In the annual report drawn up by the IIDEA association (Italian Interactive Digital Entertainment Association), a positive picture of the Italian videogame industry emerges, despite numerous decreases compared to 2022. A promising sector which, however, requires the support of the institutions.
The association IIDEA has published its report on the video game market in Italy for 2023. After the decline in 2022, also due in part to the end of the lockdowns, the turnover generated this year by the sector is equivalent to 2.3 billion euros. A growth of 5%, which sees a significant increase in the purchase of hardware, i.e. gaming platforms.
Until two years ago it was really difficult to find a PlayStation 5 or an Xbox Series X, due to the chip crisis resulting from the Covid-19 pandemic. “The contraction of 20-22 was due to the launch of new consoles which were then not available in stock in stores and therefore although there was consumer demand, the industry had not been able to satisfy it,” he said at Fanpage.it Thalita Malagò, General Director of IIDEA. This explains the 65% boom in hardware purchases by Italian users this year.
However, the driving segment of the market remains softwaredespite the – 8% compared to 2022. “At first glance this data can be interpreted in a non-positive way, in reality we have an explanation: by unpacking the data between new video games and in-game purchases, what we see is that the purchase of new releases is growing compared to the year previous of 6%”, states Malagò.
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After all, 2023 was a year of great releases: to name a few, Zelda: Tears of the Kingdom, Starfield, Marvel’s Spider-Man 2 and Baldur’s Gate 3. Yet, none of them figure in the podium of most played video games then Italy in 2023. In first place, few surprises: EA Sports FC 24, the new FIFA. Secondly, Hogwarts Legacy, the video game set in the world of Harry Potter. At the third, Call of Duty: Modern Warfare III.
The turnover generated by new video games is equal to 577 million euros. 54% of male and female consumers opted to purchase in the digital format, but the remaining 46% preferred the physical version. An interesting fact, which partially undermines the general perception of the total decline of video games in physical format, those with a case and game disc to be inserted into the console or computer.
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In 2023 they played video games 13 million Italian men and womeni.e. the 31% of the population included in the age group 6 – 64 years. As high-sounding as they are declining numbers compared to 2022, in detail by 8%. “Distinctions must be made, because it is a number that must be divided between occasional video gamers, i.e. those who play less than an hour a month, and passionate video gamers, i.e. those who play one or more times a week”, specifies Malagò during the interview. “Here the decline mainly concerns occasional players.” Which explains why playing time has also decreased (6.52 hours per week in 2023 compared to 7.52 in 2022).
This trend, attributable for IIDEA to definitive return to post-pandemic normality, is not typically Italian, but can be found in the main European markets. In other words, what was highlighted already in 2021 is happening GameIndustry.biz by journalist Christopher Dring and former Sony PlayStation President Shawn Layden: gaming audiences haven’t grown massively since the 90she’s just willing to spend more.
Returning to the public in Italy, 9.2 million prefer it play on smartphone, especially puzzle games; 5.6 instead play on consoles, especially sports titles; finally, 4.6 play on PC, specifically strategic games. Going into even more detail of the analysis, 61% are made up of male players, while women represent 38%, . The remaining 1% involves the non-binary gender peopledata included for the first time in the IIDEA report.
What institutions are doing for video games in Italy
Given the period of crisis involving the video game industry, including mass layoffs and cancellation of projects, Italy was one of the countries least affected. This is partly due to two factors. “The first is that the presence of multinationals is smaller in Italy than in other countries,” explains Malagò. The second factor is that the Italian development ecosystem is mostly composed of independent businesses. “We don’t have huge development studios that are part of big publishers, apart from Ubisoft and now Milestone which is part of the Embracer group.” It is clear, however, that the global situation in which the industry finds itself will nevertheless involve Italy, especially in terms of seeking financing.
The association currently has a open dialogue with the government to improve the Tax Credit (tax incentives for development studies) and give more scope and competitiveness to Italian companies. “We asked if it was possible to add a measure of direct financing, a sort of prototype fund for smaller studios, those who do not have the possibility to access the Tax Credit. We are working to get the message across that video games are the new frontier of Made in Italy, digital, creative and international”, adds Malagò.
The video game as a resource is a concept that can also be applied outside of development. Today the esports panorama (video game competitions between professional players) represents a branch of game industry thriving, even in Italy, as demonstrated by events such as the Red Bull Kumite, the Street Fighter tournament, or by the careers of pro-players such as Daniela “Effy” Vrabie, of the women’s team LXT. According to the Deloitte 2023 report, our country matters 5.9 million people passionate about video game competitions.
Yet, despite the promising numbers and good intentions of the meeting on esports held last September with the presidents of the culture commissions of the Chamber and Senate, Vincenzo Mollicone and Roberto Marti, and the undersecretary of the Ministry of Culture Lucia Borgonzoni, the esports sector has difficulty in establishing itself in Italy and in being a professional outlet for the younger generations, as among other things already happens in several countries, first and foremost South Korea and the United States.
“In January, the League presented a bill on the regulation of video game competitions in the Senate,” explains Malagò. “Currently this bill can represent a very useful starting point for the sector, because it introduces specific legislation for the organization of esports events. It does so with an approach that places the world of esports within the cultural, creative and entertainment industry.” The bill also inserts a series of modular obligations for those who organize competitions, rules such as age limits and special visas for sporting events. “This could be important for attracting large international events to Italian soil,” clarifies Malagò.
