The Philippine game development sector is likely to grow like its Asian neighbors in the coming years, driven by the country’s large market and young, tech-savvy, potential creators of the future, according to Xsolla, a global video game trading company.
“I think it can be as big as Korea or Japan, and I don’t mean to be modest,” said Eric Lee, head of Asia Pacific relations at Xsolla, in an interview with Microsoft Teams.
Similar to South Korea, where indie game developers have been on the rise after years of corporate dominance, a similar trend has been seen in the Philippines in recent years.
“The regional income of the Philippines is within the top three countries in Southeast Asia,” said Mr. Lee, referring to the countries that use Xsolla services for all of its 3,000 games and partner projects.
“Which means there is more growth to look out for in Southeast Asia, and the Philippines is one of them,” he added.
Mr. Lee said that from being a source of foreign talent, Southeast Asia, including the Philippines, has evolved into an active sports development hub in recent years, driven by improved facilities and a growing talent pool.
Data from the Philippine Statistics Authority (PSA) showed that the country’s interactive goods and services – where game development is classified – will generate P416.33 billion in 2025.
This accounted for a 19.7% share of the Philippine creative economy, which grew by 6.7% to reach P2.12 trillion by 2025. However, the growth rate decreases from 10.9% in 2024 and 12.4% in 2023.
In a separate report, IMARC Group predicted that the Philippine gaming industry will grow to $9.9 billion by 2033, up from $4.8 billion, showing a compound annual growth rate (CAGR) of 8.29%.
South Korea, one of the key players in the global video game market, was expected to achieve sales revenue of US$14.5 billion by 2025, according to Statista.
In order to reach the full potential of the country, Mr. Lee said the country must deal with issues such as funding, resources, and exposure, noting that many local indie developers are already getting recognition from foreign studios.
He added that Xsolla aims to address the exposure gap by allowing Filipino student game developers from De La Salle-College of Saint Benilde to access its startup program, formalized through a recently signed memorandum of understanding (MOU).
According to its website, Xsolla Launcher enables developers to distribute, monetize, and manage their games through a fully customizable platform, allowing them to bypass traditional marketplaces and engage directly with players.
“Self-publishing has always been a problem because you can’t find your target audience around the world, or you don’t have the resources to do so. Our startup program helps address that,” said Mr. Lee.
“We’re trying to help. I think the Philippines could use more exposure. I know engineers are popular, but we want to help more because we see a higher quality of talent here,” he added.
As an expert in payment solutions and monetization tools, Mr. Lee said Xsolla can also help student developers monetize their games — a feature often overlooked by creators. – Edg Adrian A. Eva
