Europe's game developers took a hit in 2023 – and the pain's not over
Worth more than €100 billion globally each year, the industry's European market, which includes overseas companies active in the region, grew to €25.7 billion in 2023.
But revenue from Europe's own developers fell from €18.9 billion to €18.7 billion, with the report from the European Games Developer Federation (EGDF) citing layoffs and studio closures.
The Europe-wide figures were delayed because they rely on slower national-level data, and development hotspots France and Poland are still missing. EGDF Managing Director Jari-Pekka Kaleva said gaps in some national associations' work are hampering collection, and called for more public investment to avoid flying blind on video game policy in Europe.
Despite the downturn, developer employment increased from 90,000 in 2022 to 91,000 to 2023. But Kaleva said he is not optimistic about a rebound.
Germany's games industry association recently reported a drop in the number of game companies in 2025, following what its managing director, Felix Falk, called 'another very difficult' year. He blamed the former government's U-turns in funding policy, despite the country's gaming market growing.
The EGDF report also highlights the fragmented nature of state support for game developers, with countries such as France and Belgium offering extensive funding schemes, while others provide little or none.
Kaleva also raised concerns over incoming EU consumer protection rules, though he welcomed the European Commission's approach to the planned Digital Fairness Act.
Gamers have coordinated their responses to the Act's public consultation process to press for tougher regulation, including measures to prevent developers from shutting down games.
A recent technical glitch revealed that the Commission is preparing a dedicated communication on the video game sector.
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