Global video game commerce company Xsolla is seeking to help Philippine indie game developers move beyond the domestic market and build globally competitive studios as interest in game development continues to grow in the country.
Xsolla head of partnerships in the Asia Pacific Eric M. Lee said the Philippines already has the creativity, technical skills and talent needed to develop games, but the bigger challenge is turning these capabilities into original intellectual property that can be published directly by Philippine studios.
“The biggest hurdle has always been turning that creativity, development and the result into their own IP, meaning their own games published directly out of Philippine studios,” Mr. Lee said in an online interview with BusinessWorld.
He said this has been gradually improving as the broader gaming ecosystem develops, including through partnerships with global companies, industry associations and government agencies.
Game developers are also increasingly working with global companies to improve the business side of game development, particularly monetization.
“Game developers are now finally working together with a global company like us to help monetize their games. That’s a critical step after publishing your game to monetize better so they can earn better, build their business better, get more users and publish more games in the future,” Mr. Lee said.
Xsolla is working to provide more exposure for Filipino developers through its launcher programs.
“We’re going to be helping all these indie games, as we call it, or student games, to be exposed or be launched,” Mr. Lee said.
The company is also working with the Game Developers Association of the Philippines (GDAP) on another launcher program focused on commercial, non-student and more established games.
Mr. Lee said the programs are intended to support the broader ecosystem rather than just individual studios.
“They’re also going to be launched in the same way. So, it’s the start of a helping cycle where we’re not focused on helping just a single game studio, but more helping the ecosystem find a better way to be exposed outside of the Philippines through our international expertise,” he said.
He said Xsolla has seen strong interest among Philippine indie developers, which he considers a potential advantage for the country.
“We have finally understood that the game creations and the urge to create and publish these games from indie game developers are bigger in the Philippines compared to other Southeast Asian countries,” Mr. Lee said.
He added that the Philippine indie sector could be comparable to, or potentially larger than, those of more established gaming markets such as South Korea and Japan.
The next challenge, he said, is helping these independent studios scale into larger companies capable of producing globally competitive titles.
“The hurdle, if I may add, is how can we turn those or expand those indie games into AAA studios that can boast and become the forerunner of the Philippines,” Mr. Lee said.
He said this growth cannot depend solely on the domestic market.
“It has to be a global market,” he said, adding that global reach is still not as well understood in the Philippine market compared with other countries.
“That’s where Xsolla would love to step in and help them to become a global market-reaching forerunner instead of a domestic indie game that they are at the moment,” he said.
Mr. Lee said the economic potential of game exports also deserves greater attention.
He noted that the Philippine gaming sector remains relatively small compared with traditional exports such as furniture and handmade products, but said games could eventually become a significant source of export revenue.
Citing South Korea as an example, Mr. Lee said the country’s gaming industry generates substantial global revenue.
“I can say for Korea, I’m located in Korea, by the way, aside from all the K-drama, K-pop music and K-food or whatever you consider, all of that combined does not overcome the K-game revenue, global revenue,” he said.
For emerging studios, he said access to financial assistance, industry networks and exposure can be critical to moving from development to commercialization.
“I think that’s a very critical and essential step for emerging studios to get monetary help or other indirect help to get their game exposed, just like how we are trying to do that as well,” Mr. Lee said.
Last July 24, Xsolla has also partnered with the Department of Trade and Industry and GDAP under a three-way memorandum of understanding. Under the arrangement, Xsolla provides its global launcher and initiatives, GDAP connects the program with local studios and developers, while DTI provides budget support for domestic studios.
Mr. Lee said the initiative is designed to give Filipino developers another avenue to launch their games and connect with the international market. — Kaizzer Angela Marie V. Manuba
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