How São Paulo state is helping Brazil's games scene become self-sustainable

Brazil is one of the fastest-growing sectors in the games industry. In 2023, the number of developers in the country grew by 3.2% from 1,009 studios to 1,042 – a large majority of those being located in the state of São Paulo.

Speaking with GamesIndustry.biz at Gamescom Latam, São Paulo state secretary for Culture, Creative Economy and Industries Marilia Marton discusses what the government is doing to support developers in São Paulo, and what she hopes the future of the games industry holds in Brazil.

Marton says the government first looked into how the sector worked and the demands that needed to be met to determine how to support it. They also brought on technical advisor to the secretary Anderson da Silva Abraços to help comprehend the industry as a whole.

"The first thing the government realised is that the industry needs funding," she recalls.

"We have something in São Paulo that we call editas, which is where we give money to the culture [sector] so it can make some cultural things separate from language.

"The first thing the government realised is that the industry needs funding"

Marilia Marton

"We decided to add gaming inside of this funding, where the government provides money for studios to develop games worldwide. If a person is from São Paulo and has a company in the state, they can apply for this funding and the government will give them money to produce a game."

Marton noted that the government had been waiting for a legal framework specifically for the games industry to be put in place, which was adopted earlier this year. We explored the expected impact of this new legislation yesterday.

The framework saw Brazil agree to new laws and legal terms that set video games out as their own industry, rather than part of other creative sectors. This means the government can now pass laws, introduce policies, and set regulations specifically for the games industry. Developers will also be able to register as a games company, rather than a software company that makes games with a specific National Classification of Economic Activities (CNAE).

"The legal framework created a lot of specifications to help with protecting the creative process of [making games]," adds Anderson. "The framework introduces mechanisms to increase this protection."

Marton says the government is planning to provide more funding this year, which will support the creation of "channels for students" to learn the necessary skills for them to succeed in the games industry.

"The government understands that to bring developers here, the major thing is to first have a base of people"

Marilia Marton

"We are creating a gaming factory inside of a program in São Paulo state that provides opportunities for [disadvantaged] people that don't have a lot of access [to tools and support].

"The government understands that to bring developers here, the major thing is to first have a base of people. You need to provide information, you need to teach them so that when companies come here from abroad, they can start making installations or investments in Brazil and they're going to have people able to work for those companies."

Marton continues: "We believe that once you have a lot of people [that have the necessary experience] to work in games, the industry can become self-sustainable."

São Paulo is one of the biggest areas for games in Brazil, with the country itself being the fifth biggest market in terms of the number of players and the tenth biggest in terms of the amount of money spent on games.

But not a lot of that money comes back to Brazil, leading to a disparity that needs to be fixed.

"The legal framework is the first part of solving this problem," Marton says. "But the other thing would be to [encourage] these companies to have their studios in São Paulo. With that, you're going to bring the money back to Brazil."

Anderson adds: "With studios in São Paulo, they pay taxes, they hire people, they move [money through] our economy and this way the money is brought back to the region."

As for how big the government wants to grow São Paulo in terms of being a city known for having lots of talent and games companies, Marton says "the sky's the limit."

"We are a country that is continental, and the good part for gaming is that you don't have a frontier"

Marilia Marton

"We are a country that is continental, and the good part for gaming is that you don't have a frontier," she explains. "You're able to be around the world and work for a company in any country."

Marton notes that as a state, São Paulo has over 600 cities so developers don't need to base themselves in one location to become a hub like Guildford in the UK or Montreal in Canada.

"We have cities nearby that are able to welcome these companies and still have infrastructure [to support them]," she highlights.

Marton concludes that large industry events also shine a light on the state, providing even more of an incentive for studios to call São Paulo home.

"By bringing events like Gamescom to São Paulo, we're going to have stronger visibility for the world to understand that we are open for developers to come here and also invest in Brazil."