Final week, an estimated 131,800 folks — lots of them dressed as their favourite online game characters — turned out for the Gamescom Latam Large Pageant gaming occasion in São Paulo, Brazil.
It was the largest fan and business-to-business (B2B) gaming occasion in Latin America’s historical past, taking place amid a troublesome time for the online game world. For the second 12 months in a row, I paid a go to to the biggest gaming occasion within the Americas and I got here again with interviews, impressions and good vibes. This time, the ground area greater than doubled to 50,000 sq. meters within the new location of the Anhembi Conference Middle, the oldest such venue in São Paulo.
Gustavo Steinberg, CEO of Gamescom Latam, stated in an interview that the sport economic system in Brazil continues to adapt because the business turns into extra environment friendly and aggressive. It’s in a uncommon place as a rustic now, as a lot of the gaming business in the remainder of the world has suffered via 2.5 years of layoffs. In actual fact, whereas North America grew 0.1% in 2024, Brazil grew 6.2%, market researcher Newzoo stated.
Loads of this comes all the way down to Brazilian followers, who’re a passionate bunch. There are 2.6 instances extra of them displaying up at Gamescom Latam than there have been on the BIG Pageant simply a few years in the past, and so they’re coming to see world audio system like Shuhei Yoshida, who was at Sony’s PlayStation division for 31 years, and Henk Rogers, the Tetris entrepreneur who was on a ebook tour in Brazil.
“We’re nonetheless promoting tickets. I believe we’re going to get to very near [130,000] which is a [big] improve in comparison with final 12 months (101,000), which isn’t dangerous,” stated Steinberg, through the present. “Brazilians are extra enthusiastic usually. So I believe it has quite a bit to do with that.”
Whereas Brazil’s sport corporations are nonetheless weak relating to having large hits or well-known mental properties, Brazil’s sport growth workforce is making strides with the expansion of exterior growth and co-development — or outsourcing within the service of the world’s massive sport manufacturers.
As famous with the rise of Key phrases to greater than 13,000 folks worldwide, exterior growth is a big layer of expertise for making video games that didn’t exist greater than a decade in the past, and now it’s serving to rising territories like Brazil win a higher share of the general enterprise, stated Rodrigo Terra, president of Abragames (the Brazilian sport affiliation), in an interview with GamesBeat.
Steinberg famous the publicity for the present is bettering with the addition of the Future Sport Present’s livestream. He famous there have been about 40 publishers on the present flooring and greater than 210 attending the present, with round 120 exhibitors altogether. That is a little more than final 12 months, however there have been greater than 30,000 further followers this 12 months. He likes the place of the present between GDC in San Francisco in late March and the Summer time Sport Fest in Los Angeles on June 5. However he hopes extra massive publishers present up.
“There are nonetheless robust publishers within the enterprise right here,” he stated. “Folks have realized that there are extra sport gamers in Latin America than North America. We’ve got, 350 million gamers, and we’re nonetheless rising sooner than North America. We are actually the largest business occasion within the Americas.”
Of three.422 billion gamers in 2024, about 355 million had been in Latin America, in comparison with simply 244 million in North America, in keeping with market researcher Newzoo. Brazil alone has an estimated 105 million players. It is smart that native devs may revenue from making native content material.
Key to thriving would be the addition of home-grown hits which might be born in Brazil. However to make that occur, a variety of expertise, time and funding are nonetheless crucial. Steinberg thinks the business will try as long as builders give attention to creativity and imaginative and prescient. Brazil’s probability is to maneuver extra of its builders into triple-I or double-A standing.
“Brazil and Latin America are nonetheless one of many few areas which might be rising the sport business,” stated Patricia Sato, government supervisor of the Brazil Video games Project, in an interview with GamesBeat. I believe this has quite a bit to do with our adaptability. We had been at all times the underdog of the business, so we’re used to the type of challenges that the world is correct now dealing with. I hope my finest for the sport business, however I’m glad to know that it means we’re ready for the years which might be to return.”
Authorized assist for video games
One of many issues that’s serving to is the Brazilian authorities’s assist of the business, as final 12 months the nation’s lawmakers formally adopted a regulation recognizing the sport business as a separate business with its personal job classes, stated Terra.
