Updated Mar 17, 2026 by European Games Developer Federation
Whitepaper · January 1, 2016
Published by European Games Developer Federation
HOW TO Game developer studios in Europe 4 What EGDF does 5 ENABLE Number of people working in game development 7 Turnover of the national game development ecosystems 9 DIGITAL The shorter the value chain, the more growth in Europe 10 Games are the driving force of the digital revolution 11 Content drives innovation 12 GROWTH Creative E...
HOW TO Game developer studios in Europe 4 What EGDF does 5 ENABLE Number of people working in game development 7 Turnover of the national game development ecosystems 9 DIGITAL The shorter the value chain, the more growth in Europe 10 Games are the driving force of the digital revolution 11 Content drives innovation 12 GROWTH Creative Europe 13 Better public support 14 IN EUROPE? National support for games industry 15 How to build a digital single market area? 16 Examples of areas where regulatory frameworks collide 18 Trade agreements 19 Digital skills and talent 20 How to fix the VAT? 22 Corporate taxation 23 Audiovisual Media Service Directive 24 Geo-Blocking 25 A digital ready copyright framework 26 Fighting IPR infringements 28 Consumer protection 30 Platforms 32 eGovernment 34
EGDF represents European game developers on a European level. It helps to build up policies that support the growth of the European game developer studios and foster the GAME development of the entire digital ecosystem in Europe. | 13 AT | BE | DE | DK | ES | FI | FR | HR | NO | PL DEVELOPER | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | SE | TR | UK |EGDF unites national trade 290 STUDIOS TRADE associations for game developers ASSOCIATIONS from 13 European countries. 73 IN EUROPE 1 600+ Together with its member associations EGDF represents 213 STUDIOS more than 1,600 of more than 3,200 game developer studios in Europe. Most of them are SMEs. 25 000+ These 1,600 game studios 190 employ more than 25,000 455 PEOPLE people. All in all game developers employ more than 45 000 people 660 150 in Europe. ALL TOGETHER The European computer and 29 320 100 000+ video games industry, including 125 distributors and students, PEOPLE encompasses more than 100,000 30 individuals. 250 120 35 65 15 28 400 50
Policy building EGDF focuses on regulation that is especially important for game developers, for example: - European VAT system - Consumer protection - Data protection - Protection of minors - Free trade agreements - Copyright policies - State aid rules Funding CREATIVE EUROPE - From 2012 to 2013 EGDF successfully secured the funding for game development from the Creative Europe programme. Now EGDF focuses on turning the rules more developer friendly. HORIZON 2020 - EGDF is constantly being contacted by research consortiums looking for game developers. EGDF provides a list of European developers interested in joining these consortiums: www.egdf.eu/horizon2020. - Twice a year EGDF creates a list of open funding opportunities for game developers in the EU Dissemination EGDF provides: WHAT - A monthly newsletter of current EU affairs EGDF - Analyses of European policies and their effects on European game developers - A large European contact network DOES? - Best practices on supporting SMEs operating in the digital markets For more information visit: www.egdf.eu
> **[Chart page]** This page contains visual data — view in PDF for the best experience. NUMBER OF 2,700 PEOPLE WORKING 490 IN GAME 3,120 DEVELOPMENT 3,030 3,000 10,870 200 10,300 850 350 3,000 750 350 5,000 300450 3,380 2,000
TURNOVER OF 2,400 THE NATIONAL GAME DEVELOPMENT 935 ECOSYSTEMS (M€) 1,490 255 300 3,677 412 400
The European success story of DEVELOPER RETAILERS RETAILERS RETAILERS RETAILERS the Digital Era. RETAIL At the centre of the digital entertainment industry, video games constantly engender new business models, create innovative content and germinate unique services that are driving groundbreaking technological discoveries leading the way for many other sectors. The replacement of the traditional – retail driven – value chain by digital value chains is an enormous opportunity for Europe, as it leaves a bigger share of the revenue to European content creators and offers a way to keep European MOBILE CONSUMERS CONSUMERS CONSUMERS Intellectual Property (IP) in European hands. Furthermore, new, innovative business models like Free-To-Play have helped European game developers to conquer global markets. Thus it is clear that the true strength of Europe is in European cultural digital content, because it has succeeded in creating growth and jobs in Europe while European platforms and hardware developers have struggled to survive. The first truly integrated digital ecosystem of the entertainment sector, the ONLINE DEVELOPER CONSUMERS games sector, is positioned ideally to be the focal point of the coming Digital Era. Network neutrality secures digital growth Network neutrality enables the free movement of digital goods, services and knowledge in the digital single market area and it is the basis of innovation for the games sector. It is therefore vital for network neutrality to be protected.
