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MIA0010.1177/1329878X16638940Media International AustraliaFung

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Media International Australia

Comparative cultural economy 110

The Author(s) 2016
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DOI: 10.1177/1329878X16638940
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Anthony YH Fung
The Chinese University of Hong Kong, Hong Kong; Beijing Normal University, China

Abstract
This article examines the development of different models of Asian game industries. In Asia,
globalization has meant the penetration of Western ideas and the cultural homogenization of
culture. However, nowadays, the game industry in Asia has demonstrated new collaboration
models in which game industries are dependent on Western cultural industries in alternative ways.
There are also new economies that are independent of the Western cultural economy in terms of
production, distribution, marketing, value chains, workforce, regulations, and more importantly,
the notion of creativity. Based on interviews and empirical studies that were conducted in China,
Japan, Korea, and SE Asian countries from 2012 to 2014, this analysis reveals a few alternative
routes of collaboration and non-collaboration that contrast the type of cultural economy found
in the United States and the United Kingdom.

Keywords
Asia, creative industries, cultural policy, cultural subcontracting, game industry

Under the umbrella of creative industries, this study focuses on the production and distribution of
digital games in Asia. Traditionally, Japanese and US publishers have dominated the production of
digital games. The domination of the digital games market by transnational corporations (including
other creative industries, such as the film industry and the animation industry) has made it too com-
petitive for regional firms to compete. Hence, the globalization of creative industries has created a
restricted arena for Western and Japanese corporations (Kerr and Flynn, 2003). However, in the past
decade, the proliferation and popularity of online games have created opportunities for regional
studios to join the regional competition. The development of creative industries in East Asia is heav-
ily dependent on the support of cultural amenities that match the needs of the creative class in a few
cosmopolitan urban centers, which have become the hub of creative industries in the region (Yusuf
and Nabeshima, 2005). Creative industries, especially the game and animation industries, have
established multiple production networks distinct from the conventional Western-oriented business

Corresponding author:
Anthony YH Fung, The Chinese University of Hong Kong, Sha Tin, Hong Kong.
Email: anthonyfung@cuhk.edu.hk
2 Media International Australia

chain. This trend has paved the way for regional cultural economies to flourish. Thus, the overarch-
ing question is how both the globalization and the regionalization of digital game production could
lead to a contextualized understanding of cultural economy and creativity.
Following the logic of globalization, video game production companies have developed a sub-
stantial transcontinental value chain, in which America and Japan are console designers and format
inventors, factories in southern China, Latin America, and Eastern Europe assemble the machines,
whereas software studios in South East Asia develop the gaming software (Dyer-Witheford and de
Peuter, 2009). Hence, the globalization of video games is about not only the export of consoles and
software, but also the globalized outsourcing of production procedures. The Western idea of crea-
tive industries, which originated in Britain, is not shared by Asian countries. Kong etal. (2006)
found that only the four Asian tigers treat the Western format of creative industries as a role model.
In contrast, China, Japan, and India sought their own conceptualization of culture-related indus-
tries, and they devise a strategy for becoming regional leaders.
In Asia, regional studios have intensified their involvement in regional and global markets by
either cooperating with multinational enterprises or exploring a local niche market. Throughout
the production lifecycle of creative content, there is a room for Asian players to gain global
exposure by participating in the programming and animation sub-processes (Tschang, 2009).
Within the globalized outsourcing practice, Asian players can move from subcontracting to col-
laboration by improving their reputations. Yoon and Malecki (2009) described the upward
mobility of Asian creative industries using the example of AKOM, a Korean animation studio,
which gained a reputation by anonymously producing graphics for The Simpsons for a decade
until they were finally credited as the animator in the movie version. The games industries in the
Philippines also went global by inviting the Japanese game publisher Toei to set up local stu-
dios in their country (Tschang, 2009). This is an example of trans-Asia outsourcing flow, in
which Japanese local companies invent the storys concept, while regional studios are responsi-
ble for the production stage (Tschang, 2009).
In addition to subcontracting, Asian creative industries have grown by proactively exploring the
market for their contextualized creativity. Lent and Ying (2013) suggested the concept of regional
giantism for Chinas animation industry, in which Chinese companies no longer focus on piece-
meal subcontracted projects but aim at being regional collaborators. There are two trajectories of
giantism. First, China boosted the export of locally produced cartoon animation by 150% in 2009.
The major consumers were the Middle East, Africa, and South America. Second, China attempted
to take a leadership role in regional collaboration by initiating a tripartite consortium on animation
with Japan and South Korea (Lent and Ying, 2013). Chinese giantism in the regional animation
trade points to the importance of re-interpreting the alternative flow of creative industries.
In light of the multiple facets of creative industries, this study examines the cultural economy of
digital games production in Asia using a government-enterprises orientation and a global-local
orientation. In the former orientation, the development of games industries is considered part of
governmental policies on creative industries. In the latter orientation, cultural entrepreneurs in Asia
are motivated to explore business opportunities in different relationships to global partners. Taking
into consideration the rising importance of Asian regional studios in the global production chain of
traditional digital game giants and the proliferation of regional markets, the notion of creativity is
assumed complicated. Based on global standards of content and visual execution, as well as con-
textualized cultural preferences, it is intellectually intriguing to explore the modes of creative
industries and their implications for creativity.
In this study, the multiple forms of the Asian digital games economy are investigated through
in-depth interviews conducted between 2012 and 2014 with veterans and representatives of
renowned game companies in China, South Korea, Malaysia, Singapore, and Vietnam.
Fung 3

