The passage of this law marks a significant moment for the Brazilian game industry. Carolina Caravana, Vice President of Abra Games, describes it as the start of a new era in gaming for Brazil. Abra Games, the Brazilian Game Association, has been advocating for support and tracking the growth of the game economy for 20 years. They estimate that there are currently 105 million gamers in Brazil, with 13,225 game developers at 1,042 game studios generating over $251.6 million in revenue last year.
Jason Della Rocca, former head of the International Game Developers Association, highlights Brazil’s unique strengths in the gaming industry. The coordination between cultural, innovation, and business efforts sets Brazil apart from other pro-game countries. Kristian Roberts, CEO of Nordicity, believes that Brazil has the opportunity to not only compete but also leapfrog more established jurisdictions.
The recognition of game intellectual property in the new law is another positive development for Brazilian game companies. They are moving from external development to creating their own indie games and building long-term franchises that could have lasting value. However, it’s important to note that it can take five years or more to make money on a new IP investment, requiring patience from developers.
The Brazilian game industry already has several advantages, including a large population of 215 million people and a strong economy. However, there are still challenges to overcome. Kadri Harma, who has run game accelerators in multiple countries, believes that the government and industry should do more to support game development in Brazil. Government-funded incubators, similar to those in Estonia, Malaysia, and Saudi Arabia, could help create high-value jobs and diversify the industry.
Investing in the gaming industry can yield positive results for governments. The Finnish government’s support for Supercell, a mobile game company, led to significant tax revenue and economic growth. Brazil has the opportunity to learn from other countries’ experiences and make a leapfrog over its competitors in the gaming industry.
Brazil should also take advantage of its cultural richness to create unique games with storytelling angles that set them apart. The country’s popularity of influencers and celebrity streamers on platforms like Twitch and YouTube can also drive huge audiences to adopt games and export stories about Brazil globally.
While Brazil’s unique traits give it an edge, it may take time for the country to solidify its position and achieve worldwide hits. Local funding for game investment, similar to the U.S., would be beneficial for the ecosystem. However, recent acquisitions of Brazilian and Argentinian studios by OV Entertainment Group indicate progress and inspire entrepreneurs in the industry.
Overall, the Brazilian game industry is on a path towards success, with government recognition, growing revenue, and opportunities for innovation. With continued support and investment, Brazil has the potential to become a major player in the global gaming market.
