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Australia India Institute Volume 20, February 2021 Fostering Opportunities in Video Games between Victoria and India Dr Jens Schroeder Fostering Opportunities in Video Games between Victoria and India The Australia India Institute, based at The University of Melbourne, is funded by Australian Government Department of Education, Skills and Employment, the State Government of Victoria and the University of Melbourne. Video games are booming all over the world, during the COVID-19 pandemic more than Summary ever. Australia and India are no exceptions. This policy brief focuses on the opportunities for both Indian and Victorian game developers and educators in the context of the Victorian government's support for its creative industries. Based on desk research and discussions at the Victoria-India Video Games Roundtable conducted on 8 December 2020 by the Australia India Institute in collaboration with Creative Victoria and Global Victoria, this report identified the following avenues for collaboration: • Access to complementary expertise and talent in both countries • Joint education programs and exchanges • Victorian game developers working with Indian partners to adapt their games to the Indian market and its complexities and challenges Video games1 are one of the world's largest and fastest-growing entertainment and media Introduction industries. In Australia, Victoria is the hotspot for game development. With 33% of all studios and 39% of all industry positions,2 more studios call Victoria home than any other state in Australia. Meanwhile, India's smartphone penetration has skyrocketed to the point where the country has become the world's most avid consumer of mobile gaming apps. This policy brief sets out to explore how Victoria-based game developers and educators can take advantage of this emerging market and the opportunities it presents. It establishes a frame of reference by highlighting the characteristics of both markets: India, as a highly complex mobile-centric consumer market whose traditional service approach to games has resulted in unmet demand for certain production skills, stands opposite a product-centric Australia, where the long engagement with video games has led to a successful international outlook and track record and the corresponding acquisition of expertise. Based on these insights, this policy brief explores three areas of opportunity. First, joint ventures that can support Indian developers to strive towards more sophisticated products while Indian talent can support Australian studios in their growth. Secondly, collaborations between educational providers and other stakeholders with complementary skills applied to educational activities on a number of levels (undergraduate, postgraduate, internships, incubators). Thirdly, partnerships where Australian game developers wanting to enter the highly stratified Indian consumer market can benefit from the Indian partner’s market insights. 1 Video and digital games are used interchangeably in this report. For purposes of this report, ‘games’ do not include applications that replicate types of gambling in virtual form. While these games are made in Australia and are popular in India, IGEA does not represent developers that focus on these kinds of titles. Members’ games can include behaviourist monetisation techniques, but their core does not revolve around casino-style gameplay. 2 IGEA (2019) Australian Video Game Development Industry Contributes to Exports and Job Opportunities. https://igea. net/2019/11/australian-video-game-development-industry-contributes-to-exports-and-job-opportunities/ 4 Victoria's Creative State strategy highlights the importance of the sector to the state Victoria’s economy. Creative industries – including digital games along with the visual and performing arts, literature and publishing, music, screen production, design and fashion Video Game – contributed $22.7 billion to Victoria’s economy in 2015 and employed 290,000 workers 3 Strategy or 8.6% of Victoria’s workforce. While the Creative State strategy's original vision has been disrupted by the COVID-19 pandemic and its further development was paused to address the acute and immediate impacts facing the sector, Victoria’s ongoing support of the creative industries is not just reflected in temporary relief measures but also the ongoing maintenance of existing programs. Initiatives include Film Victoria's Games Release Fund and Assigned Production Investment for games as well as the recently announced allocation of AU$19.2 million to attract international and interstate screen projects to the state. The vast majority of the investment will be committed prior to 30 June 2021 and will more than double Film Victoria’s investment in the development of locally generated digital games.4 The Victorian gaming industry is also supported by the Interactive Games & Entertainment Association (IGEA), the peak industry association representing the voice of Australian companies in the computer and video games industry. IGEA supports the business and public policy interests of the games industry, through advocacy, research and education programs. Its mission is to create an environment that supports and drives sustainable growth for the interactive games and entertainment industry. Victoria’s commitment to strengthening the links with India in the digital gaming sector, including gamification, is recorded in Victoria’s India Strategy. The strategy asserts that Victoria will continue to promote and support commercial opportunities with Indian partners,5 an initiative whose potential this policy brief will further explore. The brevity of this paper and the ever-changing dynamics of the Indian market mean that it should be treated as a step towards further conversations between the two countries for exploring opportunities in more detail. 3 Creative Victoria (2020) About. https://creative.vic.gov.au/about 4 Film Victoria (2020) Press Release. Levelling Up Support for Victoria’s Digital Games Sector. 5 Victoria State Government (2018) Victoria’s India Strategy (Melbourne: Victoria State Government), p. 36. 5 publishing, music, screen production, design and fashion – contributed $22.7 billion to Victoria’s economy in 2015 and employed 290,000 workers or 8.6% of Victoria’s workforce.3 While the Creative State strategy's original vision has been disrupted by the COVID-19 pandemic and its further development was paused to address the acute and immediate impacts facing the sector, Victoria’s ongoing support of the creative industries is not just reflected in temporary relief measures but also the ongoing maintenance of existing programs. Initiatives include Film Victoria's Games Release Fund and Assigned Production Investment for games as well as the recently announced allocation of AU$19.2 million to attract international and interstate screen projects to the state. The vast majority of the investment will be committed prior to 30 June 2021 and will more than double Film Victoria’s investment in the development of locally generated digital games.4 The Victorian gaming industry is also supported by the Interactive Games & Entertainment Association (IGEA), the peak industry association representing the voice of Australian companies in the computer and video games industry. IGEA supports the business and public policy interests of the games industry, through advocacy, research and education programs. Its mission is to create an environment that supports and drives sustainable growth for the interactive games and entertainment industry. Victoria’s commitment to strengthening the links with India in the digital gaming sector, including gamification, is recorded in Victoria’s India Strategy. The strategy asserts that Victoria will continue to promote and support commercial opportunities with Indian partners,5 an initiative whose potential this policy brief will further explore. The brevity of this paper and the ever-changing dynamics of the Indian market mean that it should be treated as a step towards further conversations between the two countries for exploring opportunities in more detail. The Global Video Games Market The interactive games sector is one of the largest and fastest growing entertainment and The Global mediaThe interactive industries games in thesector world. is one Estimated of the largest to beand worth fastest almost growing AU$280 entertainment billion and globally media by 2023industries (Figure in the 1 ),world.6 games Estimated are bigger to be business worth almost than AU$280 films, billionmusic globa andlly books. by 2023 (Figure 1),6 Video Games games are bigger business than films, music and books. FigureFigure 1: 1: Global Global Game Game Market Market Revenue Revenue (1970-2022) (1970-2022) Market Source: Gamingscan. https://www.gamingscan.com/gaming-statistics/ Already3 Creative oneVictoria of (2020)the world’s About. https://creative.vic.gov.au/aboutlargest and fastest-growing entertainment industries before 4 Film Victoria (2020) Press Release. Levelling Up Support for Victoria’s Digital Games Sector. COVID-195 Victoria State hit, Government gaming (2018)has further Victoria’s expanded India Strategy during (Melbourne the lockdowns.: Victoria State With Government the ongoing), p. 36. global6 Tom Wijman proliferation (2020) The of World’s smartphones, 2.7 Billion Gamersnew monetisation Will Spend $159.3 models, Billion on and Games the inrefinement 2020. Newzoo of. revenuehttps://newzoo.com/insights/articles/newzoo streams such as microtransactions,-games- marketgames-numbers
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