Annual Survey of the
French Video Game
Industry
– 2014 Edition
First Edition
A SNJV - IDATE collaboration
October 2014
Barometer of the French Video Game Industry - 2014
www.idate.org © IDATE 2014
2
Barometer of the French Video Game Industry - 2014
Table des matières
1.
Preamble .......................................................................................................................... 6
2.
Methodological note ....................................................................................................... 7
3.
The economic structure and production of video games in France ............................ 8
3.1.
A network of young companies, driven by creation ..................................................................................... 8
3.1.1.
3.1.2.
3.1.3.
3.1.4.
Economic structure concentrated around five geographic areas ........................................................................ 8
Sector dominated by content creation... ............................................................................................................. 9
... but with very high levels of service provision .................................................................................................. 9
A network of small businesses ......................................................................................................................... 12
3.2.
France, home to video entertainment production ....................................................................................... 13
3.2.1. An 'independent' character predominates among developers .......................................................................... 13
3.2.2. Dematerialised production dominated by mobile devices ................................................................................. 15
3.2.3. Creative energy ................................................................................................................................................ 22
3.3.
Production models strongly impacted by dematerialisation ..................................................................... 24
3.3.1.
3.3.2.
3.3.3.
3.3.4.
Fully dematerialised production within a context of disintermediation in the value chain ................................. 24
Business models: high free-to-play model adoption ......................................................................................... 26
Studios' annual production budgets are declining ............................................................................................ 28
Mainly self-financed production ........................................................................................................................ 29
4.
Employment in the French video game industry ........................................................ 32
4.1.
Great disparity in company size and number of jobs ................................................................................. 32
4.1.1.
4.1.2.
4.1.3.
4.1.4.
The number of full-time equivalent jobs in the sector rose between 2013 and 2014 ........................................ 32
Number of full-time equivalent jobs among publishers, distributors.................................................................. 34
Number of full-time equivalent jobs among development studios..................................................................... 35
The sector will create jobs in 2015 ................................................................................................................... 37
4.2.
Long-term and skilled jobs ............................................................................................................................ 37
4.2.1. A talent industry dominated by long-term and highly skilled jobs ..................................................................... 37
4.2.2. More than two-thirds of jobs are permanent ..................................................................................................... 39
4.3.
Encouraging future prospects ...................................................................................................................... 39
5.
The economic and financial situation of French video game companies ................. 42
5.1.
Companies growing despite economic fragility .......................................................................................... 42
5.1.1. The turnovers of companies surveyed show modest growth in 2014 ............................................................... 42
5.1.2. Turnovers of studios surveyed show modest growth in 2014 ........................................................................... 43
5.1.3. An export-oriented industry .............................................................................................................................. 44
5.2.
The critical question of financing business development .......................................................................... 45
5.2.1. Access to financing business development difficult .......................................................................................... 45
5.2.2. But clear need for external funding................................................................................................................... 45
5.2.3. Raising capital as a financing option, low uptake, but highly anticipated.......................................................... 46
6.
Outlook: French video game companies sitting between loss of competitiveness
and optimism ................................................................................................................. 49
6.1.
Entrepreneurs moderately optimistic within a context of short-term financial visibility ......................... 49
6.1.1. Cautious optimism ............................................................................................................................................ 49
6.1.2. Short-term visibility ........................................................................................................................................... 50
6.2.
France not attractive enough in a competitive and globalised market ..................................................... 51
www.idate.org © IDATE 2014
3
Barometer of the French Video Game Industry - 2014
6.2.1. The attractiveness of France ............................................................................................................................ 51
7.
Conclusion..................................................................................................................... 53
8.
About the SNJV ............................................................................................................. 55
9.
About IDATE .................................................................................................................. 56
www.idate.org © IDATE 2014
4
Barometer of the French Video Game Industry - 2014
www.idate.org © IDATE 2014
5
Barometer of the French Video Game Industry - 2014
1. Preamble
In France and worldwide, the video game consumption market has been constantly growing for over a
decade (+280% in 10 years).
In France, the number of players has tripled in 10 years and revenues from dematerialised sales and
mobile games have boomed.
Many statistics and studies reflect this extraordinary growth, but to understand this development and its
impact on business, the lack of statistics and useful data prevent any meaningful analysis.
To fill this gap and allow observers, professionals and public authorities to better understand the video
game industry, the Syndicat National du Jeu Vidéo and IDATE have collaborated on this annual report.
The Annual Barometer of the French Video Game Industry is designed to present key figures and trends
in the sector. This first edition will be expanded upon each year and can be used to draw comparisons.
The barometer focuses on four themes: the network of companies and their production; employment;
companies' economic and financial situations; the morale of directors and their opinion on the economy
and attractiveness of France.
www.idate.org © IDATE 2014
6
Barometer of the French Video Game Industry - 2014
2. Methodological note
The survey was conducted between 5 May and 1 July 2014 via a self-administered online questionnaire
(CAWI - Computer Assisted Web Interviewing). The questionnaire was sent to directors of SNJV-member
companies as well as a selection of companies from the video game sector not represented by the SNJV.
The survey was publicised by its sponsors, primarily relayed on the Web.
Respondents were selected using a non-probability method based on a priori sampling. Given the small
size of the study population, the law of large numbers does not apply.
However, the sample is representative of the sector, reflecting its activity (nature and volume), its
economic and financial health and its perception of the future.
Data was processed using Sphinx survey software.
There were 110 respondents, all French video game companies, developers, publishers, distributors,
accessory manufacturers, service providers, etc. This sample is a satisfactory sample rate at nearly onethird of the SNJV's estimated population of approximately 250 companies in France.
www.idate.org © IDATE 2014
7
Barometer of the French Video Game Industry - 2014
Survey processing
3. The economic structure and production of
video games in France
3.1. A network of young companies, driven by creation
3.1.1. Economic structure concentrated around five geographic areas
The distribution of creative companies throughout the national territory is one of France's chief assets in
terms of content creation.
Five major geographical areas of expertise can be found, led by the Ile-de-France region.
www.idate.org © IDATE 2014
8
Barometer of the French Video Game Industry - 2014
3.1.2. Sector dominated by content creation...
Over three-quarters of the companies responding to the survey claimed to be producing video games.
The company profiles reflect the French tradition of content creation. This tradition comes from the large
talent pool created by broad-based education, and art and IT schools over the last 30 years.
France has also been a major publishing country for many years (e.g. Vivendi Universal Publishing,
Infogrames, Titus Interactive). France is currently home to Ubisoft, the third largest publisher worldwide,
BigBen Interactive, the second largest accessory player in Europe, and other leading publishers, such as
Gameloft, Focus Home Interactive, Ankama and Bulkypix.
In a globalised context, this dynamic, which mainly stems from the 1980s and early 2000s, has positioned
France as one of the few major publishing countries after Japan, the United States, China and South
Korea.
Table 1:
Main business activity of companies surveyed
What is your company's core business activity?
Business activity
Development
Publishing
Services
Distribution
Training
Manufacturer of accessories
TOTAL
%
79.1%
10.0%
4.6%
3.6%
1.8%
0.9%
100.0%
Survey carried out between 5 May and 1 July 2014
Number of respondents: 110 companies (all activities)
Response rate: 100%
Source: 2014 Barometer of the French Video Game Industry - SNJV/IDATE - September 2014
Table 2:
Main business activity of companies surveyed
3.6%
1.8% 0.9%
Développement
4,6%
Edition
10.0%
Services
Distribution
79.1%
Formation
Fabricant d'accessoires
Survey carried out between 5 May and 1 July 2014
Number of respondents: 110 companies (all activities)
Response rate: 100%
Source: 2014 Barometer of the French Video Game Industry - SNJV/IDATE - September 2014
3.1.3. ... but with very high levels of service provision
64.7% of the companies surveyed provide services. On average, this type of activity accounts for 61.3%
of the total turnover of these companies.
Service provision is more common among companies between 5 and 10 years old. In fact, three-quarters
of them do it, which represents approximately 70% of their turnover.
Service provision is still an important activity for other companies, although it contributes less to turnover
in companies over 10 years old, accounting for less than 50% of their total annual turnover.
For companies younger than 5 years old, providing services is less significant (a little over half of
companies in this age bracket provide services and it accounts for 60% of turnover). The lower level of
service provision found among younger companies can be explained by two main reasons:
www.idate.org © IDATE 2014
9
Barometer of the French Video Game Industry - 2014
Companies are created from an initial game project and they tend to focus solely on this project for the
first few months, even if they cannot generate revenue.
Younger companies have not usually made the necessary contacts for providing services in their early
existence.
It appears that some services are also provided outside the video games sector.
The importance of providing services within development studios can also be explained by how the sector
is structured around large companies that outsource work to smaller companies. The latter provide
services for the content being produced by these larger studios.
Table 3: Service provision among development studios
Do you provide services In addition to your core business activity?
64.7%
Yes
35.3%
No
100.0%
TOTAL
Survey carried out between 5 May and 1 July 2014
Number of respondents: 85 companies (development studios)
Response rate: 97.7%
Source: 2014 Barometer of the French Video Game Industry - SNJV/IDATE - September 2014
Table 4: Service provision among development studios
35.3%
Oui
64.7%
Non
Survey carried out between 5 May and 1 July 2014
Number of respondents: 85 companies (development studios)
Response rate: 97.7%
Source: 2014 Barometer of the French Video Game Industry - SNJV/IDATE - September 2014
Table 5: Service provision based on company age
Service provision based on company age
Age / service provision
No
Yes
Overall total
Under 5
43.6%
56.4%
100.0%
Between 5 and 10
25.0%
75.0%
100.0%
Over 10
33.3%
66.7%
100.0%
Overall total
35.3%
64.7%
100.0%
Survey carried out between 5 May and 1 July 2014
Number of respondents: 85 companies (development studios)
Response rate: 97.7%
Source: 2014 Barometer of the French Video Game Industry - SNJV/IDATE - September 2014
www.idate.org © IDATE 2014
10
Barometer of the French Video Game Industry - 2014
Table 6: Average share of service provision in turnover, by revenue bracket, 2014
Share of service provision in turnover based on turnover, 2014
Average share of service
provision in turnover
Less than
€150,000
Between €150,000 and
€500,000
Over €150,000
Overall
average
75.7%
64.3%
46.1%
61.3%
Survey carried out between 5 May and 1 July 2014
Number of respondents: 52 companies (development studios that provide services, see table 3)
Response rate: 94.5%
Source: 2014 Barometer of the French Video Game Industry - SNJV/IDATE - September 2014
Table 7: Share of service provision in turnover, based on company age, 2014
Share of service provision in turnover, based on development studio age, 2014
Average share of service
provision in turnover
Under 5
Between 5 and 10
Over 10
Overall average
59.0%
69.9%
48.4%
61.3%
Survey carried out between 5 May and 1 July 2014
Number of respondents: 52 companies (development studios that provide services, see table 3)
Response rate: 94.5%
Source: 2014 Barometer of the French Video Game Industry - SNJV/IDATE - September 2014
Table 8: Type of service provided by studios
Do you provide mainly comprehensive or specialised services?
