The flourishing gaming industry in Finland: Alan Wake, Angry Birds, Clash of Clans. Digital gaming entrepreneurs and companies, Finnish start-ups, VC interest. The growth of the turnover.
2. The Finnish gaming industry
welcomes new members!
Motivation: Nordic gaming hotspot
Potential: Gaming leads the global
entertainment business. Bigger than
music or movies.
Milestones so far Digital gaming
entrepreneurs and companies are
innovation leaders. They are changing
the way the business is developed and
run.
When: As soon as you can get here!
3. Leading-edge cluster:
The Finnish game industry
50% ecosystem growth year-on-year
Number of game developers tripled between 2002 and 2011
Investments into game companies exceeded 130 M€ (Q1/2013)
39% of Finnish game studios develop for smartphones and tablets
55–60% of revenue comes from North America
Pioneering companies have exceptional organizational and
commercial models
Consumer spending
on gaming
software grows at double-digit
rates 2013-2018 (Gartner)
3
4. Total value of the
Finnish Game industry 270 M€ in 2011
12.4.20114
Game industry
core, 165 M€
Investments, 50
M€
M&A, 30 M€
Merchandise &
licencing, 25 M€
Source: NeoGames
5. Growth of turnover in the Finnish
Game Industry Core, M€
87
105
165
250
0 50 100 150 200 250 300
2009
2010
2011
2012
12.4.20115
Source: NeoGames
6. Finnish start-ups are catching VC interest
Finnish start-up companies
received EUR 134 million in
investments during January
through March 2013
Finnish companies generated
more investments than German
ones during Q1 and were only
surpassed by British and French
businesses
12.4.20116
7. New models for developing and running
the gaming industry
Virtual economies & currencies
12.4.20117
Digital marketing & distribution
New organizational models
8. Something old, something new
from Finland
12.4.20118
Alan Wake – Time magazine’s Game of the
Year 2010
Angry Birds -Top paid
app by 2014
Clash of Clans - Top earning iPad
game in 77 countries
9. The Finnish gaming industry
"For a country with a population about the size of
Minnesota, Finland has produced some giant global
hits in the mobile business, like Nokia and Rovio, the
company responsible for Angry Birds and Bad
Piggies."
Nick Wingfield. New York Times,
Bits Blogs / Oct. 2012
10. For more information:
Neo Games – Hub of Finnish Gaming Industry
Invest in Finland / mobile cluster
Manse Games
International Game Developers Association / Finnish Chapter
11. Entry to the East
Creative solutions
Stable Society Competent professionals
12. Invest in Finland services for international
companies
• Data collection & analysis
• Opportunity analysis
• Guidance on entry alternatives
• Networking
• Location management
• Setting up a business
Editor's Notes
The total value of Finnish game industry (incl. M&A, investments and Merchandise & Licensing) was estimated€270 million in 2011 €350 million in 2012 2013, the total value of Finnish game industry is estimated to be €600 – €800 millionSource:NeoGames
Exceptional organisational and commercial models include:Supercell, an organisation composed of small, independent teams (cells)Rovio, a game company also expanding horizontally into a full entertainment brandConsumer market expanding world wide:Growth in the consumer market – Gartner estimates that spending on gaming software will account for over half the US$92 billion spent on all consumer software in 2012, and that it will continue to grow rapidly over the next five years.Many consumers will embrace gaming as a key part of their entertainment budget. B2B potential70% of Global 2000 organizations willgamifyat least one application by 2014 (Gartner)In Finland:In Finland between 2002 and 2011, the number of game companies increased from 400 to 1,300In 2011, Finland’s game industry was worth €270 million
Turnover of the Finnish game industry has grown by 50% since 2011Turnover 250M€ in 2012A fifth of the 1800 people employed by the Finnish game industry come from outside the country.
Digital marketing & distributionmoving from value chain of: Developer -> Publisher -> Distributor -> Consumer toDeveloper -> Distribution Channel -> ConsumerVirtual economies & currenciesFree games where you can either buy currency or make money in-game to buy more things in the game. Case: Supercell’sHayDayNew organizational modelsSupercell uses a modular organization, where the company is divided into independent cells
Near the top of almost all international comparisons of economic, social, environmental, educational, business and technological performance Heart of a northern European market of around 80 million consumers, long-established connections with Russia and the Nordic and Baltic countriesAn open, transparent, stable and business-friendly economy with strong links between business sectors and universities A highly skilled and efficient workforce – with lower labour costs than in the other Nordic countriesHigh-quality transport and communications networksProfessional Finns speak excellent Finnish and usually at least one other foreign language as well.Finland ranked 2nd in global innovation hotspotsOne of the highest R&D spending per capitaFinland ranked #1 in IPR protection (IPRI 2012)