GAMING INDUSTRY INVESTMENT QUARTERLY - Digital Economy Promotion Agency
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INVESTMENT
QUARTERLY
GAMING
INDUSTRY
Digital Economy Promotion Agency
Contents
Executive summary 03
Gaming landscape in Thailand 04
What happens to the gaming industry in Thailand? 06
Indicators for measuring pain points of gaming industry 10
Investment opportunities for gaming companies 14
Takeaways: Investment incentives for gaming industry 17
• Digital Economy Promotion Agency 18
• Thailand Board of Investment 21
In Focus: Gaming industry article 22
• Coronavirus Pandemic is an Opportunity to Thai Gaming Industry 23
Lessons Learned: Gaming industry best practice 25
• Sony Interactive Entertainment 26
• Applicable for Thai Gaming Companies 27
Complement: Gaming industry case study 28
• Gaming Ecosystem in Thailand 29
An international perspective: Gaming industry promotion policy 31
Implication: Policy recommendation 34
depa Aspect: Promoted and supported gaming projects by depa 37
References 41
GAMING LANDSCAPE IN THAILAND 02
00 Gaming Landscape 01 Gaming Pain Points
• Has an increasing tendency 4 research studies show that the gaming industry in Thailand
as changing consumer is confronting lack of specialist and skilled labor.
behaviors using online
platform.
Indicators for Measuring
02 Pain Points
07 Investment
Recommendation
• Number of information and communication
technology (ICT) workforce.
• Establishing the digital • Percentage of ICT jobs classification.
content institute.
• Gaming technology &
investment in game creation
• Marketing agency.
Executive Summary
06 Projects by depa GAMING INDUSTRY
• There are many gaming 03 Investment Opportunities for
Gaming Companies
projects promoted and
supported by depa. • Operating business with training and skills
development for labors.
• Get benefits from having skilled labors in their
organizations and reducing the searching cost of
Articles / Best Practices / skilled labors or specialists.
05 Case Studies
•
04 Investment Incentives for
Thailand has many outstanding gaming works.
• Coronavirus pandemic is a positive impact on the gaming industry.
• Many companies are operating the business in the gaming industry in Thailand. Gaming Companies
• Success international gaming companies have a strong distribution channel. • depa packages. (e.g. depa Manpower Fund)
• Main weakness is the creative limitation in their works. • BOI: Tax and non-tax incentives. 03
Gaming Landscape in Thailand
The gaming industry in Thailand has an increasing tendency as changing consumer behaviors using the online platform. Moreover, coronavirus pandemic is the one factor that
positively impacts on this behavior. In this depa investment quarterly, we will present the gaming landscape in Thailand to identify the pain points of this industry and serve
our recommendations for investors or gaming companies that want to invest in this sector. (Digital Economy Promotion Agency and IMC Institute, 2020)
The value of the gaming industry in Thailand (2017-2019) The expected growth rate of the gaming industry in Thailand
(Mil. baht) (2020-2022) (%)
33,696 38,959
29,029 Mil.USD Mil.USD
Mil.USD
14.1% 16.1% 15.6%
2020 2021 2022
GAMING LANDSCAPE IN THAILAND 04
Gaming Landscape in Thailand (Cont.)
Coronavirus
Pandemic Gaming
Industry
(Growth 2020)
World 9.3% 159.3
Billion. USD
Nowadays, Coronavirus (COVID-19) has spread around the (yoy) Source: Newzoo, 2020.
world. The virus affects on global trade and investment.
Moreover, it will change human behavior from offline activity
to online activity. During these times, digital content, especially
gaming, has become a means of escapism and time filling for
many.
In 2020, the virus is one of the key driver driving the gaming
industry. It will increase interest in gaming due to COVID-19-
related lockdown measures. All game segments saw an increase
Thailand 14.1%
(yoy)
in engagement and revenues as a result of the COVID-19
measures, but mobile gaming saw the most significant growth. Source: Digital Economy Promotion Agency and IMC Institute, 2020
In total, mobile games will generate revenues of 77.2 bil.USD in
2020, growing +13.3% year on year. (Newzoo, 2020)
GAMING LANDSCAPE IN THAILAND 05
What happens to the gaming industry in Thailand?
