Well, as I've predicted, it has happened, and it's for the better of everyone looking for work in the digital content field.
http://www.theedgedaily.com/cms/content.js...696c20-af7b1aa0
Net Value: Codemasters creates a stir
By Toh Mei Ling
The digital content development industry in Malaysia is in upheaval as the tussle for talent has been getting rougher in recent months. However, this situation is not widely known outside the industry. Still, for years, the unresolved problem of insufficient skilled talent has been looming over digital content developers, be they animation studios, design houses or gaming companies. Although an estimated 1,500 multimedia graduates enter the industry each year, there is still a huge disparity between supply and demand.
This is largely why Codemasters Studio Sdn Bhd, a UK-based online games publisher and developer, was harshly criticised by smaller local players for talent poaching following its recent entry into the domestic market. The impact has been severe, with some companies closing shop and others losing up to 40% of their head count.
The company, which is a joint venture between Codemasters Software Co Ltd and leading local media group Vision New Media Sdn Bhd - has been offering local computer modellers and programmers remuneration packages that are too attractive to turn down. The incentives include a pay rise of up to 50%, nine-to-five work schedule and five-day week, which are unheard of in the fledgling industry.
But Vision New Media Sdn Bhd's CEO Low Huoi Seong brushes aside such criticism. "We will be developing games for Playstation 3, a next-generation game console that isn't on the market yet, at Codemasters Studio. These games are very complex as the technology allows real-time rendering as opposed to that of Playstation 2. Because of this, we need to hire the best and pay them better salaries. I don't see this as spoiling the market," he says.
According to him, most animation and gaming studios in Malaysia offer very low wages, not because they want to but because they cannot afford to. These studios are based on the "sweatshop" model, where they live from one project to another. They often scale up or down according to the projects they receive and because of the inconsistent income flow, the studios need to keep their overheads low.
"Because 99% of the industry is in this field [producing outsourced work], they cannot afford to pay employees well because they need to cover for downtimes. At Codemasters, we will be providing content exclusively to our parent company. Our pipeline is 100% full, with no downtimes. We are not overpaying our staff because they will have work lined up throughout the year," Low explains.
The digital content industry is known to be a demanding one. Content developers need to work way beyond their contracted working hours, weekends and public holidays included. Which is why industry observers are doubtful Codemasters will be able to live up to its promise of a nine-hour, five-day week schedule and still deliver the goods on time. When asked this question, Low laughs: "We are trying to be enlightened employers here and we get criticised for it!"
Citing the court case filed by an employee against US-based computer and video games company Electronic Arts for lack of quality of life, Low says it was a conscious decision by Codemasters to encourage its staff to live a balanced lifestyle. "If you're really after quality, you shouldn't make employees work 24/7. It really helps that our parent company and main stakeholder is based in the UK, where they don't work weekends. We hope to create the same culture in the Malaysian firm."
Working with MDV
Bringing Codemasters into Malaysia was not easy, says Low. Working with Malaysia Debt Ventures Bhd (MDV), the joint venture finally came through after two years of negotiations.
As gaming companies are very possessive of their intellectual property (IP), the contract to be an exclusive supplier is an attractive proposition, Low points out. It eliminates the need to source for jobs, which, in turn, allows the company to focus on building the industry and training skilled people.
"Codemasters holds the larger share of the JV because it is providing the technology that our company will be using. [Vision New Media] has taken the smaller stake because this is an important deal for the country if it wants to grow the local industry. We opened on June 5 with 35 employees, comprising mainly computer modellers because our focus for now is high-end modelling. Currently, we have 40 employees, of whom only two [the general manager and technical director] are foreign," Low says.
Setting up a 40-seat modelling studio would have undoubtedly cost an arm and a leg. "Let's just say MDV's funding is substantial," Low says when asked the question, declining to reveal the amount. MDV too would not disclose the figure.
Graduates with no industry relevance
The lack of skilled talent and appropriate environment has been hampering the development of the Malaysian digital content industry for years.
On this, Low says: "The problem with the local industry is that there are just not enough good people. We have between 200 and 300 graduates per year from each university or college offering creative courses. The problem is, the fresh graduates don't have industry relevance. University curriculum gives them basic knowledge skills but these are not relevant to what the industry wants."
Debunking the myth of insufficient graduates, Low says the problem is lack of trained and experienced human talent. "If there is no real industry to work in, there is no way to provide any form of proper training for employees, right?" he asks.
Low has his reasons for criticising the academia-industry linkage in Malaysia. Vision New Media's 3D animation studio, Persistence of Vision (POV), was started as a joint venture with Multimedia University (MMU). Housed in the MMU campus, POV's operations were built by the university. In return, POV contributed 120 hours per year to training MMU's students. According to a source familiar with the arrangement, MMU made sure that POV kept its end of the bargain initially, but after a while, it stopped asking for industry involvement and the programme just fizzled out. POV moved out last December.
This comes as a surprise because MMU's president Prof Datuk Ghauth Jasmon has constantly stressed academia-industry linkages.
Anuar Berahim, manager of Unitele Multimedia Sdn Bhd, the wholly owned subsidiary and commercial arm of MMU responsible for coordinating joint ventures between the university and industry, says: "Right now, there is no linkage between POV and MMU. I understand that POV hires MMU students as employees. It is true that at the beginning, there was coordination but after the first few years, problems started to crop up. We definitely see the benefits that come from industry collaboration but there have been problems in terms of business set-up and operations. We are now focused on project-basis collaboration and short-term partnerships rather than the long-term business deal we had with POV."
Attracting world-class players first
Low says a lot of international jobs have been going to India, while China, Vietnam and Thailand are slowly gaining market share. Interestingly, job flow to Singapore has been slowing because of lack of human capital and higher costs. Despite this, Malaysians are still heading south.
"Singapore has been taking our top talent by offering more attractive packages. With the exchange rate, these people are earning double what they could earn here. We have lost a good number of our best character animators to Lucas Studios. Aside from that, even if our local talents have a great idea, they won't be able to create intellectual property [IP] just yet because they lack the skills and experience. That is why we need to attract world-class industry players to learn from. This way, we can concentrate first on creating a pool of world-class talent and after that point create IP," says Low.
He elaborates: "Everyone seems to think that with the creation of IP, we will be able to grow a pool of skilled human talent, which will lead to a robust industry. It should actually be the other way round, where we build an industry to grow a world-class talent pool. From there, creation of IP can happen. We must learn to crawl before we can walk."
Clearly, Malaysia has a long way to go in digital content development. If the government is serious about making this industry a key one under the Ninth Malaysia Plan, it is vital that these problems are nipped in the bud.
Codemasters killing other local game developers., As I predicted in the phoenix thread.
Sep 12 2006, 09:58 PM, updated 20y ago
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