FRANCE’S ANNUAL INDUSTRY BAROMETER

2018 EDITION

AN COLLABORATION 2e de couv rappel méthodo + logos sommaire

SNJV at a glance

Created in 2008 as a follow-up to the actions led by France’s Association of Multimedia Producers, the French Video Game Trade Association (SNJV) represents the French video game companies and professionals' workers. It campaigns for the industry promotion, growth and competitiveness, and for territory attractiveness. SNJV’s goal is to allow video game development companies operating in France to accelerate their development and become more competitive in a strong international competing context.

About IDATE Digiworld FRANCE'S ANNUAL The Institute for Audiovisual media and Telecommunications in Europe (www.idate.org) is a research and consulting firm that specialises in telecoms, media and the Internet.

This Institute accumulates 40 years of experience: - Its assignments include international industry and market watch solutions, market reports, industrial strategy coaching, technical-economic feasibility studies, forward-planning and innovation assessment. VIDEO GAME - Its video game division has been helping more than 50 of the sector’s top companies for over 19 years.

IDATE publishes a complete catalogue of market reports: INDUSTRY BAROMETER - A catalogue of 40 new publications every year, including at least one devoted to gaming. - More than 50 reports on video games since the year 2000. CONTENTS IDATE hosts B2B conferences: - The DigiWorld Summit is an international event celebrating its 40th anniversary in 2018 now held in Paris (www.digiworldsummit.com). - IDATE DigiWorld has been hosting events devoted to the video game and creative industries since 2001.

Methodology overview Key findings 4

The IDATE DigiWorld/SNJV collaboration delivers a representative snapshot of the sector; The nature Part 1 France’s : economic 7 and the volume of the business, its economic and financial health, and its outlook of the future. fabric and production

The survey was conducted between the 5th and 8th of August 2018, through an online self-administered Part 2 Video game industry jobs in France 19 questionnaire (CAWI - Computer Assisted Web Interviewing). This questionnaire was sent to the chief executives Part 3 French video game companies’ economic and 23 of the French Video Game Trade Association (SNJV) member companies, as well as video game industry firms that are not adherent of the SNJV. financial situation Outlook 27 In this report the term “companies” refers to all respondents (development studios, publishers, service providers, etc.).

An IDATE Digiworld - SNJV production| Report: IDATE Digiworld | Design & layout: SNJV The Noun Project icon credits: lastspark, asianson.design, Mike Rowe, Massupa Kaewgahya, Randomhero, Dinosoft L, Lemon Liu, Gabriele Malaspina, Alina Oleynik, Shashank singh, LAFS, jafar, Carpe Diem, Julien Meysmans, supalerk laipawat, Maxim Kulikov | Guadeloupe by freevectormaps

enseignements clés enseignements clés

Key findings for 2018 Key findings for 2018

games are in 9,5 jobs 86% 14% 1200 development in 2018 on average in France of salaried of development studio 17% in studios with jobs are staff are women of studios of which are <100 employees permanent 2/3 generate revenue new intellectual in excess of contracts properties

And 50% of these €1M products will be released by the end of between 1200 between 650 this year. The sector is hiring and 1500 and 850 new jobs expected new jobs 40% in companies expected in studios of the production of studios' 12% budget is spent on revenue have promoting games been earned on the international 93% stage in 2018 of studios consider 56% of studios themselves are less than independent and 70% create indie games 5 years old 77% 61% of studios focus on PC games of studios 60% develop games for provide services smartphones and tablets Of those, 71% sell 45% develop for home programming services consoles 1 out of 4 studios 1 out of 5 studios are developing say they plan on investing in eSports by virtual, augmented or mixed 2018 reality games On this double page, the word “job” refers to a full-time 4 equivalent (FTE) position 5

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ADHÉRENTS ET NON-ADHÉRENTS

ART 1 France’s video game industry:

