The mood in the gaming industry is on the rise again after a few challenging years. The pandemic sparked rapid growth in 2019, followed by a sharp increase in costs and a subsequent downturn. Now, the industry is recovering, and signs of an upswing were already visible at the Pocket Gamer Connects event in London this January, where Business Tampere’s gaming industry expert Arto Käyhkö was in attendance. Digital games remain the most popular form of entertainment. As consumers, we spend more time on games than on movies and television combined. Another factor driving the industry’s recovery is the increasing availability of skilled professionals, as layoffs in the tech sector have expanded the talent pool for game studios. And then there’s the buzzword: artificial intelligence. AI continues to provide game developers with new and ever-faster opportunities for creating and marketing their products. This was clearly evident in London, where competition for AI and gaming expertise was heating up! Finland holds a slight edge in data center investments The funding outlook for the industry has improved significantly. Central bank interest rate hikes made leveraged investments difficult for venture capitalists, leading to a slowdown in new investments. However, the recent decline in global interest rates has made it much easier for growth companies to secure funding. While the situation hasn’t yet returned to the levels of 2018–2020, investor interest in the gaming sector is clearly picking up again—which is great news for companies! Game development and distribution increasingly rely on cloud technology, which requires efficient data centers located close to users. Finland’s NATO membership gives us a slight advantage in this regard: security, stable telecommunications, affordable energy, and a cool climate make Finland an attractive destination for server technology investments. This, in turn, contributes to new jobs and further investments in the gaming industry. Arto Käyhkö at a reception organized by Quicksave and Return Entertainment for domestic and international gaming companies and investors. Photo: Arto KäyhköMain image: A bustling scene on the second day of PGC in London. Nearly 3,000 visitors attended this year. Photo: Arto Käyhkö Future trends: AI, UGC, and publishers This year’s key themes include artificial intelligence, user-generated content (UGC), and game publishing strategies and marketing channels. UGC allows players to modify games and create their own engaging content, opening up new business opportunities. However, a major challenge is the rising cost of game marketing due to increasing restrictions on targeted advertising by platforms like TikTok, Facebook, and Apple. As a result, the role of publishers with expertise in new marketing strategies has become more crucial than ever. High-quality publishers understand their markets and can support developers in successfully launching their games—something we need more of in Finland and Tampere as well. PGC’s London event has traditionally been held at The Brewery event venue in the Barbican area of London. As the name suggests, the venue was once home to a brewery. Photo: Arto Käyhkö The Nordic countries, including Finland, were once again well represented in London. Domestic leaders such as Supercell and Fingersoft received the attention they deserved, but new growth companies also made their mark. Without unnecessary boasting, it can be stated that Tampere has a strong gaming industry ecosystem, and the city’s drive to combine regional expertise in audiovisual and gaming industries creates new opportunities to compete for international investments. The region is home to game development studios, diverse education and research, as well as growth companies aiming for international expansion—all the elements the gaming industry needs to succeed. The author, Arto Käyhkö, is the new gaming industry account manager at Business Tampere and Film Tampere. He has over 20 years of experience in financing models and internationalization within the gaming industry and digital business. At the event, he is representing Tampere and the Pirkanmaa region in terms of international gaming industry investments and partnership projects. More information at Business Tampere: Arto Käyhkö Head of Games arto@businesstampere.com https://fi.linkedin.com/in/artokayhko cloud digitalisaatio digitalization event gaming industry invest messut Nato peliala pilviteknologia sijoittaminen tapahtuma vienti