PHL eyes larger share of rapidly expanding game console market

For starters, a 5-percent share of the PC and game console market in the next three years isn’t bad, stakeholders in the Philippines figured, considering the global industry is expected to reach $90 billion this year alone.

 

Recent estimates also expect the industry revenues to hit $242.92 billion by 2016.

 

However, there is a lot fine-tuning industry players must do to gain from this tremendously growing market. 

 

“The worldwide game industry is estimated to hit up to $90 billion by the end of 2012,” Game Developers Association of the Philippines president Alvin Juban said in an emailed statement Friday.

 

“The top game development companies are trying hard to sort through to still find ways to continuously better their business models,” Juban added.

 

The game development sector is quite young, counting about 60 companies as of December 2011, according to the Game Developers Association, a partner of the Business Processing Association of the Philippines.

 

As of end-2011, the sector accounted for 3,000 employees and combined revenues of $12 million – up 13 percent from 2011. 

 

That is why the Game Developers Association wants to expand its 0.2-percent share of the market to 5 percent by 2015.

 

The global games market, including animation, is expected to grow up to $242.92 billion by 2016, according to researcher MarketsandMarkets.

 

Core revenues mainly come from PC games and devices that carry games as a bonus feature, specifically helped by the proliferation of mobile devices – smartphones and tablet computers – and enhancing the industry’s growth potential in terms of revenues, MarketsandMarkets noted.  

“Game development companies based in… Taiwan, Korea, Japan, and…  France have explored opportunities for joint venture projects with us, as well as training partnerships and consultancy [with a view to] establishing a Philippine presence,” said Juban.

 

This development is an offshoot of the “lingering bearish global climate…” prompting industry players to explore possibilities overseas, Juban noted.

 

“With a highly-trainable and competent talent pool, we are confident that global clients will realize the potential of the Philippines as the destination of choice for outsourcing game development services,” Juban added. — VS, GMA News