With a quickly expanding domestic games market, and more companies thinking of making the leap to Western markets, Asian companies are facing some serious issues in the next few years: competition to become gaming 'hubs' for foreign companies, how to localize for foreign markets (something Japanese companies have historically done well, but in other areas, companies are lagging), how to keep up with a big, demanding market. ZDNet took a look at a few of the issues currently facing Asian games companies. On the issue of dealing with Western companies looking to make an entrance into the Asian market, there was this to say:

For example, Aroon Tan, president of Games Exchange Alliance (GXA), suggested that Singapore—which has ambitions of becoming a regional games hub—promote itself as a gateway for foreign game developers to Asia. Based in Singapore, GXA aims to help game companies overcome commercialization hurdles and bring game titles to market across Asia. Tan explained that setting up physical presence in several Asian countries is a challenge for North American and European game companies. However, Singapore's policies provide relatively lower barriers to entry to the country and the region, he told ZDNet Asia. "Singapore offers lots of incentives, making it an attractive first market to enter the region," he said, adding that at the recent Game Developers Conference (GDC) in San Francisco, exhibitors he met were keen to do business in Asia.

The export market is still a giant hurdle — while there are South Korean and Chinese companies making quiet, but successful, inroads to Western markets, quality localization remains something that many companies haven't quite managed to do. Asia must localize for global gamers [ZDNet Asia]