Philippines as Game Development Hub (2010)
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The document discusses the growth potential of the Philippine game development sector, highlighting that video game outsourcing is projected to reach $2.5 billion by the end of 2010. With only 0.006% market share in 2009, the industry is encouraged to target export trade to enhance its contributions to GDP and workforce. The document also emphasizes the importance of collaboration among government and educational institutions to support industry growth.
Philippines as Game Development Hub (2010)
- 1. Game Development Summit for Students September 17, 2010
- 2. Video game outsourcing was estimated to have reached US$1.1 Billion in 2009 This will reach US$2.5 Billion by end of 2010 Outsourcing by the end of 2010 will represent over 40% of the budget for creating a video game 70% of game studios outsourced in 2009, reaching 90% by end of 2010
- 5. Why promote the game development sector Global market for video games estimated to be US$58.9Billion in 2009 (call center industry at US$60 Billion in 2009) ▪ Biggest market segment is on PC games at US$11.8Billion in 2009 (20.0% market share) ▪ Biggest growing is online games (52% CAGR compared to 20% for all games, but only at $4.8 Billion in 2009, or 8.1% market share) Philippines is poised for growth (Philippine market share is less than 0.006% - the Philippines could still get a bigger share of world revenues!) ▪ At 0.06% market share in 2010 (US$60 Million), game development industry could contribute to 1 to 2% of GDP growth
- 6. Why promote export trade for the Philippine game development sector 90% of revenues currently from foreign market (biggest contributor to industry growth) 2009 export revenues of Philippines at US$4.5 Million (about 0.006% market share) Un-served global market can be as high as $54 Million in 2009 (or 0.07% market share, more than 10x current size of local industry) Call center industry has achieved 10% share of global market in less than 10 years while game development industry is only at 0.006% after 6 years (future growth is certain!)
- 7. Why target the game development sector as a Priority Sector Entertainment sector noted to be inflation resistant Growing cross-fertilization between film and games (Resident Evil game/film franchise, Avatar film and games) – Games are now an indispensible part of the bigger entertainment industry which is dominated by films (films = games = films) ▪ Growing the game development industry will also grow other creative content industries (animation, graphic arts, etc.)
- 8. Grants for trade missions (sponsor participation of companies in expos and conferences, and sponsor business matching roundtables with selected publishers and developers) After-mission technical support (to prepare learning points for use in succeeding missions) Other government support Provide guarantees on export contracts - may require companies to get ISO/CMM certification on project management Provide incentives to accelerate growth of companies (tax incentives, non-tax incentives tied to operations)
- 9. Comprised of 14 companies (industry has at least 30 players in 1Q 2010) Accounts for more than half of industry revenues (about US$3.5 Million of the US$5 Million for entire industry in 2009) Accounts for more than half of workforce in sector (about 400 of the 640 employees for entire industry in 2009) Actively involved in growing the number of companies, workforce and manpower supply
- 10. Actively involved in elevating quality of work from its members and in growing market share and market reach of its members Affiliated with International Game Developers Association (IGDA, forum of game development professionals) Collaborates with government agencies (DFA, CITEM, BOI, CHED,TESDA, CICT, NCCA, IPO), business groups (PCCI, BPAP, ACPI, PSIA, Ayala Foundation) and academic institutions (AIM, DLSU, DLS-CSB, APC, Mapua, UP ITTC, Ateneo de Manila, CIIT, St. Scholastica’s College, Phoenix One)
- 11. Thank you!