07-05-2025
‘A major investment': New Montreal video-game studio to hire up to 300 people
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A new video-game studio is set to open in Montreal, adding 200 to 300 jobs to a sector that in recent years has seen a slump after massive pandemic-era investments dried up.
The studio will be U.S.-based Iwot Games's first and will be tasked with adapting Wheel of Time, a fantasy book and TV series, into a role-playing video game.
One of the largest centres in the world for video-game development, Montreal counts more than 250 gaming studios that employ around 15,000 people, according to investment agency Montréal International. The industry is in large part fuelled by international investments, often from U.S. companies. A COVID-era boom saw international investments supported by the investment agency soar to $635 million in 2021 but diminish in each subsequent year to date. In 2024, the agency reported just $75 million injected into the industry.
'I hope (the announcement) will bring oxygen and some optimism to people,' said Stéphane D'Astous, who Iwot Games named Tuesday as its director of studio operations. 'I think we're almost through this fog.'
The studio is the company's first, as is the game it will be developing. D'Astous described Wheel of Time as an expansive series created by Robert Jordan that features more than 2,800 characters across 15 novels and a TV show on Amazon Prime that's now in its third season.
The 200 to 300 positions won't be filled right off the bat, he said, but at least 50 new hires are expected during the next 12 months. Once the video game enters its production phase, he said the company would complete hiring, creating full-time permanent positions that will remain after the game is developed.
The scale of the investment isn't yet known, D'Astous said, but will be 'in the tens of millions of dollars.'
'It's a major investment, one of the bigger ones we've seen recently,' said Mark Maclean, Montréal International's senior director for Americas and Asia.
'It will be a good year for the video-game industry in Montreal,' he said, adding that he expects between two and four more 'significant announcements' of new investments before the end of 2025.
He agreed with D'Astous that the post-pandemic slump in gaming industry investments was ending, attributing it to a 'correction' that followed a worldwide boom.
'Everyone was in the basement playing video games' during the pandemic, he said, prompting gaming companies to fork massive amounts of money into production.
Though the slowdown resulted in some layoffs, Maclean said Montreal wasn't hit as hard as other places.
The city is an attractive choice for companies looking to open a studio, he said, offering both tax advantages and a significant talent pool.
D'Astous, who has previously opened other Montreal gaming studios, is an example of that talent, Maclean said. But without the tax incentives, he said companies may opt to open studios elsewhere. For would-be investors, decisions consider 'a mix of talent and cost.'
The tax credit is a major attraction, D'Astous said.
'It gives a good incentive for foreign investors and local investors.'
In March 2024, Quebec announced it would reduce its tax credit for video-game salaries to 27.5 per cent from 37.5 per cent.
In November, gaming studio Behaviour Interactive CEO Rémi Racine said the decision had the company reconsidering its future in the city. He also criticized provincial language laws aiming to protect the French language as unfriendly to video-game workers coming from abroad, who he said represent a quarter of the studio's staff.
But Maclean said neither French nor reductions to the subsidy program have affected investments.
'We haven't seen it.'