Type of service
%
Comprehensive
49.1%
Specialised
50.9%
TOTAL
100.0%
Survey carried out between 5 May and 1 July 2014
Number of respondents: 55 companies (development studios that provide services, see table 3)
Response rate: 100%
Source: 2014 Barometer of the French Video Game Industry - SNJV/IDATE - September 2014
Table 9: Type of service provided by studios
49.1%
50.9%
Globales
Spécialisées
Survey carried out between 5 May and 1 July 2014
Number of respondents: 55 companies (development studios that provide services, see table 3)
Response rate: 100%
Source: 2014 Barometer of the French Video Game Industry - SNJV/IDATE - September 2014
www.idate.org © IDATE 2014
11
Barometer of the French Video Game Industry - 2014
Table 10: The various types of specialised services provided by studios
Specify the type of services you provide (multiple answers
possible):
Specialised services
%
Programming
64.3%
Game Design
42.9%
Production management
28.6%
Animation
28.6%
Consulting
21.4%
Other*
17.9%
Middleware
17.9%
Modelling
17.9%
Texturing
17.9%
User Interface
17.9%
Level Design
14.3%
Artificial Intelligence
10.7%
Application design
10.7%
Special Effect
10.7%
Motion Capture
7.1%
Cinematics
7.1%
Physics
7.1%
Authoring
7.1%
Websites
7.1%
Game First Level
3.6%
Audio-Voice-Sound
0.0%
Music
0.0%
Localisation
0.0%
QA & Testing
0.0%
* Serious games, distribution technology, anti-cheat, Unity plugins, server
Survey carried out between 5 May and 1 July 2014
Number of respondents: 28 companies (development studios that provide specialised services, see table 8)
Response rate: 100%
Source: 2014 Barometer of the French Video Game Industry - SNJV/IDATE - September 2014
3.1.4. A network of small businesses
Half of the development studios surveyed are less than 5 years old and three-quarters of the companies
are under 10 years old.
The video games sector rejuvenates regularly, as new hardware is released and new market segments
emerge, such as massively multiplayer games in the late 1990s, mobile games in the early 2000s, casual
games in the mid-2000s, and smartphone and social games in the first 10 years of the 21st century.
France is no exception to this dynamic, which results in rather a heterogeneous network of companies
that vary in size and market segments served.
Table 11: Breakdown of companies surveyed by date founded
Enter the date your company was founded:
Year founded
%
Companies less than 2 years old
18.2%
Companies between 3 and 5 years old
32.7%
Companies between 6 and 10 years old
27.3%
Companies more than 10 years old
21.8%
www.idate.org © IDATE 2014
12
Barometer of the French Video Game Industry - 2014
Enter the date your company was founded:
TOTAL
100.0%
Survey carried out between 5 May and 1 July 2014
Number of respondents: 110 companies (all activities)
Response rate: 100%
Source: 2014 Barometer of the French Video Game Industry - SNJV/IDATE - September 2014
Table 12: Breakdown of companies surveyed by date founded
21.8%
Entreprises de
moins de 2 ans
18.2%
Entreprises ayant
entre 3 et 5 ans
27.3%
Entreprises ayant
entre 6 et 10 ans
32.7%
Entreprises de
plus de 10 ans
Survey carried out between 5 May and 1 July 2014
Number of respondents: 110 companies (all activities)
Response rate: 100%
Source: 2014 Barometer of the French Video Game Industry - SNJV/IDATE - September 2014
On average, development studios had 12.4 full-time equivalent (FTE) jobs in 2014.
Table
13:
Average
number
of
(excluding studios with 100 FTE jobs or more)
FTE
jobs
based
on
company
age
Company age and FTE jobs in 2014
Average FTE jobs
Under 5
Between 5 and 10
Over 10
Overall average
8.2
10.4
29.1
12.4
Survey carried out between 5 May and 1 July 2014
Number of respondents: 79 companies (development studios)
Response rate: 90.8%
Source: 2014 Barometer of the French Video Game Industry - SNJV/IDATE - September 2014
3.2. France, home to video entertainment production
3.2.1. An 'independent' character predominates among developers
'Indie' games favoured by the companies surveyed
Most French development studios consider themselves 'independent' (85.9%) and the content they
produce reflects this character. Nearly half of them also develop so-called 'casual' games, which are
designed to be played in a more casual manner by a wider audience.
Table 14: Types of games developed by studios surveyed
How would you describe the type of games you develop? (several answers
possible)
Type of game
%
Indie
54.1%
Casual
47.1%
Social
28.2%
Serious game
11.8%
AAA
8.2%
www.idate.org © IDATE 2014
13
Barometer of the French Video Game Industry - 2014
How would you describe the type of games you develop? (several answers
possible)
Educational
2.4%
Kids' games
2.4%
Survey carried out between 5 May and 1 July 2014
Number of respondents: 85 companies (development studios)
Response rate: 97.7%
Source: 2014 Barometer of the French Video Game Industry - SNJV/IDATE - September 2014
Table 15: Independent development studios
Would you describe your company as independent?
Independent
%
Yes
85.9%
No
14.1%
TOTAL
100.0%
Survey carried out between 5 May and 1 July 2014
Number of respondents: 85 companies (development studios)
Response rate: 97.7%
Source: 2014 Barometer of the French Video Game Industry - SNJV/IDATE - September 2014
Table 16: Genres of games developed by studios surveyed
What genre(s) of games do you develop? (Multiple answers possible)
Genre
%
Puzzle games
45.9%
Adventure
42.4%
Action
38.8%
Arcade
37.6%
Strategy
32.9%
Educational
29.4%
Children
27.1%
Platform
24.7%
Card games
18.8%
RPG
17.6%
Board games
15.3%
Simulation
14.1%
Combat
14.1%
Racing
12.9%
Sports
11.8%
Other
11.8%
Music
11.8%
MMORPG
9.4%
FPS
5.9%
Survey carried out between 5 May and 1 July 2014
Number of respondents: 85 companies (development studios)
Response rate: 97.7%
Source: 2014 Barometer of the French Video Game Industry - SNJV/IDATE - September 2014
Table 17: Breakdown of publishers'/distributors' catalogues by platform
How is your catalogue broken down by platform? (as a %)
Platforms
%
Personal computers
52.3%
Phones and smartphones
20.0%
Tablets
12.4%
www.idate.org © IDATE 2014
14
Barometer of the French Video Game Industry - 2014
How is your catalogue broken down by platform? (as a %)
Home consoles
11.8%
Handheld consoles
3.5%
Specialised consoles (Vtech, etc.)
0.0%
TOTAL
100%
Survey carried out between 5 May and 1 July 2014
Number of respondents: 14 companies (publishers and distributors)
Response rate: 93.3%
Source: 2014 Barometer of the French Video Game Industry - SNJV/IDATE - September 2014
Table 18: Breakdown of publishers'/distributors' catalogues by platform
3.5%
Ordinateurs individuels
Téléphones et
Smartphones
11.8%
Tablettes
12.4%
52.3%
20.0%
Consoles de salon
Consoles portables
Consoles spécialisées
(Vtech etc.)
Survey carried out between 5 May and 1 July 2014
Number of respondents: 14 companies (publishers and distributors)
Response rate: 93.3%
Source: 2014 Barometer of the French Video Game Industry - SNJV/IDATE - September 2014
3.2.2. Dematerialised production dominated by mobile devices
Mobile platforms preferred by developers
The mobile and tablet video game market has posted the strongest growth over the past 5 years and it is
no surprise that these platforms are being preferred by French video game producers (83.5% develop for
smartphones and mobile devices, 80% for tablets), even though personal computers are the leading
distribution market for French video game publishers.
Because of the incredibly rapid growth of digital distribution on personal computers, development studios
are also concentrating a large part of their efforts on this platform. 75.3% of them produce content for
personal computers. Consumer enthusiasm for digital platforms is also a driver of this business choice.
These trends are also found Europe wide, although they are less pronounced (65% of developers
produce games for smartphones and 58% for PC games)1
As for home consoles, which made a comeback in 2014 with the launch of the 8th console generation (10
million PS4 units sold2 and 5 million Xbox One units worldwide), relatively few studios are focusing on
these platforms: only 29.4%. This can be partly explained by the technological and financial barriers to
entry in these markets.
New platforms are already garnering interest from French companies, slightly more than 17% of studios
surveyed are now working on products for connected TVs and connected objects.
Table 19: Development platforms prioritised by studios
Which platforms do you develop games for? (Multiple answers possible)
1
GDC Europe State of the industry 2014
2
http://www.techcentral.co.za/xbox-one-vs-ps4-the-ultimate-showdown/51349/
www.idate.org © IDATE 2014
15
Barometer of the French Video Game Industry - 2014
Which platforms do you develop games for? (Multiple answers possible)
Devices
%
Mobile phones and smartphones
83.5%
Tablets
80.0%
Personal computers
75.3%
Home consoles
29.4%
Handheld consoles
17.6%
Connected televisions
17.6%
Connected objects
16.5%
Specialised consoles (Vtech, etc.)
3.5%
Survey carried out between 5 May and 1 July 2014
Number of respondents: 85 companies (development studios)
Response rate: 97.7%
Source: 2014 Barometer of the French Video Game Industry - SNJV/IDATE - September 2014
Table 20: Development platforms prioritised by studios
Consoles spécialisées (VTech, etc.)
3.5%
Objets connectés
16.5%
Télévisions connectées
17.6%
Consoles portables
17.6%
Consoles de salon
29.4%
Ordinateurs individuels
75.3%
Tablettes
80.0%
Téléphones mobiles et Smartphones
83.5%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
Survey carried out between 5 May and 1 July 2014
Number of respondents: 85 companies (development studios)
Response rate: 97.7%
Source: 2014 Barometer of the French Video Game Industry - SNJV/IDATE - September 2014
Heterogeneous number of productions released
More than half of the development studios surveyed will release 1 or 2 projects by the end of 2014,
accounting for at least 157 games.
Table 21: New projects released by development studios in 2014
How many new projects will you release to market in 2014? (Only one answer
possible)
Number of projects
%
None
15.5%
1
34.5%
2
19.1%
3
9.5%
4 or more
21.4%
TOTAL
100.0%
Survey carried out between 5 May and 1 July 2014
Number of respondents: 84 companies (development studios)
Response rate: 96.5%
Source: 2014 Barometer of the French Video Game Industry - SNJV/IDATE - September 2014
www.idate.org © IDATE 2014
16
Barometer of the French Video Game Industry - 2014
Table 22: New projects released in 2014
21.4%
Aucun
15.5%
1
2
9.5%
3
34.5%
19,1%
4 et plus
Survey carried out between 5 May and 1 July 2014
Number of respondents: 84 companies (development studios)
Response rate: 96.5%
Source: 2014 Barometer of the French Video Game Industry - SNJV/IDATE - September 2014
Table 23: New projects released by publishers in 2014
How many new projects will you release to market in 2014? (Only one answer
possible)
Number of projects
%
None
0.0%
Between 1 and 5
57.2%
Between 5 and 10
7.1%
Between 10 and 15
7.1%
More than 15
28.6%
TOTAL
100.0%
Survey carried out between 5 May and 1 July 2014
Number of respondents: 14 companies (publishers and distributors)
Response rate: 93.3%
Source: 2014 Barometer of the French Video Game Industry - SNJV/IDATE - September 2014
Table 24: New projects released by publishers in 2014
Entre 1 et 5
28.6%
Entre 5 et 10
7.1%
57.2%
Entre 10 et 15
Plus de 15
7.1%
Survey carried out between 5 May and 1 July 2014
Number of respondents: 14 companies (publishers and distributors)
Response rate: 93.3%
Source: 2014 Barometer of the French Video Game Industry - SNJV/IDATE - September 2014
French developers opt overwhelmingly for digital sales
Development studios tend to want to self-publish on virtual stores, such as the PlayStation Network, the
Apple Store and Steam, with the hope of taking a larger share of the profits if successful. Secondly,
studios are often forced to do so if they do not have an agreement with a publisher to fund development
of a title on optical media, such as CD or DVD.
