THESTATEOFTHEEUROPEAN

ANDHOWTOUNLEASHITSFULLPOTENTIAL

GAMEINDUSTRY

1.2.2024

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Culture&Creativity

WrittenbyNeogamesFinlandassociationwiththe

supportoftheEuropeanGamesDeveloperFederation(EGDF).CommissionedbyEITKICCCSICLCNORTH.

ImagesinthestudyhasbeenmostlygeneratedbyAI(PhotoshopFirefly)

KooPeeHiltunenSuviLatva

LiisaSauri

ElinaTyynel?

Jari–PekkaKaleva

Culture&Creativity

Supportedby:

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TABLEOFCONTENTS

EXECUTIVESUMMARY 4

MainemergingopportunitiesenablingtheEuropeangamesindustrytogrow 5

Buildingyourownfuture:Europeangamedevelopmenttechnologiesthroughinnovationand

research 5

Exploitingtheopportunity-Thedisruptionsofdigitalvaluechain 6

Accesstotalent-Professionalgameeducationasacatalystforchange 8

Understandingyourrestrictions-Beingthebestatexploringnewopportunitiescreatedby

Europeanregulations 8

Theoryofchangethroughthekeyprioryactions 10

1.INTRODUCTION 11

2.STATEOFTHEEUROPEANGAMESINDUSTRY 12

2.1.Keyindicators 12

2.2.ThestateofthenationalgamedevelopmentecosystemsinEurope 14

GroupALow-CapacityGameDevelopmentCountries 16

GroupBModerateCapacityGameDevelopmentCountries 16

GroupCStrongCapacityGameDevelopmentCountries 17

GroupDLeadingGameDevelopmentCountries 17

3.KEYTRENDSSHAPINGTHEGAMEINDUSTRY 18

3.1.Keymegatrends 18

Inflationandeconomicdownturnslowdowngrowth 18

China,theUSAandtheEUarethethreebiggamemarketpowers 18

MarketsaturationandconsolidationmakeitharderforEuropeanSMEstoentermarkets 20

Regulationfragmentstheglobalmarkets 20

3.2.Keymarketsegmenttrends 22

Mobilemarkets 22

Consolemarkets 23

PCmarkets 23

Onlinemarkets 24

VRmarkets 24

TABLEOFCONTENTS

Zerocodeplatformsmarkets 24

Subscriptionandcloudgameplatforms 26

3.3.Keybusinessmodeltrends 27

Premiumgames–gamesasaproduct 27

Gamesasaserviceandfreetoplay(IAP&Advertisements) 27

Subscriptionmodel 28

Gameasaplatform–Roblox,FortniteandMinecraft 28

Play-and-earn/Play-to-earn 28

Gamefranchises 29

4.EITCCSIACTIONPOINTS 31

4.1.HelpEuropeangamedeveloperstoexploitemergingopportunitiesanddisruptions 31

AI–cutthecosts 31

UGC–betheplatform 32

Cross-platformdistribution–diversifytherisks 32

Web3–beaforerunner 33

RecommendedEITCCSIactions 33

4.2.HelpgamedevelopersensurethattheirgamesreachtheEuropeanaudience 34

Strengthenthefreedomtoconductbusiness 34

Helptoovercomemarketaccessbarriersandsecurethefreedomtochoosedistribution

channels 35

SecurecontroloftheIP 35

Secureaccesstotheplayercommunity 35

Secureaccesstoplayerdata 35

RecommendedEITCCSIactions 35

4.3.EnablethebestgamestobemadeinEurope 36

Supportartisticexcellence 36

Supportbusinessexcellence 37

Supporttechnologicalexcellence 37

RecommendedEITCCSIactions 37

4.4.Ensurethefundamentalframeworkconditionsforrunningagamebusiness 38

Supportaccesstoreliableandpredictableguidanceontheimplementationoftheregulation 39

