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MexiCo:

A KEy PLAyEr In tHE vIDEO GAME InDustry

MexiCo is tHe biggest Market For video gaMes in latin aMeriCa and Has eMerged as one oF tHe Countries witH tHe largest Potential to develoP tHe video gaMe industry.
by alfonso mojica navarro*

he multimedia industry is one of the most relevant worldwide, considering it is expected to drive global growth during the following years, not only from an economic perspective, but also as a way of transferring culture and promoting technological development. Within the multimedia industry, the video game software sector constitutes a key element, given that it is expected to grow four times faster than the media and entertainment markets altogether. As a result of this global growth, the video game sector has diversified, permeating other areas beyond entertainment, such as education and awareness campaigns. Furthermore, the expansion of the video game industry has led to an increasing demand for skilled people, competitive costs and government support. This has, in turn, led to the arrival of new players who have transformed the market.

Mexico has emerged in this new wave of countries with potential to develop the video game industry. Today it is the most important market for video games in Latin America and one of the top 15 worldwide. And, even though most of the content produced by Mexico is consumed abroad, the country has been setting up the bases to develop a national industry, through the attraction of the most representative international companies and the promotion of domestic companies. The development of the video game industry in Mexico can be attributed to several factors, such as: Low costs in audiovisual production and development, surpassing countries like Canada, the UK or France. Competitive human capital that will steadily increase in the following years, as shown by the fact that more than 790,000 students are enrolled in engineering and technology-related programs and over 100,000 graduate from such programs each year.

Increasing training and education in areas such as design and game programming by specialized universities. Port of entry to other Latin American markets, especially those with Spanish as their primary language. This means foreign companies interested in entering the Mexican market, may also have the opportunity to penetrate other Latin American markets. Mexicos interactive media sector currently exhibits many of the characteristics common to a growing industry sector, where companies are more focused on the beginning of the value chain. And, even though the interactive media industry is often seen as one that is not limited by geography, in the case of Mexico, it has developed an excellent base on which to build. Mexico has succeeded in developing a na tional industry, which is being driven by cluster-like sectors in the major centers, comprising companies that develop

MexiCo in tHe world

software for video games. For this reason, the Mexican government at the federal and local levels has promoted the generation of a world-class video game development industry in the country, managing multiple programs aimed at attracting foreign companies and propelling national developers. Such is the case of Mexicos Digital Creative City project, which was recently launched in Guadalajara, Jalisco. This is the most ambitious project the government has implemented to promote the creative industries. The Digital Creative City will welcome domestic and international companies specialized in developing software for the creative industries, looking to create synergies between them. n

* Trade Commissioner at ProMxicos Representative Office in Montreal, Quebec, Canada.