The global economic crisis has affected many industries. This includes the booming gambling and casino industry, one of Sweden’s fastest growing and most innovative sectors. Despite the global attention, the Swedish gaming industry is struggling with challenges such as globalization, outsourcing and increased competition. To ensure the continued development and success of the games industry, it is important to understand and address these challenges. Governments and authorities have an important role to play in this work by supporting and promoting the growth of the Swedish gambling industry while preserving its unique character.
The current situation
With the worldwide economic crisis caused by the pandemic, many businesses and industrial sectors have been hit hard. Including the broad gaming industry. Several factors have emerged from the country’s highly fragile economy. Among other things, players cannot afford to play as much as before and more and more people are attracted to choose to play at casinos without a Swedish license as these places usually offer higher bonuses and more exciting offers than the Swedish licensed gaming sites have the opportunity to do. The entire chain of companies and individuals involved in the production, distribution and sale of games has been affected in terms of turnover, staff reductions and delays in new developments.
A concrete example of this is the game development studio SverigeSim, which recently had to cancel the launch of a long-awaited game due to a lack of financial resources. The company lost several investors as a direct result of the economic crisis, delaying its launch and resulting in job losses and financial losses for the studio.
Impact on other sectors
Related sectors such as e-sports, computer manufacturing and streaming services have also been affected by the crisis. E-sports events have been cancelled or postponed, and in some cases the income from e-sports has been severely reduced. For computer manufacturers, this means that the global economic crisis has led to delayed deliveries and reduced sales figures. In contrast, streaming services such as Twitch and YouTube have reported an increase in the number of users and viewing time, which directly affects the industry’s revenues.
Challenges and obstacles for Swedish game developers
Game developers in Sweden are challenged to deal with a variety of problems such as a lack of talent, small budgets and an increasingly competitive market. Globalization means that more and more production and sales take place across national borders, resulting in many Swedish game studios competing with foreign companies that have significantly lower production costs.
Outsourcing is another important issue affecting the Swedish gambling industry. To keep costs down and remain competitive, many Swedish game studios choose to outsource certain parts of their projects. This often results in foreign workers working on Swedish games rather than local talent. This may also affect the industry’s ability to retain and develop new talent within the country.
Attempting solutions and support
Meeting these challenges requires cross-sectoral cooperation and innovation. However, several players in the industry are bravely trying to find ways forward. One example is the Swedish game development company Massive Entertainment, which has successfully tackled the challenges of digitizing and distributing games in the cloud. Several Swedish game studios are also working with industry leaders such as Google and Amazon to reach a wider audience and refocus their business on the new trends.
To support and facilitate these changes, it is important that Swedish authorities and other related authorities get involved. This includes investment in the form of financial support and tax rebates for game developers. There are also initiatives that focus on education and skills development in the industry, such as the Swedish Game Arena in Skövde, which provides a platform for students and young developers to learn and network.
How can authorities support and protect the Swedish gambling industry?
Despite the positive image of the gaming industry in Sweden, there have also been some challenges for the industry. These include competition from international players and difficulties in finding and retaining skilled workers. In addition, many smaller game developers struggle with funding and market awareness of their products. To counteract the challenges posed by globalization and outsourcing, the Swedish gaming industry needs a lot of help and support from authorities with various initiatives.
Training and skills development opportunities
A first step is to create better training opportunities for those interested in working in the games industry. Authorities can help by investing in education and skills development in the games and IT sector, as well as creating more vocational training and higher education programs that focus on game development. This would provide the industry with the highly skilled workforce needed to compete in the global market.
Financial support and tax breaks
Sweden can also try to create a more favorable tax and business environment for game developers with reduced taxes and more favorable conditions for the companies involved in the gaming industry. By offering financial support, the state can make it easier for gambling companies to invest in new projects and take the necessary risks to grow and compete in the market. This also helps smaller game developers to meet the capital challenges they may face.
Laws and protection
By improving and strengthening existing intellectual property laws and engaging in an open dialog with the industry, the authorities can ensure that the intellectual property of Swedish gambling companies is protected and that they can operate under fair competition conditions.
An increased focus on international cooperation and domestic market development can help the games industry continue to flourish, generating economic benefits for both Swedish developers and the global majors.
