Pioneering Pakistan’s digital entertainment landscape: A deep dive into the gaming revolution

As Pakistan strides forward in its digital evolution, one sector shines brightly for its exponential growth and innovative strides: gaming. Surpassing the realms of digital advertising and even traditional entertainment, gaming now commands a market value of $500 million, illustrating its profound impact on how people interact and entertain themselves online.

While still a fraction of the global gaming market valued at $500 billion, Pakistan’s gaming industry’s rapid ascent in comparison to established sectors such as tea imports, valued at $700 million in 2022, underscores its burgeoning significance.

A Thriving Ecosystem

With a staggering 34 million verified online gamers, a number expected to surge to 45 million by 2025, gaming in Pakistan transcends mere recreation; it has become a robust ecosystem fueled by widespread access to affordable mobile broadband, serving over 130 million individuals.

Global gaming giants have taken notice, harnessing local talent through outsourcing and development endeavors, thereby bolstering their global footprint while contributing substantially to Pakistan’s economic landscape.

Understanding the Audience

The gaming community in Pakistan encompasses diverse demographics, with mobile gaming reigning supreme. Approximately sixty percent of gamers prefer mobile devices, thirty percent opt for PCs, and the remaining ten percent indulge in console gaming. Each platform caters to distinct preferences:

• Mobile Games: From hyper-casual diversions like Connect the Dots to immersive AAA titles like PUBG, mobile gaming captivates millions.

• PC Games: Enthusiasts gravitate towards story-rich experiences such as Civilization and multiplayer staples like Counter-Strike.

• Console Games: Offering immersive single-player narratives and cross-platform multiplayer engagements.

Despite its relative youthfulness, Pakistan’s gaming sector commands a $500 million valuation, encompassing digital purchases and physical acquisitions like consoles and accessories. It’s evident that gaming has evolved beyond a mere pastime to become an integral facet of everyday life.

Unlocking Advertising Potential

Within this burgeoning landscape, advertising remains largely untapped. With gamers deeply engaged, brands have a unique opportunity to forge authentic connections:

• Asset placement: In-game billboards, branded items, and sponsored levels seamlessly integrate with virtual environments, offering effective and non-intrusive brand exposure.

• Cross-platform strategies: While console advertising poses limitations, mobile gaming provides a vast and accessible avenue for brand promotion.

• Esports and cultural events: Sponsorships and partnerships during tournaments foster strong brand affinity within passionate gaming communities.

An illustrative instance of gaming’s potential as an advertising medium was evident during the Konnect by HBL EAFC Gaming Tournament launched by HBL. This event not only showcased esports prowess but also positioned HBL prominently within a burgeoning demographic, orchestrated by IGN and Raptr Games.

However, while brands enjoy the cost-effectiveness of in-game advertisements, priced at Rs30 to Rs40 ($0.1 to $0.13) per 1,000 impressions compared to $15 to $20 in the US and Europe, this poses challenges for game developers in monetizing their creations, thus impeding their capacity to promote and sustain games within Pakistan.

Monetizing Creativity

Developers, content creators, and streamers are harnessing their gaming fervor to forge lucrative careers, spanning international projects to content broadcasting on platforms like Twitch and YouTube:

• Development & publishing: A burgeoning $230 million annual service sector, albeit constrained by a scarcity of critical thinking skills ingrained within the education system. While India has reached the billion-dollar mark, Pakistan’s progress may be hindered until educational reforms are enacted.

• Content creation & esports: Esports tournaments, podcasts, and digital shows cultivate profitable networks through advertising and sponsorships, with top performers reaping substantial rewards and inspiring the next generation of esports luminaries.

• Streaming & esports: Average streamers in Pakistan can accrue annual earnings ranging from $5,000 to $20,000 through engaging narration and captivating gameplay, amassing over 100,000 subscribers.

Women in Gaming

Female gamers constitute 23% of Pakistan’s gaming populace, approximately 8 million players. Nonetheless, many encounter cyberbullying and harassment, constraining their full participation. Developers, platforms, and communities must institute stringent moderation policies and supportive networks to foster a more inclusive environment.

Establishing safer online realms is imperative for the advancement of female gamers. Implementing reporting mechanisms, community guidelines, and support structures can incentivize women to actively partake in the gaming community, thereby nurturing creativity and innovation.

Government Support: Propelling growth

Government intervention can play a pivotal role in catalyzing the gaming industry’s full potential:

• Infrastructure investment: Enhancing internet reliability and establishing gaming hubs can spur innovation, while extending high-speed internet access to remote regions can ensure equitable opportunities.

• Education & training: Collaborating with educational institutions to cultivate skills in game design and development is paramount. Vocational programs should embrace gaming-oriented careers.

• Incentives & tax Breaks: Attracting local and foreign investments via financial incentives and facilitating multinational dividend remittances can fortify the sector.

• Regulatory framework: Clarifying intellectual property rights and enforcing legal standards can bolster stakeholder confidence.

• Talent promotion: Grants, awards, and global showcases can elevate local developers onto the international stage.

A Glimpse at India

Given the penchant for comparisons with neighboring India, examining its gaming industry offers invaluable insights into how strategic investments, technological advancements, and policy frameworks can galvanize substantial growth.

Market size & growth: India’s gaming industry is poised to surge from $3.49 billion in 2024 to $7.24 billion by 2029, reflecting a robust compound annual growth rate (CAGR) exceeding 15%, indicative of a promising trajectory.

Smartphone penetration: The exponential rise in smartphone users, surpassing 750 million, has been instrumental in propelling mobile gaming. Affordable data plans have further incentivized this trend.

Government initiatives: Schemes like the Khelo India Scheme have nurtured indigenous games and sports, bolstering the development of local gaming talent.

Esports expansion: Competitive gaming, or esports, serves as a significant growth catalyst, with local tournaments nurturing new talent and broadening the player base.

Mobile dominance: Android maintains its supremacy due to its affordability and the prevalence of brands like Xiaomi, Realme, and Samsung.

In-app purchases: A substantial chunk of gaming revenue emanates from in-game purchases and advertising, with Indian gamers increasingly willing to invest in additional features and upgrades.

Global partnerships: International juggernauts like Microsoft and Electronic Arts are actively investing in the Indian gaming market, expanding their footprint and fostering collaborations.

Regional trends: Diverse regional preferences within India offer developers opportunities for tailored marketing and game design strategies.

Data & insights: Market research firms furnish granular data to facilitate stakeholders in comprehending trends, enabling developers to align strategies effectively.

Challenges persist: Privacy apprehensions, gaming transaction fraud, and regulatory hurdles necessitate attention to sustain growth.

A Cultural Metamorphosis

Pakistan’s gaming industry symbolizes not merely an economic powerhouse but a cultural metamorphosis towards interactive digital entertainment. With judicious investments in infrastructure, education, and a supportive policy framework, the industry can emulate India’s $3.5 billion gaming sector.

Recognizing gaming’s latent potential will enable Pakistan to forge a path where innovation, inclusivity, and creativity converge with economic prosperity.

By embracing this opportunity, Pakistan can usher in an era of cultural and economic affluence, where the spirit of gaming knows no bounds. Let’s empower developers, players, and communities to spearhead the voyage into an unfettered digital future.

The article does not necessarily reflect the opinion of Business Recorder or its owners