Final week, an estimated 131,800 individuals — lots of them dressed as their favourite online game characters — turned out for the Gamescom Latam Huge Pageant gaming occasion in São Paulo, Brazil.
It was the most important fan and business-to-business (B2B) gaming occasion in Latin America’s historical past, occurring amid a troublesome time for the online game world. For the second yr in a row, I paid a go to to the most important gaming occasion within the Americas and I got here again with interviews, impressions and good vibes. This time, the ground house greater than doubled to 50,000 sq. meters within the new location of the Anhembi Conference Heart, the oldest such venue in São Paulo.
Gustavo Steinberg, CEO of Gamescom Latam, stated in an interview that the sport economic system in Brazil continues to adapt because the business turns into extra environment friendly and aggressive. It’s in a uncommon place as a rustic now, as a lot of the gaming business in the remainder of the world has suffered via 2.5 years of layoffs. The truth is, whereas North America grew 0.1% in 2024, Brazil grew 6.2%, market researcher Newzoo stated.
A whole lot of this comes right down to Brazilian followers, who’re a passionate bunch. There are 2.6 instances extra of them exhibiting up at Gamescom Latam than there have been on the BIG Pageant simply a few years in the past, and so they’re coming to see world audio system like Shuhei Yoshida, who was at Sony’s PlayStation division for 31 years, and Henk Rogers, the Tetris entrepreneur who was on a e-book tour in Brazil.
Gustavo Steinberg is CEO of Gamescom Latam.
“We’re still selling tickets. I think we are going to get to very close to [130,000] which is a [big] increase compared to last year (101,000), which is not bad,” stated Steinberg, throughout the present. “Brazilians are more enthusiastic in general. So I think it has a lot to do with that.”
Whereas Brazil’s recreation firms are nonetheless weak in the case of having huge hits or well-known mental properties, Brazil’s recreation growth workforce is making strides with the expansion of exterior growth and co-development — or outsourcing within the service of the world’s large recreation manufacturers.
As famous with the rise of Key phrases to greater than 13,000 individuals worldwide, exterior growth is a large layer of expertise for making video games that didn’t exist greater than a decade in the past, and now it’s serving to rising territories like Brazil win a higher share of the general enterprise, stated Rodrigo Terra, president of Abragames (the Brazilian recreation affiliation), in an interview with GamesBeat.
Steinberg famous the publicity for the present is bettering with the addition of the Future Recreation Present’s livestream. He famous there have been about 40 publishers on the present ground and greater than 210 attending the present, with round 120 exhibitors altogether. That is a little more than final yr, however there have been greater than 30,000 extra followers this yr. He likes the place of the present between GDC in San Francisco in late March and the Summer time Recreation Fest in Los Angeles on June 5. However he hopes extra large publishers present up.
“There are still strong publishers in the business here,” he stated. “People have realized that there are more game players in Latin America than North America. We have, 350 million players, and we are still growing faster than North America. We are now the biggest industry event in the Americas.”
Of three.422 billion gamers in 2024, about 355 million had been in Latin America, in comparison with simply 244 million in North America, in keeping with market researcher Newzoo. Brazil alone has an estimated 105 million players. It is sensible that native devs might revenue from making native content material.
Patricia Sato of Brazil Video games and Rodrigo Terra of Abragames.
Key to thriving would be the addition of home-grown hits which can be born in Brazil. However to make that occur, plenty of expertise, time and funding are nonetheless obligatory. Steinberg thinks the business will attempt as long as builders concentrate on creativity and imaginative and prescient. Brazil’s probability is to maneuver extra of its builders into triple-I or double-A standing.
“Brazil and Latin America are still one of the few regions that are growing the game industry,” stated Patricia Sato, government supervisor of the Brazil Video games Challenge, in an interview with GamesBeat. I believe this has quite a bit to do with our adaptability. We had been at all times the underdog of the business, so we’re used to the sort of challenges that the world is true now dealing with. I hope my greatest for the sport business, however I’m glad to know that it means we’re ready for the years which can be to return.”
Authorized assist for video games
Gamescom Latam doubled its house in 2025 to greater than 50,000 sq. meters.
One of many issues that’s serving to is the Brazilian authorities’s assist of the business, as final yr the nation’s lawmakers formally adopted a regulation recognizing the sport business as a separate business with its personal job classes, stated Terra.
