Argentina: four companies account for 90% of video game turnover
The video game industry in Argentina is dominated by four companies, which account for 90% of the country's video game turnover. This is a booming sector that last year had a turnover of more than 86 million dollars, according to data from the Observatory of the Argentinean Video Game Development Industry.
The economic figures for 2021 exceed the values reached in 2020, when the sector's turnover exceeded 70 million dollars. According to the report by the Observatorio de la Industria Argentina de Desarrollo de Videojuegos, "there are four video game studios that invoice 90% of the total amount and thousands of independent developers or studios of up to 5 people that are single-employed".
Among the prominent studios is Globant, which originated in 2003 in Argentina and is responsible for the development of video games for different platforms such as Electronic Arts, Dreamworks, Playspan, MySpace and True Games.
The other dominant companies are Nimble Giant, creator of games such as Quatum League and Hellbound; Etermax, known for its leading game "Preguntados"; and WildLife, founded in Brazil in 2011.
Alejandro Iparraguirre, coordinator of video games at the National Ministry of Culture, pointed out that the sector is made up of 53% microenterprises, 36% small companies and 11% medium-sized companies, according to Afip's Pyme classification.
The sector has a growing role in the economy, and is consolidating its place in the industry, however, there is a problem that lies in the classification of these companies. According to Iparraguirre, the law "mentions video games, but, taking into account the sectoral composition, the law applies to a medium-sized company, with up to 30 people working". This situation prevents the professionalisation of companies within the state framework, since "if a sector is not professionalised, it is very difficult to professionalise it if there is no support or public policy for the sector", added Alejandro Iparraguirre.
The video game industry has an important influence and development through mobile devices and applications. According to data from the firm Newzoo, mobile video games alone will reach 93 million dollars in 2021, 63% more than in 2020.
According to Statista, approximately 2.7 billion gamers are registered on mobile devices, which has led brands to increase their investments in the gaming industry to an average of $4 billion a year. Argentina, on the other hand, has a lower average investment, at around USD 500 million per year.
Gaming consumption figures continue to rise, according to Adsmovil data, in 2021 "mobile gamers will spend more than $120 billion, an increase of 20% over 2020, and 50% more than the console, PC, Mac and handheld sectors combined".
The values driven by the industry have increased the interest of governments and investors, due to the significant levels of consumption. "On the consumption side, when you look at the global numbers, the consumption that grew the most is mobile, which has to do with the occasion of video games, casual games and the amount of mobile devices that people have," said Alejandro Iparraguirre.
The industry also generates content and revenue through video game streams, which in the case of E-sports grew by 258% during 2021 compared to 2020.
"From all sides you look at it, the exposure that tournaments give you is very important. On the commercial side, the reach of our sponsorship exposure expands; and on the strictly sporting side, brands realise that they are investing in a well-organised and well-managed company," said Esteban Abeledo, CEO of Furious Gaming.
AppsFlyer's "The State of Gaming Marketing" platform, which specialises in marketing measurement, ranks video games as the top category for mobile app consumers, with marketing and publishing investments reaching $14.5 billion in the sector globally in 2021.
Americas Coordinator: José Antonio Sierra
