Summary

The Italian video game market has shown considerable growth, particularly pronounced during the initial pandemic years, with a significant increase in market value by 21.8%. By 2022, the market maintained a stable value range between 2.18 billion to 2.24 billion euros. In terms of demand, while spending on software rose to 1.79 billion euros. Digital formats dominated software sales at 42.3%, particularly on PCs and consoles, while hours played per week rose by 12.7% from 2018 to 7.52 hours in 2022. The Italian video game market is projected to grow at a CAGR of 5% from 2022 to 2028, potentially exceeding a total value of 31 billion euros.

The market's structure also expanded, with an increase in video game development enterprises from 100 in 2014 to 160 in 2021 and employees rising to 1,600 in the same period. Major Italian companies in the sector include Milestone, Reply s.p.a, and several others, contributing to a diverse and expanding gaming ecosystem in the country.

Dynamics of Video Game Consumption in Italy

In recent years, the Italian video game market has exhibited noteworthy trends in consumer behavior and preferences. Between 2018 and 2022, Italians' spending on software experienced significant growth, marking an increase of about 30%, with spendings ranging from nearly €1.35 billion to over €1.75 billion. Notably, the App format saw the most substantial growth, skyrocketing by almost 70%, whereas the digital segment for PCs and consoles also enjoyed an uptick of nearly 30%. Conversely, the physical format witnessed a decline of around 17% over the same period. Despite the surge in spending, the number of video gamers in Italy indicates a slight decline, falling from roughly 16 million gamers in 2018 to about 14 million in 2022, marking a decrease of around 13%. Nevertheless, there was a positive trend, with an increase of approximately 2.5%, but the decline appears concentrated between 2020 and 2022 with a significant dip of almost 15%. Turning to the weekly gaming hours, a rise of around 13% was observed from 2018 to 2022, with gamers playing from around 6.5 hours to over 7.5 hours per week.

However, this trend was not consistent, as there was a significant boost of nearly 30% between 2018 and 2021, followed by an unexpected drop of around 13% between 2021 and 2022. In terms of demographics, teenagers and baby boomers represent the key age groups that constitute nearly half of the gaming population, each group accounting for around 3.5 million video gamers. Behind them, the 25-34 and 35-44 age cohorts each make up between 1.5 and 2.5 million gamers, while the younder age segments, ranging from 6 to 14 years old, constitute around 1.5 to 1.75 million gamers. Gender distribution shows a historical trend where men represent the majority of the video gaming demographic, accounting for nearly 60% in 2022. Notably, there's been a slight decline in the proportion of female gamers over the past few years, with a decrease of about 4 percentage points from 2018 to 2022. When examining preferences, mobile devices emerge as the favored gaming platforms, capturing nearly 70% of the gaming population. 

Prominent Italian Video Game Industry Players

The Italian video game industry is marked by the presence of some innovative and influential companies that have carved out their niches in a competitive global market. Through a combination of creative prowess and technical expertise, these enterprises are heralding a new era in Italian gaming. Let’s take a closer look at some of the key players who are shaping the landscape of Italian video game development and publishing.

  • Milestone s.r.l Based in Milan and founded in 1994, Milestone s.r.l has a rich history that began with notable titles such as "Screamer." The company is revered for its expertise in racing video games, having developed licensed series like SBK and MotoGP. Milestone started its independent publishing journey in 2012 and has since introduced acclaimed IPs like RIDE.
  • Reply Games Studios Part of the Reply Group, Reply Games Studios was established in Milan in 2011. The studio’s focus is on crafting AA-quality video games that cater to next-generation PCs and consoles. They are known for delivering high-quality gaming experiences enriched by engaging narratives and intricate gameplay.
  • Nacon Studio Milan s.r.l Nacon Studio Milan, formerly known as Lunar Great Wall Studios, is a relative newcomer, starting in 2016. Their collaboration with Nacon, especially with the successful "RiMS Racing" game, led to their acquisition and rebranding. The studio aims to create unforgettable gaming experiences with state-of-the-art technology.
  • Kunos Simulazioni s.r.l Kunos Simulazioni, which began in 2005, specializes in developing highly realistic driving simulations for both video games and professional applications. The studio is particularly recognized for "Assetto Corsa," one of the most respected racing simulation games in the industry.
  • 505 Games s.p.a Founded in 2006 and operating as a subsidiary of Digital Bros, 505 Games s.p.a has been successful with games such as Cooking Mama and Zumba Fitness. The company publishes a diverse range of games to entertain gamers of all ages and skills across a variety of platforms.
  • Digital Bros s.p.a With its roots dating back to 1989, Digital Bros s.p.a is a global entity involved in the digital entertainment sphere with a broad international presence. The company is in the business of creating, developing, and distributing video games digital and retail channels on a worldwide scale, operating in both Premium and Free to Play segments. 
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  • Number of pages : 30 pages
  • Format : Digital and PDF versions
  • Last update : 10/11/2023
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Summary and extracts