The Brazil Video games Mission is a three way partnership of Abragames (Brazilian Affiliation of Sport Builders) and ApexBrasil (Brazilian Company for the Promotion of Exports and Investments).
With authorized definitions for roles resembling sport builders, Brazilian lawmakers will have the ability to cross tax cuts and different advantages particularly concentrating on the expansion of these jobs.
Abragames estimates that there are 1,200 sport corporations in Brazil, in comparison with about 1,042 studios final 12 months. Final 12 months, the group stated there have been 13,225 sport builders at 1,042 sport studios which generated greater than $251.6 million. That’s solely about $241,458 in income per firm — not sufficient to maintain bigger corporations.
And there are nonetheless 20% taxes on international investments coming into the nation, which is sort of like a tariff on the sport enterprise, however there are methods to cope with that tax as Brazilian corporations arrange their very own subsidiaries in different international locations or associate with international corporations, Terra and Steinberg stated. The intention is to take a position cash in Brazil and have the cash keep in Brazil.
Terra and Sato each stated that the latest ruling within the Epic Video games vs. Apple antitrust case ought to assist enhance the cell sport business’s revenues as will probably be simpler for sport builders to evade Apple’s 30% platform charges. In the course of the 4.5 years of litigation, Apple stalled on enabling one a part of the ruling — permitting builders to steer gamers to off-store net retailers the place they didn’t should pay the 30% platform charge and will get pleasure from higher reductions.
U.S. District Courtroom decide Yvonne Gonzalez Rogers dominated that Apple’s insistence that it may muzzle builders on steering truly harm customers and led to larger costs — an antitrust breach. She held Apple in contempt of courtroom for dragging its toes and Epic Video games stated it can now have the ability to get Fortnite again on the App Retailer. Apple is interesting the ruling, however Xsolla’s chief technique officer Chris Hewish stated in an interview that the floodgates might now be open for sport corporations to bypass the 30%.
On the IP entrance, Brazilian sport builders had been inspired on the success of Black Fable: Wukong, the Chinese language-made sport that was each a success for its elevation of Chinese language mythology and tradition — one thing Chinese language followers preferred — in addition to its mass attraction on the worldwide stage. That sport shortly hit greater than 25 million copies offered final 12 months and it means China’s sport business can now compete on a world stage.
Financing new IP with work for rent
All of that is context for noting that the world of gaming is a aggressive place, with 19,000-plus video games popping out on Steam yearly, with only a few of these coming from Brazilian sport builders proper now.
Brazilian sport builders wish to accomplish the identical because the makers of Black Fable: Wukong, making video games that mirror their very own native cultures whereas nonetheless rising gaming exports. But various the sport builders I met with famous they didn’t elevate outdoors capital. Relatively, they financed their video games with outsourcing or discovered their very own native sources of capital funding. Nonetheless, by self-publishing their titles, it may take 5 or ten years for the small Brazilian groups to maneuver on to their dream video games.
A kind of corporations is Gixer Leisure, which has achieved work for rent since 2008. The corporate did the event work on Capybara Clicker 2, an off-the-cuff title that had greater than 70 million gamers. That was good for the writer, however not a lot for Gixer itself.
“We are attempting to outlive. We are attempting to get via this second,” stated Juno Cecilio, CEO of Gixer Leisure, in an interview with GamesBeat. “I believe those that can get via this time can have a superb second.”
Cecilio’s firm has a variety of expertise and it’s engaged on three unique titles now.
On the B2B occasion, Terra stated, “We wished to border how video video games is vital for the financial growth and we have to discuss concerning the competitiveness and effectivity of the online game market, and the way Brazilian sport builders, studios, publishers and the ecosystem itself now must evolve into be a extra environment friendly business when it comes to actually be a part of a method for the larger nation.”
He added, “We have to speak about politics, however we have to speak about incentives. To speak about taxes. We have to speak about how our market must develop when it comes to income, when it comes to variety of studios, publishing, and extra. We have to hold speaking about how we are able to evolve video video games via the general public sector. Cash undoubtedly wants to return right here, from inside and outside Brazil. “
He stated non-endemic manufacturers are beginning to look into the gaming world and assist them get in entrance of customers. They will funding in growth and put their manufacturers in entrance of customers who’re extra extremely engaged in video games than some other type of leisure. A few of that cash is coming from inside Brazil, so the native sport business isn’t totally depending on international funding.