Their businesses include game development (e.g. programming and game engine development),
animation and character design, distribution, and the promotion of the finished product. The plat-
forms of digital games are not confined to consoles and PCs, but extend to web and mobile appli-
cations. The cultural economies of digital games in three major regions, Southeast Asia, Korea,
and China are elaborated in the following section.

Subcontracting cultural economy in Southeast Asia

The rise of small-to-medium digital game enterprises in Southeast Asia began two decades ago.
These small studios sustain their businesses by receiving outsourced projects from global digital
game publishers. They participate in the global value chain of big-budget PC and console games as
well as limited-budget mobile and flash games. Throughout their development, product quality and
low production cost have attracted global game giants to invest in the regional games industries in
Asia. In addition to independent small- and medium-sized enterprises (SMEs), multinational game
publishers have opened production studios in Southeast Asia. Indonesia is the satellite production site
for Gameloft (Indonesia Finance Today, 2015) and Square Enix (Square Enix Smileworks, 2012),
and Malaysia has attracted Codemasters (2015). Singapore is the regional hub for Electronic Arts
(2015), Gevo (2015), Lucasfilm, Koei (Koei Tecmo Singapore, 2015), and Ubisoft (2015). These
regional studios and branches not only involve production but also distribution and retail sales.

The globalization of South Korean games industries

South Koreas games industries have strong governmental support, with the aim of developing
export-oriented cultural industries. Generally, the growth in the exports of South Korean media
content began in the mid-1990s with the rise of the Korean Wave in East Asia. This success
extended to the games industries, making it one of the spearheads of cultural exports. In 1998, the
South Korean government identified the games industry as the driving force of the cultural econ-
omy. In 1999, the Korean Game Promotion Centre (KGPC) was established to nurture the counter
flow of digital game products from South Korea to the World. In September 1999, the Japanese
branch of KGPC was opened, which marked great progress in exploring the international game
market. The unit was then renamed as Korea Game Industry Agency (KGIA). However, its mission
remains unchanged, which is to bridge the games industries and the South Korean government. In
consequence, supportive measures were launched, such as providing low-interest loans to start-up
enterprises, helping local game publishers to participate in international trade fairs, providing inter-
national market intelligence, improving infrastructure, and subsidizing research and development.
Thus, the South Korean government proactively boosts the growth of local games industries and
helps cultural entrepreneurs to develop their business.
In 1998, South Koreas Ministry of Culture and Tourism was established. Games industries are
included in its cultural assets policy. From 1999 onward, online games have become the focus of
development. In the Cyber Korea 21 initiative, the Internet infrastructure was given the priority to
be developed, which resulted in the popularization of broadband networks and improvement in
national Internet literacy. The South Korean governments direct support of its games industries
was realized in the launching of the Korean Creative Content Agency (KOCCA), which provides
equipment (e.g. game engines), hiring, financing, assistance in research and development, and
advice on global marketing strategy. The KOCCA also fosters local game enterprises in collaborat-
ing with their international counterparts in upstream and downstream businesses.
The South Korean cultural policy on games industries has nurtured a group of highly competi-
tive cultural entrepreneurs who share the states mission of globalizing South Korean games. South
4 Media International Australia

