The gaming industry in Southeast Asia, including the Philippines, is experiencing strong growth. The region's digital infrastructure and young population support this growth.
At the "e-Conomy SEA 2024" report launch held at Google Philippines headquarters in Taguig City, representatives from Google and Bain & Company discussed the growth trends of the digital economy in the region and the role of the gaming industry.
Jackie Wang, Google's Country Director for Thailand and the Philippines, highlighted Southeast Asia's strong performance in digital fields such as online media and gaming. She noted, "Southeast Asia performs exceptionally in global downloads, far exceeding its size." She also specifically mentioned the thriving developer community in Vietnam.
The digital economy in the Philippines also benefits from this vibrant environment. Wang added, "With increasing online engagement and a young demographic structure, we have all the conditions to drive consumer growth."
The Role of Video E-commerce in the Gaming Industry
Nikki Del Gallego, Head of Data and Insights at Google Philippines, emphasized that the integration of video e-commerce with gaming is one of the main drivers of growth. She stated, "Imagine the high level of user engagement today; video e-commerce will further drive this trend." Del Gallego pointed out that innovative forms and diverse applications of video e-commerce can significantly enhance the gaming experience.
She also mentioned the economic impact of the industry, citing a gaming company that had the best market performance last year, with its stock price increasing by over 230%. She stated, "This shows that gaming remains one of the cornerstones of the digital economy."
Key Trends in the Philippine Gaming Industry
Del Gallego also elaborated on the unique position of the Philippines in the gaming industry. She noted, "The diverse user base and composition of the gaming industry in the Philippines drive growth." She particularly emphasized the importance of localization adaptation and global competitiveness.
Southeast Asia excels in mobile gaming, accounting for 12% of global game downloads. Del Gallego stressed that building a strong ecosystem is crucial, which includes not only the games themselves but also related fields such as esports and video e-commerce. She added, "Gaming content remains one of the biggest contributors to the digital economy in the Philippines and Southeast Asia."
Advertising and Gaming as Pillars of Online Media
Bennett Aquino, a partner at Bain Strategy Consultants, pointed out that online media is an important part of the digital economy in Southeast Asia. He stated, "The GMV (Gross Merchandise Value) of online media in the Philippines is expected to grow at a rate of 12% per year, reaching $4 billion by 2024."
He believes that advertising and gaming are key elements. "Despite competition, advertising continues to grow, with more platforms and e-commerce players increasingly using advertising for monetization." Meanwhile, the unique importance of gaming, with casual games dominating global downloads, is highlighted.
Aquino added, "With the push from developer talent and increased user engagement in the Philippines and Vietnam, the gaming industry is expected to see further growth."
Digital Financial Services: Complementing the Growth of the Gaming Industry
In addition to gaming, digital financial services are also one of the strong growth areas in Southeast Asia. Aquino noted that digital financial services in the Philippines continue to develop, consistent with regional trends. He stated, "Digital financial services remain a growth area, further strengthening the interconnectedness of the digital economy."
Maintaining Growth Momentum
To maintain this growth trend, experts emphasize the importance of content localization and global competitiveness. Del Gallego stated, "It all comes back to understanding user needs and effectively adapting to them." The long-term success of the gaming industry depends on its seamless integration with related industries, while meeting the needs of an increasingly diverse and active audience.
As Southeast Asia continues to lead in digital innovation, the gaming industry emerges as an important engine of economic and technological progress. With its thriving developer community, strong user engagement, and supportive ecosystem, the region holds a favorable position in the future development of the global gaming industry.