Supportaccesstopeersupportandknowledgesharingacrosscommunities 39

Supportaccesstotalent 40

Supportaccesstofunding(Investmentscene) 42

Supportaccesstomarkets 43

RecommendedEITCCSIactions 43

5.CONCLUSIONS 44

5.1.Thegoalandmainbottlenecks 44

ThemainbottleneckshinderingthegrowthoftheEuropeangamesindustryandpotential

EITCCSIsolutions 44

ANNEX1:Stateofnationalgameindustryecosystemsandrecommendedpartners 47

EITCCSICLCNorth 48

Selectedothercountries 53

ANNEX2:Sustainabilityactions 55

ANNEX3:UseofAIintheGamesIndustryProfessions 56

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EXECUTIVESUMMARY

Over3billionpeopleplayvideogamesworldwide,andgamesareEUR179billionglobalmarket.However,in

theEUgamesareonlyaEUR18.3billionindustrymeaningthattheshareofEuropeangamedeveloperstudiosintheglobalgamesmarketwas11%in2021.Despitethecurrentdownturn,severalgameindustryconsulting

companiespredictthegamemarketwillgrowwithaCAGRtoaround10-12%duringthenextyears.Withthatgrowthrate,theglobalgamemarketwillbeworthoverEUR400billionin2030.

IftheEUwantstomaintainitsshareoftheglobalmarkets,theEuropeangameindustryturnovershouldbewelloverEUR40billionby2030,morethantwiceitscurrentsize.Withoutwell-targetedpublicsupport,reachingthisgoalwillbeextremelydifficultfortheEuropeangameindustry,leadingtoanevenstronger

AmericanandChinesegamemarketdominance.

NationalGameDevelopmentEcosystemsinEurope(2021)

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MAINEMERGINGOPPORTUNITIESENABLING

THEEUROPEANGAMESINDUSTRYTOGROW

Buildingyourownfuture:Europeangamedevtechnologies

throughinnovationandresearch

What?Asaforerunnerofdigitalindustries,thegameindustryisgoingthroughnever-endingwavesoftechnological,businessandartisticdisruptions.,Theindustryhasthetechnical,businessandartistic

capacitytoaddressthechallengesandchangescausedbythesedisruptions.TokeepthetechnologicalforerunneradvantageintheEU,supportstructuresareneededtomainstreaminformationonnew

opportunities(e.g.buildingandusingAI)andsupportEuropeanSMEsinbuildingnoveltoolsand

services.

Artificialintelligence(AI),ispoisedtobecomethenexttransformativeforceinsociety,extendingitsimpactbeyondgamedevelopmenttoinfluencevarioussectors.AsmappedinAnnex3,itencompassesmorethanjustcontentcreationingames;itplaysacrucialroleinenhancingprocessesacrossallactivitiesinagame

developerstudio.AddressingcopyrightandregulatoryaspectsofAIisessential,butitspotentialspansfarbeyondcopyrightissues.CompaniesstrivingtocompeteinglobalmarketsmustharnessAItoitsfullest

potential.ThisinvolvesintegratingAItoolsandrefiningandtailoringthemtothespecificrequirementsofdifferentlevelswithingamedevelopmentandbusinessoperations.

RecognizingthestridesmadebyglobalsuperpowerslikeChinaandtheUSAinAIinvestments,the

EuropeanUnionmustnotlagbehind.ThedevelopmentofAItoolsconstitutesaformofresearchand

development(R&D)demandingtargetedinvestments.SupportingEuropeangamedevelopersinthis

endeavourandestablishingbestpracticescanbestowsignificantadvantagesinthefiercelycompetitive

globallandscape.ThedisruptivenatureofAIcreatesunprecedentedopportunities,especiallyforemergingstartups.

Meanwhile,additionalpublicsupportinstrumentsintheEUaremappingdifferentmethodstoincludecorporate(environmental,socialandadministrative)sustainabilityintheeligibilitycriteriaforpublic

funding.Gamedeveloperstudiosandgameindustryinvestmentsarebecomingsubjecttosustainabilityregulation.

Accesstoriskcapitaltoexploittheseopportunitiesisahugechallenge,especiallyinthelow-capacity

gameproductioncountriesthatlacklocalsupportstructureslikeclusterorganizationsorgameindustry

tradeassociations.Inmoderate-capacitygamedevelopmentcountries,thechallengeistoencouragethecreationofspin-offcompaniesfrommajorlocalgamedevelopmentstudiosandhelpthembecomescale-upcompanies.

