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Event Recap: Brasil Games Show 2014

10/28/2014
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During 8-11 October, the Brasil Games Show (BGS) fair was held in São Paulo. The fair is the biggest of its kind in Latin America, and serves as a display for new global and local trends, as well as offering matchmaking possibilities for the video games industry.

Brazil shows major potential: On the vanguard of the world´s video games market

Brazilian video game fans are becoming more fanatical, and are more closely following global trends. Brasil Games Show 2014 illustrated that the global video games market is looking at Brazil with keen interest, and seeing great potential in consumers that are becoming more mature regarding their choices, and increasing average expenditure. The market value of the video games market in Brazil was US$ 350 million in 2008, including hardware (consoles), software and digital games. In 2013, the market value increased to reach US$ 1.1 billion.

The local market has changed drastically over the past five years. New technological launches used to come to Brazil with a significant time delay in comparison with more developed markets, but now video games software and hardware are even being launched simultaneously in South America. Most of the main industry players were present at the event and announced many new titles to Brazilian gamers, such as The Order 1886, developed by SCE Santa Monica Studios, Call of Duty Advanced Warfare, by Ubisoft, and Fifa 15 from AE Games. Local demonstrations are proving that Brazilian gamers are a key target and that companies are taking them into consideration when a new game is brainstormed and developed.

Local production: Bringing down prices and penetrating the Brazilian market

It was not only developers and manufacturers that were present at the event; players from the entire value chain within the video games industry were in the house, from logistics and components to retailing and payment solutions for the online market.

Global players are betting high on local production to deliver products with a lower-end price to Brazilian consumers. Brazil is known for its high taxes, especially regarding imported goods, and producing software and hardware locally is changing from a competitive advantage to a necessity to survive, almost vital in exploring this promising market. This tactic, combined with local value-added features targeted towards Brazilian consumers, is driving growth.

Brazilian developers: Receiving more attention and looking for ways to expand

Many Brazilian developers of online games and independent platforms have also had the opportunity to show their latest achievements at Brasil Games Show 2014. Games such as “Toren” from the Brazilian game developer Sword Tales are attracting more attention within the video games industry. Toren was only expected to be launched for pcs and macs, but it has attracted the interest of Sony Entertainment Inc, resulting in plans for it also to be launched for PS4 in 2015.

Many Brazilian developers are focusing on mobile and online platforms, burgeoning areas within the industry. Those platforms are an easier way for game companies to start their businesses, mainly due to the amount of investment required in those channels versus the physical media. Normally, domestic companies have limited resources and structure to develop new products, struggling to raise funds in order to invest in their projects. In this scenario, laws of cultural incentive (such as the Rouanet Bill in Brazil), and private investors play a big role in helping those independent companies to boost their chances to succeed and fund their creations. Between 2008 and 2013, the digital games category, which includes paid downloads and online games, was the one with the highest growth, more than triplicating in size. For 2018, Euromonitor forecasts that the market value of video games industry will reach US$ 1.9 billion.

The market dynamics for video games, such as the consumption behaviour in Brazil are changing fast, and events such as BGS 2014 serves as an important display for the industry to approach its consumer and present all its future trends.

 

 

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