1 Synthèse du marché

1.1 Introduction

The video game market in Italy is a fast-growing sector that encompasses the production, distribution, and enjoyment of interactive electronic games on various platforms, such as consoles, PCs, mobile devices, and online.

It includes a wide range of products and services, including:

  • Console Games: Games designed to be played on game consoles such as PlayStation, Xbox, and Nintendo Switch.
  • Games forPC: Games designed to be played on personal computers.
  • Games formobile devices: Games specially developed for smartphones and tablets.
  • Online games: Games that can be played through Internet connections, often with a multiplayer component.
  • Streamingservices: Streaming platforms that allow users to stream games without having to download or physically own them.

The Italian video game market is growing rapidly, with new emerging players trying to bring luster to the industry in our country. Italy has been considered a country with a limited presence and a less developed video game culture. However, in recent years, successful software houses such as Milestone and Kunos Simulazioni have emerged, helping to change this perception. The Italian video game market began to take off in the 1990s, with popular games such as those about soccer. In the following years, the evolution of technologies and the entry of new consoles opened up new opportunities for Italian software houses. Today, the Italian video game market continues to grow and gain a space in the global industry, with promising prospects for the future.

The global video game market size has been estimated at $195.65 billion in 2021 and is expected to grow at a compound annual growth rate(CAGR) of 12.9 percent from 2022 to 2030.

This study analyzes the economic and structural characteristics of the Italian video game market as a whole; for more in-depth information on any of the various subsectors of which it is composed, or on complementary markets such as e-sports, please refer to the specific studies available in the Businesscoot catalog.

1.2 The global market

In ****, the global video game market reached a value of $***.** billion. Future forecasts indicate sustained growth for this industry in the coming years, with a compound annual growth rate (***) estimated at **.* percent. The global market could then approach a total value of $*** billion by ****.

Video game market World, ****-****, in billion ...

1.3 The Italian market

The gaming market in Italy is growing strongly, and future forecasts outline a positive trend in the coming years. In ****, the Italian market reached a value of **.** billion euros. Between **** and ****, a compound annual growth rate (***) of *.* percent is projected under which the market could exceed a total value of ** billion ...

1.4 The consequences of the Russian-Ukrainian conflict

The outbreak of the Russian-Ukrainian conflict in February **** resulted in, among other things, a general increase in the consumer price index. The video game industry is not exempt from this increase. Looking at the consumer price index for games and hobbies, which include video games, it can be seen that between ...

2 Analyse de la demande

2.1 Demand in Italy

In order to analyze the demand for video games in Italy, trends in spending on them over the past * years, trends in the number of video gamers over the past * years, and the amount of hours played over the past * years are considered.

Spending on software

Between **** and ****, Italians' software spending ...

2.2 Demand drivers

The age and gender of players are considered to analyze the drivers of demand.

Age

Regarding age, it is possible to identify two main age groups in which the demand for video games is concentrated. Teenagers and baby boomers are the two population segments that drive the demand for video games. ...

2.3 The preferences of video gamers in Italy

Italians' preferences can be analyzed in light of three different categories: device used, Pegi rating, and video game genre.

Devices

Among PCs, Consoles and mobile devices, the last ones are Italians' favorite for video gaming, with more than */* of video gamers playing on mobile devices (***).

Devices used for video gaming Italy, ...

2.4 New demand trends: metaverse and cloud gaming

Two of the main trends of gamers are gaming in the metaverse environment and cloud gaming:

Metaverse

Gaming in the metaverse environment represents a significant trend, transforming the way games are played and experienced. it is a fusion of virtual reality (***).