On handheld consoles, 66.7% of development studios use Nintendo's online store.
www.idate.org © IDATE 2014
17
Barometer of the French Video Game Industry - 2014
Table 25: Development studios' digital distribution strategy for handheld consoles
How do you distribute your games for handheld consoles? (multiple answers possible)
Distribution method
%
Nintendo eShop
66.7%
PlayStation Network
60.0%
Electronic physical media (cartridge, CD, DVD)
46.7%
Other*
6.7%
* KDDI Smart Pass
Survey carried out between 5 May and 1 July 2014
Number of respondents: 15 studios developing for handheld consoles
Response rate: 100%
Source: 2014 Barometer of the French Video Game Industry - SNJV/IDATE - September 2014
Table 26: Development studios' digital distribution strategy for handheld consoles
Autre
6.7%
Distribution par support physique électronique (cartouche,
CD, DVD)
46.7%
60.0%
PlayStation Network
66.7%
Nintendo eShop
0%
10% 20% 30% 40% 50% 60% 70% 80%
Survey carried out between 5 May and 1 July 2014
Number of respondents: 15 studios developing for handheld consoles
Response rate: 100%
Source: 2014 Barometer of the French Video Game Industry - SNJV/IDATE - September 2014
Table 27: Development studios' digital distribution strategy for home consoles
How do you distribute your games for home consoles? (multiple answers possible)
Distribution method
%
PlayStation Network
56.0%
Xbox LIVE Marketplace
48.0%
Nintendo eShop
48.0%
Electronic physical media (cartridge, CD, DVD)
40.0%
Ouya Shop
16.0%
Other*
12.0%
* Leap Motion, Play Market, Uplay
Survey carried out between 5 May and 1 July 2014
Number of respondents: 25 studios developing for home consoles
Response rate: 100%
Source: 2014 Barometer of the French Video Game Industry - SNJV/IDATE - September 2014
www.idate.org © IDATE 2014
18
Barometer of the French Video Game Industry - 2014
Table 28: Development studios' digital distribution strategy for home consoles
12.0%
Autre
16.0%
Ouya Shop
40.0%
Distribution par support physique électronique (cartouche, CD, DVD)
Nintendo eShop
48.0%
Xbox Live Marketplace
48.0%
56.0%
PlayStation Network
0%
10%
20%
30%
40%
50%
60%
Survey carried out between 5 May and 1 July 2014
Number of respondents: 25 studios developing for home consoles
Response rate: 100%
Source: 2014 Barometer of the French Video Game Industry - SNJV/IDATE - September 2014
Although the Apple Store is the most popular virtual store among studios and generates the most
revenues (more than 70% of appstore revenues according to Canalis, mid-2013), the Google Play store
seems to be increasingly catching up because of the constantly growing Android installed base.
Table 29: Development studios' digital distribution strategy for tablets
How do you distribute your games for tablets? (multiple answers possible)
Distribution method
%
Apple Store
97.2%
Google Play
95.8%
Amazon App Store
45.1%
Windows Store
35.2%
Other*
9.9%
Samsung Apps
8.5%
Nokia Ovi Store
7.0%
Browser
7.0%
BlackBerry World
5.6%
* Deployed equipment, Humble Store, KDDI Smart Pass, Tegra Zone, Slide Me Store, Tizen Store.
Survey carried out between 5 May and 1 July 2014
Number of respondents: 68 studios developing for tablets
Response rate: 100%
Source: 2014 Barometer of the French Video Game Industry - SNJV/IDATE - September 2014
www.idate.org © IDATE 2014
19
Barometer of the French Video Game Industry - 2014
Table 30: Development studios' digital distribution strategy for tablets
BlackBerry World
5.6%
Navigateur
7.0%
Nokia Ovi Store
7.0%
Samsung Apps
8.5%
Autre
9.9%
Windows Store
35.2%
Amazon App Store
45.1%
Google Play Store
95.8%
Apple Store
97.2%
0%
20%
40%
60%
80%
100%
Survey carried out between 5 May and 1 July 2014
Number of respondents: 68 studios developing for tablets
Response rate: 100%
Source: 2014 Barometer of the French Video Game Industry - SNJV/IDATE - September 2014
Table 31: Development studios' digital distribution strategy for mobile phones and smartphones
How do you distribute your games for mobile phones and smartphones? (multiple answers
possible)
Distribution method
%
Apple Store
97.2%
Google Play
95.8%
Amazon App Store
45.1%
Windows Store
35.2%
Samsung Apps
8.5%
Nokia Ovi Store
7.0%
Browser
7.0%
BlackBerry World
5.6%
Other*
9.8%
* Deployed equipment, Humble Store, Tegra Zone, Slide Me Store, HTC Store
Survey carried out between 5 May and 1 July 2014
Number of respondents: 71 studios developing for mobile phones and smartphones
Response rate: 100%
Source: 2014 Barometer of the French Video Game Industry - SNJV/IDATE - September 2014
www.idate.org © IDATE 2014
20
Barometer of the French Video Game Industry - 2014
Table 32: Development studios' digital distribution strategy for mobile phones and smartphones
Facebook
BlackBerry World
Navigateur
Autre
Nokia Ovi Store
Samsung Apps
Windows Store
Amazon App Store
Google Play Store
Apple Store
2,8%
5,6%
7,0%
7,0%
7,0%
8,5%
35.2%
45.1%
95.8%
97.2%
0%
20%
40%
60%
80%
100%
120%
Survey carried out between 5 May and 1 July 2014
Number of respondents: 71 studios developing for mobile phones and smartphones
Response rate: 100%
Source: 2014 Barometer of the French Video Game Industry - SNJV/IDATE - September 2014
Table 33: Development studios' digital distribution strategy for personal computers
How do you distribute your games for personal computers? (multiple answers possible)
Distribution method
Online download platform (Steam, Metaboli, Nexway, GOG,
Impulse, Gamersgate, etc.)
Dedicated website
%
69.8%
Facebook
36.5%
Downloadable client software on your site
25.4%
Electronic physical media (cartridge, CD, DVD)
22.2%
Google Play
12.7%
Other*
7.9%
44.4%
* Amazon, App Store for Mac, Windows Store, Leap Motion, U Play.
Survey carried out between 5 May and 1 July 2014
Number of respondents: 63 studios developing for personal computers
Response rate: 100%
Source: 2014 Barometer of the French Video Game Industry - SNJV/IDATE - September 2014
www.idate.org © IDATE 2014
21
Barometer of the French Video Game Industry - 2014
Table 34: Development studios' digital distribution strategy for personal computers
Autre
7.9%
Google Store
12.7%
Distribution par support physique
électronique (cartouche, CD, DVD)
Logiciel client téléchargeable sur votre
site
22.2%
25.4%
Facebook
36.5%
Site dédié
44.4%
Plate-forme de téléchargement sur
Internet (Steam, Metaboli, Nexway,…
69.8%
0% 10% 20% 30% 40% 50% 60% 70% 80%
Survey carried out between 5 May and 1 July 2014
Number of respondents: 63 studios developing for personal computers
Response rate: 100%
Source: 2014 Barometer of the French Video Game Industry - SNJV/IDATE - September 2014
AAA games production in France: thin on the ground
There are 7 studios that produce 'AAA' titles. These AAA games, which are aimed at home consoles and
entail very high production budgets and development cycles of several years (comparable to blockbusters
in the movie industry), are the most commercially successful on consoles and PCs. They have particularly
high distribution and marketing costs, with long development cycles.
It is therefore difficult for young companies to produce such big titles and only companies with certain
experience and financial stability can afford to produce an AAA game. The studios producing these
games are all 10 years old or more, with an average 230 employees and have an average annual
production budget of 12.2 million EUR.
Moreover, with such high investment needed, almost all studios producing AAA games partner with
publishers to finance their productions. These publishers contribute 62% of production costs for these
studios on average and are therefore essential for getting these projects off the ground.
The return on investment for these games is typically very good once released: among the studios
surveyed, those who produce AAA titles posted an average turnover of 22.3 million EUR in 2014.
3.2.3. Creative energy
48.2% of studios surveyed are developing at least two games in 2014 and only 6% of them are not
developing any game. These new productions are mainly original intellectual properties (93% of new
projects developed in 2014). In another example of the dynamism of French companies, a large share of
the sector's turnover (45%) is generated overseas, nearly double that of the digital and traditional cultural
sectors.
In terms of production volume, that would account for at least 201 new projects developed (including at
least 187 new intellectual properties).
www.idate.org © IDATE 2014
22
Barometer of the French Video Game Industry - 2014
Table 35: Number of projects developed in 2014
How many new projects will you develop in 2014? (Only one
answer possible)
New projects
%
None
5.9%
1
25.9%
2
22.4%
3
17.6%
4 or more
28.2%
TOTAL
100.0%
Survey carried out between 5 May and 1 July 2014
Number of respondents: 85 companies (development studios)
Response rate: 97.7%
Source: 2014 Barometer of the French Video Game Industry - SNJV/IDATE - September 2014
Table 36: Share of new projects developed in 2014
5.9%
28.2%
25.9%
Aucun
1
2
3
17.6%
22.4%
4 et plus
Survey carried out between 5 May and 1 July 2014
Number of respondents: 85 companies (development studios)
Response rate: 97.7%
Source: 2014 Barometer of the French Video Game Industry - SNJV/IDATE - September 2014
Table 37: Percentage of original intellectual properties among projects developed in 2014
Of these new projects, how many will be original intellectual
properties?
Number of original IPs
%
None
7.0%
1
31.8%
2
28.2%
3
16.5%
4 or more
16.5%
TOTAL
100.0%
Survey carried out between 5 May and 1 July 2014
Number of respondents: 80 companies (development studios developing at least 1 new project in 2014, see table 35)
Response rate: 100%
Source: 2014 Barometer of the French Video Game Industry - SNJV/IDATE - September 2014
Table 38: Percentage of original intellectual properties among projects developed in 2014
www.idate.org © IDATE 2014
23
Barometer of the French Video Game Industry - 2014
16.5%
7,0%
Aucun
1
31.8%
16.5%
2
3
4 et plus
28.2%
Survey carried out between 5 May and 1 July 2014
Number of respondents: 80 companies (development studios developing at least 1 new project in 2014, see table 35)
Response rate: 100%
Source: 2014 Barometer of the French Video Game Industry - SNJV/IDATE - September 2014
3.3. Production models strongly impacted by dematerialisation
3.3.1. Fully dematerialised production within a context of disintermediation in the value
chain
An increasing number of companies have changed their production model and are now also including
publishing and even distribution activities.
Nearly three-quarters (71.8%) of the studios surveyed claim to publish their productions themselves. The
distinction between the various links in the chain are no longer really relevant, although the traditional
value chain model — with a separate developer, publisher and distributor — is still found in the AAA title
market (the highest budget games) in particular. It should be noted that the self-publishing trend is
prevalent at the European level, where 64% of developers claim to publish their own productions 3.
3
GDC study, Europe, 2014
www.idate.org © IDATE 2014
24
Barometer of the French Video Game Industry - 2014
Table 39: Development studios and self-publishing
Do you publish your productions yourself?
