South Africa has never been in the conversation when it comes to major gaming hubs, but that might be about to change following interest from international providers looking to invest in the country.
Recent data shows remarkable growth across South Africa’s gaming sector, particularly following the pandemic, which makes it an attractive proposition for foreign companies to expand their operations.
It may even lead to the country becoming a major gaming hub. This article explores how this could come to pass.
The growth of video games
The South African video games industry is enjoying something of a perfect storm right now. Record numbers of players are engaging in gaming several times per week, according to a recent survey, and the industry itself is benefiting from a boom in young workers.
Since the pandemic, many thousands of under-30s now accustomed to working from home, have started a career in video game development. Some of these have even set up their own studios, with the likes of 24 Bit Games and Sea Monster being stand-out examples.
These small businesses, sometimes consisting of just one or two people, are churning out high-quality video games at low cost, attracting the attention of national gaming providers and even tech giants abroad. These large companies are thus making plans to set up a base within the country to cut costs, South Africa’s low cost of living making it a comfortable place to set up shop.
South Africa’s gaming industry is small, a fraction of the size of major markets like the United States and Japan, which means it holds a lot of potential to grow over the next decade.
A booming casino game industry
The online casino industry is growing around the world for various reasons. Not only can players now enjoy the live casino experience from their home thanks to live-dealer casinos, even the digital game designs mirror our nostalgic favourites. You only need to look at games like this Hot Hot Fruit demo which combine the classic fruit reels with modern features to see how heavily some providers are leaning on the retro look.
In South Africa, tactics like this are taking hold among the public. Online casinos are the driving force behind a gambling market worth over $800 million, according to a recent SBC News report. This means more opportunities for foreign providers to introduce their titles to an enthusiastic market, like Booming Games, a leading slots provider that recently announced the expansion of its operations into South Africa.
The downside to such a rise, of course, is the danger of problem gambling. The more people bet, the more likely they are to risk addiction, which causes huge societal damage. Companies entering the market, then, need to make sure their marketing is sensitive and in line with regulations. They might also make their games available in free demo form (like Habanero did with the slot mentioned above) so that players can play without risking money if they wish.
South Africa’s esports scene
Esports, the global phenomenon that pits competitive video game players against each other, is also gaining traction in South Africa.
Experts predict it will rise by 30% per year until 2030 and in that time more teams are expected to launch and receive funding to compete against the world’s best.
With other esports markets thriving, namely the Chinese and American industries, there’s a potential goldmine in South Africa for esports investors to discover.
Yet, there are challenges according to esports commentator Sam Wright, a famous voice in the competitive gaming world.
“We do have a gap in developing the audience because the majority of young (South African) people that I speak to cannot actually afford to game because of the cost of the [internet] data and the tech.”
South Africa has one of the most expensive data costs in Africa and the gaming world’s digital products and subscriptions (instead of physical game copies) add to the cost burden for youngsters. If Under 30s are switched off games now, then this may represent an issue for the country’s gaming industry further down the line.
A glimpse into South Africa’s gaming future: 2030
By 2030, South Africa could emerge as a global gaming powerhouse. A thriving esports scene, with local teams competing on the international stage and advanced gaming studios, fueled by AI and VR technology, producing cutting-edge titles could rise to the forefront.
However, challenges, like widespread and affordable internet access, like internet accessibility and affordability must be addressed by the country’s elites to make sure this growth happens. Strategic investments and supportive policies will be key for South Africa to unlock its full potential and become a leading light in the global gaming industry.