The Brazil Video games Challenge is a three way partnership of Abragames (Brazilian Affiliation of Recreation Builders) and ApexBrasil (Brazilian Company for the Promotion of Exports and Investments).
With authorized definitions for roles comparable to recreation builders, Brazilian lawmakers will be capable to go tax cuts and different advantages particularly concentrating on the expansion of these jobs.
Abragames estimates that there are 1,200 recreation firms in Brazil, in comparison with about 1,042 studios final yr. Final yr, the group stated there have been 13,225 recreation builders at 1,042 recreation studios which generated greater than $251.6 million. That’s solely about $241,458 in income per firm — not sufficient to maintain bigger firms.
And there are nonetheless 20% taxes on overseas investments coming into the nation, which is nearly like a tariff on the sport enterprise, however there are methods to cope with that tax as Brazilian firms arrange their very own subsidiaries in different nations or associate with overseas firms, Terra and Steinberg stated. The purpose is to take a position cash in Brazil and have the cash keep in Brazil.
Terra and Sato each stated that the current ruling within the Epic Video games vs. Apple antitrust case ought to assist enhance the cell recreation business’s revenues as it will likely be simpler for recreation builders to evade Apple’s 30% platform charges. In the course of the 4.5 years of litigation, Apple stalled on enabling one a part of the ruling — permitting builders to steer gamers to off-store internet outlets the place they didn’t must pay the 30% platform price and will take pleasure in higher reductions.
U.S. District Courtroom decide Yvonne Gonzalez Rogers dominated that Apple’s insistence that it might muzzle builders on steering truly damage customers and led to greater costs — an antitrust breach. She held Apple in contempt of court docket for dragging its toes and Epic Video games stated it would now be capable to get Fortnite again on the App Retailer. Apple is interesting the ruling, however Xsolla’s chief technique officer Chris Hewish stated in an interview that the floodgates might now be open for recreation firms to bypass the 30%.
On the IP entrance, Brazilian recreation builders had been inspired on the success of Black Fantasy: Wukong, the Chinese language-made recreation that was each successful for its elevation of Chinese language mythology and tradition — one thing Chinese language followers favored — in addition to its mass enchantment on the worldwide stage. That recreation shortly hit greater than 25 million copies offered final yr and it means China’s recreation business can now compete on a world stage.
Financing new IP with work for rent
Gixer Leisure leaders. Juno Cecilio, CEO of Gixer Leisure, is on the left.
All of that is context for noting that the world of gaming is a aggressive place, with 19,000-plus video games popping out on Steam yearly, with only a few of these coming from Brazilian recreation builders proper now.
Brazilian recreation builders wish to accomplish the identical because the makers of Black Fantasy: Wukong, making video games that replicate their very own native cultures whereas nonetheless rising gaming exports. But a lot of the sport builders I met with famous they didn’t increase exterior capital. Reasonably, they financed their video games with outsourcing or discovered their very own native sources of capital funding. Nonetheless, by self-publishing their titles, it might take 5 or ten years for the small Brazilian groups to maneuver on to their dream video games.
A kind of firms is Gixer Leisure, which has executed work for rent since 2008. The corporate did the event work on Capybara Clicker 2, an informal title that had greater than 70 million gamers. That was good for the writer, however not a lot for Gixer itself.
“We are trying to survive. We are trying to get through this moment,” stated Juno Cecilio, CEO of Gixer Leisure, in an interview with GamesBeat. “I think those who can get through this time will have a good moment.”
Cecilio’s firm has plenty of expertise and it’s engaged on three authentic titles now.
Changer Seven is being made by Gixer Leisure.
On the B2B occasion, Terra stated, “We wanted to frame how video games is important for the economic development and we need to talk about the competitiveness and efficiency of the video game market, and how Brazilian game developers, studios, publishers and the ecosystem itself now needs to evolve into be a more efficient industry in terms of really be part of a strategy for the bigger country.”