When corporations begin to scale, the taxes are a higher burden, so there may be nonetheless time to handle the smaller corporations as they develop. And international corporations are investing in native Brazilian business by buying corporations that may turn into robust native companions. Epic Video games, as an example, purchased a Brazilian firm, Aquiris, again in 2023 because it acquired a neighborhood presence within the area. It turned that firm into Epic Video games Brasil.
Nonetheless, Brazil wants much more momentum to meet up with well-liked areas for sport funding like Turkey or Finland.
“Discoverability is a matter greater than something,” Terra stated. “Our business is lower than ten years outdated in some ways, however international locations like Turkey have proven the way in which.”
Oddly sufficient, stability was once an enormous grievance that these contemplating doing enterprise in Brazil had. Now it’s among the many extra steady international locations within the Americas. But it has to cope with crime, corruption and different challenges that rising international locations face. Vacationers, as an example, are sometimes warned to maintain their smartphones hidden whereas strolling down the streets of Sao Paulo.
“Our political system remains to be tremendous steady, and as Latin People and Brazilians, we all know the way to do one factor — navigate via instability. That’s vital as very often entrepreneurs don’t have a breakout hit till they’ve their third or fourth sport firm,” Sato added.
Incubating video games
Certainly one of Brazil’s hits is Soulstone Survivors, revealed by Digital Bandidos, has offered greater than 1,000,000 copies. It was made by Sport Smithing, a small unbiased studio of Brazilian sport builders unfold throughout Brazil and the UK. Though the studio was first based in 2022, among the group have labored collectively for over ten years.
The group labored on Soulstone Survivors for over two years, having massively grown the scope of the sport following the unbelievable PC Early Entry success. Rogue Soulstone, Soulstone Survivors’ sister challenge, is at present in pre-production.
There’s a brand new era of video games coming behind. One of many video games on show on the Abragames sales space at Gamescom Latam was Dungeons & Drivers, made by Digital Synapsis with a small group. The corporate calls it a “bullet heaven” rogue-like sport on wheels, with RPG parts. As much as 4 gamers can be a part of without delay and fulfill quests in dungeons whereas coping with nonstop enemy assaults.
The video games is being made by a group of 4 folks primarily based in São José dos Campos, São Paulo. They began as a work-for-hire studio in 2014, and now they’re making an attempt to make their very own unique mental property. They plan to rent two to a few folks within the coming 12 months and so they’re in discussions with publishers, stated Guilherme Lourenço Silva, cofounder of the corporate, in a message to GamesBeat.
One other firm, ViVa Video games, relies in São Paulo and Los Angeles. It has eight folks and the group is unfold throughout Brazil, with folks in states like Minas Gerais, Ceará, and Rio Grande do Norte.
They’re engaged on Kakele On-line, a 2D pixel artwork MMORPG. Two twin brothers, Lucas and Bruno Adami, began creating Kakele as a passion in 2020 and launched it that very same 12 months. They noticed potential and commenced monetizing it. Two years later, they formally based ViVa Video games.
The sport was fitted to Latin America in that it was designed to run easily on low-spec gadgets and sluggish networks.
“Bruno and I grew up loving video games however didn’t at all times have the {hardware} to run titles like World of Warcraft, so we performed lighter video games like Tibia and Zelda,” Lucas Adami stated. “With Kakele, we got down to construct an MMO for gamers like us — players who might not have entry to high-end gadgets, however nonetheless desire a wealthy, multiplayer RPG expertise.”
ViVa Video games is releasing expansions each six months to maintain the neighborhood engaged and so they hope to develop the group within the subsequent 12 months and begin engaged on a second sport. They’re self-funded up to now and are producing income with a sustainable enterprise mannequin. They’re at present searching for publishing companions who can take them into areas the place they don’t have a robust attain. A lot of the gamers are from Latin America, and so they see potential in increasing to markets like Mexico, Poland, and Southeast Asia.
