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A Mere 30% of Thai Gaming Studios Are Outsourcers. What Are The Reasons?

Thailand's growing gaming market, spurred by widespread smartphone use and mobile gaming, anticipates a 7.85% annual growth rate from 2023-2028, aiming for a market volume of $1.46 billion by 2028.

Growing But Still Small

The gaming market in Thailand is primarily composed of indie developers, with most companies based in Bangkok and limited activity in regions like Phuket. Mobile gaming dominates the Thai market. Local features are that due to the hot climate and insufficient distribution of air conditioners, PCs tend to overheat quickly, which makes PC gaming less feasible.

There is a noticeable prevalence of free software in the Thai gaming market. Games are often offered for free-to-play, with revenue generated through microtransactions, including in-app purchases and loot boxes. The purchase of skins and weapons in games is a popular practice among Thai gamers. Piracy is very common, which makes the premium monetization model not viable.

In Thailand's gaming industry, there is a strong emphasis on promoting local culture through video games, reflecting the country's unique cultural heritage. Many developers are passionate about creating new and exclusive content focused on showcasing Thai culture and its distinct aspects, such as Buddhism and local Asian folklore, to a global audience.

Developing original intellectual property (IP) in games is a prevalent trend in the Thai gaming market. This is evidenced by the fact that only 30% of the gaming sector is involved in outsourcing, a figure that is partly attributed to the limited English proficiency among local industry professionals.

Kris Roebuck, CEO at Cyber Galactic

Game companies in the region have grown from just a few to around 25-30 in the past two years. Most of these companies are developing their own games, with only around 30% involved in outsourcing. Outsourcers attribute the limited outsourcing to language barriers and the perception that Thailand is not a preferred location for game developers. However, Thailand - specifically Bangkok, Phuket and Chiang Mai - can become an attractive location for game development due to factors such as lower costs, beautiful nature, security and high-speed Internet.

Lots of Challenges to Overcome 

Thailand's gaming market, while burgeoning, may not yet warrant the establishment of a dedicated local branch due to its relatively modest size. While there is potential for development in Thailand's game development industry, it faces significant hurdles, including a small market size and a lack of experienced professionals. Moreover, language barrier remains one of the main factors that complicate game implementation in the country. 

Sameer Pandit, Director at Maxsoft Pte Ltd

Thailand is one country where the script is totally different: about 40% of people know English. So, it might be a challenge.

The Thai government is trying to help by offering new visas to tech-savvy leaders who want to stay long-term. So, addressing challenges is essential for the industry to evolve from its embryonic state to a more mature and globally competitive sector.

Interested in more insights about Thailand? Want to know how it differs from other Southeast Asian countries? Download our detailed report How to Conquer the Southeast Asian Game Market? Part 2: Focus On The Countries:

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