The Cultural, Economic, and Cognitive Impacts of (Strong) Localization in Video Games

Videogames have a dynamic, rich, and growth history - and so does localization.

For starters, localization deals with the cultural, linguistic, and visual adaptation of a product, solution, or software to other target markets. It also covers the functional aspects of video games, apps, and websites, where translation is part of a much broader process.

To understand the importance of localizing video games into other languages, let's discuss three main aspects: cultural, economic, and cognitive.

Videogames development followed the surge of technological advancements, and the industry's current state is both a result of the interconnectivity fostered by globalization and a driving force for upcoming decades.

In the 1980s and 90s, video games were primarily available in English in Western countries, which means gamers were either English speakers or learned English to play games.

Besides English, Japanese was also a dominant language, and other languages became available as publishing studios started to pop up locally. Translation (as an industry) has, as one of its purposes, the goal of granting access to readers and giving voice to people in several languages.

However, some barriers remain, and localizing video games is about democratizing access to them.

When language is not an obstacle, the possibility of mastering skills through playing is open – considering that not all children and young people speak a second language but could profit from such benefits during their formative years.

In this context, presenting players with fewer language options results in an added cognitive barrier, which isn't the first (given what happens with game consoles that aren't affordable for many people).

According to Igor Tulchinsky, in an article for Harvard Business Review, "Numerous peer-reviewed studies have shown the benefits of gaming - whether it's better spatial awareness, faster cognitive processing, or improved mental health, social skills, and decision-making capabilities."

Therefore, localization enters the stage as a key that unlocks one of the gates to access this complex, incredible, and challenging world so that players can find resonance with their favorite titles.

Diversifying and enriching the gaming experience by offering your game more language options also counters cultural and linguistic superiority. Even though learning a new language is part of the history of many gamers, English cannot continue to play as a monoculture in this scenario.

Data from the Ethnologue guide states that roughly 7,000 languages are spoken worldwide.

The point here is not to disregard how cool it can be to learn a new language by playing a game but to stress the importance of keeping diverse thinking alive.

When we address culture, we must remember that belonging to groups is crucial for self-esteem and self-identity, and speaking a specific language allows people to participate in virtual communities or instant interactions.

Two or three decades ago, we were discussing the initial insights into the cognitive development that games offered. In addition to mastering a skill to move from one level to another, learning another language was essential to playing in the first place.

Today, with many titles already localized and access more democratized, developing cognitive and social skills requires pre-mastering the language in which the game is being played.

Localization helps gamers work in a broader range of cognitive skills simultaneously, as language is no longer a barrier but rather a competitive advantage.

When language isn't an impediment, there's more room for fun.

In addition to the cultural and cognitive ingredients intrinsic to video games, we must address the industry's economic impact in recent years.

The more games are localized into additional languages, the more the localization industry advances, and other studios and game developers can reach a larger audience to promote their content or products.

The result is a higher considerable consumption potential worldwide. In economic terms, we are talking about profit and extra investment in this industry, which only grows over the years.

As previously mentioned, people's need for connection deserves some attention here. This need is seen in social media and any other platform that promotes a sense of belonging (Hello, Spotify retrospective!).

Let's look at the example of Spotify's successful psychology and understanding of failure as an opportunity.

As Jonas Aman, part of Spotify's People Operations team, states, attempting something innovative and failing at it gives you "actual results instead of just speculation."

As the localization industry matures, it follows video games' likelihood to offer personalized experiences since the early 2000s - from an ever-growing number of skins in-game, modified gameplay, and customized avatars to idiomatic dialogues, narratives that sound natural to native speakers, and a sense of humor that resonates with gamers from different countries.

Engaging in videogames that help you feel part of a group or community creates a sense of ownership over the gaming experience – which, in turn, captivates players and, by word of mouth, brings new users to your videogame.

What the numbers tell us.

The example proves that localization matters to the video gaming industry on a deeper level - one that promotes people's sense of belonging and, consequently, leads to higher ROI.

In 2023, US$242.7 billion is expected to circulate in the sector. Fortnite, for example, generated over US$9 billion in its first two years, most of it coming from cosmetic skins and emotes.

Long before that, The Sims mastered this topic by promoting extensive customization options through paid extension packs that bring new outfits, hairstyles, lifestyles, settings, and even furniture sets.

According to Forbes, emerging markets have a large population of young, middle-class customers – and LATAM, the Middle East and North Africa, and SEA (Southeast Asia) regions seem to be the most attractive for many investors. Not only that – emerging markets account for roughly 80% of global growth.

In this sense, localizing video games is an investment with guaranteed returns: it generates player engagement, builds loyalty, and increases the success rates of your game – as long as a localization strategy is aligned with the developers' values and goals in mind.

Time for some figures: the UN reports that the current population of Latin America and the Caribbean is 665,24,287 – whereas the number of English speakers is around 14 million.

If we take Brazil, the largest country in the region, as an example, only 5% of the population has a good command of English (with the impressive rate of 1% being considered fluent in it).

Statista helps us understand the gap: while Brazil has an estimated 136.6 million gamers, only 2 million people are fluent in English. The gap means that massive market opportunities are missed if a game is launched without Brazilian Portuguese as a language option.

In the world of video games, three huge titles became hits in Brazil - which didn't happen by chance, considering that they were specifically tailored to this audience or at least localized into Brazilian Portuguese. We're talking about The Last of Us: Part 2, Free Fire, and FIFA 2020.

Even Nintendo grasped the importance of localizing into new markets and announced the first official localization of the "The Legend of Zelda" series. This game is already a success, and Nintendo is finally tapping into a market with a tremendous chance of staying in the hall of mandatory languages.

On the other hand, poor localization typically leads to unhappy customers. In Resident Evil 6, awkward dialogues and mistranslations, among other factors, hindered players' immersion in the game, disappointing many franchise fans.

But we aren't only talking about money - and the sooner we understand video games' deep impacts worldwide, the more we will be able to value localization and the work of linguists in video games.

So, what is the answer to correctly address localization in the video gaming industry?

Rely on language experts who fully understand the complexity inherent to each culture and are trained to spot, report, and offer solutions to prevent localization issues and, more than that, ensure the success and continuous growth of video game launches.

Accurate localization enables the story, dialogue, and instructions to be clear and engaging, immersing gamers and captivating this target audience.

Videogame localizers ensure that localized text fits the game's technical constraints, such as UI space or voice-over timing. Ideally, they collaborate with developers to avoid issues like text overflow or mistranslations that could break the game.

High-quality localization shows developers care about their global audience, strengthening their reputation in the increasingly competitive global gaming market.

Amidst the 190,000 games on Steam - a platform and app for distributing video games online - a unique and comprehensive user experience sets a game apart from its competitors.

At the end of the day, we are not offering gamers and users just another title to explore and see if it clicks. We are customizing games to give importance to what truly matters not only in this industry but also in others: people.