A new report on the economic impact of the Canadian video game industry has been released.
Conducted by Nordicity on behalf of the Entertainment Software Association of Canada (ESAC), the trade association representing Canadian game makers, the new ‘Canada’s Video Game Industry: Powering the Future of Play’ study examines how the national games sector has weathered the challenges of the COVID-19 pandemic.
Notably, the Canadian gaming industry contributed $5.1 billion to the country’s GDP in 2024, up three percent from the ESAC’s last economic impact report in 2021. (It should be noted that some of those stats in the linked story might vary slightly now as Nordicity’s updated methodology was applied to 2021 data.) That GDP increase is particularly notable as 2021 was a time when the industry as a whole saw markedly higher demand as more people were at home amid pandemic restrictions, so a decrease wouldn’t have necessarily been surprising.
According to Paul Fogolin, ESAC president and CEO, that speaks to the resilience of the Canadian gaming industry as a whole.
“What this report shows to me is that Canada remains a powerhouse in making games. The industry has continued to mature since 2021, and, quite frankly, over the last 10 to 15, years,” he says. “The pandemic had an increased interest in games and our members hired up and adjusted accordingly. But we’ve weathered the global economic challenges better than, I would say, anyone else.”
To that point, he singles out how there are 34,010 game developers (full-time equivalents or “FTEs”) staffed at 821 active studios across Canada. Notably, that’s actually more than the 32,300 FTEs reported in 2021, although the number of studios (937) was higher then. Of course, this was also amid companies investing more to meet the higher demand for games, which included the likes of Gearbox (Borderlands), Quantic Dream (Detroit: Become Human) and miHoYo (Genshin Impact) opening studios in Canada. Since then, tens of thousands of developers have been laid off across the industry and studios have closed down, with one in ten reporting being among these cuts in a recent survey. This led to a 3.5 percent decrease in overall Canadian game developer employment since 2021.
On the flip side, we saw the aforementioned increase in FTEs, as well as a 21 percent increase in average annual salaries across all roles to $102,000. “Which speaks, I think, to the maturing sector — more senior talent, Canada is getting better at making games, and the industry is very competitive,” says Fogolin. “In an era of increasing gig work and unpredictability in the marketplace, I think it’s worth celebrating in the games industry that these high-paying [jobs], and an average age of 34 in the workforce. So, young, talented people, and there’s a home here in Canada for those who want to make games.”
Breakdown of game development studios in Canada. (Image credit: ESAC/Nordicity)
He also shouts out the increase in women in the industry; who now account for 26 percent of the total gaming workforce, up from 23 percent in 2021 and 19 percent in 2019. Video games have long had a toxicity problem, especially towards women and people of colour, and Fogolin says it’s “really cool to see” that gradual rise in representation of women. “We love to see more of that on a further increase,” he says. “And we’re always having conversations with educational partners, with government, how do we get more women, more BIPOC Canadians into STEM programs, early mentorship and into the field. And I know our members are passionate about that, too.”
Game development by province
In terms of provincial breakdown, Quebec, Ontario and B.C. remain the largest provinces for game development, representing 83 percent of the country’s total developer pool. Notably, Ontario has a higher concentration of ‘Micro’ companies (two to four employees) and ‘Sole’ proprietorships than the other two leading provinces. This is why Ontario has the highest number of studios overall in the country, but Quebec still is the bigger development hub and has more than double the number of game makers.
See below for breakdowns of the number of employees and studios by province/region:
- Ontario — 6,090 employees, 276 studios
- Quebec — 15,220 employees, 257 studios
- British Columbia — 10,930 employees, 146 studios
- Alberta — 810 employees, 68 studios
- Atlantic — 750 employees, 41 studios
- Prairies — 210 employees, 33 studios
Last year, New Brunswick developers renewed calls for a similar provincial tax credit to the one offered by the likes of Ontario, Quebec and Nova Scotia that would help grow their provincial industry. That would no doubt help offset the 50 percent decline in direct employment observed in the Atlantic region. Fogolin notes that in addition to New Brunswick, Alberta also doesn’t offer a tax credit, despite once doing so and being home to game development giants like BioWare Edmonton (Dragon Age: The Veilguard, pictured above). “We’ll continue to work on that — it definitely helps equalize the playing field,” says Fogolin.