How?

1.Europeangamedevelopersshouldbethefirsttoexploreemergingmarketopportunitiesand

disruptions.Furthermore,theyshouldusetheirtechnologicalforerunnerstatusastheircompetitiveadvantage.EITCCSIshouldintroducesupportinstrumentsforexploringnewopportunitiesand

disruptions:AI-driventoolsandproductionmethods,user-generatedcontent,useofthird-party

paymentsystems,andintroductionofthird-partyapplicationstoresenabledbyDMA,Web3,andno-codeplatforms.EITCCSIshouldencouragethedevelopmentofEuropeanalternativesofcrucialgameindustrytechnologieslikegameengines.EITCCSIshouldpromotethecreationandscalingupofnationalgameindustry-focusedVCfundsandencourageEUVCfundstoinvestinthegameindustry(EITinvestorclub).

2.Majorgameindustryexitsshouldleadtoinvestmentsbackintogameindustry.EITCCSIshould

introduceandexperimentwithnewnovelsupportmechanismsunitingcultural,business,SMEandR&Dsupportinstrumentsinunifiedsupportmeasuresspecializedfortheneedsofthegameindustry(EITCCSIpolicyclub).

3.AllEuropeangamedeveloperstudiosandpublishersshouldhaveaccesstoanextensivelistof

sustainabilitytoolsandbestpractices.EITCCSIshouldboostthedevelopmentandmainstreamingofsustainablegamedevelopmentpracticesbeyondenvironmentalsustainability.

4.EITCCSIshouldhelpgameresearchtoworkinclosecooperationwiththeindustry,buildingscenariosaboutfuturepossibilities.

Exploitingtheopportunity:

Thedisruptionsofdigitalvaluechains

What?OnecoreenablingfactorinthesuccessoftheEuropeangamesindustryhasbeenitsabilitytosecureitspositioninthevaluechain.However,comparedtotheleadinggamedevelopmentcountriesglobally,(theUSAandChina),theEUlackstheirdistributionplatforms,andonlyafewglobalindustrygiantsarebasedintheEU.

Europeangamedeveloperstudiosarestrugglingwithlimitationssetbykeygamedistributionplatformswhoactasgatekeepersinthemaingameindustrymarketsegmentsinsomecasesrestrictingaccesstodata,marketaccess,

andthechoiceofdistributionchannels.

SaturatedgamemarketscausesignificantchallengesrelatedtothediscoverabilityofEuropeangames.Europeis

goodatcreatinggamesbutweakeratgamedistributionandpublishing.Conversely,gamemarketsarebecomingincreasinglysaturatedandconsolidatedinthehandsofafewleadingglobalgameindustrygiants.Duetothese

increasingmarketaccessbarriers,Europeimportsmoregamesthanitexports.

Itisnolongerenoughtomakeagreatgame;findingtherightdistributionandmarketingchannelsandpartnersareequallyimportant.Often,gamedevelopersaregoodatmakinggamesandrelyonpublishersfortheir

marketinganddistribution.Unfortunately,thereareonlyafewEuropeanpublishers.

ThenewEuropeanregulatoryframeworkforgatekeeperplatformsdisruptsthegameindustry’svaluechainfordigitaldistribution.ItprovidessignificantnewmarketaccessopportunitiesforEuropeangamedeveloperstudios,astheyhavearoutetostrengthentheirpositioninthevaluechainandstartsellinganddistributingtheirgames

directlytotheirconsumers.

How?ItshouldbeeasyforEuropeanplayerstofindandaccesstoEuropeangames.TheEuropeangameindustrymustbeableto:

1.Recognizeandfullyexploitpotentialmarketdisruptionsinvaluechainsandutilizethem.Findawayto

operateasneartothecustomers/playersaspossible.EITCCSIshouldsupportexperimentationwithnew

supportmodelsbuiltfortestmarketingandaudiencebuildingwithinthegameindustryandsupport

instrumentsbridgingthegapbetweenculturalfundingforartisticexcellenceandR&Dfundingforbusinessandtechnologicalmerit.

