
Indonesia
Indonesia is home to 43 percent of 274.5 million gamers in Southeast Asia, equivalent to 118 million gamers. It has among the world’s biggest digital demographics with 202.6 million internet users and $44 billion of digital economy valuation according to an estimate.
However, Indonesian-made video games take just a tiny 0.4 percent share of the domestic markets despite the country having the most gamers in Southeast Asia. The video game industry could potentially generate $2 billion in revenue in Indonesia alone, providing a huge business opportunity for local developers.
Indonesia has very promising creative economic potential, in many sectors, one of which is online games which during the Covid-19 pandemic has experienced an extraordinary increase. Based on data from this sector, it is big enough to have an impact of increasing the GDP. The economic opportunities are huge and have now opened up, as are the challenges that must be faced.
Considering the recent conflict in Ukraine and Russia, I would think the above countries will end up absorbing the bulk of outsourced game development that has been disrupted. Unfortunate situations for some, bring opportunities for others. I wouldn’t be surprised if other countries jump on the opportunity and get a share of the $160 billion creative market.