Self-publishing
%
Yes
71.8%
No
28.2%
TOTAL
100.0%
Survey carried out between 5 May and 1 July 2014
Number of respondents: 85 companies (development studios)
Response rate: 97.7%
Source: 2014 Barometer of the French Video Game Industry - SNJV/IDATE - September 201
Table 40: Development studios and self-publishing
28.2%
Oui
Non
71.8%
Survey carried out between 5 May and 1 July 2014
Number of respondents: 85 companies (development studios)
Response rate: 97.7%
Source: 2014 Barometer of the French Video Game Industry - SNJV/IDATE - September 2014
Table 41: Development studios' video game distribution methods
Game distribution methods (all platforms combined)
Distribution method
%
Dematerialised games
100.0%
Games sold on physical media (cartridge, CD, DVD, etc.)
18.8%
Survey carried out between 5 May and 1 July 2014
Number of respondents: 85 companies (development studios)
Response rate: 97.7%
Source: 2014 Barometer of the French Video Game Industry - SNJV/IDATE - September 2014
Table 42:
100%
80%
60%
40%
20%
0%
Development studios' video game distribution methods
100.0%
18.8%
Jeux dématérialisés
Jeux vendus via un
support physique
(cartouche, CD,
DVD…)
Survey carried out between 5 May and 1 July 2014
Number of respondents: 85 companies (development studios)
Response rate: 97.7%
Source: 2014 Barometer of the French Video Game Industry - SNJV/IDATE - September 2014
www.idate.org © IDATE 2014
25
Barometer of the French Video Game Industry - 2014
3.3.2. Business models: high free-to-play model adoption
Unsurprisingly, the major market trend, namely the free-to-play model (where users can play the game in
full and for free, with only a small number of users paying for extra features / quicker progression, etc.), is
currently the preferred model among the development studios surveyed, with 69% of them using it.
However, if we consider all distribution platforms, the second most popular business model is the pay
model without additional purchase, with 47.5% of studios claiming to develop games of this type.
On PCs and home consoles, the pay model remains dominant with 73% of developers claiming to release
games in this way. On the other hand, the low proportion of pay games with paid additional content is
surprising, although this model is becoming increasingly popular for games on consoles and PC. This
may be linked to the low proportion of studios developing AAA titles, as this model is particularly popular
with this type of game.
With regard to turnover, we note that free-to-play currently generates the most revenue, despite the
extremely strong competition that comes with it. When free-to-play is excluded, the average annual
turnover for developers is 1.4 million EUR, whereas it jumps to 2 million EUR when it is included.
Finally, it seems only small companies focus on a single business model. As soon as companies increase
their turnover, it is very rare that they will only rely on a single business model.
Table 43: Business models adopted by studios surveyed
Which business model(s) do you prefer to use?
(Multiple answers possible)
Business models
%
Free-to-play with in-app purchases
68.9%
Paid purchase without additional content
47.5%
In-app advertising
37.7%
Paid purchase with additional paid content
18.0%
Purchase by chapter
13.1%
Other*
4.9%
* Subscription to a platform, licences, out-of-app advertising: Adsense website banner
Survey carried out between 5 May and 1 July 2014
Number of respondents: 61 companies (development studios)
Response rate: 70.1%
Source: 2014 Barometer of the French Video Game Industry - SNJV/IDATE - September 2014
www.idate.org © IDATE 2014
26
Barometer of the French Video Game Industry - 2014
Table 44: Business models adopted by studios surveyed
Autre
4.9%
Achat au chapitre
13.1%
Payant à l'achat avec contenu… 18.0%
Publicité in app
37.7%
Payant à l'achat sans contenu…
47.5%
Gratuit à l'achat avec in app purchase…
68.9%
0% 10% 20% 30% 40% 50% 60% 70% 80%
Survey carried out between 5 May and 1 July 2014
Number of respondents: 61 companies (development studios)
Response rate: 70.1%
Source: 2014 Barometer of the French Video Game Industry - SNJV/IDATE - September 2014
Table 45: Average share of each of these business models in development studios' catalogues
What proportion of your catalogue does each of these business models
represent? (as a %)
Business models
%
Free-to-play with in-app purchases
42.9%
Paid purchase without additional content
33.0%
In-app advertising
10.8%
Paid purchase with additional paid content
6.4%
Purchase by chapter
3.7%
Other*
3.2%
TOTAL
100%
* Subscription to a platform, licences, out-of-app advertising: Adsense website banner
Survey carried out between 5 May and 1 July 2014
Number of respondents: 60 companies (development studios)
Response rate: 69.0%
Source: 2014 Barometer of the French Video Game Industry - SNJV/IDATE - September 2014
Table 46: Average share of each of these business models in development studios' catalogues
Autre
3.2%
Achat au chapitre
Payant à l'achat avec contenu
additionnel payant
3,7%
6.4%
Publicité in app
10,8%
Payant à l'achat sans contenu
additionnel
33.0%
Gratuit à l'achat avec in app
purchase (free to play)
42.9%
0%
10%
20%
30%
40%
50%
Survey carried out between 5 May and 1 July 2014
Number of respondents: 60 companies (development studios)
Response rate: 69.0%
Source: 2014 Barometer of the French Video Game Industry - SNJV/IDATE - September 2014
www.idate.org © IDATE 2014
27
Barometer of the French Video Game Industry - 2014
3.3.3. Studios' annual production budgets are declining
There is a great disparity in studios' production budgets over the year depending on the distribution media
used for the video games produced. Excluding the largest companies in terms of turnover and production
budget (those with turnovers greater than 12 million EUR), it seems that, generally speaking, annual
production budgets significantly decreased (-27%) between 2013 and 2014. The average annual
production budget committed to by French studios was nearly 690,000 EUR in 2013, compared with
500,000 EUR in 2014.
As for the median production budget, it was about 200,000 EUR in 2013 compared with 150,000 EUR in
2014.
This big difference between the median production budget and average production budget tells us
something about this asymmetry between studios' annual production budgets.
This decrease is not a sign of the companies' poor health, but rather prudence and streamlining of
production, because although 63% of them reduced their production budgets, they maintained or
increased their turnover between 2013 and 2014.
Similarly, this change in average annual production budget is not related to financial results, because
studios having closed 2013 with a deficit and those who closed with a surplus both decreased their
budgets.
Table 47: Average annual production budgets based on device
Average production budget per company based on device, excluding companies with a
turnover greater than 12M EUR
2013 Average annual
production budget
2014 Average annual
production budget
€1,393,887
€1,015,333
Studios developing for handheld consoles
€723,904
€674,286
Studios developing for mobile phones and
smartphones
€657,582
€448,804
Studios developing for personal computers
€593,276
€482,460
Studios developing for tablets
€399,609
€307,226
TOTAL
€692,418
€497,441
Production budget / device
Studios developing for home consoles
Survey carried out between 5 May and 1 July 2014
Number of respondents: 85 companies (development studios)
Response rate: 97.7%
Source: 2014 Barometer of the French Video Game Industry - SNJV/IDATE - September 2014
Table 48: Average annual production budgets based on device
1,600,000 $
1,400,000 $
1.394M €
1,200,000 $
1.015M €
1,000,000 $
724K €
800,000 $
674K €
600,000 $
658K €
593K €
449K €
482K €
400,000 $
400K €
307K €
200,000 $
0$
Studios
Studios
Studios
Studios
Studios
développant sur développant sur développant sur développant sur développant sur
consoles de
consoles
téléphones et
ordinateurs
tablettes
salon
portables
smartphones
individuels
Budget de production 2013
www.idate.org © IDATE 2014
Budget de production 2014
28
Barometer of the French Video Game Industry - 2014
Survey carried out between 5 May and 1 July 2014
Number of respondents: 85 companies (development studios)
Response rate: 97.7%
Source: 2014 Barometer of the French Video Game Industry - SNJV/IDATE - September 2014
In reality, this decrease in average annual production budgets stems from fiscal prudence in a specific
context. The studios want to use their resources to increase their capital, but also to fund growth and their
productions. The shortage of external funding is an obstacle to business growth.
Development studios' equity increased slightly more than 15% in one year.
3.3.4. Mainly self-financed production
The companies surveyed are now financing the productions they develop out of their own equity.
More than one in two businesses is forced to self-finance their productions, whereas almost one in two
has already used assistance funds for video games. Publishers are only providing funding support to
37.6% of the development studios.
Public aid, if it is requested, is only a small contribution to the financing of productions because of its
binding nature. Although it is considered very useful and highly sought after by development studios, it
has a limited impact on financing in general.
For example, because of its particularly restrictive criteria, the Crédit d’Impôts Jeux Vidéo (C.I.J.V.) is only
used by 16.5% of the studios surveyed and only contributes about 1.9% to the production budget. The
reform adopted in autumn 2013 will increase the effectiveness of this aid. Although used by 47.1% of
studios, the Fonds d’Aide aux Jeux Vidéo (FAJV) only contributes 10% of the average production budget.
Table 49: Types of funding used by development studios to finance their productions
How do you finance your productions? (Multiple answers possible)
Type of funding
%
Self-financed
56.5%
Fonds d'aide au jeu vidéo (FAJV)
47.1%
Publishers
37.6%
Regional aid
25.9%
Bank loan
24.7%
Private investors
17.6%
Crédit d'impôt jeu vidéo (CIJV)
16.5%
Customer financing (other than a publisher)
15.3%
Crowdfunding
9.4%
Crédit d'impôt recherche (CIR)
9.4%
MEDIA programme
7.1%
Survey carried out between 5 May and 1 July 2014
Number of respondents: 85 companies (development studios)
Response rate: 97.7%
Source: 2014 Barometer of the French Video Game Industry - SNJV/IDATE - September 2014
www.idate.org © IDATE 2014
29
Barometer of the French Video Game Industry - 2014
Table
50:
Types
of
funding
used
Programme MEDIA
by
development
studios
to
finance
their
productions
7.1%
Crédit d'impôt recherche (CIR)
9.4%
Financement participatif (crowdfunding)
9.4%
Financement client (autre qu'un éditeur)
15.3%
Crédit d'impôt jeu vidéo (CIJV)
16.5%
Investisseurs privés
17.6%
Emprunt bancaire
24.7%
Aides régionales
25.9%
Editeurs
37.6%
Fonds d'aide au jeu vidéo (FAJV)
47.1%
Autofinancement
56.5%
0%
10%
20%
30%
40%
50%
60%
Survey carried out between 5 May and 1 July 2014
Number of respondents: 85 companies (development studios)
Response rate: 97.7%
Source: 2014 Barometer of the French Video Game Industry - SNJV/IDATE - September 2014
Table 51: Breakdown of types of funding in production budgets
What percentage of your production is financed by these types of funding? (as a %)
Type of funding
Self-financed
Publishers
Fonds d'aide au jeu vidéo (FAJV)
Private investors
Customer financing
Bank loan
Regional aid
Crédit d'impôt recherche (CIR)
Crédit d'impôt jeu vidéo (CIJV)
Crowdfunding
MEDIA programme
TOTAL
%
33.5%
24.4%
10.3%
9.7%
7.2%
5.0%
3.6%
2.2%
1.9%
1.4%
0.8%
100%
Survey carried out between 5 May and 1 July 2014
Number of respondents: 70 companies (development studios)
Response rate: 80.4%
Source: 2014 Barometer of the French Video Game Industry - SNJV/IDATE - September 2014
www.idate.org © IDATE 2014
30
Barometer of the French Video Game Industry - 2014
Table 52: Breakdown of types of funding in production budgets
Programme MEDIA
0,8%
Financement participatif (crowdfunding)
1,4%
Crédit d'impôt jeu vidéo (CIJV)
1,9%
Crédit d'impôt recherche (CIR)
2,2%
Aides régionales
3,6%
Emprunt bancaire
5,0%
Financement clients
7,2%
Investisseurs privés
9,7%
Fonds d'aide au jeu vidéo (FAJV)
10,3%
Editeurs
24,4%
Autofinancement
33,5%
0%
5% 10% 15% 20% 25% 30% 35% 40%
Survey carried out between 5 May and 1 July 2014
Number of respondents: 70 companies (development studios)
Response rate: 80.4%
Source: 2014 Barometer of the French Video Game Industry - SNJV/IDATE - September 2014
Table 53: Sources of funding of companies surveyed
What sources of funding does your company use? (Multiple answers possible)
Type of funding
Equity
Operating revenue
National aid
Bank loans
Investment capital
Regional aid
European aid
Crédit Impôt Recherche (CIR)
Other*
%
78.7%
60.4%
40.5%
36.9%
30.6%
23.4%
7.2%
2.7%
2.7%
* leasing, subsidiary of foreign company
Survey carried out between 5 May and 1 July 2014
Number of respondents: 108 companies (all activities)
Response rate: 98.2%
Source: 2014 Barometer of the French Video Game Industry - SNJV/IDATE - September 2014
www.idate.org © IDATE 2014
31
Barometer of the French Video Game Industry - 2014
4. Employment in the French video game
industry
4.1. Great disparity in company size and number of jobs
4.1.1. The number of full-time equivalent jobs in the sector rose between 2013 and 2014
Most of the video game companies are SMEs, with an average of 31.4 full-time equivalent (FTE) jobs in
France in 2014. There are however significant differences. 56.6% of the companies had 10 FTE jobs or
fewer in 2014. Only 7 companies had more than 100 employees.