2.Buildandfostercommunitiesinandoutsidethegameitself.TheEuropeangameindustrymustbeabletocreatenewvenuesandvaluechainsbyincorporatingexistingonesinanewway.

3.Co-operatewithotherEuropeancreativeindustriesindigitalandnon-digitalvaluechainstocreatenew

intelligentwaystoutilizethestrengthsofdifferentindustriesmaximizingtheirimpact,e.g.inbrandbuilding.Europe’sleadingnationalgameindustryhubsshouldhavetheirowncluster/communityorganization,

enablingandfacilitatinginternalandexternalknowledgesharing.EITCCSIshouldsupportEuropeanSMEsinjoiningleadingglobalgameindustryconferencesandjointcountrybrandinginitiativesfortalentattractionandsupportfornationalandlocalgamedevelopercommunityorganizationsthatfacilitatesgameindustry

peersupportonthelocallevel.

4.Inlow-capacitycountries,theEITCCSImustsupportthetransitionofthegameindustryfromoutsourcingandproductioncompaniestoautonomousgamedeveloperstudiosfocusedoncreatingtheirownIPsandmakingtheirartisticbusiness(e.g.gamedevelopmenttoolsandservices,R&D,distributionandmarketing)andadministrativedecisions(e.g.HR)inthestudioitself.ThiscanbedonethroughMOOCsfocusedon

capacitybuildingandsupportincreatinggameindustryincubatorsandaccelerators.

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Accesstotalent:

Professionalgameeducationasacatalystforchange

What?Accesstotalentisoneofthemainbottlenecksfortheindustry’sgrowth.TheEuropeangameindustry,particularlythestronggamedevelopmentcountries,struggletoaccesstopglobaltalentneededforcontinuedgrowth.ProfessionalgameeducationisunderdevelopedinmanyEUmemberstates,andlocalimmigrationruleshindertalentimmigration.Meanwhile,cross-borderremoteworkisbecomingincreasinglypopular,buttheEUlacksaclearandsolidregulatoryframework.

Professionalgameeducationinstitutionstrainingthenewgenerationsoftalentfortheindustrycanactas

catalystsoftheadaptationofnewtools(e.g.AItools)andexploittheinnovationsindigitaldistributionof

educationlike(MassiveOpenOnlineCourses)tosecureasgoodaspossibleaccesstothelatestknowledgeandskills.

How?Professionalgameeducationinstitutionsmust:

1.WiththehelpofEITCCSI,buildanewcurriculumandimplementnewAItoolsintoeducationandtrainingtoofferstudents(andthustheindustry)thepossibilitytoexpandtheircapabilitiesandproductivity.

2.WiththehelpofEITCCSI,exploreopportunitiesforbuildingsynergiesthroughorganizingsharedlecturesandexchangingtheirOpenOnlineCoursesbetweenselectededucationalinstitutions.

3.WiththehelpofEITCCSI,enableclosecooperationwitheducationandindustryinplanningcurriculums,internshipsandmentoring.

4.Securethattargetgroupsareawareofeducationandthepossibilitiesthegameindustrycanofferso

thatprofessionalgameeducationbecomesthemostattractivecareerchoiceamongthebestyoung

talents.EITCCSIshouldenabletheintroductionofprofessionalgameeducationinthelow-capacitygamedevelopmentcountrieswhereitislackingandsupportthedevelopmentofbusinessskillsintheindustry.

Understandingyourrestrictions:

BeingthebestatexploringnewopportunitiescreatedbyEuropeanregulations

What?TheEUisthegloballeaderinshapinghumanity’sdigitalfuturethroughregulation.EuropeanSMEshave

anopportunitytobethegloballeadersinexploitingthenewopportunitiescreatedbytheregulatorychanges.ItshouldbeeasyandaffordableforallEuropeangamedeveloperstoaccess,understandandfollowtheEuropeanregulatoryframeworkformakinggames.

