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The Czech republic’s vibrant video game industry, a powerhouse of creativity and innovation, experienced a period of unexpected slowdown in 2023. Following years of impressive growth,the sector faced headwinds,resulting in a slight dip in revenue and profits. However, early indicators for 2024 suggest a robust rebound,promising a return to double-digit growth and solidifying the Czech Republic’s position on the global gaming stage.
According to the Association of Czech Game Developers (ACGD), 2023 saw a 1% year-over-year decrease in revenue, settling at approximately $230 million USD (5.537 billion Czech crowns). Profits took a more significant hit, declining by 8% to roughly $80 million USD (1.94 billion Czech crowns). This downturn, the ACGD explains, is attributed to a confluence of global and domestic factors.
Pavel Barák, chairman of the ACGD, offers insight into the challenges: “The energy crisis and the war in Ukraine can also have an effect on the state of the industry. It is understandable that when families have less money for everyday expenses, they are the first to cut back on entertainment expenses. As for the war,it also affected employment to a certain extent in the field of gaming.”
Further complicating matters is the relatively low number of new game studios emerging in the Czech Republic. While 7 new studios launched in 2023, Barák notes this is below the potential. He states, “We see this as a below-average number. The czech Republic could easily create twenty, thirty new studios, which would increase the chance that one of them will succeed and become a big company, similar to what happened with the world’s best-selling virtual reality game at all, Beat Saber, in 2018.”
The ACGD highlights the need for increased government support for the industry, mirroring accomplished models in other European nations like Poland, Germany, france, Sweden, and Slovakia. Barák emphasizes this point: “We want to set up the fund so that studios don’t feel the need to follow current trends. We were inspired by Slovakia, where we haven’t noticed any tendency for studios to behave like this.”
Celebrating Czech Gaming Successes
Despite the economic headwinds, Czech developers continue to produce globally recognized titles. In 2023, 39 games were released, including 29 full releases, 10 early access titles, and 10 expansions. Barák expresses pride in these achievements: “We can be proud of our games. Such as, this year the data disc for the game factorio, a global phenomenon, reached the top sales on the Steam platform after its release. It generates an estimated 75 percent of the total sales of PC games. People know it all over the world, often but they don’t know it’s from the czech Republic. Gray Zone Warfare from the Brno studio Madfingers certainly deserves attention.”
Other notable Czech game releases in 2023 include Crime Boss: Rockay City, Last Train Home, Arma Reforger, and the indie hit HROT, showcasing the diversity and talent within the Czech gaming scene.
A Promising Future
The outlook for the Czech gaming industry remains positive. Projections for 2024 indicate a significant revenue increase, potentially reaching $270 million USD (6.5 billion Czech crowns), representing a ample 17% growth. This resurgence underscores the resilience and innovative spirit of Czech game developers, poised to continue their contributions to the global gaming landscape.
The anticipated release of the highly anticipated sequel to Kingdom Come: Deliverance further fuels optimism for continued success and growth within the Czech gaming industry.
Czech Game studio’s success: A Global Ripple Effect?
the Czech Republic’s video game industry is bracing for a potential seismic shift following the anticipated success of a new title from a major studio. While the exact game remains unnamed, industry experts predict a significant global impact, potentially reshaping the country’s position on the international gaming stage.
One expert commented, “It will probably have a global impact that will dramatically affect our market numbers. But we will have to explain that this is a matter of one studio and not the state of the entire industry.” The statement highlights the potential for disproportionate influence from a single, high-profile studio.
The concentration of success within a few key players is a significant factor. According to the chairman of the Czech game developers’ association, large studios like Warhorse Studios, the creators of Kingdom Come: Deliverance, account for a substantial portion of the national revenue. He stated, “Large studios such as warhorse behind Kingdom Come bring 90 percent of the total turnover in the domestic game industry.”
However, the chairman also emphasized the need to consider the broader landscape. He continued, “We also have to look at small and medium-sized companies, of which there are the most and for which the situation is now more challenging.” This underscores the challenges faced by smaller studios in a market potentially dominated by the success of a single, major release.
The situation in the Czech Republic mirrors trends seen in the U.S. gaming industry, where a few large studios often dominate headlines and market share, while smaller independent developers struggle for visibility and funding. The upcoming release presents both an opportunity and a challenge for the Czech Republic, highlighting the need for a balanced approach to supporting the entire ecosystem, not just the biggest players.
The upcoming game’s success or failure will undoubtedly have a significant impact on the Czech Republic’s gaming industry, serving as a case study for how a single title can influence a nation’s economic and cultural landscape. The industry watches with bated breath.
Czech Gaming Industry: Charting a Course for Growth Amid Global Headwinds
The Czech Republic’s vibrant video game industry, known for its creativity adn innovation, faced unexpected challenges in 2023. Following years of robust growth, the sector experienced a slight dip in revenue and profits, prompting discussions about the future trajectory of this dynamic industry. Though, early indicators suggest a strong rebound in 2024, signaling a return to double-digit growth and solidifying the Czech republic’s position as a global gaming contender.
We spoke wiht Dr. jana Novotná, a renowned expert on the Central European gaming market and professor of Digital Media Economics at Charles University in Prague, to gain insights into the current state of the industry and its future prospects.
World Today News: Dr. novotná, the Czech gaming industry experienced a slight slowdown in 2023. What factors contributed to this downturn?
Dr. Novotná: Several factors played a role. Globally, the gaming industry felt the impact of the economic slowdown, with consumers tightening their belts on discretionary spending like entertainment.
Additionally, the energy crisis and the war in Ukraine created a climate of uncertainty that directly affected spending habits. Locally, the Czech Republic saw a slight decrease in the number of new game studios launching, which could also have contributed to the reduced revenue.
World Today News: How notable was the revenue decline in 2023 and what are the projections for 2024?
Dr. Novotná: while the Association of Czech Game Developers (ACGD) reported a 1% dip in revenue, I believe the situation is more nuanced.
Several major Czech titles, released internationally, performed exceptionally well. However, there was a noticeable decrease in the launch of smaller autonomous games, which typically contribute significantly to the overall industry revenue. Projections for 2024 are positive, with estimates pointing towards a 17% growth in revenue. This resurgence is expected to be driven by several highly anticipated releases from established Czech studios.
World Today News: the ACGD has called for increased government support for the industry.What kind of support are they seeking?
Dr. Novotná: The ACGD is advocating for the establishment of a dedicated fund to support game progress. They are looking at models successfully implemented in other European countries, such as Poland and Slovakia, where government funding has played a vital role in fostering innovation and growth within the gaming sector.
These funds typically provide grants for prototype development, marketing support for indie studios, and financial assistance for attending international gaming conferences.
World Today News: The Czech Republic has produced some globally recognized games. Can you highlight some of the notable successes of 2023?
Dr. Novotná: Absolutely! Despite the overall slowdown, 2023 saw the release of some fantastic Czech games.
Factorio, developed by a small team in Prague, continues to be a global phenomenon, with its recent data disk expansion topping the Steam charts.
We also saw the release of “crime Boss: Rockay City,” a star-studded action game,and “Last train Home,” a captivating narrative-driven experience. These games demonstrate the amazing talent and creativity within the Czech gaming scene.
World Today News: What advice would you give to aspiring game developers in the Czech Republic?
Dr. Novotná: The Czech Republic has a thriving game development community, with a supportive network of studios and professionals.
My advice would be to network, attend industry events, and seek mentorship from experienced developers. Don’t be afraid to experiment and find yoru unique voice as a developer.
The global gaming market is constantly evolving, and there is always room for fresh perspectives and innovative ideas.
