Videogame industry in Europe

ProJect Funded in 2010 by the European Comunity.

Start Date: 
Friday, 1 January 2010
Videogame industry in Europe

The present study analyses the video game software industry, its market potential, its value chain organization and business models and its current line of evolution, so as to outline major emerging technologies and to investigate their disruptive potential. It also assesses the strengths and weaknesses of EU firms, in order to high light drivers, opportunities and challenges for improving the future competitiveness of the EU video game software industry.



Information and Communication Technology (ICT) markets are exposed to more rapid cycles of innovation and obsolescence than most other industries. As a consequence, if the European ICT sector is to remain competitive, it must sustain rapid innovation cycles and pay attention to emerging and potentially disruptive technologies.

In this context, the Directorate-General for Enterprise and Industry (DG ENTR) and the Institute for Prospective Technological Studies (JRC-IPTS) have launched a series of studies to analyse prospects of success for European ICT industries in the face of technological and market innovations. These studies, under the common acronym "COMPLETE", aim to gain a better understanding of the ICT areas in which it would be important for the EU industry to remain, or become, competitive in the near future, and to assess the likely conditions for success.

Each of the "emerging" technologies (or families of technologies) selected for study are expected to have a potential disruptive impact on business models and market structures. By their nature, such impacts generate a moving target and, as a result, classical well-established methodologies cannot be used to define, observe, measure and assess the situation and its potential evolution. The prospective dimension of each study is an intrinsic challenge that has to be solved on a case-by-case basis, using a mix of techniques to establish lead-market data through desk research, expert group discussions, company case analysis and market database construction. These are then combined with reflection on ways and means to assess future competitiveness of the corresponding industries. This process has resulted in reports that are uniquely important for policy-makers.

Each of the COMPLETE studies illustrates in its own right that European companies are active on many fronts of emerging and disruptive ICT technologies and are supplying the market with relevant products and services. Nevertheless, the studies also show that the creation and growth of high tech companies is still very complex and difficult in Europe, and too many economic opportunities seem to escape European initiatives and ownership.

COMPLETE helps to illustrate some of the difficulties experienced in different segments of the ICT industry and by growing potential global players. Hopefully, COMPLETE will contribute to a better understanding of the opportunities and help shape better market conditions (financial, labour and product markets) to sustain European competitiveness and economic growth.

European industry needs, of course, to keep pace with emerging ICT and use it to innovate. In order to support this process, the purpose of COMPLETE is to analyse the technological and market potential of a set of selected emerging technologies – in th is case, for mobile and video games - to assess the impact of these technologies on the competitiveness of EU industry, and to evaluate the positioning of EU industry, as both a producer and a user.