Table 54: Average FTE jobs per company in 2013 and 2014
How many FTE jobs did your company have at the end of the year?
Average FTE jobs per
company
30.4
Year
In 2013:
To date in 2014:
31.8
Survey carried out between 5 May and 1 July 2014
Number of respondents: 106 companies (all activities)
Response rate: 96.3%
Source: 2014 Barometer of the French Video Game Industry - SNJV/IDATE - September 2014
Table 55: Average FTE jobs per company in 2013 and 2014
Average full-time equivalent (FTE)
jobs
32.0
31.8
31.5
31.0
30.5
30.4
30.0
29.5
En 2013 :
A date en 2014 :
Survey carried out between 5 May and 1 July 2014
Number of respondents: 106 companies (all activities)
Response rate: 96.3%
Source: 2014 Barometer of the French Video Game Industry - SNJV/IDATE - September 2014
The large disparity in workforce per company correlates to the age of the companies. While companies 5
years old or younger have 8.6 FTE jobs on average, those older than 10 years have nearly 95.
This network consisting mainly of very small businesses is not unique in Europe, especially in an
innovative industry where new projects are constantly getting off the ground. In the United Kingdom, more
www.idate.org © IDATE 2014
32
Barometer of the French Video Game Industry - 2014
than 59% of studios employ fewer than 4 full-time people4, while in Canada, the average number of
employees per company is 505.
Table 56: Average full-time equivalent jobs in 2014 based on company age
Company age and FTE jobs in 2014
Average FTE jobs
Under 5
Between 5 and 10
Over 10
Overall average
8.6
11.6
94.4
31.8
Survey carried out between 5 May and 1 July 2014
Number of respondents: 106 companies (all activities)
Response rate: 96.4%
Source: 2014 Barometer of the French Video Game Industry - SNJV/IDATE - September 2014
Table 57: Average full-time equivalent jobs per company based on age
Average full-time equivalent (FTE)
jobs
100
94.4
90
80
70
60
50
40
30
20
11.6
8.6
10
0
Moins de 5 ans
Entre 5 et 10 ans
Plus de 10 ans
Survey carried out between 5 May and 1 July 2014
Number of respondents: 106 companies (all activities)
Response rate: 96.4%
Source: 2014 Barometer of the French Video Game Industry - SNJV/IDATE - September 2014
Table 58: Breakdown of full-time equivalent jobs based on company age
Company age and FTE jobs in 2014
Age / FTE
category
Under 5
Between 1 and 5
FTEs
Between 6 and Between 11 and
10 FTEs
30 FTEs
Over 30
FTEs
Overall
total
53.8%
25.7%
15.4%
5.1%
100.0%
Between 5 and 10
32.6%
23.3%
32.6%
11.5%
100.0%
Over 10
8.3%
12.5%
25.0%
54.2%
100.0%
Overall total
34.9%
21.7%
24.5%
18.9%
100.0%
Survey carried out between 5 May and 1 July 2014
Number of respondents: 101 companies (all activities)
Response rate: 91.8%
Source: 2014 Barometer of the French Video Game Industry - SNJV/IDATE - September 2014
Table 59: Breakdown of full-time equivalent jobs based on company age
4
TIGA, 2014
5
ESA, 2014
www.idate.org © IDATE 2014
33
Barometer of the French Video Game Industry - 2014
18.9%
34.9%
Entre 1 et 5 ETP
Entre 6 et 10 ETP
Entre 11 et 30 ETP
24.5%
Plus de 30 ETP
21.7%
Survey carried out between 5 May and 1 July 2014
Number of respondents: 101 companies (all activities)
Response rate: 91.8%
Source: 2014 Barometer of the French Video Game Industry - SNJV/IDATE - September 2014
4.1.2. Number of full-time equivalent jobs among publishers, distributors
Table 60: Average FTE jobs per company in 2013 and 2014
How many FTE jobs did your company have at the end of the year?
Average FTE jobs per
company
33.5
Year
In 2013:
To date in 2014:
34.7
Survey carried out between 5 May and 1 July 2014
Number of respondents: 13 companies (publishers and distributors)
Response rate: 86.7%
Source: 2014 Barometer of the French Video Game Industry - SNJV/IDATE - September 2014
Table 61: Average FTE jobs per company in 2013 and 2014
Average full-time equivalent (FTE)
jobs
36
35
34.7
34
33.5
33
32
En 2013 :
A date en 2014 :
Survey carried out between 5 May and 1 July 2014
Number of respondents: 13 companies (publishers and distributors)
Response rate: 86.7%
Source: 2014 Barometer of the French Video Game Industry - SNJV/IDATE - September 2014
www.idate.org © IDATE 2014
34
Barometer of the French Video Game Industry - 2014
4.1.3. Number of full-time equivalent jobs among development studios
Full-time equivalent jobs among development studios
France's video game ecosystem is structured around relatively large companies with small and micro
companies in between. This configuration is similar to the sample of development studios surveyed: the
median value of FTE jobs in 2014 is 9.25, which means that half of the development studios surveyed this
year have this many FTE jobs or fewer. However, the average number of FTE jobs of these studios is
30.2. This difference between the median and mean values for FTE jobs is due to the configuration of the
sector where a few larger companies will increase the average number of FTE jobs per company. This is
why we need to remove these larger companies from the sample (the criterion chosen was to disregard
companies with more than 100 FTE jobs) to gain insight into the actual number of jobs for the vast
majority of development studios.
Table 62: Average FTE jobs per development studio in 2013 and 2014
How many FTE jobs did your company have at the end of the year?
Average FTE jobs per
company
28.8
Year
In 2013:
To date in 2014:
30.2
Survey carried out between 5 May and 1 July 2014
Number of respondents: 84 companies (development studios)
Response rate: 96.5%
Source: 2014 Barometer of the French Video Game Industry - SNJV/IDATE - September 2014
Table 63: Average FTE jobs per development studio in 2013 and 2014
Average full-time
equivalent jobs per
studio
31
30.2
30
29
28.8
28
En 2013 :
A date en 2014 :
Survey carried out between 5 May and 1 July 2014
Number of respondents: 84 companies (development studios)
Response rate: 96.5%
Source: 2014 Barometer of the French Video Game Industry - SNJV/IDATE - September 2014
Table 64: Average FTE jobs based on company age in 2014
Company age and FTE jobs in 2014
Average FTE jobs
Under 5
Between 5 and 10
Over 10
Overall average
8.2
10.4
107.3
30.2
Survey carried out between 5 May and 1 July 2014
Number of respondents: 84 companies (development studios)
Response rate: 96.5%
Source: 2014 Barometer of the French Video Game Industry - SNJV/IDATE - September 2014
Full-time equivalent jobs in studios with fewer than 100 employees
Table
65:
Average
FTE
jobs
per
(excluding studios with more than 100 FTEs)
www.idate.org © IDATE 2014
development
studio
in
2013
and
2014
35
Barometer of the French Video Game Industry - 2014
How many FTE jobs did your company have at the end of the year?
Average FTE jobs per
company
10.8
Year
In 2013:
To date in 2014:
12.4
Survey carried out between 5 May and 1 July 2014
Number of respondents: 79 companies (development studios)
Response rate: 90.8%
Source: 2014 Barometer of the French Video Game Industry - SNJV/IDATE - September 2014
Average full-time equivalent
jobs per studio
Table
66:
Average
number
of
FTE
(excluding studios with 100 FTE jobs or more)
jobs
per
company
in
2013
and
2014
studio
age
13
12.4
12
11
10.8
10
En 2013 :
A date en 2014 :
Survey carried out between 5 May and 1 July 2014
Number of respondents: 79 companies (development studios)
Response rate: 90.8%
Source: 2014 Barometer of the French Video Game Industry - SNJV/IDATE - September 2014
Table
67:
Average
number
of
FTE
jobs
(excluding studios with 100 FTE jobs or more) in 2014
based
on
development
Company age and FTE jobs in 2014
Average FTE jobs
Under 5
Between 5 and 10
Over 10
Overall average
8.2
10.4
29.1
12.4
Survey carried out between 5 May and 1 July 2014
Number of respondents: 79 companies (development studios)
Response rate: 90.8%
Source: 2014 Barometer of the French Video Game Industry - SNJV/IDATE - September 2014
Table 68: Breakdown of full-time equivalent jobs based on development studio age
Age and full-time equivalent jobs in 2014, excluding development studios with more than 100 FTEs
Age / FTE category
Between 1 and 5 FTEs
Between 6 and 10 Between 11 and 30
FTEs
FTEs
29.4%
14.7%
Over 30 FTEs
Overall total
5.9%
100.0%
Under 5
50.0%
Between 5 and 10
38.3%
29.4%
23.5%
8.8%
100.0%
Over 10
0.0%
12.5%
31.3%
56.2%
100.0%
Overall total
35.7%
26.2%
21.4%
16.7%
100.0%
Survey carried out between 5 May and 1 July 2014
Number of respondents: 85 companies (development studios)
Response rate: 97.7%
Source: 2014 Barometer of the French Video Game Industry - SNJV/IDATE - September 2014
This disparity is also found with the collective bargaining agreements in force in the sector's companies,
although the Syntec collective bargaining agreement accounts for the majority.
www.idate.org © IDATE 2014
36
Barometer of the French Video Game Industry - 2014
Which collective bargaining agreement are attached to your company?
