The number of video game companies operating in Canada fell nine percent due to a pandemic fed games, most of them smaller independent stores with less than 25 employees, according to an economic report on the industry.
The report of the Canada entertainment software association says that 821 video game companies operated in 2023-24, which is 78 less than the peak in 2020-21.
The president of the Association, Paul Fogolin, said that a subsequent fall to the pandemic was expected, since the game increased during the Covid-19 blocks, which led to the game studies and the developers to expand.
Fogolin said that the number of people who played games did not increase so much during the pandemic, but the people who played did more than ever.
“When we left that, we knew there was going to be a slight fall in the commitment to the games, and that was also at the same time that the new macroeconomic conditions, inflationary pressures, a lower consumer expense,” Fogolin said in an interview.
Dismissal requests
There were 573 video game companies in 2017 and 692 in 2019, according to previous economic reports for the Association. Fogolin said the last numbers show that the Canadian industry “is still strong and stable.”
That is despite a 3.5 percent decrease in works since 2021, when there was the equivalent of 35,260 full -time positions, including programmers, writers and artists.
The report says there were 1,250 jobs less full time in 2023-24, with a large job based in British Columbia, Ontario and Quebec.
At the same time, the report says that the proportion of full -time works increased, to 86 percent of 81 percent, which suggests that it was due to the fact that the companies were rented again and focused on longer -term projects .
In addition, the average salary increased by 21 percent to $ 102,000 per year.
Large and small players
The report, published on January 28 and based on an online survey between May and June 2024, accredits those profits with a three percent growth in the economic impact of the sector, which according to him turned out that $ 5.1 thousand Millions contributed to the total gross domestic product.
The report also pointed out the disparity between local and foreign companies that participated in the survey: while 76 percent of the companies surveyed were foreign Canadian property companies employed 88 percent of the workforce.
He also found that most of the companies that folded or reduced had less than 25 employees.
The world video game industry has seen thousands of layoffs in recent years, reflecting trends in the broader technological sector.
In Canada, Bioware, based in Edmonton, fired about 50 people in August 2023 and an unleashed number this January, saying in both cases that he wanted to become a “more agile and more focused study.”
Interactive behavior cut 95 jobs in June 2024, most of them at their Montreal base, amid what he called “unprecedented competition.”
But much of the sector is promoted by great players with advanced Canadian positions.
Ubisoft developed most of the Assassin’s Creed titles in Quebec, while electronic arts produces NHL 24 and EA Sports FC 24FIFA series successor, in Burnaby, BC
There are also local successes. The dear indie BalratoA poker thematic game developed by an anonymous Canadian, has sold more than five million copies since it was launched in February 2024.
‘Fighting for the remains’
But Michael Iantorno, a doctoral candidate in the Communications Program of the University of Concordia, said it is becoming more difficult for game developers and workers equally.
“If you are a small developer … you are fighting for the remains in terms of financing,” said Iantorno, who studies the history of video games, the work work of the industry and the intellectual property law.
There are several sources of financing, including the Canadian Media Fund and provincial organizations such as Ontario, but there is more demand than money, he said.
“We need to finance arts and small companies, especially in the Games sector,” he said. “That is a uphill battle. Those organizations have often stagnated or diminished their financing on successive governments.”
Remy Siu, Vancouver’s developer behind the video game acclaimed by critics 1000xresistThat it came out in May 2024, said the game would not exist without the help of the Canada Media Fund.
Siu, founder of Sunset Visitor, said that “there is a degree of having to stand out” as an independent developer, since he accredited the fund by allowing certain types of artistic risks.
The study received just under $ 490,000, according to the Fund’s website.
Siu said studies can also search for bank loans or an advance from an editor, but its science fiction narrative game was a “hard release” due to its niche theme.
Siu said that a weak Canadian dollar could raise a future challenge if your study would like to hire talent for us.
The Loonie recently fell to its lowest levels in more than 20 years. But layoffs in larger companies mean that there are no problems to find workers.
“I don’t really think there is a talent acquisition problem,” he said.
“We see many really talented people seeking work at this time in the game industry, which is unfortunate.”
Video game developers throughout the province burned midnight oil last weekend for Jam Game 2024 Alberta Jam. In Calgary, the teams worked against an adjusted deadline to create a video game from scratch.
One way to support and encourage smaller or newer developers is to create new financing routes, said Iantorno, the scholarly game of the University of Concordia.
An example is an incubator of games known as Baby Ghosts, he said, which provides subsidies and education to emerging studies in Canada.
“If we can distribute funds in a way that we can take it to people who generally do not receive game funds in areas where they normally receive game funds, we can both promote the independent industry and tell stories from all over the country.,” Said Iantorno.
Fogolin, of the Canada’s entertainment software association, said it is seeing that more and more games acclaimed by critics occur in the country, even in the midst of continuous inflationary pressures and a less discretionary expense.
He said that as Ontario is known for its automotive and film and television sectors, the country should be recognized by video games.
“We are very, very good to make video games in Canada,” he said. “And I think many people don’t know.”
The study, conducted for the Industry Association by Nordicity Group, compiled data based on 150 video game companies.