In Southeast Asia, the gaming industry is an outstanding growth presenting through the gaming market in 2019 was valued at 140,000 Mil.THB or increased by 22% YoY
(Bangkokbiznews, 2019). For Thailand gaming market in 2019 was valued at 22,000 Mil.THB or increased by 13% YoY. (True Visions Group Company Limited, 2019) The Thai
gaming market is the second-fastest-growing market in Southeast Asia. In order to develop the industry, it is important to investigate the answer of What happens to the gaming
industry in Thailand, and the gaming industrial pain points in each stage of the supply chain should be identified. This bulletin adopts various research for identifying supply
chain model covered the gaming industry. The gaming industrial supply chain can be divided into 4 main stages, including:
Middle Publishers/ Distributors/
Ware Content Providers Retailers
Developers Customers
Hardware • Creation ISP, Game Web
Manufacturing • Production Site, Telecom
• Game Taster Operators
Source: Department of Trade Negotiations, Ministry of Commerce, n.d..
GAMING LANDSCAPE IN THAILAND 06
Traditional Versus Emerging Gaming Industrial Supply chain
Emerging Hardware • Emergence of the Internet most affects retailers
and their logistic distribution function as this
Supply Chain Manufacturers process is no longer relevant in the online gaming
Traditional segment.
Supply Chain • Publishers may also choose to distribute games
through Internet service providers (ISPs) or via
device manufacturers.
Developers
Publishers
ISP / Game Portals Distributors
Mobile Handset / Retailers
Manufacturers /
Operators
Customers
Source: Knowledge Works National Centre for Cultural Industries, 2017.
GAMING LANDSCAPE IN THAILAND 07
Type of gaming industry in Thailand?
From gaming industrial supply chain in the previous page, this industry in Southeast Asia can still divide into 3 subcategories as follows:
9%
Console
24%
PC
67% Mobile Game
Source: True Visions Group Company Limited, 2019.
Nowadays, the smartphone becomes a tool that people bring everywhere while the internet is more
comfortable to access than ever. This influences the ratio of mobile game that is the highest level comparing with
other tools. (True Visions Group Company Limited, 2019)
GAMING LANDSCAPE IN THAILAND 08
Gaming Industrial Pain Points along the Supply Chain
Traditional Hardware
Gaming Manufacturer Developer Publisher Distributor Retailer
Online ISP / Game Portals ,
Gaming Mobile Handset / Manufacturers / Operators
High cost of gaming production Intellectual property
infringement
Lack of specialist and skilled labor Intellectual property
infringement
Lack of specialist and skilled labor legal infrastructure still
requires more deliberation
and departure from
Lack of specialist and skilled labor especially game producer and developer regulations regarding game
contents into industry-
oriented regulations
Lack of specialist and skilled labor, as a result of insufficient of gaming courses from
universities such as coding skill
Political instability
Lack of funding
Event postponements and cancellations due to
the COVID-19
Implication: These research studies clearly show that lack of specialist and skilled labor is a massive threat to gaming industrial development in Thailand. The problem partly
comes from insufficient of gaming courses from universities such as coding skill. (Bangkokbiznews, 2019) Apart from lack of specialist and skilled labor, event postponements, and
cancellations due to the COVID-19 will impact on distribution or promotion of gaming products.
Brand Buffet (2019) Bangkokbiznews (2019) Nagashima Ohno & Tsunematsu (Thailand) (2020) PeerPower (2020)
Department of International Trade Promotion, Ministry of Commerce (2014) Department of Trade Negotiations, Ministry of Commerce (n.d.)
GAMING LANDSCAPE IN THAILAND 09
Indicators for measuring pain points of
gaming industry
This section presents two main pain points from the previous section including
“Vulnerability in the skill of labor” and “Event postponements and cancellations due to the
COVID-19” that can be described through specific indicators representing the root of the
problems.
Lack of specialist and skilled labor is the first pain point. This pain point can be seen from
the number of information and communication technology (ICT) workforce in 2019 that was
relatively low similarly to unemployment in all industries. Moreover, considering the percentage
of ICT jobs classification in 2019 found that software and applications developers and analysts
were relatively low, estimating 11.1% of total ICT jobs. (National Statistical Office, 2019) For these
reasons, Thailand is still lack of specialist and skilled labor in the gaming industry.
The second main pain point is the event postponements and cancellations due to the
COVID-19. This pain point can be seen from gaming event postponements and cancellations such
as Garena world 2020, the region’s largest Esports tournament. This postponement will directly
affect the income of gaming companies.
GAMING LANDSCAPE IN THAILAND 10Part 1: Lack of specialist and skilled labor
A number of information and communication technology (ICT) workforce is the indicator representing the lack of specialist and skilled labor pain point in Thailand.
Total Non-ICT graduate
434,382
workers ICT graduate
55.2%
44.8%
65.4% 34.6%
150,180
284,202 women workers
men workers
Number of employment in Information and Communication Technology The National Statistic Data (2019) indicates 434,382 ICT workers in 2019
(ICT) sector in 2019 was only 434,382 workers and this figure was very and accounted for 44.8% of total workers. This unbalance in labor
similar to unemployment in all industries. This presents an enormous structure shows an insufficiency of specialist and skilled labor in the
threat in gaming development which depends on ICT specialist and skilled gaming industry in Thailand.
labor.
