The turnover of the video game development industry in Spain grows to 920 million euros, but despite its good health, it continues to face the same problems
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This Wednesday, April 7, the new edition of the White Paper on Spanish Video Game Development, the new edition of the “Development Industry Report” which shows a complete radiography of the development industry in Spain, was released on Wednesday, April 7.
Turnover in this industry in Spain was 920 million euros and the outlook for the future is very positive. Specifically, a 17% increase is expected in the coming years, reaching 1,723 million euros in 2023.
If we take into account the autonomous community, Catalonia continues to be the driving force of the industry in Spain with 51% of total turnover, followed by Madrid with 28%. Andalusia and the Valencian Community account for 8% of the pie each, and the rest is shared by the rest of Spain.
The big problem, as has been usual in recent years, is that about 61% of the companies have a turnover of less than 200 million euros and very few companies keep most of the income.
On the positive side, 415 new studios have been created and 240 new studios are currently pending incorporation. In terms of location, Catalonia and Madrid have the largest share with 27.4% and 24.4% respectively.
Moreover, in 2019 there are currently 7,320 jobs and the outlook for the future is also positive: it is expected to reach 8,480 jobs in 2023.
In this sense, Catalonia once again takes the largest share of the pie with about 46%, since it is where the large video game studios are located. Madrid follows with a much lower percentage, specifically 26%.
However, the problem persists year after year: 50% of the companies with less than 5 employees represent about 50%, that is, there are many small studios and very few very large ones. On the positive side, studios with more than five years of longevity (about 57%) are beginning to consolidate.
Employment and profiles
The profile of the industry’s employees is 70% of professionals with higher education and nearly half of the industry’s employees are under 30 years of age.
However, it is noteworthy that 55% of Spanish studios continue to find it difficult to find suitable profiles for their needs.
In addition, it is still a largely male industry, with only 18.5% of women, up from 16.5%, but it is worth paying attention to.
As for the most demanded professional profiles, they are programming, art, and design, and DEV is clear that it is essential to support positions such as those related to marketing and distribution so that Spanish products can be better visualized at an international level.
Investment and financing
It is also striking that the vast majority of Spanish studios rely on self-financing (77%) or their own resources (73%) as their main sources of funding. Publishers take only 18% of the pie and DEV is clear that this should be encouraged in order to compete on equal terms with videogames from other countries.
In addition, it should be noted that the vast majority of studios decide to create their own IPs (89%) and 64% of the studios have to opt for self-publishing due to a lack of publishers.
Finally, it is worth noting that in terms of serious games, education is the most in-demand, with 78%.
In terms of sales, 34% of what is generated is consumed and sold in Spain, and if this were extended to the entire European Union, it would reach almost half.
It is noteworthy that digital sales are the main channel with nearly 50% and physical sales are relegated to 4%. By platform, PC continues to reign with 74%, Android (68%), and iOS (58%).
Nintendo Switch and PlayStation 4 – PlayStation 5 is not included in this report – would remain with a share of 43%.
This data puts Spain in the Top 10 of the world’s main video game consumption markets, although when compared to markets such as France or Germany, there is still a lot of work to be done.
In addition, DEV is clear that it is essential to promote the sale of Spanish video games in the Asia/Pacific market due to the enormous possibilities for expansion and growth.
As for the requests to the Government, they have reduced their usual decalogue to 3 main measures with which they are clear that would boost the Spanish video game sector to another level: to establish a tax incentive for the production of video games, to design the plan Spain, audiovisual HUB of Europe so that there is a turning point in the Spanish industry and to encourage the incorporation of young professionals, with special attention to the figure of women.
At the moment, these requests are progressing well, especially after the launch of Spain’s Europe’s Audiovisual HUB plan a few days ago, which will offer 1,600 million euros to boost any Spanish audiovisual production, although it is not known how much of the plan will go to the video game sector, as it is still in a very early stage of development.
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