Korean games industries are equipped to compete in the international digital game market. This
policy partially follows a neo-liberal market concept; moreover, it replicates the export-oriented
Hollywood model of creative industries. Because South Korea uses the United States as its bench-
mark, the mode of production and the actualization of creativity in game development are compa-
rable to those of the United States.

The rise of China as a regional online game giant

China is changing from an importer to an exporter of digital games. Beginning in 2010, China has
gained a prominent role in the global game market. Domestically, online games have become one
of the driving forces in the Chinese economy. The total annual revenue contributed by online
games reached US$5.7billion in 2010 (Ministry of Culture, 2010). At the same time, Chinas role
as a strong exporter was realized in its soaring international sales: US$360million was generated
from 34 games that were marketed in Southeast Asia, North America, South Korea, and Japan. In
addition to the record-high sales in digital games, Chinese game companies began to expand glob-
ally by acquiring renowned games and companies. In 2011, in a deal worth about US$230million,
Tencent Holdings purchased a majority stake in the US computer game publisher Riot Games
(M&A Navigator, 2011), which is the inventor of the globally renowned multiplayer, online battle-
arena game, League of Legends. The game, which is highly popular in North America and Europe,
attracts an average of 27million gamers daily.
Because its cultural economy was emergent, Chinas cultural policy did not extend to the devel-
opment and regulation of the games industries until 2004. Because of the increasing needs for struc-
tured guidance and monitoring of the digital games sector, a series of regulations were announced
between 2007 and 2009: The Regulation on Digital Publication in 2007; The Regulation on
Publishing of Digital Publication in 2008; and The Administration of Software Production in 2009.
Then in 2010, regulation and control were delegated to the provincial governments (Peoples
Congress Decision on the 5th Batch Cancellation of and Delegation of Approval to Level of
Management and Controlling Unit). On one hand, the governance of digital games is aimed at the
protection of minors, especially the censorship of indecent and violent content. On the other hand,
in the interviews, the committee members responsible for digital games regulation expressed that
ideological control was commonly exercised in the screening process, which can be seen as a means
of curbing the importation of foreign games (anonymous interviews conducted by the author).
Nevertheless, Chinas stringent regulation of digital games is not intended to hinder the devel-
opment of games industries. Instead, cultural policy was designed to encourage the local digital
game business to follow an ideologically compatible pathway. Government-led initiatives, includ-
ing tax rebates and subsidies, were provided to encourage export-oriented digital game production.
Provincial governments also established technological zones and cultural clusters to sustain the
growth of local game companies. However, the cultural entrepreneurs in Chinas games industries
are confused by the competing factors of creativity, ideological compliance, and market taste,
which will be explicated in the following section.

