“The global gaming market is on the rise, with an estimated value of $2.2 trillion by 2030 and an annual growth rate of 8.9%,” said Brian Nguyen, Marketing Director of GOSU, at the seminar "Survive and Thrive: Strategies for Game Companies to Expand Globally."

Reports from DataAI and AppMagic show that Vietnam ranked in the Top 5 worldwide for game downloads, with 4.2 billion downloads over just four years (from 2019 to Q1 2023). By 2026, Vietnam’s gaming and app revenue is expected to reach $2.7 billion.

Several major Vietnamese game developers have made a mark on the global gaming landscape. VNG, for instance, has recorded 261 million downloads since 2019, while Amanotes has achieved 2.9 billion downloads across 190 countries.

However, Vietnam’s gaming industry has yet to fully tap its potential. Vietnamese companies currently control only 22% of the domestic mobile gaming market, with foreign competitors dominating the rest. The profit margin for Vietnamese game companies is just 3-5% of their revenue. Globally, Vietnam’s gaming sector accounts for less than 0.5% of the market's total value.

According to Brian Nguyen, Vietnamese game companies are facing numerous challenges. The economic downturn following the COVID-19 pandemic has negatively impacted game product investment and reduced ARPPU (average revenue per paying user). Global political instability forces game companies to reconsider launching products in conflict-prone markets. Additionally, cybersecurity risks, such as hackers stealing and selling game data, pose a significant threat.

“We've never faced as many barriers as we do now. Many game studios are struggling just to survive, let alone grow. In the past, $20,000 was enough to make a game. Now, even with $50,000, it’s uncertain how to survive and grow,” shared Dong Ha, Marketing Director of Hala Games.

What’s the path forward for Vietnamese game companies?

Studios today are no longer focused solely on the domestic market - they are aiming for global reach.

"Taiwan (China), Indonesia, Brazil... are accessible markets. The approach depends on the resources each company has. If you have enough, you can target multiple markets and then choose the best fit. At Hala Games, we pick the niche market we know best to conquer first, then expand to others," said Dong Ha.

Minh Nguyen, CTO of GAPU, suggested: "In the early stages, no one knows for sure which market will be successful for a product. We rely on data from testing different markets. Spread your resources across multiple 'baskets,' but ensure each 'basket' has enough 'eggs' to draw reliable conclusions. You need at least 1,000 users per country to gather sufficient data and avoid false assumptions."

Quan Vuong, Marketing Director at Negaxy Studio, advised that it’s important to study market reports to understand what competitors are doing. Look at which target markets others are succeeding in and focus on those markets to save on testing costs. Then, concentrate your budget on the market with the highest potential.

To grow sustainably in the gaming industry, developers must pursue two directions: capitalize on their strengths by continually improving their core products to ensure stable cash flow and catch trends in new games to reach new heights.

"You can review your game library to improve and repurpose titles similar to trending games. Before chasing a trend, thoroughly analyze market data and forecast the break-even point. If losses are expected, determine if you can sustain them. At Negaxy Studio, we only proceed if the risks are manageable. For higher-risk projects, we usually hold off - unless the entire team is very passionate about the game," added Quan Vuong.

Executives from Vietnam’s leading game companies agreed that, in addition to focusing on core products with stronger cost optimization than competitors, companies must allocate a portion of their budget to R&D (research and development) for new games and marketing strategies. Finding something new is essential to responding to market fluctuations.

Binh Minh