Download the PDF of  “Canada’s Video Game Industry 2024”

Canada continues to have a vibrant ecosystem of video game companies, with 821 actively operating in Canada in 2023-24. This was a 9% decline from the peak in 2020-21, with most of the decrease coming from companies with less than 25 employees, while the number of large companies increased slightly during this time. There has not been a significant change in the distribution of companies, with video game companies continuing to operate from coast to coast. The biggest concentrations are in Ontario, British Columbia and Quebec, which contain 83% of all companies between them. While most companies remain Canadian-owned (an estimated 76%), foreign-owned companies account for 88% of the total industry employment.

The total number of video game companies operating in Canada has decreased by 9% since 2021. Most of the decline in the number of companies took place in the Micro category (2 to 4 employees), which lost a combined 111 companies. In a challenging environment, micro companies likely closed or have downsized, which may explain the growth in Sole proprietorships.

Most (83%) Canadian video games companies are in Ontario, Quebec and British Columbia. Ontario has a higher concentration of Micro companies (2 to 4 employees) and Sole proprietorships than the two other leading provinces. There has not been a significant change in the distribution of games companies across Canada since 2021.

Most (76%) respondent companies remain Canadian-owned, but foreign companies capture a slightly higher share of the total employment (+5 p.p.).

While acquisitions have occurred in the recent years, fewer new studios are opened in Canada by foreign-owned companies – and some notable closures have hit Canadian subsidiaries.

All regions showed a decrease in the number of companies, from the cumulative loss of 7 companies in the Prairies to 19 companies in Alberta.

Direct employment

Canada’s video games industry directly supported an estimated 34,010 Full-Time Equivalents (FTEs) of employment in 2023- 24.

Overall, most companies that completed the survey saw an increase or a stagnation in their workforce.
This observation suggests that the 3.5% decline in employment is due to the decline in the number of companies (consolidation, studio closures), and some substantial layoffs from a few larger companies.

Most of the direct employment generated by the industry can be attributed to a small number of
massive companies.
The largest 25 companies supported 58% of the industry’s FTEs, slightly more than in 2021.

An estimated 26% of video games workers are women. They made up 23% of the industry in 2021 and 19% in 2019.
On average 62% of these women work directly on games. Women are more likely to work directly on games when working at smaller companies.

Mode of Work

Flexible work policies are now widespread in the video games industry: hybrid is now the preferred mode for Large and Very Large (100+) companies, which employ 83% of workers.

Indeed, there is a clear relationship between the size of a company and the likely mode of work. On average, companies have indicated requiring 2 days of presence in the office per week. Smaller companies have embraced a fully remote model.

Change in Time to Market

While smaller companies do not seem to have been particularly impacted by the shifting working practices, large companies have reported that projects now take more time to be delivered.

For Very Large companies, it takes about five months longer (on average) to ship a game. As such, the risks associated with larger games has increased.

Use of Generative AI

AI tools have been used in the video games industry for well over a decade. With the recent interest around new AI models, video games studios are more widely adopting generative Artificial Intelligence, primarily as a brainstorming and idea generation tool.

25% of respondent companies are currently not using generative AI but still intend to explore its use. This share increases to 33% for Very Large companies (100+).

Barriers to Growth

Challenges vary greatly depending on the size of the companies. For example, smaller companies are facing difficulty accessing funding programs and external financing while Very Large companies are struggling with securing talent and a decreasing demand. Companies of all sizes are facing discoverability challenges in a competitive market.

Download the PDF of  “The Canadian Video Game Industry 2021”