Comparative modes of games industries in Asia

Cultural globalization leads to alternative forms of organizing the global value chain in creative indus-
tries. The rise of creative satellite cities and transnational creative industries has brought about changes
in the global value chain of games industries, which extends beyond relocating manufacturing sites to
peripheral regions. For example, Disney and Nintendo subcontract to small-to-medium studios that
produce artwork and animation, respectively. The complex production process of digital games, such
Fung 5

as programming and visualization, requires professional regional studios to be subcontractors. At the

same time, game publishers in the United States have to maintain not only their standard of program-
ming, but also the quality of the artwork across their subcontractors, which requires standardization.
In order to secure business, regional digital game developers and animation studios have to put
aside their contextualized visions of aesthetics and comply with the mandated creative execution.
In other words, game publishers dictate the creativity that sustains the growth of the regional cul-
tural economy. Banks (2007) concept of the politics of cultural work helps to understand the pre-
carious autonomy of creativity in games industries, which have to comply with both business goals
and governmental agendas. Thus, in this article, the cultural economy of Asian games industries is
interpreted according to two dimensions: creative dependency and creative autonomy. The first
dimension considers whether regional digital game studios rely on subcontracted creativity, or on
original, authentic creativity. The second dimension considers whether the development of digital
games industries is driven by policy or entrepreneurship. Thus, the present analysis assumes that
there are four modes of games industries: policy-driven subcontractors, policy-driven innovators,
entrepreneurship-driven subcontractors, and entrepreneurship-driven innovators.1

Korea: entrepreneurship-driven innovators

Among the rising games industries in Asia, South Korean game publishers play a prominent role
with the support from the government. In South Korea, the Ministry of Culture, Sports, and Tourism
(MCST) oversees the creative industries in that country. MCST manages Korean games industries
by setting the policy and regulations governing game companies, conducting policy research, and
providing funds and financial credits for game publishers. In its support of creative industries with
policies, regulations, and funding, MCST maintains a healthy business environment in which
entrepreneurs compete constructively. The free-market mechanism is appreciated in South Korea.
Although MCST gives monetary support to SMEs, they have to pass detailed evaluations.
Moreover, a large number of enterprises compete for these funds. The South Korean government
has sped up the development of the game sector by allowing the registration of one-person compa-
nies. Consequently, more than a thousand game companies were established in recent years. MCST
does not intervene in games innovation, particularly in the invention of game engines, in order to
maintain a free market. Instead, when developers design creative game engines, they can approach
the government for research funds to develop them (Interview, representative from KOCCA).
Strategic support is provided to the content industry through KOCCA, the affiliate of MCST.
KOCCA is established in 2009 after the merger of Korea Broadcasting Institute, Korea Culture and
Content Agency, KGIA, Cultural Contents Centre, and Digital Contents Business Group of Korea
IT Industry Promotion Agency (Korea Creative Content Agency, 2013). The Agency is responsible
for raising the local creative industries to be global leaders; one of the ways is to provide marketing
analysis and insights for global distribution of South Korean-made games (Korea Creative Content
Agency, 2013). Hence, with the direct guidance and support of MCST and KOCCA, a relatively
stable ecology is formed in the domestic market, where the creativity and innovation of cultural
entrepreneurs are encouraged.
The influence of the Korean government on creative industries is inclined to boost exports.
Although there is no tax refund for exports, monetary and symbolic rewards are granted to game
companies that have substantial exports:

There is no tax refund as incentive, but some amount of prize money, or order of merit, is granted to the
entrepreneur on behalf of our president. Since most of the exporters are listed companies, those awards
could have a positive influence on their stock price. (Interview, MCST representative, 26 October 2012)
6 Media International Australia

Game exports have a prominent role in South Koreas cultural policy. This interview excerpt
demonstrates that game publishers can share in the national pride, which is a direct result of the
governments command. The policy supports the development of domestic games industries in
preparing products to fit the global market. However, South Korean game publishers also aim
at regional markets in East Asia, as expressed in the following excerpt: The Japanese market
is our priority Then the next is China. We are now considering working with Tencent and
some others (Interview, representative of NCSoft, 13 May 2012). Nevertheless, Japan and
China are the two main markets for South Korean games. This path of development reflects the
official strategy in the exports of Korean cultural products, particularly pop music, films and
TV dramas, which collectively have constituted the Korean Wave in East Asia since the late
1990s. In this entrepreneurship-driven innovative mode of creative industry, the Korean case
demonstrates its pursuit of global creativity, in which the Korean creative industries meet their
goals of becoming global players that are comparable to the United States. With the aim of
gaining a substantial market share in East Asia, the games industries in South Korea develop
original game engines and content. The digital games developed in South Korea now compete
with the products of global giants in global creativity, as well as normative audio and visual
standards.

