Game Service Halted Due to Russian Sanctions
Advanced Semiconductor and Component Imports Also Difficult
Experts Say "It May Take at Least 10 Years"
Vladimir Putin, the Russian president who recently secured a fifth consecutive term, has drawn attention by ordering the development of a domestic console game as one of the key national projects. This directive came as a response to the growing dissatisfaction among console game users in Russia after numerous game companies joined sanctions against Russia following the outbreak of the Ukraine war, urging a so-called 'self-reliance' approach.
Although Russia is advanced in space and defense science fields, such as planning a manned lunar base and satellite interception missiles, its game industry infrastructure remains weak, making self-reliance a challenging prospect. Essential advanced semiconductors and key components required for console game production are all subject to sanctions against Russia, complicating procurement. Additionally, the lack of a software development foundation leads experts to predict it will take at least 10 years or more.
Putin Orders "Establishment of Console Game Development Organization by June"
According to Russian local media such as Kommersant, President Putin recently instructed ministers at an economic meeting held in the Kaliningrad region to "consider the production of fixed and portable game consoles, operating systems that provide games and programs to users, and the establishment of cloud systems." Russian Prime Minister Mikhail Vladimirovich Mishustin is assigned as the overall person responsible for implementing Putin's directive. The implementation deadline is June 15 of this year.
Putin, who recently secured a fifth consecutive term and approved the recruitment of 150,000 new troops for the Ukraine war, is believed to have suddenly ordered console game development due to sanctions against Russia. Since the outbreak of the Ukraine war, major console game companies have announced their participation in sanctions against Russia and have suspended local services.
In particular, with major Russian banks expelled from the international payment system (SWIFT) network, online payment for game content has been blocked, causing overseas game companies to exit the Russian market. Following restrictions on major consumer goods like McDonald's and Coca-Cola, the limitation on game content imports has increased public dissatisfaction in Russia, prompting the government to pursue domestic development.
In December 2022, the Russian government also presented systematic measures and various scenarios to support the Russian video game industry through 2030. The plan is to develop domestic game consoles and dozens of games through Russian companies by 2030.
While Developing Manned Lunar Base and Satellite Interception Missiles... Russia's Game Industry Lags Far Behind
Russia is currently regarded as a technologically advanced country in fields such as a joint project with China to build a manned lunar base and missiles capable of intercepting enemy satellites in space. However, its technology and infrastructure in the gaming sector are known to be relatively weak.
According to CNN, Russia is commonly known as the country that developed the globally popular game 'Tetris' in 1985. However, at the time of Tetris's development, the Soviet authorities imposed strict censorship, preventing the gaming industry from flourishing. After the Soviet Union collapsed in 1991, political and economic turmoil until the Putin administration took office in 2000 caused the industry to shrink overall.
From the 2010s, as the Russian economy stabilized and personal computers (PCs) and online networks became widespread, the Russian game industry showed rapid growth of over 14% annually. According to market research firm IDG Consulting, Russia's game market recorded sales of about $3.4 billion (approximately 4.6 trillion KRW) in 2021, before the war broke out. Last year, Russia had 127.6 million internet users, accounting for 87% of the total population, with over 30% playing online games daily.
With high internet penetration and a larger youth population compared to other European regions, Russia is considered the fastest-growing region for game adoption in Europe. Although the consumer market was expanding and the game industry was gradually growing, the Ukraine war has caused a significant setback.
Advanced Semiconductor and Component Imports Blocked... "At Least 10 Years Needed"
Experts believe that Russia's console game industry foundation is weak, and above all, the supply of advanced semiconductors necessary for device development is not smooth, making it very difficult to develop console game devices or software in the short term.
PC Gamer, a game-specialized media outlet, pointed out, "Major console game devices like PlayStation 5 and Xbox require advanced semiconductors, but under sanctions against Russia, it is difficult for Russia to secure the technology to produce independent machine tools. While some semiconductors can be imported from China, which is currently developing its own chips, it will be difficult to make the latest consoles with that level of semiconductors."
More than one million IT workers have fled abroad to avoid conscription since the Ukraine war, which is a painful loss for Russia. There are also concerns about the difficulty of organizing teams for software development immediately. Kommersant cited officials from Russian game company Lesta Games, stating, "From a technical perspective, Russia is about 15 years behind major console game manufacturers. Considering the manpower losses caused by the war, it will take more than 5 to 10 years just to organize a team for console game device production."
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