State of the Icelandic Game Industry 2019

Key insights

6 takeaways

01
The Icelandic game industry is highly export-oriented, with over 95% of its total revenue generated from international markets.See it on page 11
02
As of 2019, the sector consisted of 17 active companies employing 345 people and generating approximately 8.3 billion ISK (61 million USD) in annual revenue.See it on page 7
03
The industry's growth potential by 2030 ranges from a status quo of 9.6 billion ISK in revenue to an optimistic scenario of 72 billion ISK and 1,200 employees.See it on page 22
04
Private investment reached a seven-year high in 2020, excluding the 425 million USD acquisition of CCP Games by Pearl Abyss in 2018.See it on page 16
05
The workforce is diverse, with 29% of employees categorized as foreign experts and 23% identifying as women.See it on page 12
06
Industry expansion is supported by government initiatives, including record-level grants from the Technological Development Fund and innovation-focused tax incentives.See it on page 14

Summary

The 2019 State of the Icelandic Game Industry report provides a comprehensive overview of the nation’s gaming sector, highlighting its economic significance, growth trajectory, and future potential. The industry is characterized by a high degree of export orientation, with over 95% of total revenue consistently derived from international markets over the last decade. While total industry revenue experienced a decline in the three years leading up to 2019, projections indicate a strong recovery for 2020.

As of 2019, the sector comprised 17 active companies employing 345 individuals, with a total annual revenue of approximately 8.3 billion ISK (61 million USD). The workforce is notably international, with 29% of employees identified as foreign experts and 23% identifying as women. Private investment activity has shown a significant upswing, with 2020 marking a seven-year high in capital influx, excluding the major 2018 acquisition of CCP Games by Pearl Abyss for 425 million USD. This growth is further supported by government initiatives, including record-level grants from the Technological Development Fund and various innovation-focused tax incentives.

The report utilizes industry-wide data, including company-specific employment figures, revenue trends, and investment metrics, to establish a baseline for future development. Looking toward 2030, the analysis outlines three potential growth scenarios. These range from a status quo trajectory, which would see the industry maintain 325 employees and 9.6 billion ISK in annual revenue, to an optimistic full-potential scenario. The latter envisions a robust expansion to 1,200 employees and 72 billion ISK in annual revenue, contingent upon continued improvements in talent development, funding access, and operational support.