Levelling Up: An Overview of Malaysian Video Game Culture

*** You can see the Korean version of this article at: https://www.gamegeneration.or.kr/article/8a98b78b-f8cc-4b81-bce9-f99c35d94529

One late afternoon in a quaint village. Rembo the rooster crowed loudly, adding to the countryside ambiance. You, your identical twin, and some friends from kindergarten were spinning tops in the yard. Just another joyful day of playing freely.

Unbeknownst to you, Rembo had been causing havoc on his afternoon stroll. From demanding treats at the shaved ice hawker, snitching on kids playing hide-and-seek, to taunting people as they did chores, Rembo was relentless. That was until he encountered his nemesis, the neighborhood cat. Now he was being hunted by the feline across stalls and clotheslines before escaping through the woods. It is now up to you and your twin to chase the rooster and return him to the village elder.

The events portrayed here are taken from the opening sequence of an adventure video game, Upin & Ipin Universe. Developed through a collaboration between Les’ Copaque Production and Streamline Studios, the game is an adaptation of the beloved Malaysian animated series Upin & Ipin. It follows two young twin brothers entangled in cheeky daily adventures as they learn about family, friendship, and community. The game captures the essence of childhood and simpler times. Chasing the chaotic rooster is just the first quest as more explorations await the players.

Speaking at the launch of Upin & Ipin Universe in July 2025, Digital Minister Gobind Singh Deo said that the game “embodies the innovation and cultural richness that make Malaysian games stand out” (BERNAMA, 2025a). The game invites players to experience growing up in Southeast Asia, specifically the Malaysian kampung (village). The quests, interactions, and environment reflect the charm of rural life and local heritage, making the game both entertaining and educational. Players could experience settings such as cozy wooden houses, bustling night markets, peaceful rice fields, and evening scenes with fireflies. Besides the main narrative campaign, there are also mini activities such as fishing, farming, bug catching, cooking, cycling, and remote car racing. Retaining the animation’s heartwarming and family-friendly nature, the game is an offline-only experience without the mechanics of combat, microtransactions, and fail states.

Image Source: Steam

Regrettably, despite being backed by a supposedly big-budget, significant marketing, and an existing fanbase, the game’s reception was generally lukewarm. On the digital platform Steam, the game received ‘Mostly Negative’ reviews. Prominent Asia Pacific gaming website, Kakuchopurei criticized the game for its janky controls, buggy state, lack of meaningful progress, and workforce controversies involving the developer (Toyad, 2025). Across online spaces, players regarded the game’s price tag at RM180 ($43) as “too expensive” and unreasonable for what it offered, comparing it unfavorably to the price point of AAA games (Ralph, 2025). Similar issues were also reported by the Indonesian newspaper Tempo in the country where the animation had exploded in popularity (M. Faiz Zaki, 2025). Amid social media boycotts and PR crises, the development team continues to deliver patches and fixes for a better gaming experience.

Clearly, while Upin & Ipin Universe shows promising potential, it is also mired in structural issues. To understand how this case fits into a wider context, it is useful to turn to the broader state of play in Malaysia.

The Growth of the Malaysian Video Game Industry

Malaysia is a multicultural country located in the region of Southeast Asia, with a population of 34.2 million as of 31 July 2025 (Department of Statistics Malaysia, 2025). The gaming industry is growing fast, with a forecast revenue of  $649 million in 2024 and a steady compound annual growth rate of 7.55% to reach $807 million by 2027 (BERNAMA, 2024). This projected revenue contrasts with an earlier report from when the local industry had just started with limited technology, fewer companies, smaller grant schemes, and narrower talent pools (Chong, 2004).

Malaysia’s serious entry into game development began in the 1990s, when the studio Motion Pixel contributed key development work to the internationally published title Ghoul Patrol for LucasArts. (Chong, 2004, p. 20). In the 2000s, local companies licensed and repackaged global titles, particularly MMORPGs, for the Malaysian market. In recent times, studios have become abundant, with most providing outsourced services of game art and co-development for well-known studios abroad. The examples include Passion Republic (Diablo IV, Uncharted 4, and Dark Souls 3), Streamline Studios (Street Fighter V and Final Fantasy XV), and Lemon Sky Studios (Marvel Spider-Man, The Last of Us Part II, and Warcraft III: Reforged). Besides that, Malaysian studios have also developed their own games. Three titles were identified as high-profile IPs that helped establish Malaysia’s reputation in the global video game industry: Magnus Games’ Re:Legend, Metronomik’s No Straight Roads, and Streamline Games’ Bake ‘n’ Switch (Wong, 2024).

In 2023, Malaysia’s digital creative industry recorded a strong performance, generating revenue of RM5.3 billion ($1.25 billion) with exports comprising RM800 million (BERNAMA, 2025a). Bolstered by various targeted policies, the government, through the Malaysia Digital Economy Corporation (MDEC), aims to make Malaysia a regional and global hub for animation and games by the year 2030 (BERNAMA, 2025a). MDEC plays a crucial role in supporting the local game development scene. One recent initiative is a closer collaboration with PlayStation Studios Malaysia (BERNAMA, 2025b).

Image source: Steam

MDEC also organizes the annual Southeast Asia Game Developers Conference known as LEVEL UP KL, attracting professionals from across the region and beyond. Highlights of the event include conferences, business networking programs, exhibitions, pitching, the SEA Game Awards, and masterclass workshops. On Steam, MDEC not only showcases Malaysian-made games, but also recognizes outstanding IPs developed in Southeast Asia for the global audience.

