Phantom Gamelabs \\ Riftbusters
ALTHOUGH FINNISH GAME DEVELOPER STUDIOS ARE OPTIMISTIC about the future of the game industry, they are pessimistic and uncertain about the state of the world. During the 2020s, the Finnish Game Industry has already lost access to many important markets (e.g., Russia). Ongoing wars, inflation, an aging population in key gaming markets, chip shortages, global geopolitical and economic instability, trade wars, and increased exchange rate risks (as most revenue is generated in dollars) paint a challenging outlook for the coming years.
On a national level, the mood of the Finnish studios is influenced by the country's overall economic struggles. In a true prepper nation spirit, the most optimistic Finnish developers hope that the disastrous global situation will, in the end, lead to a similar market boom as the industry experienced with the global pandemic, as people confined in a bomb shelter often turn to gaming for escape and entertainment.
Regulatory uncertainty remains a significant risk for the game industry. Game markets are facing increasing regulation worldwide, and the EU’s Digital Single Market, home to Finnish game developer studios, is no exception. The increasing complexity in regulatory compliance poses significant challenges, leading to new barriers for market access and heightened compliance risks. Regulatory challenges do not stem only from regulators. It remains unclear how big game industry gatekeepers (e.g., Apple and Google) implement the new local rules in the EU and the rest of the world.
On the national level, beyond harmful changes in immigration regulations, Finnish game developer studios are particularly disappointed by recent decisions by the Finnish tax authority (e.g., regarding R&D tax deductions and the VAT treatment of copyright-related income from games) that have created a significant additional administrative burden for them.
