The Growth of Digital Gaming in Latin America

Over the past decade, digital gaming has exploded in popularity worldwide. In Latin America, the gaming market is expected to grow to $3.6 billion USD in 2023 alone – offering incredible opportunities for telecommunications and cloud providers in the region.

The explosion of digital gaming can be attributed to a number of factors, including the growth of mobile gaming, the popularity of live-streaming platforms like Twitch, and the rise of e-sports. In Latin America specifically, there are a number of reasons why gaming has taken off.

As the desire for access to digital content grows in the region, so does the demand for reliable and high-speed internet infrastructure. This has created a perfect opportunity for telecommunications and cloud providers to invest in the gaming market. For companies that offer cloud gaming services, in particular, there is an excellent opportunity to tap into the Latin American market.

Yet there are also challenges that come with investing in the gaming market in Latin America. With technology continuing to evolve rapidly, it can be challenging to keep up with the latest trends. In addition, many Latin American countries have low average incomes, which can limit the potential market size for some gaming products and services.

Despite these challenges, the growth of digital gaming in Latin America presents a major opportunity for telecommunications and cloud providers that are looking to tap into new markets. With the right strategy, companies in this space can capitalize on the region’s growing appetite for gaming content.

How Online Gaming Is Changing the Landscape of Latin American Entertainment and Economy

Latin America has always been on par with many other regions when it comes to video games.

The first arcade machine was available in the early 1970s, the same time when they started appearing in the US. Brazilian company Tectoy even released a series of licensed Sega Genesis consoles in the 1990s. However, what has changed over the past few years is how people consume gaming content and how developers create games specifically for the region.

There are a few reasons for this sudden change and explosion in popularity:

1. The growth of mobile gaming

The release of smartphones and tablets with powerful processors and graphics capabilities has made gaming more accessible than ever before. As access to cellular data and Wi-Fi becomes more widespread, so does the ability to download and play games on mobile devices.

2. The popularity of live-streaming platforms

Platforms like Twitch and YouTube Gaming allow gamers to broadcast their gameplay to a live audience. This has created a new form of entertainment, with some gamers becoming celebrities in their own right. In Latin America, Brazil is the second-largest market for Twitch, with Mexico and Argentina not far behind.

3. The rise of competitive e-sports

E-sports are competitive video gaming tournaments that are often broadcast live to spectators. These events have become increasingly popular recently, with some tournaments offering millions of dollars in prize pools.

The growth of digital gaming in Latin America has been driven by a combination of factors, including the rise of mobile gaming, the popularity of live-streaming platforms, and the growth of e-sports.

This has created a perfect opportunity for telecommunications and cloud providers to invest in the gaming market. For companies that offer cloud gaming services, in particular, there is a great opportunity to tap into the Latin American market.

Technological Realities Holding back the Digital Gaming in Latin America

Latin America is a massive market for digital gaming, but many technological realities are holding it back:

1. Access to high-speed internet is still limited

While the situation is improving, many parts of Latin America still do not have access to reliable high-speed broadband internet. Recent stats found that only 72% of households in the region have access to the internet, which is far lower than the global average of 82%. This lack of infrastructure limits the ability of gamers to download and play games that require high-speed internet.

2. Data latency is a major issue

Another problem that gamers in Latin America face is data latency. This refers to the delay between when an action is carried out and when it is registered by the server. For example, if a player in Brazil presses a button to fire a gun at an enemy target, there might be a slight delay before the server registers the action and the gun is actually fired. This can be a major issue in fast-paced games where split-second decisions are often required.

3. Cloud computing infrastructure is still underdeveloped

A final technological reality holding back the digital gaming market in Latin America is the lack of cloud computing infrastructure. This refers to the network of servers and data centers that power cloud-based services like gaming, streaming, and storage. 

While many companies are investing in this area, the infrastructure is still not as developed as in other regions of the world. This lack of infrastructure limits the ability of companies to offer cloud gaming services in Latin America.

The Impact of Latency on Digital Gaming and How Telecommunications and Cloud Computing Providers Can Mitigate It

No one likes to lose at a video game, but winning or losing can mean the difference between digital glory and a crushing defeat for competitive gamers. Even a fraction of a second can be the difference between victory and defeat for these players.

This is where latency comes in. Latency is the time it takes for data to travel between two points, and in online gaming, it can be the difference between a well-timed shot and a frustrating loss.

The good news is that there are ways for telecommunications and cloud computing providers to mitigate latency.

By investing in high-speed networks and edge computing infrastructure, these companies can help to ensure that data travels as quickly as possible. In addition, by working with game developers to optimize their code, they can help reduce the time it takes for data to travel between the game server and the player’s device.

As a result, investing in latency mitigation, telecommunications, and cloud computing providers can help ensure that gamers always have an enjoyable experience. It requires investment in better infrastructure and working closely with game developers, but the payoff is a better gaming experience for everyone.

How EdgeUno is Leading the Charge in Connecting Gamers in Latin America

With the growth of digital gaming in Latin America, there is a big opportunity for telecommunications and cloud providers to enter this market. Online gaming is changing the landscape of entertainment and economy in Latin America – and the growth potential is enormous.

However, despite the potential, many challenges still need to be overcome. The impact of latency on digital gaming is a challenge that needs to be addressed by telecommunications and cloud computing providers. Similarly, access to high-speed internet connections and affordable devices are also major challenges.

This is where EdgeUno comes in. As the leading provider of cloud-based telecom technology, EdgeUno is well-positioned to help overcome these challenges.According to CAIDA (Center for Applied Internet Data Analysis), Edgeuno’s network is ranked 28th worldwide. That’s why EdgeUno offers services on the fastest network in Latin America and can help you capitalize on this growing market. Contact us today to learn more about our services and how we can help you enter the digital gaming market in Latin America.