“Türkiye Thrives: A New Titan in the Global Gaming Arena”

In recent years, Türkiye’s gaming startup ecosystem has expanded on a global scale, largely fueled by a combination of notable exits, significant investments, increasing interest in the sector, and inventive entrepreneurs.

The transformation of the industry from its modest origins highlights its extraordinary progress toward a flourishing ecosystem.

The foundations of Türkiye’s gaming sector trace back to the early 2000s, when pioneering digital games like Backgammon and Okey appeared on platforms such as Superonline and Mynet. Initially developed using Java and subsequently evolving into Flash-based iterations, these games prepared the groundwork for the sector’s future growth.

Prior to 2010, Türkiye’s gaming ecosystem was comprised of self-funded enterprises, lacking venture capital (VC) firms, angel investment networks, or institutional investment assistance besides one Fund of Funds (VC), as noted by Invest in Türkiye.

This scenario transformed with the influx of external funding in 2009 and 2010, which propelled the growth of startups such as Peak Games (later acquired by Zynga), Markafoni (later acquired by Naspers), and Trendyol (later acquired by Alibaba). These achievements established the basis for a strong VC-supported startup ecosystem.

Mobile gaming spearheads the movement

Mobile gaming has emerged as the predominant platform in Türkiye, with 44 million players reported in 2023. Casual and puzzle games strongly resonate with local tastes, contributing to continuous growth.

Dream Games, a notable player in the industry, secured the largest share of investments in 2021 and 2022, according to Mobidictum.

Burak Yılmaz, the CEO of the Istanbul-based gaming firm Weplay Ventures, recently shared with Anadolu Agency (AA) that Türkiye ranks among the top nations globally in mobile gaming.

Emphasizing that Turkish enterprises generate significant revenues, coming right after American and Israeli firms in mobile gaming, Yılmaz highlighted the country’s youthful demographic as a crucial driving force behind the industry’s expansion.

He also stated that Türkiye needs to enhance its frameworks for computer and other gaming platforms apart from mobile, suggesting that broader genre diversification would advance the country further in the global arena.

In an interview with AA, Barış Özistek, chairman of the Istanbul-based gaming company Joygame, underscored the rapid development of Türkiye’s mobile gaming ecosystem. “Particularly over the last 10 years, the mobile game ecosystem has evolved exceptionally quickly. We currently have over 500 game companies in Türkiye,” he remarked.

Conversely, the console and PC gaming sectors have faced declines, with player counts dropping to 11 million and 20 million, respectively. Despite this, the diversification initiatives in the sector show promise for wider outreach.

Prominent exits fostering growth

The acquisition of Peak Games by Zynga for $1.8 billion in 2020 marked a pivotal moment for Türkiye’s gaming sector, establishing it as the nation’s first unicorn.

Stressing the significance of this event, Yılmaz noted that 20 gaming companies emerged from Peak Games after its exit in 2020, mentioning that the progress of this sector as a “stable” industry is a “journey that may require time.”

Özistek mirrored these views, acknowledging the industry’s growth since Joygame’s acquisition by the South Korean conglomerate Netmarble in 2013. “That was the first occasion a gaming company exited Türkiye. It also marked the first time a global, multinational gaming firm invested in that region, not only in Türkiye but also across Eastern Europe and the Middle East.”

By the mid-2010s, gaming world accelerators and investors began to acknowledge the necessity of globalization, leading to an increase in visits and programs focused on Silicon Valley.

This signified a crucial transition as entrepreneurs shifted their focus toward entering new markets and extending their reach beyond local confines.

Simultaneously, Türkiye has seen heightened foreign interest in acquisitions and collaborations, reinforcing its role as a significant player in the global gaming industry and an appealing destination for investors in search of innovative, high-growth prospects.

Istanbul has evolved into a vibrant gaming center

Today, Istanbul acts as a catalyst for this swift expansion, ranking as Europe’s second-largest gaming hub in terms of studio density, following London.

This growth is bolstered by 13 game-oriented venture funds and accelerators that provide early-stage financing and strategic direction, enabling local talent to successfully scale their endeavors.

Özistek emphasized Türkiye’s “ideal” position for comprehending both Asian and European cultures, stating: “This is why our culture, our creative ethos, and our developmental abilities align perfectly with the gaming industry. Consequently, investments have followed that trajectory.”

Both Yılmaz and Özistek concur that AI will play a crucial role in the future of gaming. They share a mutual outlook on the expansion of the Turkish gaming sector, highlighting that the market in Türkiye is anticipated to grow at a pace even more rapid than global trends.

Yılmaz projected that the Turkish gaming market, currently valued at approximately $1.5 billion, is set to surpass $2 billion within the next two years.

“Türkiye will continue to prosper,” conveys Özistek.

According to him, the nation holds an increasing portion of the global market, expected to total between $205 and $210 billion in 2024, owing to its “highly successful companies that are experiencing substantial growth every year.”