Source: National Statistical Office, 2019.
GAMING LANDSCAPE IN THAILAND 11Part 1: Lack of specialist and skilled labor (Cont.)
Moreover, considering the percentage of ICT jobs classification in 2019 found that ICT occupation that primarily involves the production of ICT goods
and services was the highest percentage of total ICT jobs, estimating 63.0%. Unfortunately, software and applications developers and analysts were as
low as 11.1% of total ICT jobs. This can be seen through the small number of game producers and developers who are the essential workers for
developing gaming systems. For this reason, Thailand is still lack of specialist and skilled labor in the gaming industry.
63.0%
273,625 workers
16.7% 11.1%
48,141 workers
5.8%
25,283 workers
ICT Occupation that 72,391 workers
Primarily Involve the
Production of ICT Goods Information and Software and Database and Network
Professionals
3.4%
and Services Applications Developers 14,942 workers
Communications and Analysts
Technology Operations
and User Support Telecommunications and
Source: National Statistical Office, 2019. Technicians Broadcasting Technicians
GAMING LANDSCAPE IN THAILAND 12Part 2: Event postponements and cancellations due to the COVID-19
In the normal state, gaming events are vital to gaming companies and gamers because it is where all stakeholders can participate, collaborate, and
promote the game products. However, in 2020, coronavirus (COVID-19) pandemic has a significant impact on Thailand's gaming industry as event
postponements and cancellations for protecting people from the virus. This will directly affect the income of gaming companies.
An example of large gaming event postponements and cancellations in Thailand due to the COVID-19
Garena RoV team announced the event postponement Garena world 2020 on April 2020 would be postponed due
due to the COVID-19 in 3 subevents including to the COVID-19. This event is the region’s largest Esports
• RoV Pro League 2020 Summer (scoring round) on 23- tournament. The seventh consecutive year (2012-2019)
25 March 2020 that the event was held. Almost 300,000 people were
• RoV Pro League 2020 Summer (4 last teams round) reported to flock in to take part in the biggest Esports
on 4-5 April 2020 event in the country. (Niko, 2019)
• RoV Valor Tournament (8 last teams round) on 28-29
March 2020
Source: Garena RoV Tournament, 2020. Source: 4GAMERS, 2020.
GAMING LANDSCAPE IN THAILAND 13Investment opportunities for
gaming companies
This section presents opportunities for gaming companies to invest in Thailand's gaming
industry along the supply chain. These opportunities have emerged through the investment gaps
of two main pain points in the Thai gaming industry, including lack of specialist and skilled labor
and Event postponements and cancellations due to the COVID-19.
The first pain point is lack of specialist and skilled labor. The vulnerability affects the
availability of gaming labors in Thai gaming industry. Training and skills development for labors
from gaming companies will be an essential driver for unlocking this pain point as Thailand
confronts the low number of software and applications developers and analysts in ICT. Thus, this
highlights investment opportunities for gaming companies, both foreign and Thai. They can
benefit from having skilled labourers in their organizations and reducing the searching cost of
skilled labourers or specialists.
The second pain point is event postponements and cancellations due to the COVID-19.
Digital Technology can mitigate this problem by being a tool for constructing an online gaming
event. Although COVID-19 pandemic impacts on gaming companies' income, it will create new
investment opportunities for gaming companies in the long term by reducing operating cost for
preparing offline event and cost for protecting people from COVID-19 infection that still outbreak
over the next few years.
GAMING LANDSCAPE IN THAILAND 14Part 1: Lack of specialist and skilled labor
Game Industry
Job Classification
Due to the lack of specialist and skilled labour pain
point, gaming companies may find it is beneficial to
develop key essential skills for labourers. These skills that
are important for producing gaming products can
consider with game industry job classification.
(Screenskills, n.d..) There are seven main jobs:
production, animation, programming, art, design, quality
assurance and audio. As a result, these companies can
benefit from having skilled labourers in their
organizations and reducing the searching cost of skilled
labourers or specialists.
Source: Screenskills, n.d..
GAMING LANDSCAPE IN THAILAND 15Part 2: Event postponements and cancellations due to the COVID-19
Digital Technology can mitigate this problem by being a tool for constructing an online gaming event. In 2020, gaming companies worldwide change their
offline gaming events to online gaming events as COVID-19 pandemic. Although COVID-19 pandemic impacts on gaming companies' income, it will create
new investment opportunities for gaming companies in the long term by reducing operating cost for preparing offline event and cost for protecting
people from COVID-19 infection that still outbreak over the next few years.
