Putin Directs Russian Government To Create Domestic Gaming Industry
Portfolio Pulse from Franca Quarneti
Russian President Vladimir Putin has directed the government to establish a domestic gaming industry, focusing on the development of stationary and portable consoles, an operating system, and cloud infrastructure for game delivery. This initiative is in response to major game companies like Sony, Microsoft, and Nintendo halting sales to Russia due to its invasion of Ukraine. Despite challenges such as a lack of expertise and potential restrictions on advanced chips, the government, led by Prime Minister Mikhail Mishustin, has until June 15 to explore the proposal. VK, a Russian technology company, may lead the project, which could take up to 10 years to develop. Collaboration with China for a portable console similar to Valve's Steam Deck is also being considered.

April 01, 2024 | 6:24 pm
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NEGATIVE IMPACT
Microsoft Corp. might experience a decrease in its gaming market share in Russia due to the development of a domestic gaming industry.
Microsoft's decision to halt sales in Russia could backfire if the country successfully creates a competitive gaming industry, potentially reducing Microsoft's market presence.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 70
NEGATIVE IMPACT
Nintendo ADR may see a decline in its Russian market presence as Russia aims to develop its own gaming industry.
Nintendo's cessation of sales to Russia could result in decreased market presence if Russia's domestic gaming industry initiative is successful, posing new competition.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 70
NEGATIVE IMPACT
Sony Group Corp. may face increased competition in the Russian market if the domestic gaming industry initiative succeeds.
Sony's halt of sales to Russia could lead to a loss in market share if Russia successfully develops its own gaming consoles and ecosystem.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 70