Southeast Asia: policy-driven subcontractors

In Singapore, the government proactively supports the development of local games industries. In
practical terms, Singapores government has little knowledge about running entertainment indus-
tries, including the games industries that are domestic small enterprises, under Singapores Media
Development Authority (MDA). There are multiple incentives provided by MDA and its subsidi-
ary Interactive Digital Media Programme Office, such as tax reduction and funding, and the
Futurescape initiative that foster cooperation and networking among the innovation sector (Media
Development Authority Singapore (MDAS), 2014). However, the policies do not seem to have
ameliorated the prolonged deficits of local game companies (Interview, Infocomm Asia, 21 June
2012). Because they could not compete with multinational game companies, many game SMEs
chose to embrace multinational corporations (MNCs) by collaborating, subcontracting, and pro-
viding them with a stable supply of professional labor. Thus, Singapore is slowly evolving as a
regional hub for the localization of international games.
Another type of local game company is owned by foreign investors. Koei Tecmo Singapore
is a standalone company owned by Koei Japan. It sustains business by doing part of the game
development process for their Japanese headquarters. According to one interviewee, Basically,
it is like outsourcing within a company. Sometimes the headquarters give us some game models
to render, and we charge them for profit (Interview, Koei representative in Singapore, 22 June
2012). Thus, subcontracting game development generates income for Koei Tecmo Singapore.
In this mode of collaboration, the standard of creativity is acquired from Japan. The same inter-
viewee observed, All of the senior game developers are sent to Japan for training. Then they
transfer their insights to their subordinates (Interview, Koei representative in Singapore, 21
June 2012). This explains the predominant Japanese style and tone in the games developed by
Koei Tecmo Singapore.
In Malaysia, there is a disjuncture between governmental cultural policy and the needs of local
game developers. Malaysia actively subsidizes incoming multinational game publishers with the
condition that they grant a majority share (51%) to their local partners (Interview, owner of a
Malaysian game company, 21 October 2012). In addition, under the MSC Malaysia initiative,
MNCs are provided with Cybercities and Cybercenters to physically localize their business
Fung 7

operation (MSC Malaysia, 2015). A few international game companies have attempted to localize
their game production in Malaysia because of its low labor costs and reliable artistic skills
(Interview, boss of a Malaysian game company, 23 October 2012). However, global companies
are cautious in protecting intellectual property rights; thus, most Malaysian game companies pro-
vide low-skilled jobs or production of artwork rather than focus on game design and development.
However, in an interview with the representative of the important Malaysian game company,
Codemasters, he expressed satisfaction with their subcontracted work, which involved adapta-
tions of Western artistic styles:

When you talk about style, we are quite flexible. I will say that it is our strength actually We actually
talk to people like those from the UK, or from the US. (Interview with a representative of Codemasters, 23
October 2012)

Malaysian artists are confident that they can reproduce the Western vision of artistic quality. In
other words, for these artists, the reproduction of Western art is equivalent to creativity, which is a
conception that should be criticized. The interviewees expressed that they are proud to work as
professional subcontractors who are capable of reproducing visual work flexibly according to the
standards of the United Kingdom or the United States.
Although the Malaysian governments strategy is to attract global game giants to establish local
companies for the purpose of knowledge transfer, local game entrepreneurs consider it a misalloca-
tion of resources. In the past 7years, the flow of professionals from the local branches of MNCs to
locally established game developers has stopped (Interview, boss of a Malaysian game company,
23 October 2012). In other words, in Malaysia, cultural entrepreneurs have found that they have
not benefited from the governments cultural policy. Instead, the localized foreign game companies
compete with them for financial and labor resources. Because of the disjunction of cultural policy
and industrial demand, local game developers in Malaysia have to continue subcontracting visual
projects to sustain their everyday businesses. As in the case of Singapore, creativity means con-
forming to their contractors needs.
Singapore and Malaysia are two notable cases that demonstrate the development of games
industries in Southeast Asia. The governments of both countries invest huge resources in their
games industries, but their cultural policies support the localization of game giants and the devel-
opment of what I call conformed creativity, which is driven by multinational game publishers in
Europe and the United States. The term conformed creativity also suggests that the highly regarded
and dominant Western artistic style is now perpetuated in and by Southeast Asia.