He added, “We have to speak about politics, however we have to speak about incentives. To speak about taxes. We have to speak about how our market must develop by way of income, by way of variety of studios, publishing, and extra. We have to hold speaking about how we will evolve video video games via the general public sector. Cash positively wants to return right here, from inside and outside Brazil. “
He stated non-endemic manufacturers are beginning to look into the gaming world and assist them get in entrance of customers. They will funding in growth and put their manufacturers in entrance of customers who’re extra extremely engaged in video games than another sort of leisure. A few of that cash is coming from inside Brazil, so the native recreation business isn’t totally depending on overseas funding.
When firms begin to scale, the taxes are a higher burden, so there may be nonetheless time to deal with the smaller firms as they develop. And overseas firms are investing in native Brazilian business by buying firms that may change into sturdy native companions. Epic Video games, as an example, purchased a Brazilian firm, Aquiris, again in 2023 because it acquired an area presence within the area. It turned that firm into Epic Video games Brasil.
Nonetheless, Brazil wants much more momentum to meet up with well-liked areas for recreation funding like Turkey or Finland.
“Discoverability is an issue more than anything,” Terra stated. “Our industry is less than ten years old in many ways, but countries like Turkey have shown the way.”
Oddly sufficient, stability was a giant grievance that these contemplating doing enterprise in Brazil had. Now it’s among the many extra secure nations within the Americas. But it has to cope with crime, corruption and different challenges that rising nations face. Vacationers, as an example, are sometimes warned to maintain their smartphones hidden whereas strolling down the streets of Sao Paulo.
“Our political system is still super stable, and as Latin Americans and Brazilians, we know how to do one thing — navigate through instability. That’s important as quite often entrepreneurs don’t have a breakout hit until they have their third or fourth game company,” Sato added.
Incubating video games
Soulstone Survivors was made by Recreation Smithing.
Considered one of Brazil’s hits is Soulstone Survivors, printed by Digital Bandidos, has offered greater than one million copies. It was made by Recreation Smithing, a small impartial studio of Brazilian recreation builders unfold throughout Brazil and the UK. Though the studio was first based in 2022, a number of the staff have labored collectively for over ten years.
The staff labored on Soulstone Survivors for over two years, having massively grown the scope of the sport following the unbelievable PC Early Entry success. Rogue Soulstone, Soulstone Survivors’ sister challenge, is at the moment in pre-production.
A automobile from Dungeons & Drivers.
There’s a brand new era of video games coming behind. One of many video games on show on the Abragames sales space at Gamescom Latam was Dungeons & Drivers, made by Digital Synapsis with a small staff. The corporate calls it a “bullet heaven” rogue-like recreation on wheels, with RPG components. As much as 4 gamers can be a part of directly and fulfill quests in dungeons whereas coping with nonstop enemy assaults.
The video games is being made by a staff of 4 individuals based mostly in São José dos Campos, São Paulo. They began as a work-for-hire studio in 2014, and now they’re making an attempt to make their very own authentic mental property. They plan to rent two to a few individuals within the coming yr and so they’re in discussions with publishers, stated Guilherme Lourenço Silva, cofounder of the corporate, in a message to GamesBeat.
Kakele is a 2D MMO from Brazil’s ViVa Video games.
One other firm, ViVa Video games, relies in São Paulo and Los Angeles. It has eight individuals and the staff is unfold throughout Brazil, with individuals in states like Minas Gerais, Ceará, and Rio Grande do Norte.
They’re engaged on Kakele On-line, a 2D pixel artwork MMORPG. Two twin brothers, Lucas and Bruno Adami, began growing Kakele as a pastime in 2020 and launched it that very same yr. They noticed potential and started monetizing it. Two years later, they formally based ViVa Video games.
The sport was suited to Latin America in that it was designed to run easily on low-spec gadgets and gradual networks.
“Bruno and I grew up loving games but didn’t always have the hardware to run titles like World of Warcraft, so we played lighter games like Tibia and Zelda,” Lucas Adami stated. “With Kakele, we set out to build an MMO for players like us — gamers who may not have access to high-end devices, but still want a rich, multiplayer RPG experience.”
ViVa Video games is releasing expansions each six months to maintain the group engaged and so they hope to develop the staff within the subsequent yr and begin engaged on a second recreation. They’re self-funded up to now and are producing income with a sustainable enterprise mannequin. They’re at the moment in search of publishing companions who can take them into areas the place they don’t have a robust attain. A lot of the gamers are from Latin America, and so they see potential in increasing to markets like Mexico, Poland, and Southeast Asia.
