The state of Southeast Asia's games industry in 2025

• Southeast Asia’s games industry generated $6.2 billion in consumer spending for 2024.
• The mobile games sector accounts for 73% of revenue.
• While talent availability remains a challenge, partnerships and collaborations are becoming increasingly important to overcome it.

On October 31st, we'll be hosting the Pocket Gamer Connects Summit Korea. Ahead of the show, we're exploring the Asia region - this time providing insights into Southeast Asia's bustling games market.

When you think of important game markets in Asia, your mind probably goes to the likes of China, Japan and India. However, Southeast Asia is a rapidly growing region of increasing importance within the global gaming industry.

The area comprises 11 different countries – Indonesia, the Philippines, Vietnam, Thailand, Myanmar, Malaysia, Cambodia, Laos, Singapore, Timor-Leste and Brunei – and has a population of almost 676 million people; that’s 8.5% of the global population.

It’s also a massive games market. Newzoo data shows that Southeast Asia’s games industry generated $6.2 billion in consumer spending for 2024 – a 5% increase year-on-year – and is set to hit $6.6bn in 2025. By 2027, the data firm forecasts that this market will yield $7.2bn in consumer spending. 

As a result, the mood within the Southeast Asian games scene is an optimistic one. 

“Southeast Asia is well-known as a global leader in mobile gaming and esports,” explains Nam Nguyen, regional director for South Asia at co-development giant Virtuos. 

“We have a young and vibrant population, rapidly improving digital infrastructure, and a passionate player base. However, the dominance of mobile gaming and esports can overshadow the fact that the whole games industry in Southeast Asia is growing fast, especially in development and creativity.

“The region’s games market is projected to grow at a 3.7% CAGR from 2024 to 2027, ahead of the global average of 3.2%, according to Newzoo’s 2025 Global Games Market Report. Now a key hub for both co-development and insourcing, Southeast Asia’s games market is fuelled by foreign investments attracted by competitive costs and ambitious local studios developing original IPs.”

One area where Southeast Asia is leading the charge is in mobile. This sector is behind 73% of the market, well ahead of PC and console, which represent 20% and 7% respectively, according to Newzoo data. 

“The Southeast Asian gaming market is becoming more mature as internet penetration and smartphone adoption are more widespread across the countries within the region,” explains Krit Pattanateach, senior director of game operations at Garena Online Thailand. “So, we can say the infrastructure is favouring the growth of digital product usage, including games.” 

Sensor Tower research shows that South East Asia accounted for 1.93bn downloads in the first quarter of 2025, making it the second-largest market in the world, behind India. That’s a 3% increase quarter-on-quarter. 

“This underscores not only the region’s high level of user engagement but also the expanding demand for mobile gaming content,” Pattanateach continues. 

Monetisation is less promising than installs in Southeast Asia, however. Sensor Tower data shows that the market generated $625m for the first quarter of 2025. That’s a 1% increase year-on-year but ranks the sector as the seventh largest market globally. 

Pattanateach says that this shows “significant growth potential as payment ecosystems mature and user willingness to pay increases".

While mobile is one (very large part) of the overall picture, there are other areas for opportunity in Southeast Asia. 

“The region has seen massive growth in the past decade driven by high adoption of game devices, particularly mobile, strong game communities and social activities, growing social acceptance of games, especially esports, as a popular mode of entertainment, and high social media and video platform usages pertaining to game content,” explains Darang S. Candra, director for Southeast Asia and East Asia research over at Niko Partners.

“Southeast Asian gamers are highly social, with more than 45% of gamers wanting in-game chat and rank/scoreboard features in their games. 52% of SEA gamers watch game livestreams, higher than the Asia-MENA average of 45%. Game livestreams remain a popular activity for SEA gamers.”

Another big opportunity in the region, according to Virtuos’ Nguyen, is a shift from game consumption to game creation. 

“The games industry in Southeast Asia is maturing and its potential is clear,” he says.

“Governments across SEA-6, the region’s six biggest markets, are supporting growth through policies and incentives. For homegrown studios, countries like Vietnam are easing financial burdens by excluding the online gaming sector from the Special Consumption Tax.

"MDEC has funded over 60 local game projects since 2014, and Thailand is finalising a new bill to provide more structured support for the industry. Singapore hosts the headquarters of major global game developers, including Virtuos, and supports local game development through prototype grants.”

He continues: “Game art is still expected to remain as the leading skill due to regional studios’ focus on work-for-hire. That said, the demand for game programmers is growing rapidly, especially in Indonesia and Singapore, where they now rival or even surpass artists in hiring needs. Game programming makes up about 23% of overall talent demand, pointing towards the possibility of studios taking on more complex, technically advanced projects and original IPs.” 

