The transformation of emerging ecosystems into new development hubs has been reshaping how the global games industry identifies talent, invests in innovation, and builds sustainable markets outside traditional centers. In an exclusive interview with Watermelo, Fuad Karimov, General Manager Azerbaijan at Xsolla , and Shahin Aliyev, founder of Dynamic Box , discussed how incubation initiatives, international mentorship, and strategic access to the global market are helping shape the future of game development in regions such as Azerbaijan.

The conversation also follows the journey of Dynamic Box from participating in the first cohort of the incubation program promoted by Xsolla in Azerbaijan, where the studio achieved third place, to representing the country at the Game Developers Conference, one of the most important events in the global games industry. According to the interviewees, access to specialized mentorship, market knowledge, and strategic support helped the studio secure a place in initiatives such as the Merak Accelerator and obtain a $150,000 investment, reinforcing the potential of regional ecosystems when connected to global development and business structures.

Globally recognized for its solutions focused on monetization, distribution, and infrastructure for games, Xsolla has been expanding its presence in regions considered promising for the next generation of the industry. Meanwhile, Dynamic Box represents an example of a studio that emerged from a still developing ecosystem but has begun gaining international visibility through structured acceleration and market positioning initiatives.

For Fuad Karimov, the first step in discovering new talent in emerging markets lies in direct engagement with local communities and in evaluating studios based on their execution capabilities. “Identifying and nurturing talent in emerging ecosystems like Azerbaijan starts with engaging directly at the grassroots level. We work closely with local developer communities, accelerators, and industry events to find teams that are already building and shipping. Execution matters far more than early concepts”, stated the Xsolla executive.

Karimov explained that the company looks for concrete signs of validation even during the earliest stages of projects, no matter how modest they may be. According to him, retention metrics, engagement depth, and early monetization indicators help identify studios with sustainable growth potential. “We typically look for studios that show early signs of product validation, even if it's modest. This includes retention metrics, engagement depth, or even initial monetization signals. A team that understands how to iterate based on data and player feedback stands out immediately. In emerging markets, especially, adaptability and efficiency are critical indicators of long term potential”, he commented.

Beyond financial investment, the representative of Xsolla highlighted that operational and strategic support has become one of the company’s main pillars in emerging regions. “Our role in nurturing talent is very hands on. Rather than focusing purely on capital, we prioritize enablement, giving studios access to global payments infrastructure, monetization tools, and expertise around user acquisition, LiveOps, and go to market strategy”, Karimov stated while discussing the importance of preparing studios to compete globally from the earliest development cycles.

When discussing the impact of incubation programs, Fuad Karimov pointed to the Xsolla IDDA Incubation Program in Azerbaijan as an example of how the right structure can accelerate the maturity of a local market. According to him, the main barrier faced by emerging ecosystems is rarely creativity, but rather the lack of operational experience aimed at the international market. “The Xsolla IDDA Incubation Program in Azerbaijan pairs local studios with international mentors, market insights, and monetization expertise. In developing ecosystems, the main challenge isn't a lack of ideas. It's a lack of structured experience in building, operating, and scaling games for a global market”, he explained.

The executive also believes that incubation programs help transform the mindset of participating studios by encouraging a vision more aligned with global market expectations. “A strong incubation program also reframes how teams think about their product. Instead of building for local or regional audiences, studios are guided to design for global player expectations from day one, whether that's in core gameplay loops, retention design, or monetization strategy. This mindset shift is critical and often transformative”, he stated.

Another aspect highlighted by Karimov involves direct exposure to real industry metrics and internationally used performance benchmarks. For him, this type of experience allows studios to make more accurate decisions before launching their projects. “Through mentorship and hands on support, teams learn what ‘good’ actually looks like in terms of KPIs, retention, LTV, CPI, and how their product compares. That clarity helps studios make better decisions earlier, rather than discovering gaps after launch”, he commented.

In addition to technical preparation, Karimov emphasized that structured initiatives help reduce barriers related to distribution, publishing, and access to the global market. “Programs typically provide access to tooling, distribution knowledge, platform relationships, and increasingly, D2C strategies. This is particularly important in emerging regions, where studios may lack direct access to global publishing infrastructure”, the executive declared.

Concluding his analysis of the Azerbaijani scene, Fuad Karimov stated that incubation programs also significantly increase the credibility of studios in the eyes of investors and international partners. “Studios that emerge from structured programs with validated metrics, cleaner operations, and a clearer growth strategy are significantly more investable. Essentially, incubation programs like the Xsolla IDDA Program aren't just about helping studios launch a game. They're about helping them build the capabilities, mindset, and operational maturity needed to compete on a global stage”, he concluded.

Meanwhile, Shahin Aliyev, founder of Dynamic Box , explained that one of the greatest lessons learned during the incubation program was understanding that the success of an intellectual property depends on much more than production quality alone. “One of the key learnings was understanding that building a successful IP requires more than strong production. It starts with clear positioning, audience definition, and marketing strategy from day one”, he stated.

According to Aliyev, the experience also significantly expanded the studio’s perspective on player acquisition, marketing funnels, and long term planning. “While we already had solid experience in game development, we expanded significantly on the marketing side, especially around funnels and player acquisition, which Xsolla's experts helped us understand throughout the incubation program. We also strengthened our approach to studio management and long term planning”, commented the founder of Dynamic Box .

The executive also highlighted that another decisive factor in the studio’s evolution was adopting a mindset focused on self publishing and strategic control over distribution. “Another important shift was adopting a self publishing first mindset, aligning early with platform expectations and taking ownership of distribution. Together, these learnings helped us evolve from a production focused team into a studio building globally positioned products”, he declared.

Reflecting on the challenges faced at international events, Shahin Aliyev explained that representing an ecosystem that is still relatively unknown globally requires constant preparation and in depth industry study. “One of the main challenges has been representing a market that is still relatively underrepresented globally, with limited visibility and few internationally recognized case studies. As a result, we had to build much of our approach by studying GDC talks, analyzing pitch decks, and learning best practices for event attendance preparation, pitch deck contents, and partner outreach”, he stated.

Finally, Shahin Aliyev emphasized that strengthening emerging markets depends both on creating globally competitive products and on continuous investment in education and talent development. “These experiences shaped my vision clearly. For emerging ecosystems to grow, the focus should be on building globally competitive products while also investing in talent development, education, and a stronger industry foundation”, he concluded.