CBA
Syntec
NR
Toys and games
Other
Animation
Wholesale
Technical research offices (JO 3018)
No affiliation
Audiovisual
Training organisation (IDCC1516)
Technical enterprises working in the creative and events fields (IDCC2717)
Commerce and audiovisual services (IDCC1686)
Other information services (6399Z)
Electronic games publishing (5821Z)
TOTAL
%
63.6%
4.5%
5.5%
5.5%
4.5%
3.6%
2.7%
2.7%
1.8%
1.8%
0.9%
0.9%
0.9%
0.9%
100.0%
Survey carried out between 5 May and 1 July 2014
Number of respondents: 100 companies (all activities)
Response rate: 100%
Source: 2014 Barometer of the French Video Game Industry - SNJV/IDATE - September 2014
4.1.4. The sector will create jobs in 2015
The companies surveyed increased their workforce by about 5% between 2013 and 2014, an average job
creation rate of about 1.5 FTEs per company. 56.4% of companies surveyed said they would increase
their numbers by 2015.
These new jobs are being created in all companies, regardless of age, but the job creation rate among
companies over 10 years old is proportionally higher.
4.2. Long-term and skilled jobs
4.2.1. A talent industry dominated by long-term and highly skilled jobs
Skilled labour from information technology occupations and the creative industry make up the bulk of the
workforce in companies of this sector. So-called technical6 jobs account for 31.4% of the workforce,
followed by graphical jobs7 (23.5%).
Table 69: Breakdown of workforce by job category
Specify your workforce, in terms of FTEs, for each of the following groups:
Discipline
Technology
Graphics
Management
Design
Support
Cross-disciplinary
TOTAL
Average
7.4
5.5
2.9
2.8
2.7
2.3
3.9
%
31.4%
23.5%
12.1%
11.9%
11.4%
9.7%
100%
Survey carried out between 5 May and 1 July 2014
Number of respondents: 105 companies (all activities)
6
i.e. technical director, lead programmer, game engine programmer, gameplay programmer, specialised programmer (AI, tools,
physics, etc.)
7
i.e. artistic director, concept artist, lead graphic designer, 2D graphic designer, 3D modeller/texturer, animator, graphics specialist
(lighting, motion capture, special effects, etc.)
www.idate.org © IDATE 2014
37
Barometer of the French Video Game Industry - 2014
Response rate: 95.4%
Source: 2014 Barometer of the French Video Game Industry - SNJV/IDATE - September 2014
Table 70: Percentage breakdown of workforce by job category
9.7%
Technologie
11.4%
31,4%
Image
Management
11.9%
Design
Support
12.1%
23,5%
Transverse
Survey carried out between 5 May and 1 July 2014
Number of respondents: 105 companies (all activities)
Response rate: 95.4%
Source: 2014 Barometer of the French Video Game Industry - SNJV/IDATE - September 2014
www.idate.org © IDATE 2014
38
Barometer of the French Video Game Industry - 2014
4.2.2. More than two-thirds of jobs are permanent
Table 71: Breakdown of workforce by type of contract
Specify the breakdown of your workforce according to the following categories:
Job category
%
Permanent
70.4%
Temporary
8.9%
Freelance/contractor
12.3%
Trainees
5.6%
Occasional/casual
1.0%
Other*
1.8%
TOTAL
100.0%
* Managers, shareholders.
Survey carried out between 5 May and 1 July 2014
Number of respondents: 105 companies (all activities)
Response rate: 95.4%
Source: 2014 Barometer of the French Video Game Industry - SNJV/IDATE - September 2014
4.3. Encouraging future prospects
Table 72: Workforce change by 2015
In your opinion, how will your workforce evolve by 2015? (Only one answer possible)
Workforce change
%
Increased workforce
56.4%
No change in workforce
37.2%
Decreased workforce
6.4%
TOTAL
100.0%
Survey carried out between 5 May and 1 July 2014
Number of respondents: 110 companies (all activities)
Response rate: 100%
Source: 2014 Barometer of the French Video Game Industry - SNJV/IDATE - September 2014
Table 73: Workforce change by 2015
6.4%
Augmentation des
effectifs
37,2%
56.4%
Maintien des
effectifs
Baisse des effectifs
Survey carried out between 5 May and 1 July 2014
Number of respondents: 110 companies (all activities)
Response rate: 100%
Source: 2014 Barometer of the French Video Game Industry - SNJV/IDATE - September 2014
www.idate.org © IDATE 2014
39
Barometer of the French Video Game Industry - 2014
According to the companies surveyed, the job creation dynamic should continue over the next few years,
with 56% of the companies surveyed claiming they will create jobs by 2015, while only 6% claim they
intend to reduce their workforce.
Only taking into account permanent and temporary positions and job losses, the companies surveyed
should create an average of two additional positions each by 2015.
When asked what type of job contracts they intend to create, more than one in two positions will be
permanent contracts. Compared with the national figure where only 8.1% 8 of new hires will be on this
type of contract, it is an unusual and remarkable characteristic.
Very few new hires will be on more unstable contractual arrangements: on average, only 11% of positions
created will be filled by freelancers, and 12.5% by trainees or those on work experience.
This stable and long-term job creation reflects the need for companies to rely on skills and talent.
Table 74: Jobs created by 2015
Among these new positions to be filled, specify the number of:
Contract types
Sum
%
Permanent
189
53.4%
Temporary
74
20.6%
Trainees/apprentices
45
12.5%
Freelancers/contractors
39
10.9%
Occasional/casual
6
1.7%
International Corporate Volunteer (ICV)
1
0.3%
Interim
0
0.0%
TOTAL
354
100.0%
Survey carried out between 5 May and 1 July 2014
Number of respondents: 110 companies (all activities)
Response rate: 100%
Source: 2014 Barometer of the French Video Game Industry - SNJV/IDATE - September 2014
Table 75: Jobs created by 2015
1.7%
0.3%
11.0%
CDI
12.7%
CDD
53.4%
Stagiaires/apprentis
Freelances/prestataires
20.9%
Intermittents
Survey carried out between 5 May and 1 July 2014
Number of respondents: 110 companies (all activities)
Response rate: 100%
Source: 2014 Barometer of the French Video Game Industry - SNJV/IDATE - September 2014
8
DARES study, July 2014
www.idate.org © IDATE 2014
40
Barometer of the French Video Game Industry - 2014
Table 76: Comparison between number of jobs created and number of jobs destroyed by 2015
200
189
180
160
140
120
100
74
80
60
40
45
39
27
20
0
4
2
0
6
Emplois créés
0
1 0
Emplois détruits
Survey carried out between 5 May and 1 July 2014
Number of respondents: 110 companies (all activities)
Response rate: 100%
Source: 2014 Barometer of the French Video Game Industry - SNJV/IDATE - September 2014
www.idate.org © IDATE 2014
41
Barometer of the French Video Game Industry - 2014
5. The economic and financial situation of
French video game companies
5.1. Companies growing despite economic fragility
5.1.1. The turnovers of companies surveyed show modest growth in 2014
Table 77: Average turnover of companies surveyed
Specify your turnover for the period (all companies)
Year
Average
In 2013:
€4,798,490
2014 estimate
€5,330,772
Survey carried out between 5 May and 1 July 2014
Number of respondents: 92 companies (all activities)
Response rate: 83.6%
Source: 2014 Barometer of the French Video Game Industry - SNJV/IDATE - September 2014
Table 78: Average turnover of companies surveyed based on age
Company age and FTE jobs in 2014
Year
Under 5
Between 5 and 10
Over 10
Overall average
In 2013:
€243,964
€1,093,704
€17,505,497
€4,798,490
2014 estimate
€371,857
€1,066,812
€19,483,872
€5,330,772
Survey carried out between 5 May and 1 July 2014
Number of respondents: 92 companies (all activities)
Response rate: 83.6%
Source: 2014 Barometer of the French Video Game Industry - SNJV/IDATE - September 2014
We noted a positive trend for all companies (developers + all companies) between 2013 and 2014, with
all increasing their turnover by 10% and equity by 30% on average. Yet, while this increase in equity is
beneficial, it actually masks the difficulty the French industry has in accessing funding, which is
preventing it from fully developing its business activities: 75.7% of companies self-finance. Faced with this
lack of funding, most development studios are turning to providing services, at the expense of their core
business.
Looking at accounting results, 61% of the companies surveyed ended 2013 with a balanced or positive
account. And, as with turnover, accounting balance in terms of age shows a positive trend, because
although 49% of companies under 5 years old ended 2013 with a deficit, their number continues to
decrease as the age of the companies grow, until we reach 0% for those over 15 years old.
www.idate.org © IDATE 2014
42
Barometer of the French Video Game Industry - 2014
Table 79: End of 2013 accounting situation of companies surveyed based on age
End of 2013 accounting situation based on company age
Age / 2013 fiscal year
Deficit
Balanced
Surplus
Overall total
Under 5
47.6%
19.1%
33.3%
100.0%
Between 5 and 10
40.9%
15.9%
43.2%
100.0%
Over 10
17.4%
17.4%
65.2%
100.0%
Overall total
38.5%
17.4%
44.1%
100.0%
studios
surveyed
Survey carried out between 5 May and 1 July 2014
Number of respondents: 104 companies (all activities)
Response rate: 94.5%
Source: 2014 Barometer of the French Video Game Industry - SNJV/IDATE - September 2014
5.1.2. Turnovers of studios surveyed show modest growth in 2014
Table 80: Average turnover of development studios surveyed
Specify your turnover for the period
Year
Average
In 2013:
€2,268,369
2014 estimate
€2,629,168
Survey carried out between 5 May and 1 July 2014
Number of respondents: 73 companies (all activities)
Response rate: 83.9%
Source: 2014 Barometer of the French Video Game Industry - SNJV/IDATE - September 2014
Table
81:
Average
turnover
of
(excluding studios with a turnover exceeding 10M EUR)
development
Specify your turnover for the period
Year
Average
In 2013:
€668,886
2014 estimate
€920,725
Survey carried out between 5 May and 1 July 2014
Number of respondents: 69 companies (all activities)
Response rate: 79.3%
Source: 2014 Barometer of the French Video Game Industry - SNJV/IDATE - September 2014
Table 82: Turnover of development studios based on age
Turnover of development studios based on age
Year
Under 5
Between 5 and 10
Over 10
Overall average
In 2013:
€218,051
€420,298
€7,133,471
€2,268,369
2014 estimate
€304,667
€545,509
€8,132,348
€2,629,168
Survey carried out between 5 May and 1 July 2014
Number of respondents: 73 companies (all activities)
Response rate: 83.9%
Source: 2014 Barometer of the French Video Game Industry - SNJV/IDATE - September 2014
www.idate.org © IDATE 2014
43
Barometer of the French Video Game Industry - 2014
Table 83: 2013 financial situation of development studios based on age
Age of company and end of 2013 fiscal year
Age / 2013 fiscal year
Deficit
Balanced
Surplus
Overall total
Under 5
52.8%
16.7%
30.5%
100.0%
Between 5 and 10
40.0%
17.1%
42.9%
100.0%
Over 10
Overall total
13.3%
40.7%
26.7%
18.6%
60.0%
40.7%
100.0%
100.0%
Survey carried out between 5 May and 1 July 2014
Number of respondents: 84 companies (development studios)
Response rate: 96.5%
Source: 2014 Barometer of the French Video Game Industry - SNJV/IDATE - September 2014
In 2014 the estimated average turnover for development studios over 5 years old is 304,667 EUR, and
continues to grow along with age, up to 8.1 million EUR for companies older than 10. Nearly 40% of all
companies ended the year with a deficit, as many as those having ended with a surplus.
With regard to companies aged 10 or over, 60% ended the year with a surplus, while a little more than
one in ten ended the 2013 fiscal year with a deficit.
5.1.3. An export-oriented industry
Along with the dynamic nature of these companies, they also appear to be remarkably global in outlook.
