CYGMA: The Cyprus Video Game Industry 2025

The 2025 Cyprus Video Game Industry report, published by the Cyprus Game Makers Association (CYGMA), provides a comprehensive analysis of the nation’s gaming sector, highlighting its significant global influence relative to its small population. The report serves as a definitive baseline for the industry, utilizing data from sources including BCG, Sensor Tower, Newzoo, and the Registrar of Companies to evaluate market performance, employment trends, and investment activity.

Cyprus has established itself as a global leader in the mobile gaming space, ranking first in the world for companies, revenue, and mobile downloads per capita. In 2025, the island hosted 415 game companies, which collectively generated over €3.2 billion in revenue. The sector has become a vital component of the national economy, with its contribution to GDP rising from approximately €300 million in 2019 to €1.15 billion by 2024, representing 3.3% of the total GDP. While mobile gaming remains the primary engine of growth—accounting for 615 million downloads in 2025—the industry faces the common challenge of relying heavily on legacy titles, as only 4% of annual revenue originated from new releases.

The report also details a robust ecosystem for corporate growth and investment. Between 2019 and 2024, the number of registered gaming companies grew by 133%, while the workforce expanded by 200% to 4,320 employees. Financial activity remains active, with €2.76 billion in M&A deals recorded between 2020 and 2025. Furthermore, the industry benefits from favorable tax incentives, including an IP Box regime that effectively taxes game IP profits at approximately 3% and an R&D super-deduction program. These findings underscore Cyprus's position as a high-growth hub for international game development, characterized by a rapid expansion rate that significantly outpaces the broader European market.