China: policy-driven innovators

The Chinese government influences the games industries by investing in them through the
China Communist Partys (CCP) related enterprises. One example is Shenzhen Zhong Qing
Bao Network Technology. It was established in Shenzhen in 2003 under the name Baode
Network Technology, and since then has invented online games. In 2005, the Communist
Youth League of China, which is the youth branch of the CCP, invested in Bao (2015) with the
aim of promoting values, such as making modest sacrifices for the common good and social
unity through recalling the history of the Japanese invasion. Although it is foreseeable that
online games about the Japanese invasion will not be marketable overseas, Zhong Qing Bao
continues to develop this genre for meeting ideological needs of the authorities. Government
influence in the form of direct investment compels the games industries to develop ideologi-
cally compatible content:
8 Media International Australia

Funding support is abundant from various government branches. For example, the Communist Youth
League of China finances game content about Comrade Lei Feng and the Japanese invasion. The
Ministry of Culture funds the invention of an anti-addiction system in online games and the development
of content that promotes Chinese traditional culture. (Interview, former employee of the company, 9
April 2012)

The policy-driven mode of the online game industry in China has demonstrated strong con-
ditional support of local enterprises. The prerequisite for financial support is to adhere to the
party line by aligning the storylines of online games with the sociopolitical values preferred by
the CCP.
In our interview, however, officials from the Ministry of Culture suggested that creativity and
innovation are highly valued in the Chinese online game industry, but of course, the games should
not contravene the ideological boundaries of the party. In terms of design, Chinese online game
publishers are able to create authentic artwork without cloning the Japanese artistic style (Interview,
Zuhai Tou, 13 July 2011). The Chinese government also encourages online game companies to
invent their own game engines and programming frameworks for developing a system of online
games (Interview, Zuhai Tou, 13 July 2011). Thus, currently, Chinas online game industry is
enjoying sustainable growth with authentic artwork and original game engines, which are, how-
ever, under the auspices of the Ministry of Culture. Officials in the Ministry of Culture request
online game publishers to provide the best virtual props for them to run through the whole process
of gaming in order to depict the values and ideology represented in games. According to one inter-
viewee, The Ministry of Culture has five evaluation criteria for online games in principle: cultural
values, sensory satisfaction, the time needed to run through the game, the portrayal of antagonism,
and harmony in the virtual society (Interview, Zuhai Tou, 13 July 2011). Thus, the control of con-
tent in Chinas games industries is very strict. The states agenda of social stability, anti-game
addiction, and preserving Chinese traditional values is emphasized over creative freedom.

Managed creativity in Chinese games industries

In light of the policy-driven mode of online game development, autonomous creation is replaced
by state-led creativity that works domestically. In China, online game exports have given way to
the ideological compatibility of the content. The representative of the renowned online game portal
178.com expressed that Chinese game publishers have limited incentives to explore the interna-
tional market because domestic online game players constitute a huge market that is underex-
ploited (Interview, Yunfan Zhang, 16 May 2010). Thus, game publishers are focusing on acting in
accordance with the state-prescribed ethical and political requirements, and they develop games
that cater to domestic needs.
The condition of the Chinese online game industry can be explained using Foucaults (1979)
concept of governmentality, in which the state sets a common goal and gives the public the free-
dom to internalize a preferred conduct that could have positive results for the society.
In order to strengthen their businesses, game publishers choose to submit to governmental influ-
ence by way of direct investment in the industry. In return, a state-preferred creativity is gradu-
ally nurtured, which perhaps can be termed managed creativity. In China, while game engines,
artwork, and character design are highly innovative, the core of each online game project has to
take into account the aesthetics, ideology, and values of officials in the Ministry of Culture in
order to pass the compatibility evaluation conducted by a censorship committee. Although China
has adopted a policy-driven innovative mode of engagement, the games industries in China are
able to achieve self-sustaining growth. Under such managed creativity, online games that are
Fung 9

less culturally laden can be sold to regional neighbors, such as Vietnam and Thailand, where the
technological development of online game industries lags far behind that in China.

