Sri Lankan Gaming Industry in 2022

The whole world has entered what can possibly be considered the golden age of gaming. The past 24 months have given rise to a massive influx of new gaming media, gamers, developers, and gaming companies worldwide. The advancement of technology and the high level of adoption of games as a means of entertainment have led to gaming becoming a multi-billion dollar industry.

Despite the various other forms of gaming, such as PC gaming and console gaming, mobile gaming will be the front runner in the days to come as it evolves faster than others. This article aims to understand and analyse the trends associated with gaming in Sri Lanka.

Data and statistics about gaming are sparse in Sri Lanka, though there are many gaming studios where games are built for local and global markets and several gaming platforms. Each of the mobile service providers that operate in the island have their own gaming platforms and run their own tournaments.

Mobile gaming growth in Sri Lanka is expected to gain momentum in 2022 due to increased internet penetration and digital payment adoption and of course the changes to lifestyles due to the global pandemic.

Virtual education and increased screen time with fewer parental objections, use of advanced technology which captures the attention of the youth, the creation of innovative concept-based games, increased popularity of esports, and games which offer monetary rewards are other key factors that have boosted the turn towards mobile gaming. It is noteworthy that Sri Lanka declared esports as an official sport as early as 2019; a bold move for a developing nation.

Platforms such as ExamHub which promote gaming in virtual education will be another proponent of gaming; thus, capturing a much larger audience than would otherwise be reachable through typical means of popularizing gaming.

According to AdColony; a large global mobile advertising platform, there are 4 million active mobile gamers in Sri Lanka, who spend 20% of their time on the mobile on gaming. Statistics gathered locally through gamer.lk, reveal that 2 to 3 million Sri Lankan youngsters between the ages of 18 and 24 are interested in gaming. Because of this, 2022 will usher higher inclination by brands into the gaming industry to target the young.

Data reviews show that most of these youngsters are from urban areas, hence, there is a large untapped market that resides in rural and suburban areas of Sri Lanka. The coincidence of growth in penetration of smart phone usage and the growth in mobile gaming will help to reach this untapped market. If gaming companies take the demographic factors into consideration, they will easily be able to access a wider user base. On the flip side of the coin the local youth will have the opportunity to engage in innovative games that hone skills such as speed, dexterity, hand-eye coordination, forward thinking, and anticipatory behaviour as well as English language capabilities.

There is an ancillary market for gaming equipment and gadgets that has started to develop due to the gaming industry’s growth.?The ever-increasing number of players make these purchases principally through online channels.

Globally, the use of VR in gaming will propel games and gaming to previously unknown user experiences including metaverse, however, the lack of access to required technology and the high cost of such devices, will prevent such gaming gaining traction in Sri Lanka.?

As much as gamers enjoy gaming, globally, many people enjoy watching gaming. Sri Lanka is no different. Streamers who showcase their talents virtually to those who enjoy spectating need not possess extraordinary gaming skills, but rather, can rely on their charisma and engaging personalities to gain a following.

Yet, there seems to be a dearth of knowledge among gamers, potential gamers and even the spectators on the games and platforms that are available in Sri Lanka. Gaming companies may need to pay attention to this factor and address it to reap the possible benefits.?

The 2022 global gaming landscape is expected to be dominated by hyper-casual games as per Sensor Tower's Industry Trend Report.?

Hyper-casual games are easy to play in nature, allowing people to have fun and relax without using the intellectual side of the brain, but these are yet to dominate the Sri Lankan market.

Even though there aren’t many organisations like Gamer.lk and start-ups like Leeg.live focusing on gaming and esports in Sri Lanka, there will still be a reasonable number of esports events and team IPs which will boost the gaming ecosystem. Needless to say, these events will only increase the tendency towards gaming, thus, creating many career opportunities for gamers and IT professionals.?

In Sri Lanka, there are already gaming portals with subscription models, but these models need to be revised to be in line with accepted industry standards where options such as free-to-play, pay-to-play, play-to-win and play-to-earn are available.

Since the gaming ecosystem in Sri Lanka is still quite young, the discussion on the use and uptake of technologies such as blockchain, cryptocurrency, NFTs or the modern gaming economy would be a premature one.?

The growth of the gaming industry has paved the way for international gaming competitions. It has become a ubiquitous spectator sport, drawing large audiences, similar to physical sports. It is a profitable industry with international tournaments and large cash prizes. Thanks to Gamer.lk and The Sri Lanka eSports Association, Sri Lankan teams have also taken part in international tournaments.

Another growing genre in global markets is fantasy sports, but in Sri Lanka, it has not gained much traction with Cricrush being the only local fantasy sports start-up. Unfortunately, that too ceased to function some time ago.?

With all these advancements, gaming will become a mainstream source of entertainment for Sri Lanka’s youth the same way it is for the youth at a global level.?

Taking the global gaming market by storm is not a hazy dream as there is no shortage of IT professionals with the required intellect and vision. What the ecosystem needs are investors who understand the gaming landscape and trends to take local products to the global market.

Ps: Thank Praveeni for editing.