With MDEC’s support, the local industry is poised for continued expansion. However, more needs to be done at the industry level regarding the retention of game development talent. The main challenge affecting talent retention in the country is the limited career growth opportunities, leading many to leave for higher-paying markets such as Singapore, the United States, or Europe (Malaysia Digital Economy Corporation, 2024, p. 69).

A notable theme in Malaysian-made games is the incorporation of rich cultural elements to instill appreciation and recognition of local identities. Besides the aforementioned Upin & Ipin Universe, other examples include Mastra, an ambitious Mobile Online Battle Arena (MOBA) by Todak Studios inspired by ancient and mythological Southeast Asian or Nusantara culture. The game recently launched its open beta for players in the region (Kalita, 2025). A similar theme has also been seen in recent indie game developments, as developers blended local culture with the nostalgia of childhood memories (Chandy, 2024b) with one citing Korean MMORPG Ran Online as his inspiration (Chandy, 2024a).

The Trends of Malaysian Video Gamers

Playing video games is not only a casual pastime, but also a growing contributor to the nation’s economy. In a 2022 survey, Malaysian Communications and Multimedia Commission (MCMC) reported that 35.7% of internet users engaged in online gaming, a decrease from 42.8% in 2020 when many were stuck indoors during the COVID-19 pandemic lockdown (2022, p. 97). Factors that influence online gaming include entertainment, stress relief, social interaction, income generation, and escapism (Yunus et al., 2021).

Approximately RM2.7 billion ($570 million) in revenue was reported from Malaysian gamers in 2020, an increase from RM2.5 billion ($527 million) in 2019 (Hassan, 2021). Many reportedly would not mind spending RM200 ($48) or more each month to purchase power-ups, cosmetics, and unique characters, making the country one of the highest-spending markets in Southeast Asia (Hassan, 2021).

In terms of platforms, the accessibility of mobile phones and affordability of internet data made Malaysians prefer mobile gaming, thus surpassing PC gaming in demand and revenue (Lai, 2020). Popular titles that took Malaysians by storm include Mobile Legends: Bang Bang and PUBG Mobile which contributed to the rise of content creators and interactive spectatorship.

Realizing the increasing popularity of esports, MOONTON Games recently established a formal partnership with the Malaysia Esports Federation (MESF) to develop structured gaming programs, train athletes, and boost the nation’s gold medal prospects for Mobile Legends at the upcoming South East Asian (SEA) Games (Salim, 2025). The country also aspires to provide an inclusive ecosystem by including persons with disabilities (Yeoh, 2021).

In a broader gaming landscape, it is interesting to note that Malaysian gamers actively implement cultural identity in their gameplays, thus exercising their own creative agency. Notable examples include the recreation of a Malay-themed wedding procession in Grand Theft Auto V (Zikri, 2020), the construction of kampung houses with wooden stilts and rattan furniture in The Sims 4 (Ashaari, 2020), the building of a scale replica of the iconic Petronas Twin Towes in Minecraft (Tan, 2020), and the simulation of the Prime Minister swearing-in ceremony at the Royal Palace in Roblox (As, 2025). Additionally, gamers utilized Nintendo’s Animal Crossing: New Horizons for meaning-making, socializing, and staying productive during the COVID-19 pandemic lockdown (Tengku Sabri et al., 2024a, 2025a, 2025b). Gamers share their creations online, both on personal pages and in gaming communities. All these examples of creative endeavors show that Malaysians are not just passive gamers, but active producers who implement their own cultural identity in gameplay.

The Tensions Around Video Games in Malaysian Society

Despite the growing exposure and acceptance of video gaming across diverse Malaysian demographics, a few tensions still linger.

Since the early 2000s, public stigma and moral panics have often shrouded the notion of ‘gaming’. Entertainment venues such as arcades were blamed for the increase in loitering and violence among Malaysian youngsters, as well as being associated with gambling and money laundering (Yoong, 2001). Cybercafes were also deemed threats leading to moral corruption due to patrons’ potential exposure to online gambling, pornography, and cybercrimes (Lee, 2014). There are also challenges in preserving religious sanctity while adapting to modern youth culture. During the Pokémon Go craze, for example, there were calls to ban the game by a religious state committee due to its purported ill effects (Malay Mail, 2016). More recently, there was public outcry when a prayer hall became a location for a Mobile Legends tournament (Fong, 2025). To this day, gaming continues to be perceived by some as morally and religiously corruptive, though there are also societal pushbacks as it becomes normalized and pervasive.

Another major issue is cyberbullying. For example, female esports players face gender stereotyping and discrimination through disparaging comments in both text and voice chats from the audiences (Lim, 2021). Various gaming campaigns have been organized, most recently to tackle cyberbullying and promote mental wellness in the gaming community (New Straits Times, 2025). Ultimately, gaming is about having fun and connecting with people. Therefore, combating toxicity in the scene is necessary.

To summarize, the Malaysian video game industry is experiencing rapid growth, driven by a rising number of developers, increasing investments, and enhanced infrastructures. As Malaysia advances in the global gaming arena, it is also worth reflecting on how democracy and cultural authenticity intersect with nation branding, especially since the current industry shows strong state presence (Wong, 2024). While some hiccups such as the recent shaky launch of Upin & Ipin Universe were regrettable, they also point to opportunities for improvement. What is important is the continued drive to grow. Additionally, beyond technological advancement and economic factors, the Malaysian video game culture is also shaped by sociohistorical and contextual factors (for a more detailed discussion, see Tengku Sabri et al., 2024b). This includes the gamers, audiences, and society as a whole as they play key roles in shaping the trajectory of this evolving culture, ensuring that Malaysia continues to ‘level up.’

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