True, Axion Ventures team up for gaming
True Corporation has entered into a joint venture with Canada-based technology investment firm Axion Ventures to tap into game studio and training services in local and international markets.
True Axion Games Co is a 40:60 joint venture between True Incube, the technology incubation arm of True, and Axion Ventures, with registered capital of US$5 million (173.2 million baht).
The venture represents the next step towards strengthening Thailand’s aim to become a centre for game development in Southeast Asia within three years, said Suphachai Chearavanont, chairman of the executive committee at True Corporation.
Thailand’s games for the export segment are projected to be valued at 70 billion baht a year by 2025.
“Southeast Asia is becoming a major market for game production,” Mr Suphachai said. “Companies in Thailand can ride on this growth opportunity.”
The global video game market is expected to reach $200 billion in 2025, up from an expected $106 billion in 2017.
The market for video games in Southeast Asia is forecast to rise to $6 billion in 2025, up from almost $1 billion in 2017.
Nithinan Boony a watt ana pisut, chief executive of True Axion Games, said the joint venture will provide game studio and game academy services.
The company aims to have the academy up and running within the next six months and foster 800 game developers within three years, Ms Nithinan said.
True Axion Games will focus on development for mobile phones at its game studio, which it plans to launch commercially over the next 18 months.
Todd Bonner, chief executive and chairman of Axion Ventures, said Thailand has strong potential as a game development market, thanks to its talent pool and lower recruitment costs.
Thais spend an average of $6 per person per month on games, compared with $18 in China.
“This reflects the high potential for the local game market to grow,” Mr Bonner said.
The local game industry’s market cap totalled $50 million in 2016.
According to research firm Newzoo, Thailand’s game market will reach an estimated $500 million in 2017, up from $400 million last year.