Report on the Video Games Industry in Europe from EAO

The European Audiovisual Observatory published a report in late 2024 called 'Legal Challenges and Market Dynamics in the Video Games Sector.' This is the first time the Observatory has ever looked at the gaming industry and the result is a comprehensive round-up of the current state of the legal and market landscape in Europe.

Authored by leading experts from across Europe, this new report highlights the rapid evolution of this sector, from market growth and technological advancements to the accompanying regulatory frameworks and user protection. Covering industry structure, economic models, intellectual property (IP) protection, and player safety, this new report is divided in three main parts and provides key insights into one of Europe's most dynamic creative industries.

Key Findings

• The European gaming industry transformed from a niche market into a powerhouse industry. European video game development has benefited from both technological progress and changing consumer behaviour, with mobile gaming now a dominant force alongside console and PC gaming. Economic models have also diversified, with free-to-play and subscription models complementing traditional one-time purchase systems.
• Key European markets such as the UK, France, and Germany are defined as established players, with Sweden and Poland emerging as important new creative centres. This report explores the need for better access to skilled talent and the competitive threats posed by foreign acquisitions.
• There's been a shift from physical products to interactive digital services, with three main segments: console games, PC games, and casual mobile games. The difficulty in defining video games may have a bearing on compliance with laws covering IP legislation, consumer protection, and AI regulations.
• The intricate IP landscape in the EU sees challenges in harmonising copyright approaches across the various national jurisdictions, with landmark cases like Nintendo v. PC Box shaping policy.
• The report notes the diversity in funding trends across Europe, with countries such as France and Germany leading public funding initiatives, while Northern and Eastern Europe focus more on private investment. The author concludes that a supportive framework is crucial for industry growth and global competitiveness.

This report stresses the critical balance between growth, regulation, and protection within Europe’s video game industry. By examining the complex dynamics between market pressures, regulatory compliance, and player's rights, it offers must-read insights for policymakers, industry stakeholders, and consumers.

Download the full 'Legal Challenges and Market Dynamics in the Video Games Sector' report (162 pages).