Canada's video game industry sees 9% decline in companies but salaries rise

The number of video game companies in Canada fell by 9% to 821 in 2023-24, down from a peak of 899 in 2020-21. Most closures involved small independent studios with fewer than 25 employees. Despite the decline in companies, the industry remains stable, with a 21% increase in average salaries to $102,000. However, there was a 3.5% drop in full-time jobs since 2021, totaling 1,250 fewer positions. The report highlights a disparity between local and foreign-owned companies, with 76% of respondents being Canadian-owned but foreign firms employing 88% of the workforce. The industry continues to face challenges, including funding shortages for smaller developers.