São Paulo State's Initiatives to Foster a Self-Sustaining Gaming Industry in Brazil

Brazil's gaming sector is experiencing rapid growth, with a 3.2% increase in the number of developers in 2023, primarily concentrated in São Paulo. In an interview with GamesIndustry.biz at Gamescom Latam, Marilia Marton, São Paulo state secretary for Culture, Creative Economy and Industries, outlined the government's strategy to support local developers and promote the industry's long-term sustainability. The government began by analyzing the sector's needs and demands, appointing technical advisor Anderson da Silva Abraços to provide insight into the industry. Marton noted that funding was a key requirement, leading to the inclusion of gaming in the state's cultural funding program, 'editas.' This initiative provides financial support to studios developing games worldwide, with eligible companies in São Paulo able to apply for funding. The government had been awaiting a specific legal framework for the gaming industry, which was implemented earlier this year. This framework establishes video games as a distinct industry, enabling the government to create laws, policies, and regulations tailored to the sector. Developers can now register as game companies, rather than software companies, and benefit from increased protection for the creative process. The government plans to allocate additional funding to create educational channels for students, providing them with the necessary skills to succeed in the gaming industry. A 'gaming factory' program will also be established to provide opportunities for disadvantaged individuals. By developing a skilled workforce, the government aims to make the industry self-sustainable. São Paulo is a significant hub for gaming in Brazil, which is the fifth-largest market in terms of player numbers and the tenth-largest in terms of spending. However, much of the revenue generated by the gaming industry in Brazil is not retained within the country. The government hopes to address this disparity by encouraging companies to establish studios in São Paulo, thereby bringing revenue back into the local economy. With the new legal framework in place, the government is optimistic about the potential for growth, with Marton stating that 'the sky's the limit.' The state's extensive territory, comprising over 600 cities, provides numerous opportunities for developers to establish themselves without being confined to a single location. Large industry events, such as Gamescom, will also help raise the profile of São Paulo as a gaming hub, attracting more developers and investment to the region.