One of many greater video games within the works I noticed was BlackThorne Preserve, which is being constructed by Limiar Studios, a distant group primarily based in Rio de Janeiro, Brazil.
The corporate has 20 folks and so they’re all engaged on BlackThorne Preserve, semi-open-world motion RPG set in a fictional world impressed by the South American colonial period and the Brazilian imperial interval, the place strategic, visceral fight merges with deep immersion, stated Pedro Garcia, COO of Limiar Studios. The sport is in a pre-alpha state.
The studio was based in 2021 and it started operations on Might 26, 2022. The sport relies inspiration from The Witcher’s wealthy storytelling, For Honor’s tactical dueling, and Darkish Souls’ oppressive environment, the sport guarantees to problem even probably the most seasoned gamers. The hero is type of caught in an limitless loop, and he has to interrupt out of it.
The corporate has funded the title primarily via service-based outsourcing income, doing work for different sport studios. It’s now looking for to increase by securing a publishing deal, Garcia stated. I noticed an extended demo of the sport with a variety of fight.
“We’re making an attempt very laborious, and we’re sitting on the desk with everybody who desires to assist us,” stated one of many sport leaders.
Rockhead Video games is engaged on Starlit World, a successor to the unique video games Starlit Adventures. It’s a cute open world 3D journey sport with cute gameplay, the place you leap round, discover and zap cute creatures. It’s concerning the residents of Starlit Island, the place it’s important to get well stars from a thief who stole all the celebs within the sky.
The group has 10 folks, and it has been round for a decade. It has further assist from others. The corporate began making cell video games and it has moved to the consoles. It hopes to self-publish Starlit World in 2026, stated Christian Lykawka of Rockhead Video games, which obtained funding from Google.
Getting found
Terra stated he hopes that the Brazilians will now proceed with a wide range of incentives that may assist convey capital into the business and enhance discoverability and consciousness of the Brazilian sport business. These insurance policies may carry Brazil’s sport business, even because it runs into world headwinds like total slower progress of video games, slower progress of indie titles, tariffs and financial slowdowns in markets just like the U.S.
But Terra is inspired on the good outcomes that international locations like Turkey, Finland, China India and others have had in fostering the expansion of native sport industries. Builders in these areas took benefit of creativity and shifting quick into rising elements of the sport business, like cell video games and free-to-play.
The delay of Grand Theft Auto VI from the autumn of 2025 to Might 26, 2026, might harm the notion of quick progress within the sport business this 12 months, however it must also depart room for smaller video games to achieve 2025.
Steinberg, Sato and Terra all stated that among the many issues that Brazil has on its aspect is further ardour — one thing that helps its soccer leagues in an enormous means — for leisure resembling gaming. The eagerness of Brazil’s creators and cosplayers for gaming is clear on the present, as followers wait in lengthy strains for the prospect to check out new video games. Brazil additionally has a rising sport media sector, in distinction to shrinkage elsewhere.
Brazilian influencers are making use of latest platforms like TikTok to achieve wider audiences.
One of many massive messages of the present is that Brazil has turn into probably the most steady areas within the Americas, in distinction to the U.S. with its political chaos now.
An excellent present and a hub for Latin America
Regardless of the chaos all over the world, there’s no disputing it was a robust present for Gamescom Latam.
“It’s superb to see how a lot the present has grown in measurement,” “I am going to a variety of occasions. I can see a variety of video games that basically stand out. They’re stunning. And I’m glad to see as effectively that we’ve got a number of Brazilian corporations that are actually showcasing by themselves. wish to see that the Brazilians are rising and that there’s a area for us right here within Gamescom Latam.”
Extra of the video games on show are double-A titles or informal video games, versus triple-A or triple-I video games, she stated.
“They’re flying out of the nest,” Sato stated.
Finland’s Supercell, which had a big sales space at Gamescom Latam. Ilkka Panaanen, CEO of Supercell, labored at corporations like Digital Chocolate and took part in Demo Scene earlier than hanging riches within the billions of {dollars} with Supercell and titles like Conflict of Clans and Conflict Royale.
