Video games are a market with global clout. Some 80 per cent of people worldwide say they play games “often”, a figure that rises to 92 per cent for Gen Z. Battle Royale-style “shooters” are among the most popular games – made famous by names such as Fortnite, Call of Duty and the originator of the genre, PlayerUnknown’s Battlegrounds (PUBG).
PUBG was launched by the South Korean studio Krafton in March 2017. Today, it’s played by millions of people around the world – many of whom spend real-world cash to upgrade and customise their experience. It’s an established player in an Asian gaming market that has never been so lucrative. The Asia Pacific (APAC) region is well positioned to power the global video games market in 2025, with the Chinese market alone expected to generate $138bn of the industry's predicted $523bn in global revenue for 2025, according to Statista.*
But for companies, the business of attracting and retaining players – and spenders – is not easy, especially when new games are constantly vying for the crown. For Harns Kim, Krafton’s Principal Producer, the reason for PUBG’s enduring success is simple: community is king. “Gamers are always very passionate, and they want to share this joy of playing with other gamers. We find those key voices in our markets and encourage them to share that passion,” he says.
Responding to the community
The relationship between producers and gamers is not one-way; young consumers expect their voices to be heard. Rather than simply building communities, companies must take an active role in them, listening to users and responding to their needs. “We make sure that we get community data points back to the developers,” says Kim. “We still update the game with new content every quarter. It’s what really makes the game come alive.”
Companies who hope to build successful communities must tread a delicate balance between globalisation and localisation. Gaming is a worldwide affair: online servers can connect players across countries and continents. Yet for players to hear about and access games, local engagement strategies are vital. “Localisation starts with translation, but there’s also a certain amount of culturalisation,” says Kim. In markets such as Indonesia and the Philippines, mobile gaming dominates, prompting companies to look beyond PC or console gaming. Meanwhile in China, companies have been able to benefit from embedding their games into larger apps, such as WeChat.
Such considerations extend behind the scenes, says Billy Liu, Head of Digital, Tech & Communications at Citi Commercial Bank for Japan, Asia North & Australia. Part of his remit has included working with founders and senior executives at Citi’s Asia Digital Leaders’ Summit 2024, which gathered the next generation of digital changemakers from across the continent to exchange new insights on thriving in a world of borderless content and mature digital ecosystems.
For these businesses and many others, tailored solutions that bridge the gap between local and global needs have been key to growth. “Gaming companies in ASEAN markets often face economic foreign exchange risks when consumers pay in local currencies – while platforms process payments in US dollars,” says Liu. “But we can work with them to mitigate this risk, by using tools such as dynamic hedging strategies to ensure stable margins and predictable cash flows.”
Flexibility is also vital, says Shervone Saw, Industry Head of Digital, Technology and Communications at Citi Commercial Bank for Asia South. Her team of dedicated industry bankers on the ground assists clients in identifying optimal bespoke financing options including private and public market pathways. “Our global market footprint, combined with deep local insights and global sector expertise, enables us to address diverse client needs across the world as they expand internationally,” she says.
The role of “AI Agents”
This balance between local and global must be retained as new technologies come into play. Already, AI is being used to smooth users’ experiences when new games are launched in a new market. “When new games are launched in the overseas market, they often have fewer real-life players, leading to long waiting times before a game can begin,” says Yongsheng Liu, founder and CEO of Parametrix.ai, an innovative tech company deeply integrating AI with Game Agents.
Parametrix.ai has been pioneering the creation of “AI Agents” that can be used to join a player’s game and ensure the action starts quickly. But in order to be accepted by users in such a central role, AI must be able to facilitate community, gameplay and flow, rather than detract from it. This, too, will be a delicate balancing act that may have different demands depending on individual markets’ social norms.
“A Game Agent should act like a real player. It must understand the game environment, recognise the player’s intentions and make real-time decisions,” says Yongsheng Liu. Parametrix.ai believes that the optimal balance between AI latency, intelligence and cost will be achieved through collaboration with a host of global engineers and researchers.
Just as the digital world has become more decentralised, companies that work within it are increasingly benefiting from a wider network of business, creative and technical know-how, says Billy Liu. “We are focused on fostering a holistic ecosystem,” he says. “By connecting AI developers, cloud rendering providers, gaming studios, media companies and other key players, we empower clients to create synergies and unlock new opportunities.”
*Forecasts may not be attained
