Southeast Asia's Gaming and Blockchain Surge Fueled by Foreign Investment and Focus on Sustainability

The YGG Play Summit, a significant event for both gaming and blockchain communities, has highlighted Southeast Asia's rise as a vibrant center for gaming advancements. This momentum is fueled by swift economic integration, the uptake of Web3 technologies, and targeted investments. The gaming sector in the region is transforming in tandem with its robust economic outlook, as Southeast Asian economies are expected to expand by as much as 4.8% in 2024,

and a growing base of consumers. The positive trajectory is also aided by the OECD's Southeast Asia Regional Programme, which focuses on easing investment barriers to draw more foreign direct investment (FDI) and align with sustainability objectives. In 2022, the region attracted $223 billion in FDI, for technology-focused enterprises.

An important takeaway from the summit was the merging of gaming and blockchain. The alliance between TokaCity and SACHI—a Web3 gaming platform powered by Unreal Engine 5—illustrates this direction. Their partnership seeks to bring casino and skill-based games into SACHI’s engaging, browser-based world, utilizing blockchain for digital asset ownership and live interactions.

the complementary strengths of TokaCity’s iGaming background and SACHI’s ambition for interconnected digital realms. At the same time, NEXPACE’s $50 million ecosystem fund is propelling Web3 gaming development, with priorities on financial systems, AI, and tokenized real-world assets (RWAs). the industry’s move toward sustainable, utility-focused approaches, as creators work to overcome issues like regulatory ambiguity and market instability.

Singapore’s implementation of Alibaba’s Qwen large language model for local AI solutions further demonstrates how advanced language technologies are shaping the gaming sector. AI Singapore’s Qwen-SEA-LION-v4, designed to interpret regional languages such as Indonesian and Thai, represents a shift from previous models like Meta’s Llama and Google’s Gemma.

the increasing presence of Chinese tech in Southeast Asia, as firms like Alibaba broaden their AI platforms.

The summit also explored the growth of “phygital” (physical-digital) gaming, with the World Phygital Community launching a global advisory board to oversee phygital sports. The Games of the Future 2025 in Abu Dhabi and 2026 in Astana,

, mirroring the industry’s broader shift toward hybrid formats.

Despite the sector’s strong performance, Southeast Asia’s gaming industry still faces hurdles such as climate adaptation and supply chain challenges. According to the OECD, the region’s post-pandemic economic rebound has been aided by digital transformation and collaboration between public and private sectors,

on overcoming regulatory challenges and promoting inclusive development.