The global video game market is estimated at over US$200 billion this year, and Malaysia is nearing US$800 million. What is the primary driver of these figures, and how does Xsolla plan to best tap into its vast potential?
The growing video game market is fueled by the increasing number of worldwide gamers due to the proliferation of mobile gaming, the growth of online gaming communities, and the accessibility to gaming platforms. In addition, the rapid innovations of virtual reality and cloud gaming technologies highly contribute to the expansion of the gaming industry.
At Xsolla, partnering with local game developers and publishers can help tap into the huge potential of Malaysia's gaming industry. Companies can use the market to tailor the games to fit the local's preferences by offering specific payment systems, localised customer service, and culturally relevant gaming materials.
A mobile-first strategy is essential in light of the rise of smartphones and the rising popularity of mobile gaming in Malaysia and other developing nations. This approach will allow more space for developments in terms of game optimisation, mobile payment alternatives, and mobile user-centric marketing. To realise the industry's full potential, Xsolla aims to engage in conversations with the Malaysian gaming community by organising and participating in in-person gatherings and online gaming communities as they reflect the local market's wants and demands. Through this, we can benefit from data-driven decision-making by evaluating data and analytics to get insight into market trends and player behaviour, which will be incorporated to hone advertising approaches, enhance the game design, and boost monetisation efforts.
How have the Malaysian government and MDEC facilitated your journey in developing the new office in KL?
The Malaysian government and MDEC greatly aided our move to open an office in KL; their help has been crucial as we grow. The government's pro-business laws, digital and creative industry incentives, and efforts to encourage the gaming industry, including lowering taxes and streamlining regulations, have pulled Xsolla to invest and grow in Malaysia.
MDEC, through its many programmes and projects, has been instrumental in helping us connect with local game designers, publishers, other industry players, and qualified candidates. In addition, the guidance from MDEC helped us comprehend regulatory requirements, acquire relevant licenses, and seamlessly enter the Malaysian business landscape. Ultimately, we aim to maintain a productive working relationship with the government and MDEC to benefit the Malaysian gaming sector.
The KL office is Xsolla's largest global office outside of Los Angeles. What are the areas you specialise in? Are there also specific markets that the KL office will cater to?
The KL office will be essential for our organisation's future success. Xsolla will focus on several crucial aspects, such as localised products and services, to meet the specific needs of the local and regional gaming communities, which is one of our areas of expertise. Also, we aim to foster the development of local and regional game creators and publishers by providing them with co-creation possibilities, marketing aid, and technical support through our collaborations.
Serving the Malaysian market, the KL office will act as our regional centre, allowing us to cater to other expanding markets in Southeast Asia better. Through this, we can better understand and serve gamers and game developers in the wider SEA region. This office will increase our footprint in the fast-growing Asian market and help us fulfil our aim of empowering developers and publishers to succeed in the global gaming industry.
ESG is on everyone's mind now. How do you incorporate the ESG agenda into the KL operations?
At our company, we understand the significance of Environmental, Social, and Governance (ESG) considerations in our business practices. That's why we have crafted a holistic strategy concerning the ESG agenda through our KL operations. Our goal is to reduce our environmental impact significantly. We will achieve this by adopting energy-efficient practices and promoting a sustainable office culture.
Do you leverage emerging technologies in your new KL office? If yes, please elaborate on how these technologies enhance your operations.
One of the things I love about the games industry is how it never stands still. New technologies such as AI and blockchain are constantly emerging and providing new opportunities. We’re already using AI to help increase productivity with some of our internal operations, and we’re looking at how we can create partner-facing solutions that can leverage AI to help partners be more successful.
Last year we released our NFT Checkout feature allowing game makers to seamlessly conduct the business of buying, selling and even minting NFTs. So we’re interested in how blockchain can further benefit our partners. We are committed to staying at the forefront of innovation in the gaming industry and evolving with it to give our partners the best experience possible.
What are your plans for Xsolla?
We are committed to providing solutions that help our partners and industry colleagues succeed. To achieve this, we are constantly expanding our partners' revenue-generating capabilities by offering a diverse range of payment options available worldwide, including cryptocurrencies. We are also exploring ways to broaden our partners' reach by enabling access to new platforms and markets through super apps and telecommunication networks. At the same time, we are looking at ways for our partners to build stronger player relationships with direct offerings and communications. Our team in KL is spearheading the development of many of these new solutions.
Xsolla supports video game developers with funding, launching, marketing, generating revenue, and selling their products. By targeting players who opt to pay locally for their gaming experiences using their preferred payment method, its cutting-edge tools and services can help developers grow their gaming businesses more rapidly. Xsolla aims to provide payment services to the global video gaming industry and continue its expansion commitment across Asia through its Kuala Lumpur location.