More than 47% of the turnover of the French studios surveyed is generated abroad (this trend is typical of
the video game industry and is also found in the United Kingdom, where the share of exports in total
turnover is 45%)9, whereas sectors such as movies and application software struggle to exceed 20%.
If we only take into account results related to video game production (removing the share of turnover
linked to service provision), the average turnover generated from exports is 454,000 EUR per company in
2014.
The share of exports in total turnover grew 15.8% between 2013 and 2014, which is remarkable
performance.
Table 84: Share of exports
What share of your turnover do exports account for?
Year
Average
In 2013:
41.1%
To date in 2014
47.6%
Survey carried out between 5 May and 1 July 2014
Number of respondents: 61 companies who responded 'Yes' to question 21 on self-publishing)
Response rate: 100%
Source: 2014 Barometer of the French Video Game Industry - SNJV/IDATE - September 2014
Companies are continuing to invest in international development by devoting on average 15% of their
budget to it.
Table 85: Share of budget devoted to international development (all companies)
How much of your budget goes towards international development?
Share of budget per company
15.5%
Survey carried out between 5 May and 1 July 2014
Number of respondents: 108 companies (all activities)
Response rate: 98.1%
Source: 2014 Barometer of the French Video Game Industry - SNJV/IDATE - September 2014
Table 86: Share of budget devoted to international development (development studios)
How much of your budget goes towards international development?
9
UKIE, 2014
www.idate.org © IDATE 2014
44
Barometer of the French Video Game Industry - 2014
How much of your budget goes towards international development?
Share of budget per company
16.2%
Survey carried out between 5 May and 1 July 2014
Number of respondents: 86 companies (all activities)
Response rate: 98.8%
Source: 2014 Barometer of the French Video Game Industry - SNJV/IDATE - September 2014
5.2. The critical question of financing business development
5.2.1. Access to financing business development difficult
Table 87: Sources of funding of companies surveyed
What sources of funding does your company use? (Multiple answers possible)
Type of funding
%
Equity
78.7%
Operating revenue
60.4%
National aid
40.5%
Bank loans
36.9%
Investment capital
30.6%
Regional aid
23.4%
European aid
7.2%
Crédit Impôt Recherche (CIR)
2.7%
Other*
2.7%
* leasing, subsidiary of foreign company
Survey carried out between 5 May and 1 July 2014
Number of respondents: 108 companies (all activities)
Response rate: 98.2%
Source: 2014 Barometer of the French Video Game Industry - SNJV/IDATE - September 2014
This data highlights the significant disengagement of banks with regard to companies in this sector
(remember that according to the CGPME/KPMG barometer, the operating funding needs of companies
increased by 30% between 2011 and 2013, while at the same time credit and liquidity facilities decreased
by almost 25%).
More than three-quarters of companies therefore need to tap into their equity, not only for investment but
also to mitigate the problem of accessing credit..
The lack of information and difficulty applying (complexity and lack of file 'standardisation') are reflected in
the low number of companies receiving regional aid, which slips to almost zero for European, institutional
or national aid.
Capital investment is still perceived as risky (asset dilution, loss of independence) by directors.
Overall, access to external resources is considered a constraint, but is essential to support business
growth in the sector.
5.2.2. But clear need for external funding
Table 88: Financing needs of companies surveyed
How would you describe your financing needs (one answer possible)?
Financing needs
Short term view, financed by operating revenue
Medium-term view, financed by current assets
www.idate.org © IDATE 2014
%
14.1%
25.3%
45
Barometer of the French Video Game Industry - 2014
How would you describe your financing needs (one answer possible)?
Long-term view, financed by fixed assets
TOTAL
60.6%
100.0%
Survey carried out between 5 May and 1 July 2014
Number of respondents: 99 companies (all activities)
Response rate: 90%
Source: 2014 Barometer of the French Video Game Industry - SNJV/IDATE - September 2014
Table 89: Breakdown of companies based on their financing needs
14%
Court terme à
exploitation
25%
61%
Moyen terme à bas
de bilan
Long terme à haut de
bilan
Survey carried out between 5 May and 1 July 2014
Number of respondents: 99 companies (all activities)
Response rate: 90%
Source: 2014 Barometer of the French Video Game Industry - SNJV/IDATE - September 2014
The priority needs are long-term which corresponds to recapitalisation (restructuring and/or consolidation)
and development needs.
Given the results of the previous table, the most common hypothesis is recapitalisation to establish
development.
Finally, we note there is a general desire to make the company last and therefore a positive outlook from
directors on the situation of their company.
Table 90: Access conditions for receiving bank credit
How would you describe your access conditions for receiving bank credit?
Access conditions
I can access it very easily
I can access it easily
It is difficult to access
It is very difficult to access
We were refused bank credit
We've never needed bank credit
TOTAL
%
2.7%
21.8%
21.8%
12.7%
4.5%
36.4%
100.0%
Survey carried out between 5 May and 1 July 2014
Number of respondents: 110 companies (all activities)
Response rate: 100%
Source: 2014 Barometer of the French Video Game Industry - SNJV/IDATE - September 2014
5.2.3. Raising capital as a financing option, low uptake, but highly anticipated
The difficulties in access to financing are also reflected in the problems French companies face trying to
raise capital: only 10% of companies were able to raise capital in 2012, and 16.3% in 2013. And even
among those that did raise capital, the amounts were low: 335,000 EUR on average in 2013. This lack of
www.idate.org © IDATE 2014
46
Barometer of the French Video Game Industry - 2014
funding is therefore significantly slowing growth of the French video game industry. However, 61% of
companies surveyed think they will raise capital in 2015.
The decrease in average amount of capital raised between 2012 and 2013 does not correlate with the
number of times capital was successfully raised (9 raised in 2012 compared with 17 in 2013).
Table 91: Capital raised in 2012
Did you raise capital in 2012?
Capital raised
%
No
90.8%
Yes
9.2%
TOTAL
100.0%
Survey carried out between 5 May and 1 July 2014
Number of respondents: 109 companies (all activities)
Response rate: 99.1%
Source: 2014 Barometer of the French Video Game Industry - SNJV/IDATE - September 2014
Table 92: Amount of capital raised on average in 2012
Specify the amount of capital (in euros) you raised in 2012:
Amount of capital raised
€583,750
Survey carried out between 5 May and 1 July 2014
Number of respondents: 9 companies (all activities) that raised capital in 2012 (see table 91)
Response rate: 81.8%
Source: 2014 Barometer of the French Video Game Industry - SNJV/IDATE - September 2014
Table 93: Capital raised in 2013
Did you raise capital in 2013?
Capital raised
%
No
84.4%
Yes
15.6%
TOTAL
100.0%
Survey carried out between 5 May and 1 July 2014
Number of respondents: 109 companies (all activities)
Response rate: 99.1%
Source: 2014 Barometer of the French Video Game Industry - SNJV/IDATE - September 2014
Table 94: Amount of capital raised on average in 2013
Specify the amount of capital (in euros) you raised in 2013:
Amount of capital raised
€335,382
Survey carried out between 5 May and 1 July 2014
Number of respondents: 17 companies (all activities) who raised capital in 2013 (see table 93)
Response rate: 94.4%
Source: 2014 Barometer of the French Video Game Industry - SNJV/IDATE - September 2014
Raising capital is used primarily to support the current business activity, with a view to restructuring or
consolidating before development (business/technology) and deployment (accessing new markets).
Here also entrepreneurs are showing a reluctance to raise capital.
Although raising capital is not the preferred tool for growth because it leads to ownership dilution, it
seems useful in a context where external sources of financing growth are drying up, so it can be used to
complement other funding alternatives.
Table 95: Uses for raising capital
What do you currently want to raise capital for? (several answers possible):
Reason for raising capital
%
Supporting your current activity
43.6%
You do not want to raise capital
39.8%
Accessing new markets
30.1%
Developing a new activity
27.2%
www.idate.org © IDATE 2014
47
Barometer of the French Video Game Industry - 2014
What do you currently want to raise capital for? (several answers possible):
Acquiring new technologies
12.6%
Survey carried out between 5 May and 1 July 2014
Number of respondents: 103 companies (all activities)
Response rate: 99.1%
Source: 2014 Barometer of the French Video Game Industry - SNJV/IDATE - September 2014
Table 96: Uses for raising capital
Acquérir de nouvelles technologies
12.6%
Développer une nouvelle activité
27.2%
Accéder à de nouveaux marchés
30.1%
Vous ne souhaitez pas lever de fonds
39.8%
Soutenir votre activité actuelle
43.6%
0%
10%
20%
30%
40%
50%
Survey carried out between 5 May and 1 July 2014
Number of respondents: 103 companies (all activities)
Response rate: 99.1%
Source: 2014 Barometer of the French Video Game Industry - SNJV/IDATE - September 2014
Table 97: Raising capital in 2015
Do you expect to raise capital by 2015? (Only one answer possible)
Opinion
%
Very likely
17.7%
Likely
43.5%
Unlikely
27.5%
Very unlikely
11.3%
TOTAL
100.0%
Survey carried out between 5 May and 1 July 2014
Number of respondents: 62 companies (all activities and that did not choose 'You do not want to raise capital' for question 61, see
table 95)
Response rate: 100%
Source: 2014 Barometer of the French Video Game Industry - SNJV/IDATE - September 2014
www.idate.org © IDATE 2014
48
Barometer of the French Video Game Industry - 2014
6. Outlook: French video game companies
sitting between loss of competitiveness and
optimism
6.1. Entrepreneurs moderately optimistic within a context of shortterm financial visibility
6.1.1. Cautious optimism
Regarding the future of their companies, the directors surveyed are generally optimistic: 84.6% claim to
have confidence in the future of their company. However, they are remaining realistic about their financial
situation, as 43.6% of the companies claim to only have short-term visibility of their financial situation
(between 1 and 6 months).
Table 98:
Confidence levels of those surveyed about the future of their company
Are you confident about the future of your company?
Opinion
%
Very confident
14.5%
Somewhat confident
70.1%
Not confident
13.6%
Not confident at all
1.8%
TOTAL
100.0%
Survey carried out between 5 May and 1 July 2014
Number of respondents: 110 companies (all activities)
Response rate: 100%
Source: 2014 Barometer of the French Video Game Industry - SNJV/IDATE - September 2014
Table 99: Confidence levels of those surveyed about the future of their company
1.8%
13.6%
14.5%
Très confiant
Plutôt confiant
Peu confiant
70.1%
Pas confiant du tout
Survey carried out between 5 May and 1 July 2014
Number of respondents: 110 companies (all activities)
Response rate: 100%
Source: 2014 Barometer of the French Video Game Industry - SNJV/IDATE - September 2014
www.idate.org © IDATE 2014
49
Barometer of the French Video Game Industry - 2014
6.1.2. Short-term visibility
Table 100: Financial visibility
In your opinion, what kind of financial visibility does your company have?
Visibility
%
1 to 3 months
13.6%
4 to 6 months
30.0%
7 to 9 months
11.8%
10 to 15 months
25.5%
16 to 18 months
19.1%
TOTAL
100.0%
Survey carried out between 5 May and 1 July 2014
Number of respondents: 110 companies (all activities)
Response rate: 100%
Source: 2014 Barometer of the French Video Game Industry - SNJV/IDATE - September 2014
Table 101: Financial visibility
19.1%
13.6%
De 1 à 3 mois
De 4 à 6 mois
De 7 à 9 mois
30.0%
25.5%
De 10 à 15 mois
De 16 à 18 mois
11.8%
Survey carried out between 5 May and 1 July 2014
Number of respondents: 110 companies (all activities)
Response rate: 100%
Source: 2014 Barometer of the French Video Game Industry - SNJV/IDATE - September 2014
In addition, while the companies surveyed have confidence in their potential, they are more reserved
about the future of video games in France: 54.5% believe the French video game sector will decline in the
coming years.