How?TheEuropeangameindustrymustbewellinformedandreadytoexploitregulatoryandtechnologicalchanges,creatingpossibilitiesforSMEs.EITCCSIshouldsupportinitiatives

mainstreaminginformationandprovidguidanceonkeyregulatoryrequirements

(e.g.,platformregulation,IPprotection,immigrationrules,andcross-borderremotework)onpublishinggamesintheEU’sdigitalsinglemarketarea.EITCCSIshould

helpgamedeveloperstudiosfullyexplorethemarketopportunitiesbroughtby

theDigitalMarketsAct(e.g.,accesstodata,third-partypaymenttools,and

alternativedistributionchannels).

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THEORYOFCHANGETHROUGHTHEKEY

PRIORYACTIONS

THEFIVE

INNOVATIONTOOLS

OUTPUTFUNDEDBYCCSIGRANTS

INTERMEDIATE1

INTERMEDIATE2

IMPACT–15YEARS

1.EDUCATION

EITCCSIprovides

anopenstandard

curriculumtoinclude

AItoolsinexisting

gameindustry

curriculumsatalllevelsofprofessionalgame

education.

Educationalinstitutionssharebestpractices

andlectures,and

operateincloseco-

operationwiththe

industrytoupdate

opencurriculum

standards.Thequalityofgameeducationisenhancedandbettermeetsindustryneeds.

Thenumberofgood-

qualitygameeducationgraduatesmeetsthe

industry’sneeds.Cross-borderworkseamlesslyacrossborders.

TheEuropeangame

industryconsists

ofcompaniesatall

levelswithinthe

valuechain,starting

fromdevelopersandendingnearconsumeroperations,e.g.

distribution/platforms.TheEuropeangame

industryisagloballyrenowneddeveloperofhigh-qualitygamecontentandserviceswithtechnologicallyadvancedmethods.

TheEuropeangame

industryecosystem

isstrong,andgame

researchandgame

educationconstantly

cooperatewiththe

industry.TheEuropeangameindustry

cooperateswithotherCCSIstofullyutilizethecapacityofEuropean

creativity.Corporate

responsibilityand

sustainabilitytopics

arewellmanaged.TheEuropeanshareoftherevenuesoftheglobalgamemarketis20%.

2.DIGITAL

TRANSFORMATIONOFVALUETHECHAIN

EITCCSIprovides

theEuropeangame

industrywithhigh-riskinnovationfunding

toexplorethenew

possibilitiescreatedbynewtechnologieslikeno-codeplatformsandchangesinregulatoryframeworkslikeDMA.

NewEuropeanno-codeplatforms,third-partyapplicationstoresor

in-gamestoresarelaunchedwiththesupportofEITCCSI.

Theindustrycancreatesolidbusinessand

valuechainsaroundthem.

TheEuropeangame

industryfindsaway

tooperateasclosetocustomers/playersaspossibleandbuildsandfosterscommunities

outsidethegameitself.

Europeancompanies,shareofrevenue

increases.

3.INNOVATIONANDRESEARCH

EITCCSIsupports

exploringnew

opportunities,

disruptionsand

knowledgesharing:

AI,UserGenerated

Content,useofthird-

partypaymentsystemsandintroductionof

third-partyapplicationstoresenabledbyDMA,Web3,sustainability

practices,no-codeplatforms

Innovationand

researchoperatein

closecooperationwiththeindustry,buildingscenariosaboutfuturepossibilities.

TheEuropeangameindustryispresentinallkeygameindustryevents.Allkeygameindustryhubshave

theirowngame

industry-focused

cluster/communityorganisation.

Innovationmechanismsandresearchare

integralpartsto

offerforesightintotheEuropeangameindustry.

4.MOBILIZATION&AWARENESS

EITCCSIsupportsthecreationofup-to-datemodelcontracttermsandhelpscreatelegalguidancedocumentsfacilitatingmarket

access.

TheEuropeangameindustryiswell-

informedabout

regulatoryand

technologicalchanges,creatingpossibilitiesforSMEs.

Utilizingdisruptions

andchangesoffers

theEuropeangame

industryacompetitiveedgeintheglobal

market

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1.INTRODUCTION

AstheEuropeanvideogameindustry’scultural,economic,andtechnologicalimportanceisconstantlygrowing,Europeandecision-makersandresearchbodiesarepayingextensiveattentiontoit.ThegoalofthisreportisnottocompetewiththerecentEuropeanMediaIndustryOutlook1andUnderstandingtheValueofEuropeanVideoGamesSocietyreport2.Instead,weaimtobuildontheirfindingsandcoversomeareasleftoutsidetheirfocusinmoredetail.

