Do you know how big is the Canadian gaming industry?
Canada has a large gaming user base in the country. But the question arises is how big is the Canadian gaming industry. Read the below article to find out!
Canada is not an exception to the profitable global video gaming business. Canada is a thriving centre for video game companies. Canada, which combines innovation and creativity, has more than 900 studios and a market capitalization of more than $5 billion. Prominent brands like Ubisoft, Electronic Arts and BioWare have firmly established themselves in the Canadian market, bolstering the nation’s increasing dominance in the gaming industry.
Canada holds significant influence in the gaming industry due to its skilled labour, government regulations that are favourable, and its broad gaming portfolio. This mindset also creates an atmosphere that is ideal for technology advancement, creativity, and immersive experiences.
Canada’s video game business has embraced internet gambling in addition to traditional gaming, with legislation and regulations facilitating easier access to virtual casinos. This emerging industry combines the excitement of taking risks, entertainment, and technology from the convenience of players’ gadgets. The gaming business is significantly larger and is growing if you include iGaming software providers like Bragg Gaming Group, which powers numerous websites, including our #1 ranked Canadian casino.
Here is a brief synopsis of the gaming industry’s history, size, market value, and other key factors in Canada. Pay attention to this fascinating field!
History of the Canadian gaming industry
The video gaming narrative in Canada begins in the 1980s. In Burnaby, British Columbia, Distinctive Software was founded in 1983. In the end, Electronic Arts overtook this powerhouse in 1991, opening the first EA Canada location. With teams spread out across the nation, the department’s founding staff of eighty now numbers in the thousands.
In the 1990s, Vancouver served as a major hub for the growth of studios such as Barking Dog Studios, Relic Entertainment, and Radical Entertainment. Other newcomers to the scene were Ontario and Quebec; St. Catharine’s is home to Silicon Knights, while Ubisoft Montreal was founded in 1997. Since then, in 2009, they moved to Toronto.
The rebel studio BioWare was founded in 1995 and is based in Edmonton. Currently a division of EA, BioWare creates vast, immersive games like the cult classic Mass Effect. Dragon Age is a fantasy epic that was also created by BioWare.
As you read on, you may discover what the future holds for the titans of video games that are dominating the gaming industry nationwide.
Size and Location of the Canadian gaming industry
There are 937 active video game studios in Canada. Experts estimate that this is a 35 per cent increase from 2019 to 2021. Eighty per cent of these businesses are located in British Columbia, Ontario, and Quebec. With 298 companies, Ontario leads the field; Quebec is next with 291; British Columbia is third with 161. Nevertheless, video game studios may be found in practically every province in the nation, even in unexpected places like Saskatchewan, Manitoba, and Alberta. These figures have also been rising annually, indicating a good future for the gaming sector in Canada.
In terms of businesses with five to 99 employees as of 2019, British Columbia had the highest number compared to those with fewer than four employees. This might point to the province’s smaller businesses experiencing consistent growth and maturation. The majority of major video game firms (those with more than 100 employees) are located in Quebec.
British Columbia performs well in the grand scheme of things as well. The majority of video game studios are generally categorised as “micro”—a classification in which Ontario shines. There are 179 video game firms in Ontario that employ fewer than four people as of 2019. Though small, the market is expanding quickly! The prosperity of these small businesses demonstrates that Canada is a great place for video gamers.
Value of the Canadian gaming industry
Based on data gathered in 2021, it is estimated that Canada’s video game firms made $4.3 billion in total sales. That represents a staggering 20 per cent rise from 2019. The main revenue streams for video game firms differ. Intercompany or transfer pricing accounts for little less than half (48 per cent) of total revenue. This makes sense given that large, multinational conglomerates account for the majority of the industry’s revenue.
Making money requires intercompany transfers, particularly in the early stages when game developers and entrepreneurs are most interested in creating a game. In-app or in-game purchases are a significant source of income as well, not unexpectedly. They account for 21 per cent of the total.
GDP is an important metric to consider when assessing the worth and scope of the Canadian gambling sector. According to estimates, the GDP of the video game business in 2021 increased by over $3 billion. That represents a growth rate of 23 per cent above 2019 and is extremely encouraging for the future of the gaming sector in Canada.
Online Gambling & Video Games
The video game business has also benefited greatly from online gambling on slots, game show games, live dealers, and other games. Consider Grand Theft Auto Online. This immensely popular game features a dedicated casino where users can place bets with real money while immersed in the virtual world.
The relationship between video games and online gambling has become increasingly clear as these platforms continue to evolve and become more accessible as a result of regulatory changes. Since the business is heavily controlled, the quality and entertainment value of the games that are offered are of the highest calibre. Video games and internet gambling are global and Canadian friends.
Conclusion
In conclusion, with more than 900 studios and a market valuation of more than $5 billion, Canada is a powerful force in the world of video games. The country’s diversified gaming portfolio, highly qualified workforce, and pro-business government laws all contribute to its influence and create an atmosphere that is conducive to creativity and innovation. In addition, Canada’s acceptance of online gambling in addition to traditional gaming shows how flexible it is to changing consumer preferences, providing gamers with engaging experiences and promoting economic expansion.
It is clear from delving into the background, scope, and financial effects of Canada’s gaming industry that the country has earned its reputation as a gaming superpower. With a strong foundation in the 1980s and a consistent upward trend, the gaming market in Canada is well-positioned for future expansion. The industry’s significance is shown by its contribution to Canada’s GDP, which can be attributed to small indie studios or global conglomerates. Canada continues to lead the way in the convergence of online gambling and video games, influencing interactive entertainment globally going forward.
