Today's shifting technological landscape exerts great influence on the way people all over the world experience life, affecting how we live, how we work, and how we are entertained. The last has become an important part of everyday life with the rapid advancement of video game technology over the past decade-the world loves to play, and the size of the global game industry today is concrete proof.
With next generation gaming consoles such as the Playstation 3, Xbox 360 and Nintendo Wii, hi-speed PC gaming engines, and social gaming platforms such as Facebook capturing the imagination of people around the world, the industry has truly taken off in recent years. Global gaming revenue was estimated at an astounding $35 billion in 2008, and is projected to reach $53 billion by 2012. In 2009, computer and videogame hardware, software and peripheral sales climbed to US$20.2 billion in the US market alone, significant growth that has been similarly experienced in other markets.
These numbers are clean indication of the large and increasing global demand for new games, presenting a viable opportunity for offshoring. But while industries such as Software Development, Engineering Design, and Customer Support have quickly adapted the offshore model, the Game Development Industry has been initially slow to globalize.
Outsourcing opportunities
Although the industry took its time to fully embrace offshoring, it has already been outsourcing in the past, beginning with simple processes such as porting and music scoring. With the advancement of next-gen gaming platforms and faster release cycles of game titles, the demand for fast game development and production is at an all-time high, making the outsourcing of more development processes an even more compelling option.
According to industry analyses, over 60% of game development and game services related budgets are going to be outsourced to gaming development providers in Europe and Asia, with 75% of total gaming developments having been outsourced as of 2009.
Game titles undergo several stages during development, and of these stages, Pre-Production, Production and Testing show the greatest viability for outsourcing. These stages cover processes/tasks such as artwork development, animation, music scoring, motion capture and programming.
These processes require world-class skills, cultural knowledge and affinity, and top-flight creativity to meet the exacting standards of leading game developers and publishers, and experts say that the Philippines possesses the skill-set and manpower to meet these demands.
Breaking new ground in the Philippine gaming industry
According to Jonathan de Luzuriaga, Southeast Asia Managing Director of Tholons, a leading full-service Strategic Advisory firm for Global Outsourcing and Investments, "the Philippines is strategically positioned to tap into the Outsourced Game Development Market due to cultural affinity, its positioning as an Animation destination, the presence of gaming culture in the country, and a potential-rich labor pool."
Just as the country is tailor-made for the BPO industry, the Philippines is teeming with talented graphic artists and IT professionals, not to mention gaming enthusiasts, making it an excellent choice for game development outsourcing. With a readily available talent pool that can be tapped and trained within the next 5 years to become game specialists, this transition can be expedited through the support of the government and private and industry groups. And while other offshore destinations are focused on their local markets, the Philippines is export-centric, giving it an edge in landing new clients.
Globally competitive Filipino companies
In fact, outsourced game development processes have already made their way in the country, with globally competitive local companies such as MoAnima, Anino Games and TechFactors Inc. making headway in the Filipino gaming industry's continuing progress and growth. While many of these companies are small, boutique-type groups, their personnel are highly skilled and held in high esteem by foreign counterparts.
Furthermore, these small companies can be consolidated to improve scale and capacity. There is already an association in place, the Game Developers Association of the Philippines, a group composed of Philippine-based studios that aims to bolster the industry.
Industry at peak optimism
As the local industry continues to grow and expand to reflect and adapt the growth of the global video game industry, homegrown studios are optimistic about their current and future projects. "This is certainly a very exciting time for the Filipino game development industry," said Lyshiel Valencia, Country Manager of MoAnima, one of the top motion capture and animation studios in the country.
"The industry giants in the US and Europe are becoming more and more aware of the talent there is in Asia, particularly the Philippines, and the studios here in the country are more than ready and able to meet their demands."
Indeed, the Filipino gaming development is in the cusp of a boom of its own, and while there is plenty of room for even more growth, there becomes an ever-increasing likelihood that the next video game title you buy will have Filipino talent imprinted on it.