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Dutch video game industry sees 'volatile' four year growth

Dutch video game industry sees 'volatile' four year growth

February 5, 2016 | By Chris Kerr

February 5, 2016 | By Chris Kerr
More: Business/Marketing

Netherlands-based video game collective, Dutch Game Garden, has released a new report shedding light on the development of the Dutch video games industry between 2011 and 2015. 

The Dutch Games Monitor report is based on findings from a questionnaire returned by 130 companies and a group of roundtable discussions. 

The report highlights an increase in the number of video game companies in the region, with the total number rising to 445 in 2015 from 320 in 2011.

The number of professionals working in the Dutch games industry also rose slightly, climbing to 3030 since 2011. 

Although that paints a positive picture, it's worth pointing out that one third of the game companies active in 2011 — around 110 companies— didn’t survive the the last four years. 

According to the Game Garden, it's a fact that highlights just how volatile the video game industry can be.

"The substantial growth in game companies can largely be attributed to an increase of new game developers. The growth in the sector is volatile, fuelled by fast paced and ever-changing developments in underlying technologies, platforms and business models," reads the report. 

"It therefore remains to be seen how many of these new companies will actually succeed in creating a sustainable business, or make the difficult transition from a start-up to a scale-up, which is one of the biggest challenges for the Dutch (and European) gaming ecosystem."

With that in mind, it’s perhaps unsurprising to hear that most video game companies in the region are young, with more than half being less than five years old. The vast majority are also small in size, and only employ around seven people. 

Looking at turnover and profit, the study shows that over 60 percent of Dutch video game companies have seen revenues grow over the past four years, with an aggregated turnover of €155-225 million ($172.5 - 250.5 million). Profits, however, remain modest; totalling €100,000 ($111,350) on average.

For a more in-depth breakdown and analysis, check out the full 36 page report over on the Dutch Game Garden’s official website

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