VIDEO gaming giants who have Asia in their crosshairs are opting to use Singapore as a launchpad to the region.
The past two years have seen a confluence of big names in the gaming industry in Singapore.
Electronic Arts (EA), the world's top game developer and publisher with titles such as Need for Speed, The Sims 2, and EA Sports under its belt, set up operations in Singapore just two years ago.
The studio here customises games for the Asian region, with the ultimate aim of becoming a development studio for online games.
Koei Entertainment Singapore recently released its MMORPG (massively multi-player online role-playing game) Romance of the Three Kingdoms Online in Japan, over 90 per cent of which was developed in Singapore.
Ubisoft, Europe's largest game developer and publisher, announced in February the opening of its first game studio in South-east Asia in Singapore. Ubisoft's quarters in Fusionopolis are slated to open later this year.
Singapore's hosting of a series of high-profile events has raised its profile on the gaming scene. Notable events hosted include the World Cyber Games (WCG) Final in 2005, the Cyberathlete Professional World Tour 2005, the first WCG 2006 Asian Championship, and more recently, Games Convention Asia 2008.
So what makes it attractive for international gaming corporations to venture into Singapore?
One pull factor is the strong backing and commitment. Numerous monetary incentive schemes, relatively unrestrictive immigration laws for foreign talent, strong protection laws for intellectual property, and transparency in business dealings also sweeten the deal.
Another factor is Singapore's offering of a unique blend of East and West - a true melting pot of culture and ideas.
Olivier de Rotalier, managing director of the Ubisoft studio in Singapore, hopes that the cultural cosmopolitanism here will be a breeding ground for ideas.
'We're keeping our eyes open to get a feel of the preferences, ideas and culture here,' he says. 'I'm looking out for that next big thing.'
The distinctive preferences of gamers in different parts of the world means that it is important to get a good feel of a new market before venturing into it.
Global companies are bullish on Singapore's growth potential, but are realistic - the youth of the sector means that local talent will lack industry experience initially.
What is heartening is that Singapore is viewed as a player 'higher up the innovation chain', as Mr de Rotalier explains. It is slated for more upstream activities like game conception and development, not for outsourcing.
Big players acknowledge that the market size here is limited with Singapore having a population of only four million, but Mr de Rotalier advises companies to 'think global, and aim for the world market'.
Raymond Wong, manager of Koei Entertainment Singapore, also points out that it is imperative for small players in an industry dominated by big players to find a niche or unexplored segment to create a hold.
Mr Wong highlights the changing gaming market demographics, which now includes players from all strata of society.
Mr de Rotalier concurs, stating that in the last four years or so, the gaming market has broadened considerably as it becomes more accessible.
The increasing numbers of casual gamers can be targeted by local, smaller companies, says Mr Wong. As the casual games segment is less developed, there is still room for companies to grow.
Following the meteoric rise of Second Life, a virtual world social networking service, Mr Wong also sees the potential for social networking portals to grow.
This article was first published in The Business Times on May 20, 2008
