Online games go local for Southeast Asia’s booming market

Online games go local for Southeast Asia’s booming market

Sun, Feb 9 2014

By Brian Leonal

SINGAPORE (Reuters) – It was while hunting for monsters in a virtual cave that Bend Henmoko Madio met his community and realized why companies are adapting online video games to suit the different languages, tastes and mobile devices in Southeast Asia.

Text translation, dialogue dubbing and character outfits are among the most common tweaks in the “localization” work by firms wanting to capitalize on the region’s booming game market and keep players loyal.

“I met these friends when I was playing Rohan: Blood Feud hosted on the Indonesian server,” said 32-year-old Madio. “Localization makes it easier to form a community … After all, it is easier to communicate with fellow countrymen.”

Localization is gaining ground in Southeast Asia, where 85 million players spent $661 million last year on online games, research firm Niko Partners says. It expects that spending to hit $1.2 billion by 2017.

“The growth has been quite staggering,” said David Ng, chief executive of Singapore-based gaming company Gumi Asia Pte Ltd. “That is what’s fuelling the localization business because more and more people are starting to realize it’s worthwhile.”

Gumi Asia, a unit of Japan’s Gumi Inc, creates in-house games and also publishes those of its parent, with teams working on localization for Southeast Asia.

In Puzzle Trooper, a game originally intended for western players, a character resembling the wrestler Hulk Hogan got some manga makeovers.

“When we started doing testing in Southeast Asia, we realized that they don’t really like the western art that much,” Ng said. “Then we tested with some more Japanese-looking art and the response was really good.”

BEYOND LANGUAGE AND CULTURE

Still, Southeast Asia is far from homogeneous. Gamers in Thailand and Vietnam tend to like Chinese-style outfits, while those in the Philippines love western-style characters such as the original Puzzle Trooper, Ng said.

“Indonesia is hard,” he said. “You have the Muslims, Chinese and Christians. It’s a mix. It’s really difficult to comprehend a market as diverse as that.”

Indonesia’s nearly 20 million players spent $88.1 million on online gaming in 2012, almost 26 percent higher than the year before, according to Niko Partners.

“The future of game localization in Southeast Asia is going to be decided by the Indonesian market,” said Harry Inaba, managing director of localization firm Synthesis APAC.

Unlike Gumi Asia, independent firms such as Synthesis work on contract with developers wanting to localize their games.

Catering to the Southeast Asian market goes beyond language and culture to include optimizing graphics and adapting to diverse handset types, Ng said. The Android operating system’s domination in the region presents a sizeable challenge.

With at least nine Android systems now in use and thousands of distinct devices in the market with different screen sizes and graphics capabilities, developers must localize their games into many formats. In contrast, the vast majority of Apple devices run on iOS 7 or the previous version of that system.

Low connection speeds in parts of Southeast Asia hinder developers from using high-quality graphics and elaborate animation, so banners that pop out on the screen would not be ideal as they can take a long time to load.

Instead, developers are using the pixel technology found in older phones that requires lower bandwidth.

Gumi picked the 20 to 30 most popular Android devices to localize into, Ng said, with the ultimate goal of fostering player loyalty by making games “sticky” to various markets.

“Stickiness equates to removing any barriers from their understanding of how to play the games,” he said. “To remove barriers, you give them something they’re more familiar with.”

 

Unknown's avatarAbout bambooinnovator
Kee Koon Boon (“KB”) is the co-founder and director of HERO Investment Management which provides specialized fund management and investment advisory services to the ARCHEA Asia HERO Innovators Fund (www.heroinnovator.com), the only Asian SMID-cap tech-focused fund in the industry. KB is an internationally featured investor rooted in the principles of value investing for over a decade as a fund manager and analyst in the Asian capital markets who started his career at a boutique hedge fund in Singapore where he was with the firm since 2002 and was also part of the core investment committee in significantly outperforming the index in the 10-year-plus-old flagship Asian fund. He was also the portfolio manager for Asia-Pacific equities at Korea’s largest mutual fund company. Prior to setting up the H.E.R.O. Innovators Fund, KB was the Chief Investment Officer & CEO of a Singapore Registered Fund Management Company (RFMC) where he is responsible for listed Asian equity investments. KB had taught accounting at the Singapore Management University (SMU) as a faculty member and also pioneered the 15-week course on Accounting Fraud in Asia as an official module at SMU. KB remains grateful and honored to be invited by Singapore’s financial regulator Monetary Authority of Singapore (MAS) to present to their top management team about implementing a world’s first fact-based forward-looking fraud detection framework to bring about benefits for the capital markets in Singapore and for the public and investment community. KB also served the community in sharing his insights in writing articles about value investing and corporate governance in the media that include Business Times, Straits Times, Jakarta Post, Manual of Ideas, Investopedia, TedXWallStreet. He had also presented in top investment, banking and finance conferences in America, Italy, Sydney, Cape Town, HK, China. He has trained CEOs, entrepreneurs, CFOs, management executives in business strategy & business model innovation in Singapore, HK and China.

One Response to Online games go local for Southeast Asia’s booming market

  1. Denise Ong's avatar Denise Ong says:

    What are your thoughts about those countries/states that online gambling should not be legalized?

Leave a comment