Taiwan video games set to achieve NT$43.7 billion by 2020

Following an 8 percent growth in 2015, the video game industry in the country is expected to reach a CAGR of 54 percent in the next five years.

Taiwan's toy and games industry is predicted to have a sales increase in the coming years, driven by a demand in video games, with the market set to earn NT$43.7 billion by 2020, Euromonitor reports.

Video games are being revamped to incorporate more traditional Chinese elements, improved game content and convenient payment platforms. Manufacturers are leaning particularly toward developing multi-platform games as a means to leverage IP and expand market reach. Fast Internet speed and sharing services are also taken into account.

For example, late in 2015, Taiwan's local Blizzard headquarters began sole operations of the game World of Warcraft. Following the release of the video game's movie trailer in 2016, the company further maximized its efforts to promote the game and its merchandise. Recently, Blizzard reserved $100 million for a data center, which is responsible for gathering information to better suit game services to the wants of players.

The traditional toys and games industry in Taiwan, meanwhile, is approaching the maturity stage, although it registered a 3 percent growth in 2015, reaching NT$7.3 billion. This is attributed to successful toy launches of popular movies in the same year. In particular, action figures and accessories had the highest retail value growth of 15 percent, while those from the construction category increased by 5 percent. Movies such as Jurassic World and Minions were popular among children and adults while Tobot and Robocar Poli are a hit among children.

In terms of companies, Bandai is still the leader with 13 percent in value share, although it declined due to decreasing value sales in its brands like Power Rangers, due to competition from Western figures. They are one of the leading importers of Japanese action figures, as well as comic book and video game figures.