Conclusion: alternative creativity in Asian games industries

This chapter demonstrated the fluidity of the concept of creativity. Specifically, Asia displays a
unique model of cultural entrepreneurship in games industries, which entails a regional mode of
creativity. The entrepreneurship-driven innovators (e.g. South Korea) embrace global creativity
to compete against multinational game developers in the global market. The policy-driven sub-
contractors (e.g. Singapore and Malaysia) are satisfied with their conformed creativity to bid for
projects from and with MNCs. The policy-driven innovators (e.g. China) find their own niche
market in online games with managed creativity that echoes with the states political and eco-
nomic agenda. On the whole, cultural economy in Asian games industries exhibits an alternative
for the idea of creative industries advocated by Britain in the late 20th century. Instead of inter-
preting the games industries with globalization perspective, I suggest the regionalized cultural
economy and creativity of the Asian players are having strong global presence, together with
cultural and economic influence.
In general, the current situation in Asian games industries is quite stable in the context of the
political and economic policies that govern creative industries. On one hand, authentic and origi-
nal creativity is treasured and positioned to spearhead the marketing of local digital games to
global consumers. On the other hand, regional game developers in Southeast Asia rely on joining
the production lifecycle of multinational game publishers to maintain their businesses. In such
cases, local creativity gives way to global standards of digital game production, and local games
industries then become the regional hubs of transnational corporations. Whether Asian games
industries are able to sustain their current positions in the global value chain or rise as regional
leaders depends heavily on the business performance of global game giants, as well as regional
cultural policies. While the official discourse of the creative economy is said to facilitate multi-
culturalism, social inclusion, and inspire cultural development (UNESCO, 2013), the present
analysis of Asian games industries demonstrates a complicated scenario. Global digital game
publishers are still leading the value chain and subcontracting production processes to their
dependents in Southeast Asia. Thus, what is termed creativity in Southeast Asia is always a deriv-
ative version of the creativity of their contractors.
In addition to the development of global digital game value chains, countries have adopted a
policy-driven mode for their creative industries, which results in very different notions of crea-
tivity and the reduced motivation to produce digital games. In Asia, the guiding ideologies of
cultural policies can be characterized as a mixture of capitalist democracy, cultural nationalism,
neo-liberalism, religious economy, socialist economy, and state corporatism. In both South
Korea and China, the development of creative industries is coupled with national agendas. In
these two countries, the state influences not only the content of games but also the choice of
games that are exported. Entrepreneurship is maintained in South Korea, while policy and ideo-
logical control are much stronger in China. Thus, the games industries in South Korea compete
for a position in global innovation, whereas in Chinas games industries, creativity is managed
to produce huge revenues. In Southeast Asia, the cultural policies of Singapore and Malaysia do
little to help local game enterprises, whereas they promote the localization of multinational
game corporations. Game developers are encouraged to conform to the creativity of multina-
tional game publishers in order to sustain business. In the light of the complexity of Asian crea-
tivity, the power of the state and the dependency on the global games industries should be studied
in depth in order to promote authentically creative industries in Asia.
10 Media International Australia

Funding
The author(s) disclosed receipt of the following financial support for the research, authorship, and/or publica-
tion of this article: This work was fully supported by a grant from the Research Grant Council of Hong Kong
Special Administrative Region (Project no. 4001-SPPR-09).

Note
1. In addition to the classification of game industries based on the governments role and the dependency
on subcontracted work, there are also similar classifications of creative labor in Asia (Fung).

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