Europe’s video‑game sector has expanded by 16 % between 2019 and 2024, now delivering €24 billion in revenue and employing roughly 110 000 highly‑skilled workers. More than half of the continent’s gamers are under 20 years old, and nearly half of parents rely on the PEGI age‑rating system to ensure safe play. The industry’s dual nature—combining advanced technology with creative content—underpins a call for EU‑level measures that preserve an open, tax‑free single market, extend the Creative Europe programme, apply the General Exemption Regulation to games, and reinforce intellectual‑property protection while investing in digital‑skill education, particularly STEM pathways for girls. The PEGI framework, supported by co‑regulation, has already classified around 40 000 titles across 40 European countries, halving non‑compliance penalties and cutting energy‑consumption violations by roughly 20 %. Nevertheless, the sector faces a regulatory load of 850 new EU obligations (over 5 000 pages of rules) introduced between 2017 and 2022. A shift toward transparent self‑regulation is advocated, emphasizing clearer in‑game purchase disclosures, stronger parental‑control tools, and EU‑wide educational programmes to close digital‑skills gaps and attract diverse talent. Safety‑by‑design requirements now obligate all publishers to integrate PEGI‑based age classification, parental‑control portals, chat moderation, purchase limits and time‑spending caps, reflecting the predominance of minors among players. The climate‑and‑inclusion agenda shows progress: women represent 23.7 % of the video‑game workforce, surpassing the 17 % share in the broader ICT sector, and industry members are adopting gender‑equality guidelines and green initiatives such as the Green Game Jam. Coordinated self‑regulation, targeted public funding, and unified online‑safety strategies are presented as essential to sustain economic contribution, foster innovation, and position Europe as the leading hub for socially responsible game development.
The response aims to shape EU policy on virtual worlds and the emerging metaverse by presenting the video games sector’s perspective, emphasizing that the concept remains fluid and should not be prematurely defined. It argues that existing EU digital legislation—covering consumer protection, competition, data protection, and cybersecurity—already applies to virtual environments, and that imposing legal interoperability at this early stage would hinder innovation. The submission stresses the strategic importance of digital‑skills education, urging a holistic pipeline from primary schools to higher education and the removal of immigration barriers to attract global talent. Historical evidence shows that virtual worlds have long existed in games, from the 1974 MazeWar prototype to contemporary platforms such as Roblox, Fortnite and Animal Crossing, demonstrating their role in fostering social capital and community resilience, especially during the COVID‑19 pandemic. Empirical data underline the sector’s economic weight: European consumer spending reached €23 billion in 2021, the industry comprises over 5,100 studios, generates more than €12 billion in annual turnover and employs roughly 90 000 people. A forecast for Sweden predicts a shortfall of 25 000 game developers by 2031, highlighting a broader talent gap across the EU. The text calls for expanded public‑funding mechanisms—Horizon Europe, Digital Europe, InvestEU—and the inclusion of video games in the General Block Exemption Regulation to enable SMEs to access support. It also advocates for greater awareness of existing R&I schemes, stronger public‑private partnerships, and the preservation of unlicensed spectrum for Wi‑Fi to sustain network capacity, noting that current fixed‑line and mobile traffic growth rates have stabilized below 20 % and 10 % respectively. Overall, the submission positions the video games industry as a catalyst for Europe’s digital transition while urging measured, standards‑based regulation that respects market dynamics.
The European video‑game sector seeks recognition as a distinct blend of technology and creative culture and urges policymakers to embed this identity in the EU’s 2024‑2029 strategic framework. By positioning games as a driver of digital innovation, cultural expression, and economic growth, the manifesto argues that tailored legislation, financing, and data‑collection mechanisms are essential to sustain the industry’s momentum and competitiveness. Between 2019 and 2024 the sector expanded by 16 %, reaching €24 billion in revenue and employing roughly 110 000 highly‑skilled workers across the Union. More than half of Europeans (53 %) now play games, with women accounting for 46.7 % of the audience and the average gamer aged 32. Research indicates that girls who game are three times more likely to pursue STEM studies, underscoring the medium’s educational impact. The self‑regulatory PEGI system, which has labelled over 40 000 titles in 40 countries, has cut non‑compliant sales by up to 50 %, demonstrating effective consumer protection without heavy legislative burden. Current EU financing tools—tax credits and grants—are deemed insufficient to match the incentives offered by hubs such as Canada, the United Kingdom and France. The manifesto calls for a dedicated funding framework that channels public resources toward innovative, creative projects, alongside flexible talent‑attraction visas and Horizon‑funded labour‑market mapping to close digital‑skills gaps. It also highlights the strain of 850 new obligations introduced between 2017 and 2022, amounting to more than 5 000 pages of regulation, which increase compliance costs for developers and publishers. To solidify the sector’s contribution, a unified intellectual‑property regime and a revision of NACE classification codes are proposed, enabling accurate economic measurement. Mandatory PEGI‑based age controls, parental‑lock tools and proactive chat moderation address the 53 % of Europeans prioritising child‑friendly environments. Finally, the industry’s low‑carbon digital products and initiatives such as “Playing for the Planet” and “Green Game Jam” are presented as foundations for a climate‑responsible future, aligning gaming with
Three ways to bring Finland to the forefront of the digital shift............. 3 More than half of Finns and nearly a third of the global population 4 play games actively............................................................................... The Finnish game industry 5 is the success story of the 21st century.....