The Golden Opportunity: How Brazil Can Leapfrog into a Global Leader in Video Games

Key insights

6 takeaways

01
Brazil's video game market is reported as the 10th largest in the world, with an estimated 103 million players.See it on page 17
02
Brazil's industry is reported to have an estimated 1,042 developers, with 57% based in the Southeast region.See it on page 17
03
Funding is cited as a major limitation, with 46% of studios relying on their own company and entrepreneur resources and 16% receiving international publisher investment.See it on page 19
04
The authors propose a Brazil-first equity fund, initially fueled mainly by public money, with the balance expected to shift toward private investment over time.See it on page 23
05
The authors cite Canada's Dead by Daylight, which received $1 million in Canada Media Fund production funding in 2014, as an example of public funding supporting later success.See it on page 12
06
The authors argue that Brazil should focus on business skills training and mentorship for developers, since many aspiring developers have creative and technical skills but a significant gap in business acumen.See it on page 21

Summary

Nordicity, a consulting firm, with Jason Della Rocca, published this June 2024 white paper on how Brazil can leapfrog into a global leader in video games. It reviews public support mechanisms in other jurisdictions, including Canada, Switzerland, Belgium, France, Finland, the Netherlands and Singapore, and then sets out a four-step strategic direction for Brazil. The paper draws on AbraGames' 2023 report for Brazil-specific data. It reports that Brazil's video game market is the 10th largest in the world, with an estimated 103 million players. The industry had an estimated 1,042 developers and employed about 13,225 people in 2023. Brazilian video game companies generated an estimated USD 251.6 million in revenue in 2022. The paper notes that 46% of studios rely on their own company and entrepreneur resources, while international publishers invest in only 16%. The authors propose a Brazil-first equity fund, with public money initially and private capital growing over time, so that investment originates within Brazil. Canada's Dead by Daylight is cited as an example of a project that grew after public funding.