GAMING INDUSTRY
30 May 2019
Esports and Video Game Development
Malta proceeds to the next level Since its inception in the late 90s, esports has slowly but surely established itself as a new, unique form of sports and entertainment. However, it was only during the last couple of years that it has truly come into its own. Now poised to take over the world, esports, from its unique online streaming platforms where millions of players watch and participate, to the sporting venues filled with thousands of fans, it is a stimulating and fresh concept which is still relatively unexplored. ith a global spectatorship of some 292million made up of occasional viewers and esports enthusiasts worldwide, the esports industry has flourished into a multibilliondollar business which has seen unprecedented, exponential growth and this year is expected to generate some $1.5Bn in revenues. Globally, the market for video games and esports is growing to such an extent that it is now worth more than the thriving film and music industries combined. But it is not the ‘just entertainment’ value which makes the industry so unique; games promote ground-breaking creativity, foster competition and bolster culture. Innovation has transformed the perception of games; from traditional games, solely associated with leisure and entertainment, into games which reach way beyond into other sectors, such as education and healthcare, providing wider social impacts and technology spill overs. But what does this new phenomenon, in tangible terms, mean for our country? It is now highly apparent that the time is ripe for us to explore this new, intriguing digital frontier. Our commitment towards this new economic niche, has put Malta as one of the few countries in the world to support this sector on a governmental level and we are adamant that we shall continue in this vein. Our ultimate vision is to position Malta as a hub for this sector which already attracts the attention of millions across the globe. We believe that with an already strong
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Our commitment towards this new economic niche, has put Malta as one of the few countries in the world to support this sector on a governmental level and we are adamant that we shall continue in this vein. Our ultimate vision is to position Malta as a hub for this sector which already attracts the attention of millions across the globe.
infrastructure in place, Malta serves as the ideal backdrop for esports tournaments and events. As a government we are now in the final stages of formulating a holistic strategy for Esports and Video Gaming; a strategy which will also identify the ideal incentives and the skills required, as well as the establishing of a new niche within the tourism sector. Malta’s Vision for Video Games Development and Esports is a vision which will ultimately pave the way for the establishing of a strong infrastructure which will serve as the foundation for the ultimate Mediterranean and European central hub for the sector. The incentives that we will be rolling out are in line with EU rules and they complement other incentives. Operators in this space are already looking into using the services provided by Malta in order to tap into European markets. Through this strategy we will identify and address the relatively untapped business potential and consequently the benefits emanating from game development and production. We anticipate the setting up of a substantial number of studios operating as digital manufacturing units, which will ultimately contribute to high skill, high value-added
employment. Malta’s vision for the video games development and esports sector includes several strategical initiatives such as a European model for tax rebates and grants to firms, Direct Grant Schemes for Innovation, a fund for the development of video games with a cultural dimension and the development of a Venture Capital Investment Fund. The launching of Esports events as well as the attracting of local and international Esports organisations, provide unprecedented global exposure opportunities. These operations are similar to music festival tourism, events which attract a worldwide audience which is made up of a highly coveted demographic – the millennials; a younger, extremely tech savvy, uniquely interactive audience, consuming content in a completely new way compared to the regular, traditional, sports betting audience. On a global scale this market is expected to double in three years. But it would be foolish and highly negligent on our part if we do not regard this exciting new sector as a unique opportunity to enhance the prospects of our workforce. With already over 200 new jobs created, these companies are providing stimulating career paths for young Maltese and exposing them to the latest platforms and practices to increase competitiveness. To meet the demand for talent originating from the video game and esports sphere, we shall be implementing a number of policy measures which will cater for this and create the relevant supply of skilled employees. To this end, GamingMalta and EGIM are to organise and co-ordinate a number of scholarships and work placements for Maltese students, as well as International Masters classes in Malta to promote educational tourism and centres of excellence. These policies will also seek to provide the necessary investment to support University of Malta and MCAST in upgrading their curricula and investment in new facilities required for game development related courses, a Bursary programme to attract local and foreign graduate students to further their studies with local institutions, whilst working in the industry to create a local startup, as
well as incubator space for games development startups. Esports and Video Gaming present an unprecedented opportunity for our younger generations and therefore we need to pre-empt the future demands from companies, ideally before they arise. By incorporating esports, video gaming and game development into our already strong ecosystem, we envisage that Malta will be able to host thought leadership conferences and events to form collaborations and foster co-development with other international video games development regions, a stance which in itself, would be highly advantageous for our standing on the global digital stage. To facilitate our efforts to help attract international esports tournaments to Malta and further endorse a forward-thinking agenda, a Memorandum of Understanding was signed just recently, between ESL and the Government of Malta through the GamingMalta Foundation. The MOU will serve as an intent for both parties to develop a multi-year programme to help the development of the local grassroot esport ecosystem, the organisation of local and international events, as well as the sharing of expertise in the sector. This serves as clear confirmation that our unstinting commitment and continuous nurturing of this fledgling industry is what makes Malta a crucial hub for operations, the natural choice for investors and for them to become main contributors to Malta’s economic growth. Throughout this technological revolution, Malta has journeyed far, way beyond what was previously deemed possible, but there are other new frontiers to be scaled, which require our rigorous commitment and unfailing determination. Esports and video gaming are another exciting aspect of the technological evolution we are witnessing in our lifetime, but an aspect which, with the right vision, strategy and unstinting commitment, can bear valuable fruit for Malta, both in economic and in equally important, social terms. Silvio Schembri is Parliamentary Secretary for Financial Services, Digital Economy and Innovation.