LegalVideo Games Europe
Initiative on Virtual Worlds: A Head Start Towards the Next Technological Transition
1 May 20237 pages~19 min full read
The European video game industry is a significant economic driver, generating over €12 billion in annual turnover, employing approximately 90,000 people, and reaching €23 billion in consumer spending in 2021.
See it on page 7The sector faces a critical talent shortage, exemplified by a projected shortfall of 25,000 game developers in Sweden alone by 2031, necessitating improved digital-skills education and reduced immigration barriers for global talent.
See it on page 5Existing EU digital legislation regarding consumer protection, competition, data protection, and cybersecurity is sufficient for virtual environments, and the industry warns that premature legal mandates for interoperability would stifle innovation.
See it on page 1The industry advocates for expanding public-funding access through Horizon Europe, Digital Europe, and InvestEU, specifically requesting the inclusion of video games in the General Block Exemption Regulation to support SMEs.
See it on page 4Virtual worlds are established platforms for social capital, with historical roots dating back to the 1974 MazeWar prototype and modern iterations including Roblox, Fortnite, and Animal Crossing.
See it on page 2Network capacity remains stable, with current fixed-line traffic growth rates below 20% and mobile traffic growth below 10%, supporting the industry's call to preserve unlicensed spectrum for Wi-Fi.
See it on page 6The 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.
