PH game dev sector seen matching Korea, Japan — Xsolla

The Philippine game development sector is likely to grow as large as its Asian neighbors in the coming years, driven by the country’s sizable market and predominantly young, tech-savvy population that could become future creators, according to Xsolla, a global video game commerce firm.

“I think it could be as big as Korea or Japan, and I don’t mean to be condescending,” Eric Lee, head of partnerships for Asia Pacific at Xsolla, said in an interview via Microsoft Teams.

Similar to South Korea, where indie game developers have been growing after years of dominance by large companies, the same trend has been observed in the Philippines in recent years.

“The regional revenue for the Philippines is within the top three countries in Southeast Asia,” Mr. Lee said, referring to countries that make use of Xsolla’s services across its 3,000 game and project partners.

“Meaning there is clearly more growth to be explored within Southeast Asia, and the Philippines is definitely one of them,” he added.

Mr. Lee said that from being a source of outsourced talent, Southeast Asia, including the Philippines, has evolved into an active game development hub in recent years, driven by improved resources and a growing talent pool.

Data from the Philippine Statistics Authority (PSA) showed that the country’s digital interactive goods and services activities — where game development is classified — generated P416.33 billion in 2025.

This accounted for a 19.7% share of the Philippine creative economy, which grew by 6.7% to P2.12 trillion in 2025. However, the growth rate slowed from 10.9% in 2024 and 12.4% in 2023.

In a separate report, IMARC Group projected the Philippine gaming industry to expand to $9.9 billion by 2033, from $4.8 billion, reflecting a compound annual growth rate (CAGR) of 8.29%.

South Korea, one of the key players in the global video game market, was projected to achieve sales revenue of US$14.5 billion in 2025, according to Statista.

To reach the country’s full potential, Mr. Lee said the country must address bottlenecks such as funding, resources, and exposure, noting that several local indie developers are already gaining recognition from foreign studios.

He added that Xsolla aims to address the exposure gap by allowing Filipino student game developers from the De La Salle-College of Saint Benilde to access its launcher system, formalized through a recently signed memorandum of understanding (MOU).

According to its website, the Xsolla Launcher enables developers to distribute, monetize, and manage their games through a fully customizable platform, allowing them to bypass traditional marketplaces and directly engage with players.

“Self-publishing has always been a problem because you just can’t find your target audience globally, or you don’t have the resources to do so. Our launcher system helps address exactly that,” Mr. Lee said.

“We’re trying to help. I think the Philippines could use more exposure. I know developers are getting picked up, but we just want to help a bit more because we see the high quality of talent here,” he added.

As an expert in payment solutions and monetization tools, Mr. Lee said Xsolla can also help student developers generate revenue from their games — an aspect that is often overlooked by creators.

The company could also provide analytics, data, and metrics to developers to help them successfully navigate the market.

When asked why the company wants to help local indie game developers, Mr. Lee said that despite the uncertainty surrounding the success of these games, Xsolla aims to create a conducive environment for future developers.

“So we understand that indies may not stay indie forever,” he said.

“So there is an incentivizing factor for us to provide support from the beginning, but we also need these students, developers, creativity, and new regions to bring more players into the ecosystem and create better games for the future.”

Looking ahead, Xsolla is seeking to engage with both private and public agencies to expand its initiative. Mr. Lee said the company has recently talked with the Department of Trade and Industry (DTI) to help address the industry’s bottlenecks.

If given the right attention, Mr. Lee said the game development industry in the Philippines could capture a share of the growing global market and creatively introduce the country to the world. — Edg Adrian A. Eva