BlackThorne Preserve is an bold recreation.
One of many larger video games within the works I noticed was BlackThorne Preserve, which is being constructed by Limiar Studios, a distant staff based mostly in Rio de Janeiro, Brazil.
The corporate has 20 individuals and so they’re all engaged on BlackThorne Preserve, semi-open-world motion RPG set in a fictional world impressed by the South American colonial period and the Brazilian imperial interval, the place strategic, visceral fight merges with deep immersion, stated Pedro Garcia, COO of Limiar Studios. The sport is in a pre-alpha state.
The studio was based in 2021 and it started operations on Might 26, 2022. The sport relies inspiration from The Witcher’s wealthy storytelling, For Honor’s tactical dueling, and Darkish Souls’ oppressive ambiance, the sport guarantees to problem even probably the most seasoned gamers. The hero is sort of caught in an countless loop, and he has to interrupt out of it.
The corporate has funded the title primarily via service-based outsourcing income, doing work for different recreation studios. It’s now in search of to broaden by securing a publishing deal, Garcia stated. I noticed a protracted demo of the sport with plenty of fight.
“We’re trying very hard, and we’re sitting at the table with everyone who wants to help us,” stated one of many recreation leaders.
Starlit World is an open world 3D journey with cute gameplay.
Rockhead Video games is engaged on Starlit World, a successor to the unique video games Starlit Adventures. It’s a cute open world 3D journey recreation with cute gameplay, the place you leap round, discover and zap cute creatures. It’s in regards to the residents of Starlit Island, the place you must get better stars from a thief who stole all the celebrities within the sky.
The staff has 10 individuals, and it has been round for a decade. It has extra assist from others. The corporate began making cell video games and it has moved to the consoles. It hopes to self-publish Starlit World in 2026, stated Christian Lykawka of Rockhead Video games, which obtained funding from Google.
Getting found
Limiar is making BlackThorne Preserve in hopes of scoring a writer.
Terra stated he hopes that the Brazilians will now proceed with quite a lot of incentives that may assist carry capital into the business and enhance discoverability and consciousness of the Brazilian recreation business. These insurance policies might raise Brazil’s recreation business, even because it runs into world headwinds like general slower progress of video games, slower progress of indie titles, tariffs and financial slowdowns in markets just like the U.S.
But Terra is inspired on the good outcomes that nations like Turkey, Finland, China India and others have had in fostering the expansion of native recreation industries. Builders in these areas took benefit of creativity and shifting quick into rising elements of the sport business, like cell video games and free-to-play.
The delay of Grand Theft Auto VI from the autumn of 2025 to Might 26, 2026, might damage the notion of quick progress within the recreation business this yr, however it must also go away room for smaller video games to achieve 2025.
Brazilians are critical followers.
Steinberg, Sato and Terra all stated that among the many issues that Brazil has on its facet is further ardour — one thing that helps its soccer leagues in a giant manner — for leisure comparable to gaming. The fervour of Brazil’s creators and cosplayers for gaming is clear on the present, as followers wait in lengthy strains for the prospect to check out new video games. Brazil additionally has a rising recreation media sector, in distinction to shrinkage elsewhere.
Brazilian influencers are making use of latest platforms like TikTok to succeed in wider audiences.
One of many large messages of the present is that Brazil has change into one of the secure areas within the Americas, in distinction to the U.S. with its political chaos now.
present and a hub for Latin America
This was a promo for A Minecraft Film exterior a McDonald’s in Sao Paulo, Brazil.
Regardless of the chaos world wide, there’s no disputing it was a robust present for Gamescom Latam.
“It’s amazing to see how much the show has grown in size,” “I go to a lot of events. I can see a lot of games that really stand out. They are beautiful. And I’m glad to see as well that we have lots of Brazilian companies that are now showcasing by themselves. like to see that the Brazilians are growing and that there is a space for us here inside of Gamescom Latam.”
Extra of the video games on show are double-A titles or informal video games, versus triple-A or triple-I video games, she stated.
“They are flying out of the nest,” Sato stated.
Finland’s Supercell, which had a big sales space at Gamescom Latam. Ilkka Panaanen, CEO of Supercell, labored at firms like Digital Chocolate and took part in Demo Scene earlier than placing riches within the billions of {dollars} with Supercell and titles like Conflict of Clans and Conflict Royale.