“The cell market is altering and we’ve seen that folks amongst Brazilian sport builders are beginning to shut offers once more, whether or not for exterior growth or their very own IP,” Steinberg stated. “I’ve been telling all people for greater than 10 years, going to the worldwide occasions, you’re losing cash when you’re not right here, as a result of the studios that you just discover right here, not solely Brazilians, however delegations of Argentinian, Chilean, Peruvian, Paraguayan, and Mexico. We’re actually like a hub.”
The way forward for video games in Brazil
It’s an extended path for Latin America and Brazil to maneuver up the meals chain, however there are some features being made, primarily based on a presentation by Jason Della Rocca of Execution Labs and Kristian Roberts of Nordicity at Gamescom Latam’s B2B occasion.
Steinberg stated, “I don’t see, at the very least for now, I don’t see triple-A’s popping out of Brazil. I see extra triple-I video games. I believe there’s a reducing variety of triple-A video games as a result of individuals are not keen to pay as a lot as they used to. I see a variety of potential for achievement in studios, coming right here and organising within the nation or within the area.”
“One factor that might be nice is having an enormous hit that’s recognizable as a Brazilian sport. It might be excellent timing. So I hold telling the studios and the builders I’m doing my half. You are able to do yours,” Steinberg stated.
But it surely’s laborious to do with no cash, Terra stated. There nonetheless isn’t that a lot international funding coming into Brazil or Latin America, which in 2024 had about $7.7 billion in gross sales in comparison with $177.9 billion throughout all the world, in keeping with market researcher Newzoo. Whereas small, Latin America is rising at 6.2% a 12 months, second solely to 7.5% for the Center East and North Africa.
Jason Della Rocca, cofounder of Execution Labs, stated in a session that sport buyers have turn into extra cautious. And that implies that sport makers have to offer extra proof that means their video games can be hits. The result’s that many sport makers in Brazil and Latin America have to show to each social media and self-publishing, which might produce among the proof that these with cash are searching for.
In market with highly effective and engaged native influencers, this is usually a viable path to the market, Della Rocca stated. One sport, Soulstone Survivors, has offered greater than 1,000,000 copies.
But sport buyers haven’t stepped up. Konvoy Ventures famous that there was zero funding within the first quarter of 2025 by sport VCs in South America, Australia and Africa. However North America, which is rising solely about 0.1% in keeping with Newzoo, reaped greater than $198 million in Q1 funding.
Some funding within the type of challenge financing can nonetheless occur primarily based on promising video games, Della Rocca stated.
“I believe the gaming business as an entire is dealing with a scarcity of investments. Though that is taking place, I see a variety of curiosity in Brazil and Latin America, which is nice,” stated Sato. “With the brand new authorized framework, this could convey a variety of change when it comes to tax incentives for the Brazilian corporations. We count on that this can assist us chase this chance we face.”
Rising expertise
With cultural leisure assist from the federal government, Brazilian sport corporations will have the ability to entry funds that may finance the entire of growth. R&D tax credit may cut back tax burdens for Brazilian corporations. The hope is to develop expertise and residential and hold that expertise from migrating overseas.
“That is the mindset that we’re working with right here,” Sato stated. “Our essential purpose proper now could be to maintain our expertise in Brazil higher.”
Sato added, “Brazil is big with exterior growth corporations. Most of our corporations from the north are the actually nice ones when it comes to measurement and likewise expertise. They’re exterior builders and repair suppliers. We truly turned fairly well-known on this phase of the business due to our expertise. In the course of the pandemic, a number of these studios helped sport corporations discover a strategy to survive.”
And Sato added, “We are attempting to incentivize extra of our corporations to do extra offers in exterior growth. Loads of our actions right here, new actions we’ve got inside are a little bit bit centered there. So this 12 months, we introduced in additional consumers for exterior growth. This 12 months it was 15 exterior growth consumers. So we are attempting to usher in extra of those guys, so we are able to foster the businesses which might be working within the phase to allow them to do higher.”
Abragames desires to get extra concerned with the educational a part of the sport business to show extra about exterior growth.
“I see a variety of room for rising the present flooring,” Sato stated. “I might hope we are able to have much more college students that we wish to showcase right here. So it’s good that we’ve got an even bigger area.”
Disclosure: Gamescom Latam paid my strategy to the occasion.