CRF ASSURANCES VOUS DONNE economic fabric ACCÈS À DES GARANTIES 100% DÉDIÉES AU JEU VIDÉO : • Une RC Professionnelle pour couvrir and production les dommages causés aux tiers POUR UNE ÉTUDE dans le cadre de votre activité PERSONNALISÉE SOUS 48H 01 55 46 80 60 • Une Assurance Chômage pour les [email protected] Dirigeants Mandataires, en cas de défaillance www.crfassurances.com de votre entreprise ou perte de mandat Ainsi que toute une gamme de produits Depuis 2009, CRF Assurances est partenaire du SNJV • et a conçu pour vous ce programme d’assurances. d’assurance adaptée à vos besoins

Le jeu vidéo en France carte + régions Le jeu vidéo en France carte + régions

FRANCE’S VIDEO GAME INDUSTRY: ECONOMIC FABRIC AND PRODUCTION FRANCE’S VIDEO GAME INDUSTRY: ECONOMIC FABRIC AND PRODUCTION The Video game Number of video game companies by region industry in France

ÎLE-DE-FRANCE NOUVELLE-AQUITAINE AUVERGNE-RHÔNE-ALPES OCCITANIA REGIONAL DISTRIBUTION OF 342 117 104 99 COMPANIES IN THE VIDEO COMPANIES IN TOTAL, OF WHICH COMPANIES IN TOTAL, OF WHICH COMPANIES IN TOTAL, OF WHICH COMPANIES IN TOTAL, OF WHICH GAME SECTOR* 39 49 39 56 66 27 64 34

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2 6 2 04 3 361 34 10 2 38 PACA PAYS-DE-LA-LOIRE HAUTS-DE-FRANCE BRITTANY 65 05 65 58 50 34 03 COMPANIES IN TOTAL, OF WHICH COMPANIES IN TOTAL, OF WHICH COMPANIES IN TOTAL, OF WHICH COMPANIES IN TOTAL, OF WHICH

54 52 42 76 21 29 43 52 3 114 13 5

12 2 3 6 117 7 GRAND EST BOURGOGNE-FRANCHE-COMTÉ NORMANDY 27 COMPANIES IN TOTAL, OF WHICH 1 1 3 1 DEVELOPER SERVICE DEVELOPERS SERVICE 74 22 PROVIDER PROVIDER

4 ILE DE LA RÉUNION GUADELOUPE CENTRE VAL-DE-LOIRE 03 3 1 5 DEVELOPERS DEVELOPER DEVELOPERS

Are counted: publishers, developers, distributors Are counted: publishers, developers, DEVELOPERS SERVICE PUBLISHERS DISTRIBUTORS and service providers, local associations, training PROVIDER distributors and service providers LÉENDE REFAIRE organisations, freelancers. Are not included: local associations, training organisations, freelancers COULEURS REVOIR

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FRANCE’S VIDEO GAME INDUSTRY: ECONOMIC FABRIC AND PRODUCTION FRANCE’S VIDEO GAME INDUSTRY: ECONOMIC FABRIC AND PRODUCTION Production activities gaining ground, year over year Renowned entrepreneurial excellence

56% POLLED COMPANIES’ MAIN ACTIVITY 50% 56 58 of development 50 31 20% studios are less of all companies are 8 58 than 5 years old less than 5 years 2 of the companies’ are old 1 DEVELOERS 20 are more than 10 years old Developers Service providers Publishers Distributors Accessory manufacturers

61 of development studios ROVIDE SERVICES

Development: one of DEVELOPMENT STUDIO BREAKDOWN BY YEARS France’s greatest OF OPERATION strengths 24 Less than 2 years It is the result of a strong cultural legacy in artistic creation, and the existence of many schools and 32 2 to 5 years universities across the country that train talents for this industry, 24 5 to 10 years combined with a real entrepreneurial spirit. 20 More than 10 years

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FRANCE’S VIDEO GAME INDUSTRY: ECONOMIC FABRIC AND PRODUCTION FRANCE’S VIDEO GAME INDUSTRY: ECONOMIC FABRIC AND PRODUCTION An industry mostly independent Massive rise in game production 93 70 of studios consider of studios say games i.e a themselves they create 1200 in independent indie games PRODUCTION 43 French studios continue to This fact has been true since 2014, have a strong attachment to followed by casual and serious in 2018 increase indie games. games.

