Market Study: Video Games Services in Canada

This 2016 market study, prepared with an export-oriented lens for Chilean developers, examines the video game services industry in Canada and assesses its potential as a destination for Chilean video game companies. The industry has expanded considerably, with active studios rising to 472 in 2015 from 329 in 2013 and full-time employment reaching an estimated 36,500, a 26% increase over the same period, though the large majority of those jobs are concentrated in large studios. Canada's video game sector generated over CAN$3 billion in 2015, ranking among the world's top ten producers, with the country's broader services sector accounting for roughly two-thirds of national GDP.

Mobile platforms dominate production, accounting for 66% of the roughly 1,280 projects completed in 2015 and 31% of revenue, while consoles, though down 32% from 2013 levels, still represent 35% of revenue. Digital distribution has become the leading sales channel, with direct downloads and in-game purchases overtaking physical sales, which declined sharply over the period. Geographically, Quebec, British Columbia, and Ontario host roughly 80% of developers, with Quebec leading and anchored by major studios such as Ubisoft Montreal and EA Canada.

Industry sentiment is markedly optimistic, with 86% of surveyed firms anticipating revenue growth over the following one to two years. Persistent challenges include reliance on provincial tax credits, piracy, exchange rate volatility, and a workforce in which 13% consists of temporary foreign workers. The study recommends that Chilean developers pursue entry through Toronto, Montreal, and Vancouver and maintain participation in events such as the Montreal International Game Summit to bridge the awareness gap between Chilean supply and Canadian demand.