“I love that this industry is coast-to-coast in Canada. So you’re always going to have your Montreals and your Vancouvers as hubs. But I think combination of the technology, the hybrid [work] models, have enabled creators to start businesses wherever they are, to some extent, and it’s really neat to see that sort of trend accelerate.”
The future amid global competition and an “unpredictable” neighbour
On the whole, he says it’s important for Canada’s gaming industry to be united to help with global competition.
“You have jurisdictions like Australia that introduced a national tax credit a few years ago. Places in Europe — I know Ireland, Italy, Poland — are really trying to double down on this industry. And then some emerging markets like Singapore are offering support. So all of this to say, here in Canada, at the federal and provincial level, we just have to keep our foot in the gas and keep supporting this industry,” he said.
Helping with that is the fact that 88 percent of Canada’s gaming sector’s revenue comes from exports. Fogolin says this helps give Canada a leg on the global stage, especially with respect to the uncertainty surrounding the current Trump administration in the U.S. When I spoke with Fogolin in November amid his appointment as ESAC president and CEO, Trump had only just been elected, so we talked more broadly about how the ESAC and its global counterparts were preparing to work together to support the video game industry.
Canadian Prime Minister Justin Trudeau with former U.S. President Donald Trump. (Image credit: Government of Canada)
But since then, the American commander-in-chief has threatened 25 percent tariffs on all Canadian goods (which could come as early as February 1st) and tariffs on semiconductors and other components from Asia that are commonly used in phones and video game consoles. Naturally, I had to ask: now that we have a (somewhat) clearer idea of what Trump may do, how might the Canadian industry and its global allies respond?
First, Fogolin notes that for now, the United States-Mexico-Canada Agreement (USMCA) prevents tariffs on digital goods, which would, at least, protect video game software. While Trump has expressed his interest in renegotiating this agreement, Fogolin says that the gaming industry is ready to “be at the table” for any such changes.
“[The U.S.] is an unpredictable partner, and things change, and the USMCA will be up for renegotiation in 2026. I know the president was musing about opening it up earlier. When that happens — if it happens sooner? Two things. We’ll be at the table with our government partners in Ottawa, for sure, and our partners, the ESA in the United States, who have great relationships with all parties right up to the White House, and particularly with the USTR, the trade office down in the States, to ensure that we can maintain this exemption, and governments on both sides understand this industry,” says Fogolin.
He adds that Canada exporting so much to the U.S. — games included — will only help in such negotiations. “President Trump likes to talk about the trade disparity — the ‘unfairness’ in Canada. But we as Canadians consume far more digital products from the U.S. than vice-versa, so it is to their advantage not to engage in that,” he says. (It’s also worth noting, per the new ESAC study, that while 76 percent of game development studios in Canada are Canadian-owned, foreign-owned companies account for 88 percent of the total industry employment.)
Ultimately, Fogolin hopes that data like the ESAC’s new study can help raise awareness about the Canadian video game industry for everyone, politicians or otherwise.
Average video game developer salaries in Canada. (Image credit: ESAC/Nordicity)
“There are certain sectors that most Canadians know. We’re really good at making cars, right? Everybody kind of knows that. We know about the natural resources. We know about how we have outsized talent in the music industry, and comedy and film. And games are the same. Countries around the world are looking at Canada and what we have, and saying, ‘We want in on that,’” says Fogolin.
“Canada is really, really good at making games. We have this foundational ecosystem. We have the talent. We have the tax credit supports. We have access to markets globally. We have a lower dollar than the U.S., And we’ve proven — through this report and the last report — to be resilient to pandemics, macroeconomic conditions that are difficult, inflationary pressures…. Everybody’s rightfully talking about,” he says.
“It’s tough to afford groceries these days. Entertainment is optional, but here we are, continuing to be a global leader, so let’s be proud of it. Let’s talk about it. And that helps feed into the industry. The more people who play games and are passionate and say, ‘There’s actually opportunities here, whether I want to start my own company or maybe I can look into how I could get into the industry.’ I think that’s exciting, especially for young people who want to work in games.”
This interview has been edited for language and clarity.
The full Canada’s Video Game Industry: Powering the Future of Play study can be viewed here. To compile the report, Nordicity conducted an online survey of Canadian-based video game companies between May and July 2024.
Image credit: BioWare Edmonton/EA
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