WeprovideadetailedoverviewofthenationalgameindustryecosystemsinEurope;thechallengesEuropean

gamedevelopersfaceinkeymarketsegmentsandhowtheytrytomonetisetheircontentthroughdifferent

businessmodels.Agoodunderstandingoftheseaspectswithinthevideogamesectoriscrucialforthesecond

partofourreport,whichaimstoproviderecommendationsfortheEITCCSIonovercomingcriticalbarriersand

limitationshinderingthesector’sgrowth.Wewilldemonstratethatsupportfortechnologicalinnovationorgameproductionaloneisnotenoughtoaddressthechallengesthesectorisfacing.Instead,anew,moresystemic

ecosystem-levelapproach,aimingtostrengthenthepositionoftheEuropeangameindustryintheglobalgameindustryvaluechainisneeded.

1)TheEuropeanMediaIndustryOutlook.Availablein:

https://digital-strategy.ec.europa.eu/en/library/european-media-industry-outlook

2)EUROPEANCOMMISSION:UnderstandingthevalueofaEuropeanVideoGamesSociety.Availablein:

https://digital-strategy.ec.europa.eu/en/library/study-european-video-games-sector

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2.STATEOFTHEEUROPEANGAMESINDUSTRY

2.1.KEYINDICATORS

GAMEMARKETS

GamesareoverEUR170billionmarketglobally.AccordingtoNewzooGlobalGamesMarketReport20233,theglobalgamesmarketkeepsgrowingwitha+2,6year-on-yeargrowthin2023,generatingUSD187.7billion.

Over3billionpeopleplaydigitalgamesworldwide.Thenumberofplayersisestimatedtoreach3,32billionin20244.

246millionEuropeancitizensplaygames.Thenumberofplayersisestimatedtoreach3,32billionin2024.5GamesareEUR23.3billionmarketsinEurope.AccordingtoEuropeanMediaIndustryOutlook6,withitsEUR

23,3billiongamessales,theEUwasthethirdlargestgamemarketgloballyin2021.ThesizeoftheEuropean

gamemarketissubstantiallymorethanthecombinedglobalturnoveroftheEuropeangameindustry,indicatingthattheEUimportsmoregamesthanitexports.

Revenuegeneratedbygamesislargerthanmusicorvideoondemand.AccordingtoEcorysandKEAreport7,therevenuegeneratedbythegamessectoris4,3timeshigherthanthatofthemusicindustryand1,8timeshigherthanvideoondemand,highlightingthefinancialimportanceofthesectorinEurope.

3)Newzoo:GlobalGamesMarketReport2023August2023.Availablein:

/resources/trend-reports/newzoo-global-games-market-report-2023-free-version

4)Explodingtopics:HowManyGamersAreThere?(New2023Statistics).Availablein:

/blog/number-of-gamers

5)EUROPEANCOMMISSION:StudyonEuropeanvideogamessector.Availablein:

https://digital-strategy.ec.europa.eu/en/library/study-european-video-games-sector

6)TheEuropeanMediaIndustryOutlook.Availablein:

https://digital-strategy.ec.europa.eu/en/library/european-media-industry-outlook

7)EUROPEANCOMMISSION:UnderstandingthevalueofaEuropeanVideoGamesSociety.Availablein:

https://digital-strategy.ec.europa.eu/en/library/study-european-video-games-sector

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GAMEINDUSTRY

GamesareaEUR18.3billionindustryintheEU.AccordingtoareportbyEGDFandVGE8,thecombinedglobalturnoverofEUgamedeveloperstudiosandpublisherswasEUR18,3billionin2021.Inthesameyear,theglobalgamesmarketwasestimatedtobeEUR165billion.Withthesefigures,theshareofEuropeangamedeveloper

studiosoftheinternationalgamesmarketswas11%in2021.