An example of large gaming event in the world changing their offline gaming events to
online gaming events as COVID-19 pandemic.
PCGamer moving to their online event, EA moving to their online event, ESL changing their game competitions,
also known as PC Gaming Show also known as EA Play also known as ESL Pro League Season 11
via Live Stream on Twitch through their online website from offline event to online event
Source: 4GAMERS, 2020. Source: 4GAMERS, 2020. Source: 4GAMERS, 2020.
GAMING LANDSCAPE IN THAILAND 16Takeaways: Investment incentive
for gaming companies
The gaming industry is the growth industry-changing accordingly as technological
and internet developments. However, lack of or insufficient funding is a pain point
that undermines industry development.
Fortunately, Digital Economy Promotion Agency (depa) is currently a government
agency that supports and promotes the development of digital industry and
innovation, and digital technology adoption in various aspects, including national
economy, society, culture, and security. The gaming industry is one of the supported
industries by depa both funding and consulting aspects. The qualified gaming
companies will be eligible to apply for depa packages such as depa Digital Startup
Fund, depa Digital Manpower Fund, and depa Digital Event and Marketing Fund.
Apart from depa, Thailand Board of Investment (BOI) is another organization that
supports and promotes investment incentives for gaming companies. These
investment incentives, such as exemption of corporate income tax.
GAMING LANDSCAPE IN THAILAND 17depa packages for promoting and supporting gaming companies to invest
in Thai gaming industry.
depa Digital Startup Fund depa Digital Manpower Fund
S2 Launch 1,000,000 THB M1 Digital Manpower Fund
For starting business and
up to
(project duration: within 3 years) For developing and building
up to 100,000 THB
(project duration: within 1 year)
prototype development Grant + Convertible manpower in digital innovation Grant + Matching Fund
skill at career level
S3 Growth M2 Digital Manpower for
As bridge financing to
up to 5,000,000 THB Executive
up to 300,000 THB
(project duration: within 3 years)
support growth Convertible For developing and building (project duration: within 1 years)
manpower in digital innovation Grant
skill at executive level
GAMING LANDSCAPE IN THAILAND 18depa Digital Event and Marketing Fund
E Digital Event and Marketing up to 5,000,000 THB
For organizing promoting activities, business matching, (project duration: within 1 year)
contest, raising awareness about industrial development (Matching Fund 60:40)
and digital innovation
depa Digital Infrastructure Fund
Digital Infrastructure Fund for Digital Infrastructure Fund for
I1 Private Investment I2 Government and Public Investment
As developing digital infrastructure for As developing digital infrastructure for
private investment government and public investment
up to 50,000,000 THB up to 200,000,000 THB
(project duration: within 3 years) (project duration: within 5 years)
(Matching Fund 50:50) Convertible
GAMING LANDSCAPE IN THAILAND 19Implication
Gaming companies interesting to invest in Thai gaming industry can apply
for depa packages including
• Digital Startup Fund: Gaming companies can apply this package for
starting business or financing to support growth. (e.g. grant, grant plus
convertible)
• Digital Manpower Fund: Gaming companies that want to train their
labors with gaming development skill. They can apply this package. (e.g.
up to 100,000 THB or 300,000 THB depending on the level of training)
• Digital Event and Marketing: Gaming companies that want to organize
promotional activities or other marketing activities. They can apply this
package. (e.g. up to 5 mil.THB)
• Digital Infrastructure Fund: Gaming companies constructing digital
content platform. They can apply this package. (e.g. up to 50 mil.THB or
200 mil.THB as type of organizations)
GAMING LANDSCAPE IN THAILAND 20Gaming and character business investment incentives from BOI
BOI has been pursuing numerous initiatives aimed at assisting Thai and foreign companies to invest in Thai gaming and character through basic investment incentives including;
Exemption of Exemption of Exemption of Exemption of import duties Non-tax
corporate import duties on import duties on on raw materials used in incentives
income tax machinery raw materials production for export
used in R&D
5-years -
Example of General List of Gaming and Character Activities Eligible for
Investment Promotion.
A1 A2 A3 A4 B1 B2 A3 High technology activities which are important to the development of the country,
with a few investments already existing in Thailand.
