Canada's video game industry, renowned for its excellence, is experiencing significant changes in the 2023-24 period. The sector saw a reduction of 1,250 full-time jobs, with the majority of these losses occurring in British Columbia, Ontario, and Quebec. This downturn occurs in the aftermath of a pandemic-fueled boom that saw a surge in gaming activity. Despite these challenges, the industry continues to showcase resilience and potential, driven by both large multinational companies with Canadian branches and homegrown successes like "1000xResist" and "Balatro."
The industry's contraction is partly attributed to the global downturn in the tech sector, which has witnessed widespread layoffs. Nevertheless, Canada remains a powerhouse in game development. Remy Siu, a prominent figure in the industry, highlighted the difficulties faced by small developers in securing funding.
“We are really, really good at making video games in Canada,” – Paul Fogolin
The number of video game companies in Canada decreased by 9%, with most affected businesses being smaller studios with fewer than 25 employees. Despite these closures and downsizing, the sector's economic contribution has risen by 3%, adding $5.1 billion to the national GDP. Additionally, average salaries for industry professionals increased by 21%, reaching $102,000 annually.
Remy Siu's experience reflects the broader challenges within the industry. His sci-fi narrative game was a "hard pitch," facing hurdles due to its niche appeal. However, support from the Canada Media Fund provided vital funding, amounting to nearly $490,000 for his project "1000xResist." This illustrates the critical role such funding plays in sustaining and nurturing innovative projects.
“If you’re a small developer … you’re kind of fighting over scraps in terms of funding,” – Michael Iantorno
The Canadian video game industry is largely driven by significant players with branches in Canada. Yet, local studios have also achieved notable success. Michael Iantorno emphasized the importance of increased funding for arts and small businesses within the gaming sector.
“We need to fund arts and small businesses more, especially in the games sector,” – Michael Iantorno
Funding remains a critical concern for small developers who often struggle to secure necessary resources. Studios typically seek financial backing through bank loans or advances from publishers. However, the landscape can be challenging for niche projects that require distinctiveness to attract attention.
“there’s a degree of really having to stand out” – Remy Siu
Despite these challenges, the Canadian video game industry maintains its strength and stability, according to Paul Fogolin. The industry continues to attract talented individuals, although many are currently facing job insecurity due to recent layoffs.
“We see a lot of really talented people looking for work right now in the game industry, which is unfortunate.” – Remy Siu
Globally, the video game industry mirrors trends observed in the broader tech sector, with thousands of layoffs reported. This has had a ripple effect on Canadian companies as well. Many smaller studios have faced an uphill battle in securing consistent funding.
“That’s an uphill battle. Those organizations have often stagnated or had their funding decreased over successive governments.” – Michael Iantorno
The decline in company numbers highlights a need for strategic distribution of funds to support indie developers and foster diverse storytelling across Canada.
“If we can distribute funding in ways where we can get it to people who don’t typically receive game funding in areas where they don’t typically receive game funding, we can both foster the indie industry and tell stories from all across the country,” – Michael Iantorno