TYPES OF Indie 70 Of which 23 are GAMES THAT Casual 28 STUDIOS ARE new intellectual properties DEVELOPING Serious Game 19 Social 10 AAA 9 and 600 tt 8 Other* will be released in 2018

* Educational, children’s games, connected object apps, AA

…and focused on computer games

Publisher/distributors’ favourite platform Studios’ favourite platform 93 of studios developing games this year are developing at least 1 new IP*

5 3 87 77 74 64 65 64 48 42 26 12 13 13 9 8

Home Handheld Connected Other PC Smartphones Tablettes Smart TV * intellectual property consoles consoles objects platforms

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FRANCE’S VIDEO GAME INDUSTRY: ECONOMIC FABRIC AND PRODUCTION FRANCE’S VIDEO GAME INDUSTRY: ECONOMIC FABRIC AND PRODUCTION Publishers’ role is increasing year over year

GAME DISTRIBUTION METHODS IN 2018 vs

39 C 83% Relying on a 51% GOG, Gamesplanet, IN 2018 Gamersgate, ... publisher Steam still 26% Itch.io dominant 26% Studio's website 61 18% Browser games(1) 15% Physical copy (incl. cartridges) 75 of the studios were 11% Downloadable client Of the studios were 11% Google Store retailing themselves retailing themselves 7% Other(2) their products their products 4% Facebook

CONSOLES 74% Playstation Network Playstation 72% Xbox Marketplace

Network is #1 71% Nintendo eShop

38% Physical copies

The Publishing Business 12% Other(3) is changing with the rise of digitisation, especially in the areas

of game distribution, marketing TABLETS MOBILES 98% Apple Store and communication. The Apple-Google 94% Store All of these areas of work have been duopoly being affected by ’ changing their challenged by Amazon 25% Amazon buying habits, which are increasingly MOBILE ET TABLETTES 13% Other(4) concentrated on digital media. L oo Publishers have come to grips with aoo these changes and have designed a new can

range of services capable of attracting (1) Flash game/streamed in the browser (Kongregate, BigFish Games, Miniclip…) (2) , stores VR, diffusion B2B, Windows Store big and small developers. (3) Ouya shop, Leap Motion, Play Market, U Play (4) Phone operators, , , Facebook Messenger

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FRANCE’S VIDEO GAME INDUSTRY: ECONOMIC FABRIC AND PRODUCTION FRANCE’S VIDEO GAME INDUSTRY: ECONOMIC FABRIC AND PRODUCTION Production funding in France Increasing use of public financing

PERCENTAGE OF COMPANIES THAT HAVE OBTAINED 62 PUBLIC SUPPORT 88 of studios resort to of studios regional, national or are self-funded European funding 62 of studios sought 57 public support to in 2017 finance fund 56 in 2018 Increasing use of public 88% Self-funding in 2016 financing 38% FAJVGoogle Play Store 34% Other(1)

28% Publishers 25% Bank loan PUBLIC FINANCING SCHEMES STUDIOS USE TO FUND THEIR PRODUCTIONS 22% Regional funding

18% CIJV

9% Crowdfunding Aid for the 6% European funding (Creative Europe) creation of a new IP Research tax credit Regional aid FAJV Video game CIR tax credit Aid for pre- CIJV BREAKDOWN OF production FINANCING METHODS IN 157 Publishers DEVELOPMENT STUDIOS’ 64 Other(2) FAJV PRODUCTION BUDGETS 554 European aid 4 Regional funding (Creative Self-funded Europe) 41 Bank loan 4 Fund for the creation of new IP (FAJV) 24% 22% 22% 18% 14% 6% 35 CIJV 25 Pre-production support fund (FAJV) 24 Research tax credit (CIR)

