The European Game Developer Federation has a blunt message for its members: “2023 was a shitty year. 2024 will probably be even more shittier”.
The EU trade body says its members’ goal for the year ahead is simply survival, and also took time to direct its ire at Apple’s new EU App Store terms.
The EGDF, which represents over 2,500 small and medium-sized game studios and ~40,000 staff across Europe, recently met with members to discuss the state of the business. The trade body’s president Hendrik Lesser summarised the discussion in this blog, which states that “2024 is going to hurt”.
“The challenges European companies face in mobile game markets are also sky-high after the restrictions gatekeeper platforms have set around access to data,” it reads.
“The Digital Markets Act was supposed to open walled mobile market gardens for competition, but gatekeeper platforms are introducing new barriers to market access, with the situation looking difficult for the foreseeable future.”
The EGDF also cites an over-saturation of the games market, a squeeze on funding, the failure of web3, public funding reductions and conflicts including those in Ukraine and Israel as reasons for the tough climate.
There was also mention of subscription services like Apple Arcade, Google Play Pass, Netflix and Xbox Game Pass, which have offered selected developers generous terms, have left medium and smaller-sized developers behind. “Big IPs still work, but small indie IPs are having to work harder and harder at the community level to stand any chance of success.”
The EGDF ended on a rather more upbeat note, though. “The European game industry is and continues to be the industry of new opportunities,” it continued. “We must help the industry exploit the disruptions. Despite the gatekeeper platform’s efforts to hinder it, Digital Market Access is likely to lead to the launch of highly effective new mobile and cross-platform distribution channels.”
“The EGDF is here to ensure that the [EU] Commission does not let gatekeeper platforms stop European game developer studios from exploring their new rights.”
It concludes: “It does not matter as long as you are making games,” it concludes. “We are the ones who will get this shit together. We will not just survive, we will grow and prosper.“
