Today IIDEA presented the fifth census of Italian game developers who this year, thanks to the collaboration with IDG Consulting, in addition to the quantitative survey, it offers a qualitative analysis of the industry and its potential.
The quantitative survey was conducted with an online questionnaire open to companies and freelancers operating in the video game development sector. Those who replied provided information on 15 survey macro-areas.
The 160 valid responses highlighted a 26% increase compared to the number of responses recorded in 2018. 73% of the respondents are collective enterprises, 18% by freelancers and 9% by other organizational forms.
Business consolidation and job opportunities and professionalism
The fabric of video game development in Italy is consolidated, 73% of the firms have been operating in the market for over 4 years and the number of companies with over 500 thousand euros of annual turnover is growing, which is 26%. A third of the companies fall within the definition of SMEs, Small and Medium Enterprises with more than 10 employees, a fifth exceeds 20 employees. Innovative startups are 37%.
An improvement compared to the 2018 census where only 17% of the companies surveyed employed more than 10 employees and the remaining 83% were micro-enterprises.
The professionals employed in the production of video games in Italy are now over 1600. In the last 2 years, 35% of companies have hired new staff and 59% plan to do so in the next two years. A sign that the sector generates professional opportunities especially for the younger generations given that 79% of employees are under the age of 36 with specialist skills.
Says Luisa Bixio, CEO of Milestone and Vice President of IIDEA, “The priority at the moment is to allow companies to grow and consolidate, proceeding on the path that is already allowing to expand and improve the offer of video games produced in Italy. But it is necessary that measures such as the First Playable Fund and the Tax Credit are operational as soon as possible and improved from the point of view of the financial endowment and their refinancing ”.
Sources of funding and the impact of Covid-19
Italian firms generate 94% of their turnover on the international market, the majority still resort to self-financing, but the financial support of publishers has increased compared to the previous survey, passing from 21% in 2018 to 28%. The use of public financing is increasing, 24% compared to 6% in 2018, and banking institutions, 18% compared to 6%. These data can be interpreted as a growing confidence in the sector and its productions.
During the pandemic, studies reported delays in closing contracts with publishers, investors and partners and in executing projects. For most companies, remote working has had a positive effect on the business and nearly 70% said they will continue to use this mode in the future.
A strategic plan for development
As an association IIDEA believes that the Government should support the development of new intellectual properties, Luisa Bixio tells us: “The videogame is the result of the work of many professionals who collaborate in teams with different professions, from the most technical to the most artistic. The intellectual property at the base of video games is what can found a new concept of export for the made in Italy “.
The recent introduction of the First Playable Fund by the Ministry of Economic Development represents a first step in the right direction. However, the first round of funding has not yet started, explains Thalita Malagò, IIDEA Director General, “After the publication of the decree last February, a change of government took place in a difficult situation for the management of the pandemic. Based on the latest information available to us, the measure is expected to be operational as soon as possible, hopefully before the summer. The objective will be to reconfirm it in a stable and lasting way and with a more important financial endowment ”.
Instead, it was only a few days ago that the news the Minister of Culture Dario Franceschini signed the implementing decree of the tax credit for companies operating in the production of video games. The measure also known as the Cinema Law, which had been inactive since 2016, recognizes a tax credit equal to 25% of the eligible costs of production.
The words of Franceschini himself who defined video games as the fruit of creative ingenuity are important and for this reason, similarly to what happens for cinema and audiovisuals, they can receive support, if recognized as works of particular cultural value.