Table 102: Opinions on the future of the French video game sector
How optimistic are you about the future of the French video game sector? (one
answer possible)
Opinion
%
Very optimistic
1.0%
Somewhat optimistic
44.5%
Somewhat pessimistic
44.5%
Very pessimistic
10.0%
TOTAL
100.0%
Survey carried out between 5 May and 1 July 2014
Number of respondents: 110 companies (all activities)
Response rate: 100%
Source: 2014 Barometer of the French Video Game Industry - SNJV/IDATE - September 2014
www.idate.org © IDATE 2014
50
Barometer of the French Video Game Industry - 2014
Table 103:
Opinions on the future of the French video game sector
1,0%
10.0%
Très optimiste
44.5%
44.5%
Plutôt optimiste
Plutôt pessimiste
Très pessimiste
Survey carried out between 5 May and 1 July 2014
Number of respondents: 110 companies (all activities)
Response rate: 100%
Source: 2014 Barometer of the French Video Game Industry - SNJV/IDATE - September 2014
6.2. France not attractive enough in a competitive and globalised
market
6.2.1. The attractiveness of France
Although some of the companies surveyed consider France an attractive country for the video game
industry because of the wealth of talent and aid available, they are very much in the minority as 62% of
companies consider it unattractive, mainly because of high costs, and complexity and instability, both in a
fiscal and administrative sense.
When asked (open-ended question) which countries seem attractive, the large majority of companies
(76%) ranked Canada highest, followed by the United States (60.4%), both regions that have already
attracted many French companies.
Table 104: The attractiveness of France for the video game sector
Would you say France is an attractive country for companies in the video game
sector? (Only one answer possible)
Opinion
%
Yes
38.2%
No
61.8%
TOTAL
100.0%
Survey carried out between 5 May and 1 July 2014
Number of respondents: 110 companies (all activities)
Response rate: 100%
Source: 2014 Barometer of the French Video Game Industry - SNJV/IDATE - September 2014
Canada attracting French companies
In recent years, Canada has managed to expand its video game sector significantly through aid and very
beneficial tax credits. Although recently lowered by 5%, it is still the most attractive tax incentive
worldwide. Because of this, Canada has created more than 15,000 jobs in the video game sector in 15
years. And job growth in this sector in just one province, Quebec, has been 22% per year since 2002 10.
Canada's policy towards video games has allowed it to mainly attract major companies in the sector: thus,
in Canada, video game companies employ an average of 50 people, generate an average of 4.5 million
EUR of annual turnover, and 50% of companies are present on home consoles.
Because of its linguistic and cultural ties with Canada, France has seen many of its studios and
publishers establish themselves in Quebec over the same period and the trend is continuing.
10
TECHNO compétences study - l’emploi dans l’industrie du jeu électronique au Québec en 2012
www.idate.org © IDATE 2014
51
Barometer of the French Video Game Industry - 2014
The United Kingdom: a similar industry to France, now boasting an attractive video game
tax credit
The UK video game industry proves to be extremely similar to the French industry in many respects. The
structure of the companies appears to be the same, with about 30 full-time employees on average, and
the industry is mainly composed of very small companies.
Similarly, the country's dynamics seem to be the same as in France, with video game employment having
increased 7% in 2013 as well as the turnover of video game companies (7%), while production budgets
decreased by 10% between 2008 and 2011 11. These are exactly the same trends seen in France.
On the other hand, in terms of financing production, the United Kingdom deviates from France, as more
than 62% of video game companies have been able to access external private financing in recent
years12. Similarly, 37% of UK companies have been able to benefit from government aid, even though the
UK video game tax credit, which is particularly flexible and beneficial, is not yet in place.
France therefore needs to close this gap in funding, so that the United Kingdom, helped by its new tax
credit, does not eclipse France on the international scene as early as 2015. The future UK tax credit has
been hailed as the most favourable in Europe by 47% of European developers.13
Table 105:
The most attractive countries/regions
Which countries would you say are the most attractive to grow your business?
Country
%
Canada
76.0%
United States
60.4%
United Kingdom
46.9%
Nordic countries
21.9%
South Asia
16.7%
Germany
14.6%
China
12.5%
Japan
9.4%
Eastern Europe
6.3%
South Korea
5.2%
Spain
4.2%
Luxembourg
3.1%
Belgium
3.1%
Brazil
3.1%
North Africa
2.1%
Malta
2.1%
India
2.1%
Survey carried out between 5 May and 1 July 2014
Number of respondents: 96 companies (all activities)
Response rate: 87.3%
Source: 2014 Barometer of the French Video Game Industry - SNJV/IDATE - September 2014
11
UKIE, 2014
12
TIGA, 2014
13
GDC Europe State of the industry 2014
www.idate.org © IDATE 2014
52
Barometer of the French Video Game Industry - 2014
7. Conclusion
The video games sector, and structure of its economic fabric in particular, is difficult to comprehend
because of the great diversity of markets, business models, sizes and age of the various companies.
The sector is also young and constantly rejuvenating, which strongly impacts the value chain:
 Although focused around a few major players and a myriad of SMEs, the development tools market
remains very competitive. With the business models and rates providing developers with a healthy
breeding ground for creation, customers are obviously benefiting from this competition.
 Content segments are continually expanding, games on connected TVs are slowly emerging, video
games linked to toys and connected objects are likely to grow significantly in the coming months and
years.
 Although seemingly stable, the structure and organisation of production continues to mature and is
likely to converge towards 'Platform as a Service' type solutions.
 Dematerialised distribution methods are gradually establishing themselves as connectivity is
implemented as standard in all games platforms, which is strongly benefiting players in the mobile
games segment on smartphones and tablets.
 Access to games and community related services are evolving especially rapidly, driven by the
success of the new generation of cloud-friendly home consoles (storage, content sharing, streaming,
multiplayer, online and in-game purchases, etc.), content streaming services like Twitch, and the
increasingly common adoption of 'Software as a Service', where identical applications are available
simultaneously on multiple platforms.
 Job type segmentation within publishers and development studios is based on the sector's established
skill sets, but new skills are appearing around economic intelligence, data processing and analysis,
and attracting and retaining new users.
The annual survey conducted by the Syndicat National du Jeu Vidéo and IDATE provides a way of
measuring how aligned French companies are with this new data. It also allows us to measure what still
needs to be done to develop or sustain a particular business activity, gain industry maturity and identify
potential growth. Furthermore, it has its finger on the sector's pulse, revealing its morale and highlighting
potential risks and industry, managerial, economic and financial needs. It also focuses on possible
adjustments or solutions to be implemented as part of a public support policy for the sector.
Obviously this snapshot will become clearer as new editions are released, when it will be possible to
calculate differences and identify developments.
However, after this first edition, we can still draw up a few key points:
1. France is a country of video game creation. This tradition was inherited from the early creators in
the 1980s and continues to structure itself. This unique creativity has been internationally
renowned for a long time. The sector consists of mainly young SMEs, which are flexible regarding
target segments and versatile along the value chain. They create original intellectual properties
and long-term jobs, despite the difficult economic environment.
2. Production, which is typically self-financed, tends to be concentrated around dematerialised indie,
casual or social games, and marketed as 'free-to-play' with in-app purchases. Very few studios
are working on AAA games. Games are primarily designed for smartphones, tablets, and
personal computers.
3. Economic activity is significant as the development studios surveyed claim to be releasing a total
of at least 160 titles by the end of the year, the vast majority of which will be original titles.
4. With annual production budgets falling between 2013 and 2014, regardless of game platform,
they can be characterised as conservative. This decrease, which is strategic or because of
economic constraints, is only barely offset by external financing, regardless of its nature.
5. Service provision is becoming an important activity and widespread with two-thirds of the
companies surveyed resorting to it. On average, it accounts for nearly 40% of the turnover of the
companies surveyed.
www.idate.org © IDATE 2014
53
Barometer of the French Video Game Industry - 2014
6. Nearly 85% of the managers surveyed are confident or very confident about the future of their
company, but roughly 55% of them are pessimistic or very pessimistic regarding the video game
sector in France, deeming it quite unattractive.
www.idate.org © IDATE 2014
54
Barometer of the French Video Game Industry - 2014
8. About the SNJV
Created in 2008, the SYNDICAT NATIONAL DU JEU VIDEO (SNJV) currently represents more than 200
companies, producers, publishers and industry professionals from the video game and multimedia
entertainment sector, as well as organisations involved in developing France's video game industry.
The SNJV's mission is to study, represent, promote and defend the rights as well as material and moral
interests of its member companies, on both a collective and individual level.
The SNJV represents the French video game industry, both in France and abroad, in dealings with public
authorities, administrations, private and public companies and corporations, other professional unions,
and all competent authorities in general.
It analyses the impact of French policy on the economic and social interests of French video game
companies.
It also provides regular communication on all issues relating to the video game industry, including any
relevant economic, technical and legal information.
With this mandate, the union implements the means and services to help its members conduct their
business activities in France.
The SNJV works closely with the various video game production territories in France through involvement
with regional associations and local economic development clusters.
The SNJV is one of the founding members of the EGDF (European Games Developer Federation), which
works on behalf of some 600 video game production companies based in Europe.
Contacts:
Julien Villedieu – dg@snjv.org
0970 460 611
2, rue de la Roquette 75011 Paris
www.idate.org © IDATE 2014
55
Barometer of the French Video Game Industry - 2014
9. About IDATE
The Institut de l’Audiovisuel et des Télécommunications en Europe (www.idate.org) is a research
and consulting body specialising in the telecommunications, media and Internet industry markets.
 The Institute has over 30 years' experience in consulting and research.
 It conducts studies and provides consulting services to companies (major clients, SMEs and startups),
local authorities, governments and international organisations.
 Its assignments include international industry and market watches, market studies, industry and
strategy analysis, technical-economic feasibility studies, forecasting, and innovation and R&D
analysis.
 Nearly 30 consultants make up IDATE's multidisciplinary teams.
 For nearly 15 years, IDATE has been studying and working on behalf of the video games sector. Its
clients include research laboratories, technical service providers, tools and middleware developers,
video game developers, publishers, console manufacturers, distributors and retailers.
 Its Consumer Electronics & Digital Entertainment division has supported over 40 businesses, startups, SMEs, and major companies working or aspiring to work in the video game sector.
IDATE maintains its close ties to the industry with the DigiWorld Summit, an event it has
organised for the last 35 years
 The DigiWorld Summit is an international conference that takes place annually in Montpellier.
 This event welcomes close to 1,500 professionals from the telecom, Internet and media industries.
 The DigiWorld Summit consists of themed seminars, one of which has been dedicated to the video
games sector for the last 13 years.
 Since the creation of Game Summit (www.gamesummit.pro), more than 400 industry professionals,
half of which from overseas, have come to speak on market, industry and technological trends.
IDATE publishes a catalogue of studies focused on innovation and understanding the economic
and industry developments at play in the telecom and media industries
 The catalogue comprises 80 publications each year, including market studies, forecasts, state of the
industry reports and databases.
 Three to four publications relate to the video games sector each year.
Contacts:
www.idate.org © IDATE 2014
56