In ****, the global gaming market in the metaverse reached a ...

3 Structure du marché

3.1 The market structure

To analyze the market structure of video games, the number of enterprises active in the video game development industry, the number of employees, the size of enterprises, and the sources of enterprise financing are considered.

Enterprises

Between **** and ****, the number of enterprises active in the video game development sector appears to ...

3.2 The value chain

The Testing and Quality Control phase, is one of the most critical phases during the design of a video game. This phase aims to ensure the stability, playability and safety of the final product. Here is a more detailed examination of this phase:

Internal Testing (***) Test Case Development: creation of detailed ...

3.3 The main manufacturers

The following is a list of leading Italian game developers and publishers:

Milestone s.r.l: is a company with Milanese roots, founded in **** as Graffiti, renamed Milestone in ****. Their notoriety in the racing video game industry began with the game "Screamer," which established the company as a leader in the ...

3.4 Geographical distribution of producers

In order to analyze the geographic distribution of the market, a map was created with the percentage of video game producers for each Italian macro-region.

The distribution along the peninsula appears to be uneven. The Northwest gathers almost */* of the producers, accounting for **.*% of the total. This is followed by the ...

4 Analyse de l'offre

4.1 Type of the offer

A video game is a game operated by an electronic device that allows interaction with images on a screen, generally identified as software, but sometimes it can also refer to hardware dedicated to a specific game. This form of interactive entertainment has developed since the ****s, with the introduction of consoles ...

4.2 The prices

The following are the sales prices of some video games available on Console, PC and mobile devices. Video games are divided by format: physical/digital and paid app.

Physical/digital

Paid app

(***)

4.3 New supply trends: virtual reality and augmented reality

Major supply trends highlight the fact that video games will be increasingly influenced by the development of new technologies and their commercialization. Consider, for example, accessories for the enjoyment of virtual reality that all of the world's largest providers are working on to bring the gaming experience to a more immersive ...

5 Règlementation

5.1 The legislation

The video game market, as with many other digital products, is regulated by various laws and regulations at both the national and European levels. These laws are concerned with ensuring the quality, protection and safety of consumers and developers. Some of the main laws and regulations for the video game market ...

6 Positionnement des acteurs

6.1 Segmentation

Italians

Foreign

  • Activision Blizzard
  • Electronic Arts
  • Epic Games
  • Nintendo
  • Digital Bros s.p.a
  • 505 Games s.p.a
  • 505 Games s.p.a
  • Reply s.p.a
  • Milestone s.r.l

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Latest news

Microsoft's $70 billion takeover of Activision: the trial of the century - 02/07/2023
  • Microsoft wanted to buy Activision for around $70 billion.
  • Nearly forty countries, including those of the European Union, China and Japan, approved the deal.
  • Activision's market capitalization reached $65.3 billion
  • The FTC sued Microsoft in an attempt to block the deal.
  • Microsoft previously bought ZeniMax for $7.5 billion.
  • Development costs for high-end games such as "The Last of Us Part II" and "Horizon Forbidden West" cost $220 million and $212 million respectively.
  • In some years, these high-end games accounted for up to 15% of Sony Interactive Entertainment's profits.
  • Sony has negotiated exclusivity for the much-anticipated "Final Fantasy XVI", which is not planned for Xbox.
  • Activision's mobile revenues passed the $3.5 billion mark in 2020, representing almost 50% of its total sales
  • Microsoft's share of the mobile gaming market is just 0.3%.
Nintendo's first mobile video game passes the billion-dollar revenue mark - 01/07/2022
  • Nintendo's "Fire Emblem Heroes" mobile video game generates $1 billion in sales
  • Nintendo focused on the operation of its latest console, the highly successful Switch
  • In its last annual fiscal year, Nintendo generated nearly $400 million in revenues from its mobile business
  • Nintendo Switch aims to surpass Wii's record sales
  • The Switch went on sale in early 2017, approaching 110 million units sold

Companies quoted in this study

This study contains a complete overview of the companies in the market, with the latest figures and news for each company. :

Activision Blizzard
Electronic Arts
Epic Games
Nintendo
Digital Bros s.p.a
505 Games s.p.a
Reply s.p.a
Milestone s.r.l

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