• 5.7.2 Enterprise Software and/or Digital Content
A Guide to The Board of Investment 2020
GAMING LANDSCAPE IN THAILAND Source: Thailand Board of Investment, 2020. 21In Focus: Gaming industry article
Coranavirus Pandemic
is an Opportunity to
Thai Gaming Industry
GAMING LANDSCAPE IN THAILAND 22The pandemic of COVID-19 affects the world economy, bringing the
deepest global recession represented by the contraction in global GDP in 2020 at 5.2%
YoY (World Bank, 2020). In Thailand, coronavirus pandemic impacts the economy
through shrinking by at least 5% in 2020. (World Bank, 2020)
Although industry sectors in Thailand are affected from coronavirus
pandemic especially export sector that is expected to decline by 6.3% in 2020, the
sharpest quarterly contraction in five years, as demand for Thai goods abroad remains
weakened by the global slowdown. (World Bank, 2020) The gaming industry, especially
the online game sector returns to receive a good result. The reason is that Thailand’s
government announces internal lockdown measures as protecting coronavirus
infection, workers perform their work at home, and students study via an online
learning platform. This is an opportunity for playing the game online, especially leisure
time after their works or studies.
Three indicators that represent this event including (Kasikorn Research Center, 2020)
1) Using high-speed internet in Thailand in March 2020 has increased 20% from the
end of 2019.
2) Number of downloading online games on mobile phones, smartphones (mobile
games) for both Android and iOS systems around the world (including Thai people)
has increased 20%yoy or 13 billion times.
GAMING LANDSCAPE IN THAILAND 233) Number of Thai people playing an online game on the steam platform in April
2020 has increased 0.1%mom
Moreover, considering the global game market's growth in the next 3
years finds that it has increased overtime from 174.2 bil.USD in 2021 to 200.8 Bil.USD in
2023 or increased 15% of the total market during this period.
$200.8 Bn
$174.2 Bn
$187.8 Bn +15%
Total Market
$159.3 Bn 2021-2023
2020 2021 2022 2023
Source: Newzoo, 2020.
This is an opportunity for Thai startups to benefit from the gaming
industry as coronavirus pandemic impacts human behaviour from offline activity to
online activity.
GAMING LANDSCAPE IN THAILAND 24Lessons Learned:
Gaming Industry
Best Practice
GAMING LANDSCAPE IN THAILAND 25The publisher and developer of first-party titles for all PlayStation platforms in Japan
Key Success Weakness
o Strong distribution network o The marketing of the products left a lot to
- Over the years, Playstation has built a be desired. Even though the product is a
reliable distribution network that can reach success in terms of sale, its positioning and
most of its potential market. (Fern Fort unique selling proposition are not clearly
University, n.d.) defined, leading to the attacks in this segment
from the competitors. (Fern Fort University,
o Strong distribution and reach n.d.)
- PlayStation has many outlets in almost
every state, supported by a strong distribution o Rented property
network. (Williamson, 2018) -A significant proportion of the property
that PlayStation owns is rented rather than
o Strong skill of workforce purchased. It has to pay large amounts of rent
- PlayStation has invested extensively in its on these adding to its costs. (Williamson, 2018)
employees' training that has resulted in it
employing a large number of skilled and o Intellectual property infringement
motivated employees. (Williamson, 2018) - There are many gaming infringements in
PlayStation platforms.
GAMING LANDSCAPE IN THAILAND 26Applicable for Thai Gaming Companies
From the gaming industry best practice (e.g., Sony Interactive Entertainment),
Thai gaming companies can apply these best practices to develop their business operations including
• Coordinate among gaming companies and government to develop comprehensive and rightful gaming intellectual
property policy in Thailand.
- This can help intellectual property infringement problem occurring in Sony Interactive Entertainment in case
of games on PlayStation.
- Gaming companies should keep developing their Digital Right Management (DRM) algorithm to avoid the DRM
bypass method's possible attempts. This could be one of the most appropriate ways to prevent Intellectual
Property Infringement and strengthen its revenue sources.
• Develop their distribution channel as Sony Interactive Entertainment case that PlayStation has many outlets in almost
every state in Japan, supported by a strong distribution network. This is the main critical success of its business.
- Thai gaming companies should organize a gaming event for business matching purpose. It will increase
revenues to these companies. One of organizing gaming event method is coordination between gaming
companies and a government agency that supports and promotes digital industry and innovation development. This
method can help gaming companies to get more funding and business connection in international level easily through
government guarantee.
- National game trading platform may be developed to strengthen the domestic game distribution channel. The
platform may be supported by the government agencies and information sharing between the platform owners and
the government should be done, so that the government may utilize such information to develop appropriate policies
to establish a strong ground for the gaming industry in the future.
