Game Developers Eye Global Market

Manila Bulletin, November 24, 2012 | Go to article overview

Game Developers Eye Global Market


As smart phones and tablet computers gain popularity and expand opportunities in gaming, Filipino developers are zeroing in on the US$90 billion current global market and aspiring to get five percent share in the next three years.

By 2016, the world's animation and gaming market is expected to hit US$242.92 billion, with revenues mainly from PC games and devices that carry games as a secondary feature.

"Top game development companies are trying hard to sort through to still find ways to continuously better their business models," according to Alvin Juban, president of the Game Developers Association of the Philippines (GDAP).

Significantly, "Economies of scale are favoring the smaller game studios right now because of smaller burn rates, especially with the trend of using newer and more cost-efficient game engines," he elaborated.

Also, "serious games", which the GDAP President defined as "gamified learning of almost any topic," are becoming a trend. Hence, companies and indie developers are now more keen on "crowdsourcing" to get their games ideas on the production line.

GDAP, a partner association of the Business Processing Association of the Philippines, reports that the country's game development sector is still in its infancy, with only about 60 firms as of December 2011.

Despite its relative infancy, the local gaming sector aims to get a big slice of the industry and increase its 0.2 percent share in the global game development market.

In 2011, the industry had less than 3,000 employees and earned US$12 million in revenues, an increase of 13 percent from 2010.

"Game development companies based in countries like Taiwan, Korea, Japan and recently France have explored opportunities for joint venture projects with us, as well as training partnerships and consultancy for establishing a Philippine presence," Juban disclosed. …

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