This report was made possible thanks to funding provided by the Ministry of Culture and National Heritage, the Ministry of Development, Creative Europe Desk Poland and the Agency for Industrial Development. arp The research part of the project was coordinated by the Kraków Technology Park. KRAKOWSKI PARK TECHNOLOGICZNY The partners of the report include the Polish Games Association, Indie Games Poland Foundation, Grupa Onet S.A. and Gry-Online S.A. <PG> onet

Photo source: Photo source: royalty free materials from Depositphotos.com INTRODUCTION Just several years ago, video games seemed to be reserved only for technology enthusiasts or younger demographics. Over 2 billion players around the world. Over 15 million players in Poland. The strength of the Polish game sector is also visible in the valuation of its A branch of the economy that generated USD 101.1 bn globally in 2016, ac- companies on the Warsaw Stock Exchange. At the beginning of December cording to analytics firm Newzoo’s estimates, and PLN 1.85 m in Poland. 2016, CD PROJEKT was valued at over PLN 5 bn. In July 2017, it was valued The video games industry has had a short journey from being the niche en- at PLN 7 bn, making it the highest-valued technology company in Poland. tertainment we remember from 30 years ago, reserved for a niche audience, There are already six game development studios on the main market and to being entertainment for the masses, a vital element of pop culture, and another seven on NewConnect, with a combined income in 2016 exceeding a vibrant international sector of creative industries – a sector to which Polish PLN 733 m (net revenue over PLN 267 m). companies make significant contributions. In April 2017, according to data provided by Newzoo, Poland was 23rd in the top 100 markets for video ga- Compared to its 2015 results, which were influenced by the commercial sucmes based on generated income.

Polish PLN 733 m (net revenue over PLN 267 m). companies make significant contributions. In April 2017, according to data provided by Newzoo, Poland was 23rd in the top 100 markets for video ga- Compared to its 2015 results, which were influenced by the commercial sucmes based on generated income. cess of CD PROJEKT’s and Techland’s various games, the total value of the income generated by Polish game developers in 2016 saw a decline of 21.8%. 2015 was a golden year for the Polish video games industry, thanks in part to Still, most smaller companies saw an increase in revenue in 2016 on 2015. the commercial success of The Witcher series from CD PROJEKT, while 2016 saw further strengthening of the image and significance of the Polish video Some game development studios are not present on the exchange, including, games sector, both in Poland and around the world. And although the only among others, Techland. In spite of this, the CEO and full owner of Techland, products released by the main market players were add-ons for games (The Paweł Marchewka, was listed 12th on Forbes magazine’s ‘100 Wealthiest Po- Witcher 3: Blood and Wine by CD PROJEKT, This War of Mine: The Little Ones les of 2017’ list, with a net worth of PLN 2.13 bn, while Marcin Iwiński and by 11 bit studios and Dying Light: Following by Techland), it’s worth pointing Michał Kiciński of CD PROJEKT were 56th and 65th respectively. out that the industry has not been stagnating and that games released by smaller studios (such as Superhot, Layers of Fear, Shadow Warrior 2) were met not only with favourable reviews, but also did well commercially.

it’s worth pointing Michał Kiciński of CD PROJEKT were 56th and 65th respectively. out that the industry has not been stagnating and that games released by smaller studios (such as Superhot, Layers of Fear, Shadow Warrior 2) were met not only with favourable reviews, but also did well commercially. The European Games Developer Federation estimates that Polish game development studios earned around EUR 300 million (around PLN 1.26 million) in 2016.

The last two years have also seen the beginning of organized cooperation between companies in the game development sector. The Polish Games Association and the Indie Game Foundation Poland, both established in 2015, are increasingly effectively representing Polish developers in front of public institutions in Poland as well as on the global arena, promoting Polish productions. One important indication of the positive change in how the games industry is perceived by public institutions is the creation of a sectoral programme entitled GameINN, by the National Centre for Research and Development, as part of the Program for Intelligent Development. The goal of the program is to increase the competitiveness of Poland’s video game development sector on the global market by 2023. The first GameINN competition resulted in 38 projects receiving PLN 116 m in financing between them. The new mass appeal of video games has also influenced a change in the stereotype of the Polish gamer. The image of the Polish game market and Polish gamers reflects global trends. In the last 10 years, the gamer demographic has changed drastically, thanks to an increase in the number of ‘new’ gamers from demographics who are quite new to this type of entertainment, such as middle-aged women and older people. Games have now become a popular past-time, such as going to the movies or reading a book. They have also become the domain of educated adults with a steady job, in at least an average financial situation. So it’s no longer surprising to see a woman in her 40s or 50s playing a puzzle or adventure game on her mobile phone while riding a tram or bus.

going to the movies or reading a book. They have also become the domain of educated adults with a steady job, in at least an average financial situation. So it’s no longer surprising to see a woman in her 40s or 50s playing a puzzle or adventure game on her mobile phone while riding a tram or bus. It’s also not surprising that playing on a console is an ordinary part of social gatherings. Social phenomena, such as the popularity of Pokémon GO, which uses augmented reality, or the popularity of eSports¹, have moved games into the realm of real-world interactions and emotions that were heretofore reserved for sporting events, like football. was to prepare a comprehensive report that would allow a broad spectrum of people to understand the current specificity of the Polish video game market in light of global trends, by – among other things – presenting the current profile of gamers in Poland, the value of the video games industry and the key components contributing to that value. Section 1 contains general information on the value of the global games market and an estimation of the value of individual elements of the Polish market. The subsequent sections present in detail its main components – the publishing and distribution market, the Free-to-Play² (F2P) market, the mobile games market, the VR³/AR⁴ market and the eSports market. Based on our own information as well as information gained from in-depth interviews with the industry’s leading representatives, the main factors influencing the current and future state of the market have been analysed.