2 Crowdfunding (1)R esearch tax credit, BPI (public investment bank) (2) Creative Europe, BPI, co-production, seed mone 16 17

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FRANCE’S VIDEO GAME INDUSTRY: ECONOMIC FABRIC AND PRODUCTION

DEVELOPMENT STUDIOS’ BUSINESS MODELS

Freemium In-game ads

Subscription to a game streaming plan

57% 31% 27% 27% 9% 8% 2%

Purchase, with Purchase, with Buy, by Other(1) no additional additional chapter content content

(1) Subscription to a platform (every year except 2018), licences, non-app advertising: banners, Adsense website ART 3

BREAKDOWN OF ANNUAL PRODUCTION BUDGETS Video game industry jobs in 40 <50k€ 13 50k€ - 100k€ France 14 100k€ - 200k€ 16 200k€ - 500k€ 8 500k€ - 1M€ 5 1M€ - 5M€ 2 5M€ - 10M€ 2 > 10M €

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emplois quali és & pérennes + perspectives encourageantes emplois quali és & pérennes + perspectives encourageantes

VIDEO GAME INDUSTRY JOBS IN FRANCE VIDEO GAME INDUSTRY JOBS IN FRANCE Strong increase in qualified and lasting jobs Encouraging outlook

STUDIOS’ AVERAGE TOTAL STAFF BREAKDOWN BY PROFESSION STAFF SINCE 2014 1% 13% Publication and 28 TechnologieTechnology support 14 59 308 of companies 277 Management 257 272 22 15 86 Will be hiring of staff have a permanent contract 25 Artists

2018 2017 2016 2015 2014 Design 18 mid-year Perm. Fixed Apprentice in 2019 term

Women in the industry

- It is estimated that 1200 1500 14 % of women in the different fields new jobs will be created by 2019 of development ARTISTS studio staff 16 Including - are women PUBLICATION + 650 850 SUPPORT 14 in game development

MANAEMENT 11 of which DESIN 9 permanent TECNOLOY 4 82 contracts

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La Grande École des Jeux Vidéo, de l’Animation 3D et de la Création Web et Graphique

Diplômes reconnus Alternance possible Échanges par l’État niveaux 1 & 2 dès la 1re année à l’international possibles

Cycle Bachelor (Bac à Bac+3) ART 3

Game Design DIPLômES Design 3D & Animation Companies’ RECONNUS Web Design PAR l’ÉTAT & Communication Graphique NIVEAU 2 UX Design economic and Bande Dessinée ADMISSIONS Ouvertes financial Cycle Mastère (Bac+3 à Bac+5) d’octobre Game Design À septembre situation DIPLômES Design 3D & Animation RECONNUS Interactive PAR l’ÉTAT Management NIVEAU 1 & Entrepreneuriat du Numérique ÉTABLISSEMENT D’ENSEIGNEMENT UX Design SUPÉRIEUR TECHNIQUE PRIVÉ

21 rue Érard - 75012 Paris - Reuilly-Diderot Contact Admissions Tél : 01 44 68 10 09 - Mail : [email protected] www.ican-design.fr

CA studios CA studios

COMPANIES’ ECONOMIC AND FINANCIAL SITUATION COMPANIES’ ECONOMIC AND FINANCIAL SITUATION Studios' revenue slightly up Companies have trouble securing loans to finance their growth, but make use of vital external

HOW MUCH DO STUDIOS EARN? sources of funding

SOURCES OF 86% Self-funded FINANCING USED 62 Under 300 k€ BY THE 56% Operations COMPANIES 40% National aid 21 Between 3 00k€ and 1 M€ POLLED 28% Bank loans 12 Between 1 M€ and 5 M€ 21% Regional aid 1 Between 5 M€ and 10 M€ 17% Capital investment 14% Young innovative company funding 4 Over 10 M€ 11% Crowdfunding 11% Autre* 8% European aid 5% Foreign trade credit insurer (COFACE) of development studios generate 17 total revenue above 1M 3% Credit institution for France’s cultural industries (IFCIC) BankL ct loans anca

