Unpacking the Brazilian Gaming Industry by the Numbers

To mark the beginning of Brazil Games Week, we aim to provide an accurate snapshot of the Brazilian gaming ecosystem. Following James Batchelor's journey to Brazil, where he gathered insights from industry professionals, we will examine the numbers that define the Brazilian gaming industry, its market, and audience. The data presented is derived from the second national survey conducted by the Brazilian Association of Digital Game Developers (Abragames) and the Brazilian Agency for Promotion of Exports and Investments (ApexBrasil), incorporating 2022 data and new figures from 2023 compiled by GA Consulting. A total of 343 companies participated in the Game Brasil Survey, accounting for approximately 33% of Brazil's game development studios. The survey reveals significant growth across the board for the Brazilian gaming industry compared to previous studies. The industry is predominantly composed of micro and small studios, with 1,042 developers and 2,600 Brazil-made games released between 2020 and 2022. Notably, 1,009 games were launched in 2022 alone, representing a 12% year-on-year increase. The number of studios has grown dramatically since 2014, from 133 to 1,042 in 2023, showcasing a 177% increase from 2018. As of last year, the Brazilian gaming industry employed 13,225 professionals, marking a 6.3% rise from 2022. However, the industry remains male-dominated, with men accounting for 74.2% of the workforce, while the percentage of women decreased from 29.8% in 2022 to 24.3% in 2023. The survey attributes this decline to the sampling effect, as the responding companies differed between the two surveys. Approximately 93% of Brazilian studios are developing their own IP. According to Rodrigo Terra, president of Abragames, 'Our studios' projects are now on par with those from other parts of the world, although investment remains a notable difference.' The survey also found that 70% of Brazilian studios operate remotely, with 16% adopting a hybrid model and 14% working in an office setting. In terms of game development technology, 80% of respondents use Unity, followed by 25% using Unreal Engine. The Game Brasil Survey estimates that the Brazilian game development industry generated USD $251.6 million in revenue in 2023. Mobile gaming accounts for 51.7% of the Brazilian market, followed by console at 20.5% and PC at 19.4%. However, when looking at Brazil-made games, the distribution is different, with 24% of titles developed for mobile, 24.9% for PC, and 23% for web browsers. Digital sales in Brazil have increased from 54% in 2021 to 62% in 2023. Entertainment games dominate the Brazilian market, accounting for 83% of all games developed, followed by educational games at 8% and advergames at 3%. Many Brazilian studios offer work-for-hire services for overseas developers, with the rest of Latin America and the United States being prominent commercial partners. Western Europe is also becoming a significant partner, with 54% of Brazilian game studios conducting business in the region. Approximately half of the studios engaged in international business derive over 70% of their revenue from abroad. Brazil boasts the largest gaming market in Latin America and the fifth-largest globally in terms of online population, with an estimated 103 million players. The Game Brasil Survey reveals that 82.1% of Brazilians consider playing video games a primary form of entertainment. Women represent 46.2% of the player base, while men account for 53.8%. The age distribution of players is relatively even, with the dominant age group being 25-29 years old, representing 16.2% of players. The survey notes a slight increase in the over-50 age group, now accounting for 8.5% of the Brazilian audience. Looking ahead, Rodrigo Terra expresses optimism about Brazil's momentum, stating, 'We are experiencing a new era, with a post-pandemic reorganization of companies and relative market expectations. However, there are prospects for improvement in the Brazilian economy, supported by a more stable political environment, contrasting with the instability of the global market. We believe in a future with potential opportunities and challenges, where Brazil can stand out with a growing and diversifying ecosystem.'