Brazil ranked as the most important emerging market in games development

RIO DE JANEIRO, BRAZIL – As the largest games market in Latin America, with estimated revenues of R$11 (US$2.2) billion in 2021 and expected growth of 6% in 2022, according to consulting firm Newzoo, Brazil stands out in terms of consumption but also in terms of hiring professionals for the industry.

According to the report of the XDS (External Development Summit), one of the most significant events in the sector, there is an increasing demand from large global developers for national studios to be contracted to produce or assist with certain parts of their games, which is known as XD (external development).

Brazil’s prominent position in this segment was made even more evident by the release of the XDS report, which ranked the country as the most important emerging market in this segment for the second year in a row.

BRAZILIAN HIGHLIGHTS

The various Brazilian studios participating in XDS and other important international events through the Abragames Brazil Games delegation have different and complementary profiles. While some specialize exclusively in external development and have references to show for it, others also work hybrid; that is, they develop their own games in addition to XD.

Recife-based PUGA Studios has been working with external development since 2017 and has in its portfolio a partnership with Aquiris for the Looney Tunes game World of Mayhem, among others.

“There are great companies in Brazil developing games at a very high level for the market. Working directly with international publishers and developers makes the Brazilian industry interesting for foreign countries,” says Rodrigo Carneiro, CEO of PUGA Studios.

The CEO also says that during the pandemic, national studios saw an increase in demand for foreign developers for XD work, which led many of them to grow not only in terms of revenue and quality but also in terms of team size. “In March 2020, we had 30 employees; today, we have 140 talented professionals.”

Among the differences in attracting new jobs, Carneiro cites the importance of attending events. “It’s the famous handshake, eye-to-eye. The pleasure of talking and sharing experiences is fundamental to the beginning of such a relationship.”

Another studio with a long history of working with outside developers is São Paulo-based Flux Games. It has already collaborated with Garena on a spin-off of the game Free Fire and has noticed significant changes in the attitude of foreign companies in recent years.

“Both people and companies have more confidence in working remotely. Big foreign companies are looking for solid and reliable Brazilian studios to take on some of their game development,” says Paulo Luis Santos, founder and head of the São Paulo studio. “Such a move strengthens our studios, matures the national market, and prevents the exodus of talent to other countries.”

Kokku, another Recife-based studio whose performance in the games market goes beyond external development and the export of services and art, began its activity in the region in 2015 through contacts with international companies that came to Brazil on the occasion of the BIG Festival.

The studio has collaborated with major companies such as Activision (Call of Duty: Black Ops Cold War), Guerrilla Games (Horizon Zero Dawn and Horizon Forbidden West), and Netflix (Stranger Things: Starcourt Mall). Thiago Freitas, CEO of Kokku, emphasizes that the transfer of the acquired knowledge is the most crucial benefit for the Brazilian market and the creation of income and jobs.

“Brazilian professionals continue to be trained to participate in major international titles. This acquired knowledge stays here in Brazil, even when the work ends, and is passed on within the company so that new studios and projects can be created,” Freitas explains.