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 Investment • Number of information and communication 07 Recommendation technology (ICT) workforce. • Establishing the digital • Percentage of ICT jobs classification. content institute. • Gaming technology & investment in game creation • Marketing agency. Executive Summary GAMING INDUSTRY 06 Projects by depa Investment Opportunities for • There are many gaming 03 projects promoted and Gaming Companies 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 • Thailand has many outstanding gaming works. Investment Incentives for • Coronavirus pandemic is a positive impact on the gaming industry. 04 • 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)
159.3 World 9.3% 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- Thailand 14.1% related lockdown measures. All game segments saw an increase (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 Supply Chain and their logistic distribution function as this 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 Developers device manufacturers.
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 Intellectual property High cost of gaming production infringement Intellectual property Lack of specialist and skilled labor infringement legal infrastructure still Lack of specialist and skilled labor requires more deliberation and departure from regulations regarding game Lack of specialist and skilled labor especially game producer and developer 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 10 Part 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 434,382 Non-ICT graduate workers ICT graduate 55.2% 65.4% 34.6% 44.8% 284,202 150,180 men workers women 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 11 Part 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 11.1% 5.8% 16.7% 48,141 workers 25,283 workers ICT Occupation that 72,391 workers Primarily Involve the Production of ICT Goods Software and Database and Network 3.4% Information and Applications Developers Professionals 14,942 workers and Services Communications and Analysts Technology Operations and User Support Telecommunications and Source: National Statistical Office, 2019. Technicians Broadcasting Technicians GAMING LANDSCAPE IN THAILAND 12 Part 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 13 Investment 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 14 Part 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 15 Part 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 16 Takeaways: 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 17 depa packages for promoting and supporting gaming companies to invest in Thai gaming industry.
depa Digital Startup Fund depa Digital Manpower Fund
S2 Launch M1 Digital Manpower Fund up to1,000,000 THB up to 100,000 THB For starting business and (project duration: within 3 years) For developing and building (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 up to 5,000,000 THB Executive As bridge financing to (project duration: within 3 years) up to 300,000 THB 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 18 depa 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 19 Implication
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 20 Gaming 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. 21 In Focus: Gaming industry article Coranavirus Pandemic is an Opportunity to Thai Gaming Industry
GAMING LANDSCAPE IN THAILAND 22 The 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 23 3) 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 $187.8 Bn $174.2 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 24 Lessons Learned: Gaming Industry Best Practice
GAMING LANDSCAPE IN THAILAND 25 The 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 26 Applicable 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 27 Complement: Gaming industry case study Gaming Ecosystem in Thailand
GAMING LANDSCAPE IN THAILAND 28 This 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. broadcasting himself or herself while playing game products. Thailand 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 29 Figure 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 30 An international perspective: Gaming Industry Promotion Policy
GAMING LANDSCAPE IN THAILAND 31 County 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 32 County 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 33 Implication: Investment Recommendation
GAMING LANDSCAPE IN THAILAND 34 From 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 35 Government 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 36 depa Aspect: Promoted and Supported Gaming Projects by depa
GAMING LANDSCAPE IN THAILAND 37 Promoted 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 38 Example 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. 985,000 18 funding Coding Platform 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 RUNNEX TECHNOLOGY CO., LTD. Runster 1,000,000 12 Gaming Industry Lack of funding 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 7EVIL CO., LTD. 1,000,000 18 Gaming Industry Lack of funding MOR RA NA) game story base on Thai mythology (karma) that will immerse the player into the game.
GAMING LANDSCAPE IN THAILAND 39 Example 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 588,810 10 To develop the business with augmented reality (AR) applications. funding Technology, Dhurakij Pundit within the 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
GAMING LANDSCAPE IN THAILAND 40 References
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GAMING LANDSCAPE IN THAILAND 45 Investment 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