STUDIOS' FINANCIAL SITUATION 42 19 19 2014 2015 2016 2017 have never sought one obtain one easily have difficilty getting one

52% 46% 41% 38% 32% 32% 33% 29% 30% An export-centric industry 26% 22% 18% 40 of studios' revenue In deficit Breaking even Making a in 2018 came from profit ntnatona sales

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La Grande École d’Informatique N°1 en Alternance de Bac à Bac +5

Diplômes reconnus par l’État Niveaux 1 & 2

9 spécialisations possible dès la 3e année

1000 entreprises partenaires ART 4

Alternance possible dès la 1re année Outlook

Spécialisation Ingénierie de la 3D et des Jeux Vidéo

Admissions Ouvertes D’Octobre à Septembre

www.esgi.fr - Tel : 01 56 06 90 47 - Mail : [email protected]

ÉTABLISSEMENT D’ENSEIGNEMENT SUPÉRIEUR TECHNIQUE PRIVÉ

perspectives pub perspectives

OUTLOOK OUTLOOK Company executives are optimistic France increasingly attractive

are “very confident” or “rather confident” 87 about their business believe that France is an 76 attractive country for video game sector developments 19 67 10 4 4 ont compared to 2017 Very confident Not at all confident

are “very optimistic” or “largely optimistic” 85 about France’s video entertainment sector 10 MOST ATTRACTIVE COUNTRIES TO FRENCH BUSINESSES 51% USA France 13 72 13 2 46% 24% Canada Very optimistic Very pessimistic 20% UK 20% China 16% Japan 7% Russia COMPANIES’ SITUATION IN THE COMING YEAR WILL… 6% South Korea

légèrement 6% Germany Improve Improve se détériorerDeteriorate Stay the same 5% India significantly slightly slightly 24 20 21 39 30 5 5 nettement 51 46 se détériorerDeteriorate 20 significantly

28 29 NOTES

Professionnels du numérique Nous protégeons vos talents

NOTRE MÉTIER : CONCEVOIR UNE PROTECTION SOCIALE PÉRENNE ET INNOVANTE AVEC UNE OFFRE DE SERVICES UNIQUE, POUR UNE VISION 360° DE LA PERSONNE :

Assurance de personnes et de biens Services aux professions Santé, prévoyance, risques professionnels, produits Audiens prend en charge la gestion de prestations d’épargne..., Audiens conçoit des solutions collectives déléguées par des organisations professionnelles et individuelles adaptées aux spécificités des profes- ou l’État : études et statistiques, gestion sociale et RH en sions de la communication et des médias. quelques clics, gestion pour compte de tiers...

Médical et prévention santé Accompagnement solidaire et social Centres de santé, centres dentaires, actions de pré- Audiens propose de multiples actions d’accompagne- vention, bilans de santé, e-santé..., Audiens met ment pour ses publics touchés par des accidents de la en œuvre des dispositifs du préventif au curatif. vie ou des ruptures professionnelles.

LE RÉSEAU CULTURE & INNOVATION Son objectif : fédérer autour d’initiatives tous les professionnels de la communication, des médias et de la culture, issus des secteurs traditionnels et du numérique. Le réseau comprend La Nurserie, lieu d’accueil de jeunes start-up du domaine culturel, le Prix de l’initiative numérique destiné aux créateurs d’entreprises et start up porteurs d’un projet numérique culturel, des Afterworks autour d’une thématique digitale et des Rencontres Culture & Innovation, déjeuners de mise en relation entre décideurs et jeunes entrepreneurs.

www.audiens.org © Erwan Floc’h FRANCE'S ANNUAL VIDEO GAME INDUSTRY BAROMETER

SNJV contact IDATE contact

Julien VILLEDIEU Laurent MICHAUD Managing Director Director of Studies [email protected] [email protected]

13, rue la Fayette +33 4 67 14 44 39 75009 PARIS idate.org snjv.org