ISFE report by Deloitte illustrates economic impact of new business models
On Tuesday 15th of September, ISFE organised a high-level event at the Microsoft Executive Briefing Center in Brussels to present the findings of a report by Deloitte that shows how European games companies are a driving force behind the global digital economy. The event featured a keynote speech by MEP Kaja Kallas (ALDE) and a panel discussion during which Mrs. Despina Spanou (Director for Consumers, DG Justice and Consumers), Mrs. Therese Comodini (MEP EPP), Alex Dale (CMO King) and Jo Twist (CEO Ukie) discussed how the growth and leading position of the European games industry can be ensured while supporting the EU’s Digital Single Market initiative.
The report Mobile Games In Europe explores the emergence of the in-app purchase model in mobile video games. It estimates that the model now supports 21,000 full-time employees in the European Union, many of them working in small enterprises that have been able to build sustainable businesses. The report highlights how mobile game developers now enjoy a lower barrier to entryand can start and build successful businesses anywhere in Europe. Regional industry hubs have attracted talent and capital and created new types of jobs and flexible, innovative business models.
ISFE expects to see double-digit growth in the mobile games industry until 2017, making it the fastest growing ‘content’ sector in Europe, with consumer spending estimated at more than €20 billion in 2015 alone.
The Deloitte report demonstrates that the in-app purchase model is popular with consumers, who show a high level of awareness of these games and enjoy more choice and variety. It also shows that only a small percentage of these gamers ever make in-app purchases. Consumers now download more free and in-app purchase mobile games than paid games.
“The European video games industry is an important innovator and an essential creative and economic contributor to Europe’s digital market,” says Philippe Cardon, Chairman of ISFE and Vice President of Sony Computer Entertainment Europe. “It’s important that no new regulatory barriers should jeopardise this continuing success and growth.”
“Of the top 10 apps in the Apple iOS and Google Play app store in June 2015, six were made by game companies headquartered in Europe”, says Simon Little, Managing Director of ISFE. “We can be proud of our leading position, while keeping the focus on fostering a business environment where skills and talent keep our companies at the top.”
The full report can be downloaded here: