COVID-19 pandemic has forced people to stay indoors and just like every industry trying to thrive digitally keeping its people safe, gaming has adopted digital transition quite well. Southeast Asia as a geography has seen a significant rise in the gaming sector. The igaming industry in southeast Asia also has been resilient. It has successfully replaced the shutdown of offline events and slowed down production lines. E-Sports or iGaming (where teams and professionals play skill based games virtually) is the fastest growing industry as it fosters a sense of community and a perfect source of entertainment in a lockdown like situation.
Increased number of affordable smartphones and internet connectivity are two major factors that have contributed to the growth of the gaming industry. BusinessWire's report estimates that the mobile gaming market is likely to surpass $8.3 billion USD by 2023. Features like ``free to play" on mobile games and cloud-based mobile gaming makes the entry of fresh players easy and accessible. SEA has seen 30% year on year growth since last 2 years. The taboo related to the game of skill/real money games is changing, with the right set of regulations and education, people have started adopting these games and applying skills at a scale never seen before. 2021 would especially be a year of significance for growth in this industry with 5G on its way to be implemented across the economies of the world, the users will experience more convenience as compared to conventional gaming. As the gaming and e-gaming industry grows, it generates interests of investors. ResearchAndMarket predicts that the Global E-Sports Market will triple by 2025 and cross the $3 billion mark. Language also has been a key factor contributing to the increased penetration of the gaming market. English is the official language of the Philippines, Malaysia and Singapore and its familiarity makes it easy for users to explore the gaming segment. Government support also has provided lucrative support and created a lucrative environment for growth. ASEAN governments in Singapore, Malaysia etc. have invested in gaming education, skill development and game design centers to capitalise on the demand.
With all the above, Southeast countries continue to grapple with challenges. The global gaming market is mature and Southeast Asian players still have a way to be at par or compete with global players. That having said, they also need to stick to the local cultural dynamics that will have to be relevant and reflect in their games. Breaking the English language market is another barrier to growth and scaling of the Southeast Asian players. Adapting to using multiple languages could prove beneficial and make their entry in different markets of the world a lot easier.
For game developers, they are constantly looking and struggling with design studio partners who are trustworthy with their IP and Gaming rights and secrets. Unlike animation, these designers look for long-term partnerships as opposed to profitable acquisitions. As the proliferation of AI increases, the game development segment will upgrade to offering intelligent experiences to their users. With the e-gaming industry booming with professional online teams and players, championship titles, and prize money, the viewership is expected to increase to 306 million people in 2021 across the globe as predicted by Nezwoo.
Playvegas88 is one of the players from the SEA Gaming market. Playvegas88 is a B2B2C gaming tech company (online gaming platform) that operates in SEA since the last few years. It is a technology enabler for gaming operators across SE Asia. With their comprehensive set of products, platforms and content, they have enabled their partners to leverage the opportunities with the help of latest technology like that of AR. It is the only company to penetrate the Southeast Asian market with a unique platform/content and managed service model. Playvegas88’s portfolio of gaming solutions support over 700,000+ paying monthly active users for their customers. Since 2019, they have helped gaming start-ups and hospitality companies launch skill-based card games like Poker Asia, Ceme dealer, Sakong dealer, etc., Live games with streaming along with Fantasy and quiz games through its football content platform.
As the gaming industry evolves with new technology, more companies and brands will find potential investment opportunities - financial and marketing. There’s a lot of excitement and entertainment waiting for us ahead.
