The Austrian gaming industry has expanded rapidly over the past six years, according to the 2024 Game Development Study released by the Industrial Science Institute (IWI) on Tuesday. Approximately 150 companies now operate in game development, marking a 71.3% increase since 2018. The sector generated a total revenue of €188.7 million, with 85% of this income coming from international markets.

Commissioned by the Austrian Economic Chamber’s UBIT association for business consulting, accounting, and IT, the study compares current data to a 2019 report. “Game development is a young and dynamic sector in Austria, dominated by small companies and young professionals,” explained IWI co-author Wolfgang Koller. According to the findings, 48% of industry employees are under 35, with only 8% over 45. Additionally, 80% of professionals in the sector hold a university or applied sciences degree.

Focus on Entertainment and Serious Games

The study reveals that the majority of Austrian gaming companies focus on creating entertainment games (85%), educational games (30%), and “serious games” (29%) designed with specific learning objectives. Since 2018, the production of serious games has increased. While computer and mobile games remain the primary formats, interest in augmented reality (AR) and virtual reality (VR) applications has grown, accounting for 20% and 35% of the market, respectively.

Call for Support in Education and Financing

Leaders in the gaming industry see a need for greater educational and financial support to sustain this growth. Alfred Harl, chair of the WKÖ UBIT association, pointed out that “we need innovation in IT,” emphasizing the importance of expanding IT education in schools with two mandatory weekly hours. He also acknowledged substantial investments made by universities and applied sciences institutions in the game development field, with key programs based in Salzburg, Upper Austria, Vienna, and Klagenfurt.

For financing, Martin Filipp of Pioneers of Game Development Austria (PGDA) suggested establishing funds where companies repay a portion of their profits. He highlighted a similar model in countries like Finland and emphasized the need for startup grants and game development studios to secure Austria’s place as a viable gaming hub. According to the study, one-third of gaming companies applied for public funding last year, underscoring the sector’s need for accessible financial resources.

The report’s findings are based on a year-long survey of 80 Austrian gaming companies, covering 80% of the nation’s gaming industry.