Russian authorities and industry representatives are discussing new strategies for the video game sector. Proposals include developing domestic consoles, fighting piracy, integrating game simulators into education, and potentially restricting foreign games. Some industry players worry these measures could lead to monopolies and increased `grey` market activity.
According to a report citing materials from a mid-June meeting, officials and industry members are discussing a new strategy for the video game sector. Key topics included establishing domestic production of game consoles. For future meetings, studios and developers are tasked with proposing measures to combat game piracy and incorporate Russian simulation games (like racing simulators) into educational programs and driving lessons.
Other tasks include identifying the government body responsible for industry development and preparing a draft development strategy. A proposal was also made to require foreign games to be distributed in the Russian market exclusively through Russian publishers.
Vladimir Goryachev, a video game journalist and chief editor at Riot Pixels, commented on the proposal for mandated Russian publishers:
«Today, games are primarily released on digital platforms like Steam, Epic Games Store, and PlayStation Store, mostly with international publishers. These platforms have democratized game releases, eliminating the scenario from 20 years ago where Western companies contracted Russian publishers for localization and physical distribution. The role of a regional publisher has diminished. I don`t fully understand why mandatory distribution through Russian publishers is needed now. I suspect it`s an attempt at import substitution – trying to block Western games to let Russian companies fill the market. It might also be an attempt to introduce a Chinese model, where local publishers handle Western products under strict government licensing, with quotas and the possibility of quick license revocation. However, our market isn`t like China`s; it`s, to put it mildly, in its infancy. Despite revenue figures, it`s quite negligible. We lack the sheer number of companies and games capable of replacing Western products for Russian players today.»
He added that foreign developers generally don`t use Russian partners for digital distribution unless access is blocked, and physical console games are primarily grey imports. Localization is handled by various companies globally, not just Russian ones.
Attendees at the meeting included Deputy Minister of Digital Development Sergey Kuchushev, Managing Partner of Indie Go Start (support for small game developers) Vladimir Varenik, and General Director of the Association of Professionals in the Operation and Development of Games (including VK Play, Astrum Entertainment, and United Games) Alexander Mikheev.
Yasha Khaddaji, President of the Russian Association of Distributors and Importers of Video Games (and former head of Nintendo Russia), argued that mandatory distribution of foreign games through Russian partners would lead to market monopolization:
«This initiative comes from VK Play and an associated group and is being discussed with the Ministry of Digital Development. It doesn`t represent the whole industry. Clearly, the goal is to ban foreign games and create a VK Play monopoly. This is very regrettable… Initiatives driven by private interest are never in the interest of buyers and Russian citizens. Our association – retailers, distributors – provides games on physical media… We are against this initiative. If Russian companies want to grow in the video game sphere, they need to offer interesting content, competitive terms, and services to attract Russian buyers, not try to block and ban all competitors. This is a very regrettable initiative for us that doesn`t represent the interests of the video game industry in Russia at all, but rather the private interest of VK Play… You also need to understand that we distribute video games on physical media, which is only 20% of sales currently. On marketplaces, 80% of physical game sales are grey imports… Banning everything, firstly, doesn`t work, and secondly, it just creates one big black market… Banning white imports so only black remains – I see no sense in that.»
Earlier, in May, proposals were made in the State Duma to fine for prohibited content in video games, with penalties comparable to media violations (400,000 to 5 million rubles).