GAMING LANDSCAPE IN THAILAND 27Complement: Gaming industry case study
Gaming Ecosystem
in Thailand
GAMING LANDSCAPE IN THAILAND 28This section investigates gaming ecosystem in Thailand as this industry is the outstanding growth presenting through Thailand gaming market in 2019 was valued at
22,000 Mil.THB or increased 13% yoy. (True Visions Group Company Limited, 2019) Ecosystem in this industry can classify to 8 components including
Funding is the most important for Thai gaming companies especially startups
e.g.
Venture Capital
Game Designer Steamer
This is an important part for game production. This duty is A person or people groups who broadcasts himself or herself
the design gaming consensus such as designing characters, in real time while playing game products.
levels, write code, etc. e.g.
e.g.
Gaming
Software Company Ecosystem Steaming Platform
This is an infrastructure for supporting game production. in Comprehensive platform that supports streamer for
e.g. Thailand broadcasting himself or herself while playing game products.
e.g.
Animator Company Game Publisher
Animator companies help game product completely through This is the publishing game products either developing game
designing and producing cinematic for games. products by itself or being an agent from game company.
e.g. Game Promoter e.g.
For distributing game products, game promoter is the answer.
e.g.
GAMING LANDSCAPE IN THAILAND
29Figure 1: Gaming industry ecosystem in Thailand
Game Designer Game Publisher Software Company
Venture Capital
Animator Company Steamer Steaming Platform Game Promoter
Source: Digital Marketing Promotion Division, Digital Economy Promotion Agency
GAMING LANDSCAPE IN THAILAND 30An international perspective:
Gaming Industry
Promotion Policy
GAMING LANDSCAPE IN THAILAND 31County Organization Mechanism Description
Malaysia The Ministry of - The Ministry of Communications and Multimedia has announced the Digital Content Ecosystem (DICE) policy, which will help grow both the video game development and animation industry in the
Communications country, which in turn benefit Malaysia’s economy.
and Multimedia - The DICE Policy will attract investments, create local talent, and strengthen the ecosystem via government and private sector partnership. The policy will also be covering the best practices to promote
healthy animation and gaming environments when asked if there will be any policies regarding safeguarding game developers from unhealthy habits such as overworking via crunch.
France The Directorate Tax credit for video games. (TCVG)
General for France has a dynamic network of publishers and studios, all of which are part of a structured and active ecosystem. It is composed of regional clusters, research laboratories and high- end schools constantly
Enterprise (DGE) training new international talent.
Funds for original creations.
Funds for prototype production.
Funds for collective actions.
Funds for video games equity loans (FPJVS).
Support for R&D and company development.
United TIGA A Video Games Investment Fund (VGIF Overview)
Kingdom (TIGA has called on the Government to TIGA proposes that the VGIF could provide funding of between £75,000 and £500,000 to games developers nationwide. Funding between £75,000 and £100,000 would
introduce a Video Games Investment be delivered as grants while above £100,000 soft loans would be matched pound for pound to ensure that games companies find new investment from other
Fund (VGIF)) sources.
The retention and potential enhancement of Video Games Tax Relief.
A Training Tax Relief, or the revival of - TIGA is the network for games developers and digital publishers and the trade association representing the UK video game industry.
the Skills Investment Fund, to promote - We help developers and digital publishers build successful studios, network with the right people, save money and access professional business advice. We also
training within small and medium-sized have traditional publishers, outsourcing companies, technology businesses and universities amongst our membership.
enterprises - TIGA is 90% funded by independent the UK businesses. 80% of our board members are developers and/or from UK owned businesses, and 50% of our board are
UK business owners themselves. Since 2010, TIGA has won 17 business awards.
Reform of the Apprenticeship Levy into a general Training Levy
A more flexible migration policy and an TIGA, the network for games developers and digital publishers and trade association representing the video games industry, has submitted written evidence to the
expansion of the Shortage Occupation Migration Advisory Committee (MAC) to inform their review of the Shortage Occupation List (SOL). TIGA has called on the Government to enable games businesses to
List recruit non-UK workers to fill high and medium-skilled roles after Brexit while developing a highly-skilled domestic workforce.
TIGA calls on Government to close the TIGA, the network for game developers and digital publishers and the trade association representing the video games industry, has called on the Government to
digital skills gap reduce tuition fees for STEM subjects, increase targeted action to increase the number of students studying STEM subjects, and improve careers guidance.
Source: Malaysia: Gamermatters, 2019; France: Jointhegame, 2020, Centre national du cinéma et de l'image animée, 2020; United Kingdom: TIGA, 2020.
GAMING LANDSCAPE IN THAILAND 32County Organization Mechanism Description
Australia Parliament of The Games Enterprise program The fund was originally intended to address lack of sophisticated investment problem.
Australia Amount: funding of up to $1 million : 3 Years.
Types: 1. Grant funding (25% count as loan).
