A Flourishing Industry: The Rise of Italy's Game Development Sector

Italy's gaming industry has experienced significant growth, with a 50% increase in employees to 2,400 since 2021. This expansion can be attributed to the introduction of a 25% tax credit for game developers in 2021. According to Valerio Di Donato, CEO of 34BigThings, the industry has transformed from a 'desert' to a thriving scene. Thalita Malagò, director general at IIDEA, notes that local administration support and video game acceleration programs have also contributed to this growth. However, the €1m cap per company on tax credits is seen as a limitation, and industry leaders are advocating for an increase to €2m or €3m, or for the cap to be applied per product instead of per company. The Italian government is open to discussing these changes. IIDEA is also pushing for a prototype fund to provide direct financing to game developers, particularly younger teams. One of the major challenges facing Italian game developers is the bureaucratic process of operating a business in the country. Pietro De Grandi, CEO of Strelka, highlights the complexity of calculating employee costs due to numerous factors and frequent changes in tax brackets. