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24Jul2014

MMCP STATEMENT SOUTHEAST ASIA MOBILE GAMES MARKET SET TO GROW BY 2015

KUALA LUMPUR, 24 July, 2014 – The Malaysian Mobile Content Provider Association (MMCP) President, Johary Mustapha, today makes his statement on the issue of mobile gaming market in Malaysia as to how far will the advantage swing to Malaysia in games.

As the market is getting more competitive and tougher to self-publish mobile games, mobile game developers are going to continue to need increasingly bigger adverting and promotion budgets to compete and the easiest way achieve this is via partnership with mobile games publisher.

Large publishers like Electronic Arts (EA) and SEGA are testing new native ad formats in their flagship games as they eventually launch them as free-to-play (F2P). In 2014, smaller game developers will follow close behind, pushing the frontiers of what‘s possible for mobile advertising.

“Malaysia has seen a positive growth in terms of companies involved in the gaming industry. Much of this progress could also be accredited to Malaysian Development Corporation (MDEC), a government agency tasked to spearhead games industry in Malaysia. There have been a consistent number of companies grown locally, however the ratio does pale in comparison as compared to companies in US and Europe. Much could be done for the local industry in helping technology related companies grow in this field; however more efforts are needed to understand the global movement of games which will later shape up the future of game companies in Malaysia,” said Johary Mustapha, MMCP President.

Mobile devices are affecting not only the games industry, but also the public’s perceptions towards the implication for all kinds of dedicated devices such as music and video players as well as game consoles. This will kick off a new trend in which console game developers yearn to launch more and more games for mobile including the popular freemium-based business model that aid the console experience in 2014.

According to survey undertaken by Niko Partners, in 2012 the game industry in Southeast Asia earned more than US$560 million. This includes region from Indonesia, Malaysia, the Philippines, Singapore, Thailand and Vietnam which is expected to generate a total of US$1 billion from electronic games in 2015.

“The game industry has seen a strong demand coming from the Chinese markets, fuelled by a shift of low to middle income earners. This has propelled the Chinese markets to be a dominant force in terms of number of gamers and also their average spending habits. Malaysian companies would need to ensure that localization especially in Chinese language is a priority to be taken in account due to these growing demands,” said Johary.

On the contrary, the number of gamers in Southeast Asia is expected to increase to around 100 million, delivering an important surety for game sales revenue in the region. For example, sources from China Mobile Games and Entertainment Group Limited (CMGE), company such as Tencent, a mobile games representative where they bring in games like Craz3 Match, GunZ Dash, and 2Day’s Match to Southeast Asia as well as launching of mobile games through WeChat in Malaysia and Singapore. Moreover, their GunZ Dash game has already reached the top 10 on the free-to-play game list in both Malaysia/Singapore and also reached the number one spot on Malaysia’s list where it first released, within a matter of 3 days.

“Based on the statistics for South East Asia, Malaysia is ranked 4th from 6 Southeast Asia countries. I feel that both the public and private sector in Malaysia could do more to spur the Games Ecosystem, especially to put more effort in ensuring sufficient numbers of Game Developers are churned out from the younger generations via the education system,” said Johary. (See Fig. 1 below)

“Personally, I have seen game related design courses being introduced by various universities and colleges such as MMU, Lim Kok Wing and the most recent being KDU. However these are only private initiatives, whereby I hope the local universities in Malaysia at the same time are able to take the proactive approach of networking with the local game companies as to understand the current trend, and also to facilitate especially during the important transition process of graduation and getting employed which is still lacking from the public education sector,” he added.

Commenting on the press statement Bazil Akmal Bidin, Chapter Coordinator, International Game Developers Association (IGDA) Malaysia said “Local game developers need to focus on creating high quality games to be able to compete globally and also add their own flavour to create a unique and strong brand name for their team or company. At the current age, building a fan base is very important as it is the best marketing channel that any games can get is to have good words of mouth promotion by their fans.”

Thus, the future of gaming is the free-to-play model, and it is very clear that consumers are using smartphones and tablets that they already own to play games. Gaming apps are among the most popular mobile apps. Hence, as the games market continues to grow and become more aligned, the result of game market in Malaysia will eventually generate more revenue in business models and game devices at the same time, it is also an area of good prospect where small and medium-sized businesses can quickly boost revenues.

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About MMCP
The Malaysian Mobile Content Providers Association (MMCP) was initiated back in 2006 as a platform for all Mobile Content Providers (CPs) to come together under one banner to better address issues raised and ensure the interest of CPs are protected. This includes active participations with the Malaysian Communication and Multimedia Commission (MCMC), the Consumer Forum of Malaysia (CFM), the Communications and Multimedia Content Forum Malaysia (CMCF), Celcos, the Malaysian government via Kementerian Penerangan, Komunikasi & Kebudayaan and other relevant bodies. The association was formalized in 17th August 2007 and currently has 25 ordinary members and 4 associate members. The objective of the Association is to protect CPs interest and consumers as well. For more information, please visit www.mmcp.org.my

  
Johary Mustapha, President of Malaysian Mobile Content Provider (MMCP)    Bazil Akmal Bidin, Chapter Coordinator of International Games Developers Association (IGDA Malaysia)

Additional Facts

Fig 1.– Estimation of Games revenue ranked in 2014 for SEA Countries
Source: www.newzoo.com


Fig 2.– Estimation of 2014 Global Games Market Revenue based on continents.
Source: www.newzoo.com/globalgamesdata

  • 24 Jul, 2014
  • marilyn
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