But as Einstein and others said, every problem in fact presents a hidden opportunity. The fact that most business practices of major global market players can’t succeed on a hostile, piracy-filled environment, doesn’t mean the market itself can’t be successfully explored using new approaches.
So this article is all about how Brazilian companies are fighting back where Edge Online once called the Lost Continent.
Brazil
Brazilians do play games (a lot)!
Brazilians do play a lot. In fact, Brazilians are amongst the more enthusiastic video-game players and web surfers. Even without official distribution of all consoles but XBOX 360, Tectoy estimates more than 2 millions Playstation 2 on Brazilian homes, and Microsoft estimates 500,000 console units of various brands are sold every year.
Consoles are popular considering their high price tags and have growing sales, even if nearly all units are black-marketed or gray-marketed. Tectoy still successfully sells SEGA’s vintage consoles Master System and Genesis with tons of games bundled.
Round 1: Multiplayer Games + Micropayments
Social networks are incredibly popular in Brazil. Nearly 54% of Orkut users are Brazilians, the share of web time dedicated to networks and blogs is the highest of all countries, and the invasion of Brazilians in other social networks like Fotolog originated the term “Brazilian Internet Phenomenon“.
Community Sites visitation across countries
Hence the success of LevelUp!. LevelUp! has been consistently offering new and classic massive multiplayer games over the last years, successfully monetizing with pre-paid credits system. Each credit grants a player an amount of gameplay time in any massive game.
A big launching during 2008 was Taikodom. A top level MMO project, Taikodom understands the public and the shifting market practices across the world, offering free accounts and monetizing the user base by selling premium accounts and credits to buy in-game stuff.
Round 2: Outsourcing & Exporting
Many game studios in Brazil sell game development as outsourced services to other companies and publishers. While some have broad spectrum, with projects for many platforms and markets, others are strictly focused and specialized. For example, Webcore Games on advergaming, Gestum for serious games and e-learning, and Interama for casual games.
Exporting is also very important for many studios. In fact, according to Abragames, the national association of game developers, 43% of all game production is exported. Southlogic was a major exporter of products and services - such a good one that in January 2009 it was bought by Ubisoft.
Round 3: Zeebo
Zeebo
Zeebo was announced at GDC 2009 with mixed reactions. Of course criticism is always welcomed, but I think some bloguers miss the point, as some missed the point of Wii and its “terrible non-HD graphics” back in 2005. The point of Wii, and I believe also the point of Zeebo, is reaching untapped markets.
The platform have support from main publishers and their studios, and Tectoy Digital is one of the most important Zeebo developer.
Round 4 (Extra Round): Government support
Last, but not least, the official government support for the game industry through the Department of Culture and its BR-Games contest is key to trigger new studios and new products. Specially in a country where venture/angel investment money is a relatively new concept. Interama itself was founded with a sponsorphip from the first edition of the BR Games contest.
K.O.
2008 and those first few months of 2009 had good news for the Brazilian game industry. The Lost Continent has chances to develop and grow from now on. Many Brazilian game developers, including myself, have turned from pessimists to believers. I hope many more will follow.
[...] also check out my latest post on Zeebo, How To Fight Back at The Lost Continent Possibly related posts: (automatically generated)How Piracy can Break an Industry – the Brazilian [...]
My main concern on this new brazillian market is how dificult is to become a “acredited” developer (how to enter this industry). Its still seems to be a “big boys only” game (no pun intended). Is there space for new talents? What does it take to be this “new talent”? What was your way into your current position?
thanks for reading!
(BTW, I beta tested Léx, way back in 2007
)
[]s
Daniel “NeoStrider” Monteiro
http://corporatedrones.wordpress.com
Hi Daniel. As a matter of fact, it is much more a “small boys” game, since most of the game studios are very small companies, with less then 15 employees. I don’t believe it is very hard to become “acredited” as you say. Quite the opposite, there is no mystery: make good games, do a good job on them. Pick up and do it well. This is all that is needed to begin really. Pretty much what I did – back in 2005 no gamedev company would hire me with my webdev-related skills, so I co-founded Interama!
thanks for your answer!
hope to see you on SBGames 09!
One more question: Zeebo is made to people like me – 20something who cant stand those overcomplicated videogames and actually enjoy simple and cheap games from late 90′s and thats fine. But do you belive Im a exception or a rule? I mean, there are others like me to make enough buzz?
I think Zeebo has indeed an opportunity to satisfy people who like simpler, non-core games like you and myself, by 1. publishing games like Bejeweled, Double Dragon and Crash Kart, 2. investing in Boomerang (gestual) games like Zeebo Extreme and 3. going for games with connected / multiplayer features through mobile networks. There are thousands of Brazilians who never had a chance to play 3D games or video-games whatsoever, so it makes sense to offer both simple and complex ones.
thanks for your answers =-)
Your article “how piracy can break a game industry” is fantastic and is really to the point.
Unfortunetaly, Brazil is an unexplored market with a huge potential. But I am happy that things are changing here.
PS: muito bacana o seu blog, tem muitas informações interessantes até mesmo para quem trabalha na indústria.
Oi Tiago, quanto tempo.
Fui seu aluno na famigerada segunda turma do curso de design de jogos da FAESA.
Esbarrei nesse texto lendo esse texto que foi publicado no Gamasutra. http://www.gamasutra.com/view/news/26645/Analysis_Inside_Brazils_Video_Game_Ecosystem.php Concordo com o seu texto e com o do Gamasutra.
Sucesso,
[...] Artigo original em: http://texpine.com/2009/03/26/how-to-fight-back-at-the-lost-continent-the-brazilian-case/ [...]
Hello! I’m a rare Brazillian anti-pirate, just like you!
I was amazed on how you did describe the brazillian situation so well in your another post http://texpine.com/2008/02/15/how-piracy-can-break-an-industry-the-brazilian-case/
It’s the very same thing that I say to everyone, but your text is much more complete and detailed.
Unfortunately, I’m the only one in my city who(at least that O know) buys games and software.
Before reading this text, I was just sad to know that our whole gaming market was destroyed years ago, and would never come back. But, thinking beter, what if it does(I mean, like it was year ago)?
Now, I’m a believer, too!
Cya!
ps.: in your last post, you said that a game costs US$98,00 in Brazil, but I think it’s just a excuxe from the pirates, because anyone can easilly, and legally buy a game at US$ 25,55-50,00. I think it doesn’t matter if the game costs R$100 or R$1, one of the main problems here are culture matters: people just… like to buy or download pirated content.
Hi Yan, thanks for your words. Yes, we can make it “reborn”, we just have to realize that the old models that are dying even in US are so dead and buried here for 15 years. In fact, the massive piracy/second hand sales in US today will transform the market beyond recognition, and as a consequence make it way more viable here too! About the costs I agree with you, the problem is culture not poverty. However, I should also make a post like “How Steam is slowly changing the Brazilian gamers.”. Because it is.