Game Industry Has Makings of Future Export success

The Finnish game industry is experiencing strong growth. Research and development investments made by game companies, coupled with public-sector support for the industry, are beginning to pay off, making the industry the fastest growing sector of the creative economy. This information appears in Finnish Game Companies, a report in English on the Finnish game industry released by the Ministry of Trade and Industry today, 8 June 2006.

Great growth potential

Favourable developments in the game industry are attributable to technical competencies, an excellent price/quality ratio and the predicted expansion of the mobile entertainment sector. The Finnish game industry posted a combined turnover of around EUR 40 million in 2004, expected to increase to EUR 65 million for 2005. It is characterised by export-led business due to the small Finnish game market.

The Finnish game industry had a total payroll of approximately 600 in 2004 and more than half of the companies are small, employing a staff of 1-5. Despite their small size, these companies have great growth potential. Some have succeeded in penetrating international markets, while being expected to emerge as future game-industry engines.

Finnish game-industry companies can be divided into the following three categories:

• Companies whose main business is game development and games.
• Companies in which the games business supports other operations.
• Companies in which games will play a strategically important role in the future.

The Finnish Game Companies report mainly concentrates on category 1 companies, which provide top quality games such as Habbo Hotel by Sulake, Max Payne by Remedy and Flatout by Bugbear. The report contains a brief presentation of a total of 39 Finnish game companies.

Co-operation between game companies and universities

Finland boasts high-quality education and research serving the game sector, with the Hypermedia Laboratory at the University of Tampere, the LudoCraft game design and research unit at the University of Oulu and the LUME media centre at the University of Art and Design Helsinki receiving international recognition for their game-industry research. Universities and game firms co-operate closely in research and business projects.

Finland has traditionally led the way in mobile games. Around 70 per cent of game companies design games based on mobile platforms, and the next few years are expected to see a vigorous expansion in the mobile game market.

While the first Finnish companies specialising in games were founded in the mid-1990s, the majority of game firms were established in the 2000s. Although foreign investors have regarded Finnish game companies as a good investment, the Finnish Funding Agency for Technology and Innovation (Tekes) has played an important role as a source of funding.

As part of the SILE Programme for Content Business Development, implemented by the Ministry of Trade and Industry and the Uusimaa T&E Centre and aimed at encouraging a more international and competitive business within the content productionsector on a longer-term basis, the report was drawn up by Neogames, the Finnish National Centre of Game Business Research and Education operating within Technology Centre Hermia Ltd.

Further information:

Petra Tarjanne, Senior Adviser, MTI, tel. +358 9 1606 3691, firstname.lastname@ktm.fi

KooPee Hiltunen, Producer, Neogames, tel. +358 40532 4176, koopee@neogames.fi

Jussi Laakkonen, Business Development Director, Bugbear Entertainment Ltd., tel. +358 40 582 3959, jussi.laakkonen@bugbear.fi

SILE Programme: Leena Hoppania, Project Manager, Uusimaa T&E Centre, tel. +358 10602 1481, leena.hoppania@te-keskus.fi

Link:

- Finnish Game Companies -report (at MTI's website) 

The report's printed version can be ordered from tiedotus@neogames.fi