Polish Game Industry Sees 20% Growth in 2023

Poland's game development industry has experienced a remarkable 20% growth in the first half of 2023, according to a comprehensive new report released by the Polish Games Association (PGA) in collaboration with market research firm GamesIndustry.pl. This growth rate significantly outpaces the broader European games market, which has seen an average growth of 8.5% during the same period.

The report, titled "State of the Polish Games Industry 2023," provides an in-depth analysis of the country's rapidly expanding game development ecosystem, highlighting key trends, challenges, and opportunities shaping the sector.

Economic Impact

According to the report, the Polish games industry generated revenue of approximately 969 million euros in the first half of 2023, putting it on track to potentially exceed 2 billion euros for the full year. This represents a significant contribution to Poland's economy, with the sector now accounting for approximately 1.5% of the country's GDP.

"The Polish games industry has evolved from a niche sector to a significant economic force," explained Jakub Marszałkowski, President of the Polish Games Association. "We're seeing both established studios and emerging developers contributing to this growth, creating a diverse and resilient industry ecosystem."

Employment in the sector has also seen substantial growth, with the number of professionals working in game development increasing by 15% to reach approximately 12,500 people across more than 470 studios. Notably, the report indicates that these jobs typically offer salaries 30-40% higher than the national average in Poland.

Success Factors

The report attributes Poland's gaming industry success to several key factors:

International Recognition

The continued global success of titles from established studios like CD Projekt Red (The Witcher, Cyberpunk 2077) and Techland (Dying Light series) has helped position Poland as a major player in game development. These flagship studios have brought international attention to the Polish development scene and demonstrated the country's capacity for creating world-class gaming experiences.

Government Support

The Polish government's GameINN program, which provides funding for innovative game development projects, has been instrumental in supporting the industry's growth. Since its inception in 2016, the program has distributed over 100 million euros to gaming projects, helping studios of all sizes pursue ambitious ideas.

"Government support has been a catalyst for growth," noted Marszałkowski. "The GameINN program in particular has allowed many studios to undertake projects that might have been too risky without that financial backing."

"Poland has created a virtuous cycle in its gaming industry: success breeds investment, which leads to more success. The country has established itself as not just a place where good games are made, but where gaming innovation happens."

— Maria Kowalska, Industry Analyst at GamesIndustry.pl

Educational Infrastructure

The report highlights the growing number of specialized game development educational programs at Polish universities and technical schools. More than 25 institutions now offer game development-focused degrees or courses, creating a pipeline of qualified professionals entering the industry.

The Warsaw Film School's Game Dev School, the Jagiellonian University's Games Technology Center, and the Łódź University of Technology's Gaming Innovation Center are cited as particularly influential in developing the next generation of Polish game creators.

Diversification

While AAA titles from major studios continue to generate headlines, the report notes that Poland's indie game scene has been a significant contributor to growth. Smaller studios have found success with innovative concepts and focused gameplay experiences, often exploring niches overlooked by larger developers.

This diversity extends to business models as well, with Polish studios working across mobile, PC, console, and increasingly, VR/AR platforms. The report indicates that approximately 45% of Polish game development revenue now comes from studios outside the top five largest companies, demonstrating the sector's growing diversification.

Investor Interest

The report details growing international investment in Polish game development. Foreign investment in the sector increased by 35% compared to 2022, with investors from the United States, China, and Western Europe showing particular interest in Polish studios.

The Warsaw Stock Exchange (WSE) has also emerged as a key funding avenue for gaming companies, with 27 game development companies now listed. The combined market capitalization of these companies exceeds 8 billion euros, making gaming one of the most significant sectors on the exchange.

"International investors recognize the value proposition of Polish game development," explained Tomasz Krześniak, financial analyst at the WSE. "These studios combine technical excellence and creative storytelling with operational costs that remain lower than in Western Europe or North America, creating an attractive investment opportunity."

Challenges and Opportunities

Despite the impressive growth, the report identifies several challenges facing the Polish games industry:

• Talent Competition: As the industry grows, competition for experienced developers has intensified, leading to rising salaries and some smaller studios struggling to retain talent.
• International Competition: While Poland has established itself as a gaming powerhouse, competition from other emerging development hubs in Eastern Europe and beyond is increasing.
• Market Saturation: The global proliferation of games makes visibility and marketing increasingly challenging, particularly for smaller studios.

However, the report also highlights significant opportunities for continued growth:

• Emerging Technologies: Polish studios are well-positioned to capitalize on VR, AR, and cloud gaming technologies, with several companies already developing expertise in these areas.
• IP Development: Beyond game creation, Polish developers are increasingly focusing on building valuable intellectual properties that can extend beyond gaming into other media.
• International Collaboration: Growing partnerships between Polish studios and international publishers and developers are creating new opportunities for knowledge sharing and market access.

Regional Development

An interesting finding in the report is the increasingly distributed nature of Poland's game development landscape. While Warsaw remains the largest hub with approximately 35% of all game development jobs, other cities have established themselves as significant centers:

• Kraków (18% of jobs)
• Wrocław (14%)
• Poznań (9%)
• Gdańsk (7%)
• Łódź (6%)
• Other locations (11%)

"We're seeing specialized clusters developing in different cities," noted Marszałkowski. "Kraków has become known for mobile development, Wrocław for action games, and Gdańsk is emerging as a hub for indie innovation. This regional specialization creates unique ecosystems that benefit the entire industry."

Future Outlook

Looking ahead, the report forecasts continued strong growth for Poland's game development industry. Projections suggest the sector could grow by an additional 15-18% annually through 2025, potentially doubling its current size within five years.

Several major releases from Polish studios are scheduled for 2023-2024, including expansions for existing titles and entirely new IPs. Additionally, over 200 games from Polish developers are currently listed as "upcoming" on Steam, indicating the pipeline of projects in development.

"Poland has established itself as one of Europe's most dynamic game development hubs," concluded Marszałkowski. "The combination of creative talent, technical expertise, business acumen, and supportive infrastructure positions the country for continued success in this rapidly evolving industry."

The full "State of the Polish Games Industry 2023" report is available for download from the Polish Games Association website, offering detailed statistics, case studies, and analysis for industry professionals, investors, and policymakers.