2. A loan.
The Games Production program Amount: up to $500,000 per individual project.
Support - R&D tax incentive.
- Export Market Development Grants.
- Government support available in other countries.
Korea Korea Creative Governmental initiative and civil To provide a systematic overview of the process of establishing a series of policies related to the game industry and the policy outcomes.
Contents Agency cooperation An evaluation of the policy outcomes based on the overview will be provided and some suggestions will be made thereof. Latecomers may thus attain success in the
game industry.
1. Game Promotion Center among others. In 2003 the center proposed a blueprint for promoting the game industry, beginning with “the Mid- to Long-term Plan for
the Development of the Game Industry.” With the publication of the “White Book on Korean Games” in 2002, the government began collecting statistical data
for the game industry and market. The year 2006 witnessed the enactment of the Game Industry Promotion Act, the first law in the world exclusively concerned
with the game industry.
2. The government soon became determined to jumpstart the industry by focusing its policies on establishing the initial IT infrastructure. To expedite the process
of development, the government established the Ministry of Information and Communication, which dedicated its efforts to establishing IT infrastructure and
nurturing the IT industry.
Support - Incubation Projects.
- Production Support Project.
- Investment Support Project.
- Export Promotion Project.
- Professional Training Project.
Source: Australia: Parliament of Australia, 2020; Korea: Ministry of Strategy and Finance and Korea University, 2014.
GAMING LANDSCAPE IN THAILAND 33Implication:
Investment
Recommendation
GAMING LANDSCAPE IN THAILAND 34From lack of specialist and skilled labor in the gaming industry, gaming companies can benefit from having skilled labourers in their
organizations and reducing the searching cost of skilled labourers or specialists through training and skills development for labors from gaming
companies.
Digital Content Additionally, gaming companies can take an investment opportunity by establishing a digital content institute. This institute may
Institute address labor shortage issue by developing gaming manpower for the company. Moreover, the institute may extend its business model to
provide educational and training supports for the digital content industry, earn additional revenue stream and bring international gaming
professional (e.g. game designer, game programmer) to transfer knowledge for Thai labors. Furthermore, the company may cooperate with the
government agencies to co-invest in this institute to minimize the cost of establishment.
Gaming companies can invest in technology to overcome labor shortage. For example;
• These companies may use motion sensors to capture the movement of human and
export these movements to the game characters. Thus, it will reduce manpower
Gaming Technology required to create manual movements of each character.
& Investment in • Gaming companies may work with the government to jointly invest in the game
Game Creation creation to bring out the world standard games to the global market.
Source: All3DP, 2020.
GAMING LANDSCAPE IN THAILAND 35Government can support gaming industry by cooperating with private companies in form of marketing agency. This agency may play an
important role in promoting gaming industry both domestically and internationally. Then, this method can boost up the sales through
different methods including
Marketing - Advertisement.
Agency - Promotional activities.
- Online and offline event arrangements.
GAMING LANDSCAPE IN THAILAND 36depa Aspect:
Promoted and
Supported Gaming
Projects by depa
GAMING LANDSCAPE IN THAILAND 37Promoted and supported gaming projects by depa
Digital Economy Promotion Agency (depa) was established by virtue of the Digital Development for Economy and Society Act B.E. 2560 (A.D. 2017) promulgated on 23
January 2017, the second year in the Reign of King Rama X to take the role of a government agency, whose status was a legal entity and not a government service according to
the National Government Organization Act or a state enterprise according to the Budget Procedure Act and none other. The agency aimed to support and promote the
development of digital industry and innovation, support and promote digital technology adoption which benefit the national economy, society, culture, and security according
to Article 34 of the Act. A Commission, whose members had been appointed by the Minister of Digital Economy and Society, was authorized to regulate and ensure the
agency’s performance. (Digital Economy Promotion Agency, 2019)
Article 34 entitled the agency a supreme authority in the following area:
• Formulate Digital Economy Promotion Strategic Plan in line with the national policy and plan regarding the digital development for economy and society.
• To promote and support the investment or business operation in relation to the digital industry and innovation.
• To promote and support the development of digital industry and innovation in collaboration with the relevant agencies.
• To promote, support and implement promote the human resource development with regard to digital industry and innovation.
• To propose, accelerate and follow up the law amendment or adjustment of regulations or measures in relation to the intellectual property protection of digital industry
and innovation in collaboration with the relevant agencies.
• To perform any other duties assigned by the Commissioners, Special Commissioners, depa’s Board of Commissioners or stipulated by legislation.