“The mobile market is changing and we’ve seen that people among Brazilian game developers are starting to close deals again, whether for external development or their own IP,” Steinberg stated. “I’ve been telling everybody for more than 10 years, going to the international events, you’re wasting money if you’re not here, because the studios that you find here, not only Brazilians, but delegations of Argentinian, Chilean, Peruvian, Paraguayan, and Mexico. We are really like a hub.”
The way forward for video games in Brazil
This Yasuke reveals there are hardcore followers in Brazil.
It’s a protracted path for Latin America and Brazil to maneuver up the meals chain, however there are some positive aspects being made, based mostly on a presentation by Jason Della Rocca of Execution Labs and Kristian Roberts of Nordicity at Gamescom Latam’s B2B occasion.
Steinberg stated, “I don’t see, at least for now, I don’t see triple-A’s coming out of Brazil. I see more triple-I games. I think there is a decreasing number of triple-A games because people are not willing to pay as much as they used to. I see a lot of potential for success in studios, coming here and setting up in the country or in the region.”
“One thing that would be great is having a big hit that is recognizable as a Brazilian game. It would be perfect timing. So I keep telling the studios and the developers I’m doing my part. You can do yours,” Steinberg stated.
Nevertheless it’s arduous to do with no cash, Terra stated. There nonetheless isn’t that a lot overseas funding coming into Brazil or Latin America, which in 2024 had about $7.7 billion in gross sales in comparison with $177.9 billion throughout the whole world, in keeping with market researcher Newzoo. Whereas small, Latin America is rising at 6.2% a yr, second solely to 7.5% for the Center East and North Africa.
Newzoo notes Latin America is among the many fastest-growing recreation markets.
Jason Della Rocca, cofounder of Execution Labs, stated in a session that recreation buyers have change into extra cautious. And that signifies that recreation makers have to supply extra proof that implies their video games might be hits. The result’s that many recreation makers in Brazil and Latin America have to show to each social media and self-publishing, which might produce a number of the proof that these with cash are in search of.
In market with highly effective and engaged native influencers, this generally is a viable path to the market, Della Rocca stated. One recreation, Soulstone Survivors, has offered greater than one million copies.
Recreation offers by area in Q1 2025.
But recreation buyers haven’t stepped up. Konvoy Ventures famous that there was zero funding within the first quarter of 2025 by recreation VCs in South America, Australia and Africa. However North America, which is rising solely about 0.1% in keeping with Newzoo, reaped greater than $198 million in Q1 funding.
Some funding within the type of challenge financing can nonetheless occur based mostly on promising video games, Della Rocca stated.
“I think the gaming industry as a whole is facing a shortage of investments. Even though this is happening, I see a lot of curiosity in Brazil and Latin America, which is great,” stated Sato. “With the new legal framework, this can bring a lot of change in terms of tax incentives for the Brazilian companies. We expect that this will help us chase this opportunity we are facing.”
Rising expertise
Builders have a journey to get to a giant market.
With cultural leisure assist from the federal government, Brazilian recreation firms will be capable to entry funds that may finance the entire of growth. R&D tax credit may cut back tax burdens for Brazilian firms. The hope is to develop expertise and residential and hold that expertise from migrating overseas.
“This is the mindset that we are working with here,” Sato stated. “Our main goal right now is to keep our talent in Brazil better.”
Sato added, “Brazil is huge with external development companies. Most of our companies from the north are the really great ones in terms of size and also experience. They are external developers and service providers. We actually became quite famous in this segment of the industry because of our talent. During the pandemic, lots of these studios helped game companies find a way to survive.”
And Sato added, “We are trying to incentivize more of our companies to do more deals in external development. A lot of our activities here, new activities we have inside are a little bit centered there. So this year, we brought in more buyers for external development. This year it was 15 external development buyers. So we are trying to bring in more of these guys, so we can foster the companies that are working in the segment so they can do better.”
Abragames needs to get extra concerned with the educational a part of the sport business to show extra about exterior growth.
“I see a lot of room for growing the show floor,” Sato stated. “I would hope we can have a lot more students that we want to showcase here. So it’s nice that we have a bigger space.”
Disclosure: Gamescom Latam paid my option to the occasion.
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