Basedonseveralopinionsofgameindustryconsultingcompanies,thegamemarketisexpectedtogrowin

thefutureyears,withaCAGRofaround10-12%.Withthatgrowthrate,gameswouldbeanapproximatelyEUR400billionmarketin2030.IftheEUwantstomaintainitsshareoftheglobalmarkets,theEuropeangameindustryturnovershouldbewelloverEUR40billionby2030,morethantwiceitscurrentsize.

Europeisgoodatcreatinggamesbutweakatgamedistributionandpublishing,whichisoneofthekey

challengeshinderingtheEuropeangameindustryfromreachingitsgoal.Currently,allmajorplatformsin

mobile,consoleandPCsareownedbynon-Europeancompanies.Amongthe25biggestgameindustry

publisher-developer-investorconglomeratesbyrevenue,thereareonlytwoEurope-basedcorporategroups(UbisoftinFranceandEmbracerGroupinSweden).9

Keychallenges

-TheEUimportsmoregamesthanitexports.

-IftheEuropeangameindustrywantstomaintainitscurrentmarketshare,itsturnovershouldbewelloverEUR40billionby2030,morethantwiceitscurrentsize.

-Europeisgoodatcreatinggamesbutweakatgamedistributionandpublishing.

8)EGDF-VGE:2021EuropeanVideoGameIndustryInsightReport.Availablein:

https://www.egdf.eu/wp-content/uploads/2023/09/EGDF-VGE-video-game-industry-report2021.pdf

9)NewzooToppublicgamescompaniesbyrevenues.Availablein:

/resources/rankings/top-25-companies-game-revenues

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2.2.THESTATEOFTHENATIONALGAME

DEVELOPMENTECOSYSTEMSINEUROPE

NationalGameDevelopmentEcosystemsinEurope(2021)

BasedontheAnnualEGDFdataontheEuropeanGameIndustry,10thenationalgameindustryecosystemsinEuropecanbedividedintofourgroups:

-GroupA:Low-capacitygamedevelopmentcountries:Thesecountrieshavelessthan100gamedeveloper

studios,lessthan1000peopleworkingforthegamedeveloperstudios,orlessthan100Mcombinedindustryturnover.

-GroupB:Moderatecapacitygamedevelopmentcountries:Thesecountriesarehometomorethan100

gamedeveloperstudios,havemorethan1000peopleworkingforthegamedeveloperstudiosandrunoverEUR100Mcombinedturnover.

-GroupC:Strongcapacitygamedevelopmentcountries:Thesecountriesarehometowellover100game

developerstudios,havewellover1000peopleworkingforthegamedeveloperstudiosandrunoverEUR1Bcombinedturnover.

-GroupD:Leadinggamedevelopmentcountries:Thesecountriesarehometoclosetoormorethan1000

gamedeveloperstudios,havemorethan10000peopleworkingforthegamedeveloperstudiosandrunwelloverEUR1Bcombinedturnover.

10)2021EuropeanVideoGameIndustryInsightsReport.Availablein:

https://www.egdf.eu/wp-content/uploads/2023/09/EGDF-VGE-video-game-industry-report2021.pdf

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EGDFdoesnothavedataonallcountriescoveredbyEITCCSI.Afterexaminingexternaldatasources,wewouldestimate,thatoutofthesecountrieswhoseinfoisbasedonexternaldatasources:

-GroupAalsoincludesSwitzerland,Hungary,Moldova,BosniaHerzegovina,Montenegro,Albania,Malta(studiosnotinvolvedingambling),Kosovo,Luxembourg.

-GroupBalsoincludesBulgaria,Ukraine(whichcouldhavebeenclosetoGroupCbeforethewar)andCyprus.

-GroupCalsoincludesTurkey.

Itisessentialtonoticethatinthegameindustry,factorslikethesizeofthehomemarketorthenational

populationhaveonlyamoderateimpactonthesuccessofthenationalgameindustryecosystems.TheUK,

FranceandGermanyhavebiggameindustryhomemarketsandmassivepopulations,andtheyarealsothegameindustryleadersinEurope.SwedenandFinlandbothhaveastrongnationalgameindustrydespitehavingsmall

homemarketsandrelativelysmallpopulations.ItalyandGreecehavelar