In this section, we will collect, for example, gaming projects during 2019-2020 which are promoted and supported from depa. There are many gaming projects requesting
funds from depa through depa measures such as depa Digital Startup Fund (to operate their gaming businesses), depa Manpower Fund (to develop their employees with
gaming development skills) and depa Digital Infrastructure Fund (to develop their digital content platforms as high cost of production). These gaming projects have several pain
points and are solved with depa measures such as elevation of digital content workforce within the organization project from College of Creative Design and Entertainment
Technology, Dhurakij Pundit University that want funding to develop the business with augmented reality (AR) applications. For this reason, they submitted their project
proposal through depa Manpower Fund measure to raise fund for digital skill development in their academic staffs.
GAMING LANDSCAPE IN THAILAND 38Example of depa Digital Startup Fund
Industry Pian point Promoted/ Supported Agency Project Name Supported Amount (Baht) Duration (Months) Project Details
The platform gathers all the systematic thinking skill with upholding activity to
Lack of specialist and Kid Hero's children, parents and instructors. This platform can be access everywhere and every
Gaming Industry skilled labor / Lack of KID HERO (THAILAND) CO., LTD. Coding Platform 985,000 18
funding time. Moreover, both instructors and children can create their uphold thinking
system project through a private program.
Lack of specialist and Platform educates about machine learning on the website, which is easy to access
Gaming Industry skilled labor / Lack of FOXFOX CO., LTD. FOXFOX 1,000,000 18 and fun as the gamification formality is used to apply with machine learning
funding knowledge.
Languge The application is created to educate Thai, Japanese and English through virtual
Lack of specialist and Learning via reality tour. The content is a 3D video/ 180o which taken from the real tourist
Gaming Industry skilled labor / Lack of TOCKTO CO., LTD. 1,000,000 18
funding Tockto VR Tour attraction in Thailand. The application is conducted by native speaker with speech
Application recognition exercise and gramma lesson.
Runster is an online game that persuades people to work out by moving their body
through mobile phone and computer. The prominent point of this game is team
Gaming Industry Lack of funding RUNNEX TECHNOLOGY CO., LTD. Runster 1,000,000 12
based-battle as 4 players have to divide into 2 teams as fight for cantonments and
points.
PERTA (DAN MOR RA NA) is a horror game that is played on one person perspective.
PERTA (DAN The game is developed by Unreal Engine4 and sold through application steam. The
Gaming Industry Lack of funding 7EVIL CO., LTD. 1,000,000 18
MOR RA NA) game story base on Thai mythology (karma) that will immerse the player into the
game.
GAMING LANDSCAPE IN THAILAND 39Example of depa Manpower Fund
Industry Pian point Promoted/ Supported Agency Project Name Supported Amount (Baht) Duration (Months) Project Details
College of Creative Design Elevation of digital
Lack of specialist and and Entertainment content workforce
Gaming Industry skilled labor / Lack of Technology, Dhurakij Pundit within the
588,810 10 To develop the business with augmented reality (AR) applications.
funding
University organization
Example of depa Digital Infrastructure Fund
Industry Pian point Promoted/ Supported Agency Project Name Supported Amount (Baht) Duration (Months) Project Details
Coding Arena is the first Thai platform that educates coding knowledge
Cloud Computing for in term of edutainment. The platform was applied with gamification that
Lack of specialist and Edutainment is originated from model and proof of concept in many countries.
Gaming Industry skilled labor / Lack of CODING ARENA CO., LTD. 20,000,000 36
funding Platform with Coding Edutainment is a growable platform with positive effects. Moreover, the
Learning platform also allows user to generated new contents which know as user
generated content (UGC).
E-sport Center for First E-sport center in Khon Kaen province, the area was developed to
Gaming Industry Lack of funding FOCUS ARENA CO., LTD. Digital Content & 6,955,000 36 educate participants regarding E-sport learning, digital content and
Coding coding.
Digital Ecosystem for
In order to build digital ecosystem for people who interested in virtual
Gaming Industry Lack of funding INFOFED CO., LTD. Digital Content 8,000,000 36
reality (VR) and augmented reality (AR).
Creators
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GAMING LANDSCAPE IN THAILAND 45Investment Quarterly Digital Economy Promotion Agency (depa) was established by virtue of the Digital Development for Economy and Society Act B.E. 2560 (A.D. 2017) promulgated on 23 January 2017, to take the role of a government agency, whose status was a legal entity and not a government service according to the National Government Organization Act or a state enterprise according to the Budget Procedure Act and none other. depa aimed to support and promote the development of digital industry and innovation, support and promote digital technology adoption which benefit the national economy, society, culture, and security. This paper contains specific information about gaming landscape in Thailand. It will help investors and companies to make investment decision in gaming business in Thailand. Issue 1/2021
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