Gaming Business

Known more for its entertainment value, close relation to childish activities and many society ills, the videogames industry was looked down as unwholesome and a waste of resources.

Such a world view is changing now as societies learn and realise the potential, business or otherwise, the videogames industry has. From a relatively unknown sub-culture of the late-‘70s to a force even Hollywood has taken notice of in the last few years, the videogames industry has really transformed itself into an economic force that should be reckoned with.

“The games industry has grown significantly over the past few years, with the global industry estimated at US$48.9 billion. In fact, this is even more evident in the Asia Pacific region as it contributes around 40% to this global figure,” says Dr Vivian Balakrishnan, the Singaporean Second Minister of Information, Communications & the Arts in his opening statement at Asia’s inaugural games convention, Games Convention Asia Conference (GCAC) recently.

Basing his comments off the PricewaterhouseCoopers (PwC) Global and Media Entertainment Outlook 2007 - 2011 Report, he believes it is now the right time to tap into the potential the Asia-Pacific (APAC) market has, since many expects it to lead the rest of the industry into higher earning revenues.

According to the PwC report, the APAC region has generated US$11.7 billion in 2006 and is projected to reach US$18.8 billion by 2011, translating to a 10% compound annual growth rate (CAGR). Globally, analysts have determined a CAGR of 9.1%.

Sharing similar sentiments with Balakrishnan, Wolfgang Marzin, President and CEO of Leipziger Messe GmbH says: “The growth expectations are just incredible. From what many consider as above-average three years ago, it (videogames industry) has now completely grown into something that is so much bigger. With such tremendous predictions, it pretty much indicates that this part of the world is still under- populated where videogames and its development are concerned.”

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