The landscape of the video game industry in Canada has been shifting, with a recent economic report revealing a nine per cent decrease in the number of companies operating in the sector. This decline comes on the heels of a pandemic-induced gaming surge, which saw smaller independent studios being the most affected.
Key Points from the Report:
Canadian video game companies operating in 2023-24 dropped by 78 compared to the peak in 2020-21.
Most of the impacted companies had fewer than 25 employees.
There was a 3.5 per cent decrease in jobs since 2021, primarily in British Columbia, Ontario, and Quebec.
Despite the drop in the number of companies and jobs, the industry is stable and showing signs of strength.
The report credits the sector with contributing $5.1 billion to the total gross domestic product, showcasing a three per cent growth in economic impact.
Foreign-owned companies employed 88 per cent of the workforce, highlighting a disparity compared to Canadian-owned companies.
The report also highlighted the experience of prominent Canadian studios, like BioWare and Behaviour Interactive, which faced lay-offs due to evolving market conditions.
One ray of hope in the industry is the success of indie games like “Balatro” and “1000xResist,” showing that innovation and creativity still thrive in Canada.
Industry experts, like Michael Iantorno and Remy Siu, emphasize the need for more funding sources to support smaller developers and foster diverse storytelling.
Paul Fogolin, President of the Entertainment Software Association of Canada, emphasized the need to acknowledge Canada’s prowess in video game development, drawing parallels to its reputation in the automotive and film sectors.
The future of the Canadian video game industry holds promise, with opportunities for growth and innovation. By addressing funding challenges, supporting emerging talent, and continuing to produce exceptional games, Canada can solidify its position as a powerhouse in the global gaming landscape. Let’s celebrate and support the creativity and talent within the Canadian video game industry, ensuring its continued success and recognition on the world stage.
