Triggering the emergence of digital ecosystems: the role of mobile and video games in emerging economies

Abstract

PurposeThis paper aims to shed some light on the role of video games within the media industry and IT sector, on its contribution to the production and distribution of digital content in emerging economies. It offers a case study on the role of mobile devices as a factor of transformation and shows how under changing socio–economic conditions, the transformations enabled the creation of digital ecosystems and innovative business models.Design/methodology/approachThe paper is based on desk research, a review of literature and trade press and comments from experts and industry players.FindingsThe paper argues that as the internet is going mobile, driven by data – mostly video – the new mobile platforms are becoming the key for the distribution of content and mobile games. Whether it is the history of browser games in China, mobile games in India or PC games in Russia, each national gaming industry has required a unique strategy for making money, building on some prominent cultural factors and adapting to the local economic conditions. The paper reveals that video games are now clearly a vital part of digital content production in these countries, while stressing upon the role of public policies.Research limitations/implicationsThe paper relies mostly on industry and consultancy data, as in such a fast-changing environment official data even when accessible are in most cases too old to remain relevant to identify the trends and the fast changing stakes. This calls for some caution about the data. Therefore, the data used should be treated as just signals of potential trends, sufficient to provide an appropriate overview of the evolution of the global mobile ecosystem.Practical implicationsThis paper shows that the video games industry can serve as a pivot for the ICT industry. Besides, this prompts upstream and downstream industries of the entire digital entertainment market to thrive.Social implicationsThe paper shows that companies from emerging markets companies have been betting on a combination of factors: the development of the economies, the growth of the mobile market, emerging middle-classes and young customers. It provides a growth model that appears to be close to a “regular” industrial growth model.Originality/valueAlthough there is a growing academic literature on the video games industry, few research have been devoted to specific issues of emerging economies and to the role of video games within the media industry and IT sector.