Rovio’s phenomenal success is anything but a coincidence. Finland is one of the fastest growing iGaming markets in the world. The number of Finnish iGaming companies has grown tremendously in recent years, covering both video game brands and websites. Heart medicine.
About 40% of all iGaming companies in Finland are startups launched in the last couple of years.
Statistical breakdown of the Finnish gaming industry
According to a report by the gaming industry, the Finnish gaming industry generated EUR 2.4 billion in 2020, which is 9% annual growth compared to the previous year. Despite the pandemic, the market made more than a billion euros in profits.
The report confirmed that about 46 of the more than 200 active studios operating in Finland each paid more than EUR 1 million in tax revenue in 2020. The turnover of the four studios was well over EUR 100 million.
The combined annual growth rate of the Finnish gaming market in 2010-2020 is 37%. Supercell has been at the center of the Finnish gaming world, but its market share is constantly declining with the launch and expansion of new studios. In 2020, Supercell’s share of the industry was 54%, which is a collapse compared to its 88% share in 2015.
As the gaming industry moves from console- and PC-based games to mobile- and cloud-based options, the market is poised to continue to grow. According to a recent report, 62% of Finnish game developers work on creating iOS games and 65% on developing Android games.
The Finnish gaming industry publishes about 100 new games every year, the main gaming platforms being PC and mobile. Industry employs more than 3,600 people in the country; 22% women and 28% non-Finns.
Helsinki is a well-known game center
Helsinki happens to be the heart of the Finnish gaming industry. There are more than 50 gaming companies in the city. Some of Finland’s best and best-known games have been developed in Helsinki by international brands such as Alan Wake, Bugbear and Max Payne.
By Joonas Laakso, Bugbear ‘s producer, the latest Ridge Racer, is the brand’ s second largest project ever implemented in Finland, involving more than 100 Finnish developers. The project lasted two years.
The development of large triple-A games requires certain resources, and Helsinki offers just that. The city has the right number of people, capital and technical infrastructure to develop games.
The popularity of mobile games
The mobile gaming sector is the engine of the Finnish gaming industry, which explains why most gaming companies specialize in developing mobile games. The cost of developing a mobile game is only a tenth of the budget for triple-A games.
It is easier for small gaming studios to invest in mobile games, which is why a large number of mobile games are in Finland. Helsinki-based Supercell Games is Finland’s leading mobile gaming brand, with Clash of Clans leading the Apple Store in 77 countries.
Clash of Clan’s financial success is due to the game’s free-to-play model, where the primary source of revenue is players ’in-game microtransactions.
One reason for the growing popularity of mobile games is the high density of mobile phones in Finland and elsewhere in the world. Mobile gaming is also more convenient and easier than console and PC games.
Impact of institutional change
Over the years, the growth of video games as a medium has gradually aroused academic interest. Director of the Game Research Laboratory of the University of Tampere, prof. According to Frans Mayra, the generation of game researchers is on the rise.
Educational institutions are beginning to offer detailed courses on contemporary gaming and related technologies. This has had a significant impact on the growth of the Finnish gaming industry. Until a few years ago, no one would have predicted that colleges would embrace gambling with open arms.
Finland is the leader in this new trend. However, there are a number of challenges associated with the introduction of game research, such as a lack of adequate funding. However, the trend is accelerating and is becoming a significant sector in the Finnish economy.
The attraction of free games
After the tremendous success of Angry Birds and the games that followed, the Finnish gaming market turned to free games. This game model is quite popular in the country and relies only on optional microtransactions as a source of income.
Thanks to this revolutionary innovation, more game studios and suppliers have been opened in Finland. Today, Rovio Entertainment is not the only successful gaming provider in the country.
Supercell Games has been very interested in free-to-play game models, and Clash of Clans has generated about $ 1.5 million in daily revenue since its release in 2015.
Finland is considered one of the leading countries in mobile and free games. The country is also working to consolidate its position in the iGaming industry.
Gaming is one of Finland’s largest export industries
According to Neogames, the share of Finnish game development exports is about 98%. The game market is considered to be the largest of Finland’s content industries in terms of exports.
Games have a significant impact on popular culture, and at some point in their lives, Finnish games have been played by about a billion people around the world. As such, Games offers a great opportunity for Finnish cultural production for global consumption.
Finnish game industry after 2017
Experts in the field consider 2017 to be the year of stabilization in the Finnish gaming industry. A significant milestone was the listing of four Finnish gaming companies, which is a sign of a new degree of maturity in the industry.
The market has also undergone structural changes and the number of mid-level gaming companies has grown significantly. The number of companies with more than 50 employees and a turnover of more than $ 10 million has also increased. At the time of writing, Finland is considered one of the three best game development countries in Europe.
Source: The Nordic Page