Game designing is becoming a challenging task
Due to the increased penetration of mobile devices and smartphones, designing a game in the current environment is a challenging task. Games have to be compatible with a wide array of mobile devices—from the low-end devices to the latest smartphones.
Google’s (GOOGL) Android and Apple’s (AAPL) iOS are the leading players in the mobile space. Due to rapidly changing technology, game publishing companies have to spend significantly on their R&D (research and development) to have an edge over their peers.
We’ll discuss Electronic Arts’ (EA) investment in R&D later in this series.
Consoles face a decline in sales
In 2015, Nintendo exited the Brazilian gaming market. It cited the high import tariffs and taxes as the reason for suspending its console sales. In India the console sales also declined due to the high tax rate.
According to Atindriya Bose, the country manager for PlayStation India, Sony’s PlayStation 3 is priced internationally at $299–$330. In India, it sells at $380–$390. Similarly, the PlayStation 2 also sells at a higher price. It’s $105–$110 in India. In the international market, it’s available at $99.
According to SuperData, the annual revenue for the digital games market in Latin America is expected to be $4.5 billion. As the above chart shows, Brazil has a 35% market share of this expected $4.5 billion market. It accounts for more than 30% of Latin America’s digital game revenue.