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Canada’s video gaming sector generates around $55 billion each year, and that figure is only set to grow further. With the beginning of a video game boom well underway in Canada, investors want to know where their money will perform best for them. Here, we’ll discover the plethora of micro companies that are keeping Canada’s grassroots gaming heritage going, as well as the mega companies that are bringing in the billions. We’ll also look at the different preferences of Canada’s gamers, and whether they like shoot-em-ups or strategy games best. Finally, we’ll look at where these companies tend to operate and what might be happening for them in the future.
Mega or Micro?
Canada has a growing gaming market with more companies appearing in the micro sector and an increasing number of companies progressing from micro-sized to standard-sized, or standard-sized to mega-sized. Currently, there are almost 1000 gaming studios in Canada and that figure has grown by more than a third since 2019. The majority of these companies fit into the micro bracket, with 54% of all companies having between one and four employees. This sector was also the one that experienced the most growth over the past three years, increasing 35% during that time. 39% of companies have between 5 and 99 employees and the remaining 6% have more than 100 employees. It’s worth noting that, of these large companies, some are exceptionally large, with Compulsion Games, EA Canada, and Full Circle all having hundreds and hundreds of staff.
What Canada’s Gamers Want
Canada shows huge support for video gaming companies that are Canadian. Whether it’s patriotism or a thirst for more indie video games, this support is invaluable to micro businesses and will help them rise up the ranks, creating profit along the way. In terms of different genres of games, blockbuster video games still perform well. However, it’s worth noting that the mobile gaming sector is the most profitable. With the rise of microtransactions and freemium games, mobile gaming is starting to reap enormous rewards compared to console gaming. As well as this, the online casino sector is doing well in both the United States and Canada. Thanks to the progressive legalization of online gaming in various states, it is now possible to play PokerStars Ontario which is not just helping the company, but is boosting interest in this sector in general.
Where It’s Happening
It should probably be expected that the majority of Canada’s video gaming companies are based in Ontario, but Quebec is incredibly close behind and the gap is closing very rapidly. Behind this, British Columbia is a growing hub for video gaming and, within these three regions, you’ll find 80% of the video gaming companies in the country. Although gaming is growing across the country, Ontario and Quebec have experienced huge growth in gaming businesses over the last three years, adding 137 companies to the industry in this time. Interestingly, British Columbia has seen enormous growth in large-sized companies, reporting more than a 100% increase in the number of these operating. Conversely, the Atlantic region has seen a 139% growth in micro-sized companies, suggesting that independents are popping up even in the more rural areas.