Despite a wealth of promising growth in the region, there are challenges facing the Southeast Asian games market. For one, the region is not one single market; it is made up of 11 countries with distinct languages and cultures. 

“While this presents a complex market dynamic, it also presents an opportunity for game developers and publishers to find a way to bridge the gap and better engage the users,” Pattanateach explains. 

“Every market has unique contexts, and we’re offering both virtual and real-world experiences that respect and reflect that. In-game content, campaigns, and monetisation strategies also need to be aligned with local cultural norms and sensitivities in each market.

"This extends to community management, which must be localised; effective social media campaigns and influencer partnerships demand country-specific strategies, native-speaking community managers, and deep cultural insight.” 

Another major challenge facing Southeast Asia is a lack of talent. The market faces a shortage of people with the skills required to make games. 

“It is not uncommon to see top developers pursue opportunities in more mature gaming markets, creating a persistent talent gap in the region,” Pattanateach explains. 

“In Indonesia, for example, it is said locally developed games only account for 5% of the market share. Meanwhile, local education systems are developing programs that offer specialised training in critical areas such as game design, 3D animation, systems architecture, and live operations.” 

Virtuos’ Nguyen adds: “Talent availability remains a challenge - especially in specialised and technical roles like engineering and production management that require years of hands-on industry experience.

"Many studios, therefore, face barriers when navigating the complexities of larger, ambitious projects without established models to guide them. To overcome these challenges, partnerships and collaborations will become increasingly important, allowing studios to access required expertise while managing costs and risks effectively.” 

As mentioned earlier, a large part of the Southeast Asian games market’s success to date has been driven by mobile. But now one challenge is to move past this platform and take on the next big challenge, at least according to Virtuos’ Nguyen. 

“I see both a challenge and an opportunity in building on the success of mobile games while expanding into mid-tier and triple-A-quality projects, exploring genres beyond hyper-casual and MOBA, and moving into PC and console,” he says. “This expansion is important as it will allow the region to diversify its creative output and reach more gamers on a global scale. It can also bring job creation opportunities, more investments, and skills development.

“Southeast Asian studios have traditionally focused on hyper-casual and free-to-play mobile games, as well as small indie projects. This is shaped by past successes and by limited access to funding, technical skills and experienced talent. While the indie scene has been a fertile ground for creativity and experimentation, it has not always equipped local teams with the operational and strategic know-how needed to scale up.”

Nguyen continues, saying that in order for Southeast Asian games companies to reach their full potential, they need support from the region’s various governments to help attract international talent to bolster the sector. 

“Many game development teams in the region, from art to engineering, are already close to global standards and just need a little extra push to reach their full potential,” he says.

“More incentives from governments for international experts from around the world to move to the region would help close the gap. Knowledge exchange and collaboration between global and local talent would bring triple-A-quality games made in Southeast Asia closer to reality.” 

Garena’s Pattanateach agrees there needs to be stronger collaboration between the games industry and governments and universities to help fill the talent gap. 

“Southeast Asia has incredible creative potential and some of the world’s most engaged gaming communities, but there remains a shortage of skilled talent in areas like programming, engineering, and live operations,” he says. 

“If universities, supported by both government and private sectors, can create practical, future-ready curricula, covering areas like game design, 3D animation, and systems architecture, we can not only retain and nurture talent, but also grow strong local studios and position Southeast Asia as a global hub for game development, yielding meaningful impact on the wider community.” 

Candra adds: “Government support is always crucial in this region as the game industry is not as established as in East Asian countries, for example. Having clear regulations that do not hamper the industry while balancing it with the need to safeguard players (especially minors) is important. Investment is also another key to developing the region’s games sector, as there are opportunities from both the production side and the consumer side.” 

Looking to the future, there is optimism that the Southeast Asian games market will continue to build on the very successful and solid foundations that it has created for itself. 

“Looking ahead five years, we believe Southeast Asia’s games market will be approaching the level of sophistication we see in today’s most developed gaming markets, where gaming is not just entertainment but a mainstream cultural and economic force,” Pattanateach says.

“By then, we hope to see broader acceptance of digital products and in-app purchases, supporting sustainable growth for both global and local developers.” 

Nguyen adds: “[The region will be] a key global games hub known for innovation and creativity. And for developers capable of creating personalised game experiences. While Southeast Asia is fragmented, this diversity drives disruption and offers a rich mix of cultures to inspire the next big hit.”

He concludes: “If a title succeeds in engaging such a fragmented market, it demonstrates its developers’ ability in crafting experiences that resonate with a diverse audience - setting an example the rest of the world can learn from.”

Learn more about Asia's games market at Pocket Gamer Connects Summit Korea on October 31st.