Analysis of MOS Alvin Tan’s Speech at Gamescom Asia 2022

In our recent post, we covered MOS Alvin Tan’s speech at Gamescom Asia 2022. This is the first gaming event that happened in Singapore since the COVID-19 pandemic. In this post, we will be going in-depth about our analysis of his speech, as well as our own thoughts on the market in general.

Key Parts of the Speech on the Market and What Singapore Intends to Do as the Esports and Gaming Hub

The global industry experienced a 20% growth between 2019 to 2022, with the South-east Asian market expected to triple between 2017 and 2023. In 2020 alone, Singapore’s local e-gaming market grew by 15%. Singapore will continue to explore how to grow the sector, and strengthen our position as one of Asia’s leading media and entertainment hubs. We are already home to a wide variety of game development studios and publishing firms, including triple A studios like Ubisoft, Mihoyo, Riot and Bandai Namco. We will continue supporting our homegrown companies as they explore the frontier of new and immersive content formats and business models. I am confident our gaming industry will continue to thrive as our local players develop original, innovative and world class gaming content.

Singapore remained a choice destination for major e-sports tournaments in 2022. Notable tournaments include the Garena Free Fire World Series, League of Legends Wild Rift Icons Global Championship, and the 11th edition of Dota 2’s The International that is happening concurrently alongside gamescom Asia. This is the first time that Dota 2’s The International, the biggest event on its competitive calendar, is being organized in a South-east Asian country. We are proud to host fans and enthusiasts from all over the world. These events demonstrate Singapore’s ability to host such events, and we hope to remain the choice destination for best-in-class e-sports events.

I want to re-affirm Singapore’s commitment to supporting the growth and development of the e-gaming and e-sports industry. As I shared last year, I am also a fan in e-gaming and e-sports. Beyond the economic value of the industry, I believe that it also helps to instill personal values such as teamwork and creativity. E-sports provide our youths with opportunities to learn and grow. The e-sports Academy by the Singapore Cybersports & Online Gaming Association (SCOGA), and supported by the National Youth Council, provides tailored e-sports programs to educate youths with important values such as resilience and leadership.

Singaporeans can also boost their health and wellness through active virtual sports such as virtual cycling hosted on the Zwift platform. Our teams seek to actively promote and ensure that people understand and appreciate the value of the e-sports and e-gaming industry. I will continue to be a champion for the industry.

Our Thoughts on the Industry

Indeed, the e-sports and gaming market has been booming for the last couple of years, and this trend has been accelerated due to the COVID-19 pandemic. We envision that the market will continue to push strong despite the weakening economy. Gaming has become a way of entertainment that allows for a 2-way communication unlike most other entertainment forms.

Meanwhile, while this year’s TI only offers a prize pool of ~$17m (compared to TI 2021’s $40m prize pool), we believe e-sports market will still continue to grow. We also noticed that mobile is a trend that will continue to grow, with Southeast Asia likely to lead the pack in terms of growth rate.

The growth of Web3 and the resurgence of the metaverse will also empower another wave of gaming in the Web3 space. However, we strongly believe that the unit economics of the Play-to-Earn model is yet to be validated properly, as seen by the crash in the Axie Infinity Shards vis a vis Bitcoin (the gold standard of cryptocurrency).

Source: MacroAxis.com – As seen in the diagram, Axie Infinity Shards (AXS) have constantly underperformed Bitcoin (BTC) over time.

Hopefully, we will see more potential in the infrastructure tech space for e-sports and gaming.

If you would like to be part of this revolution by strengthening its foundation, please reach out to us regarding our upcoming venture fund.

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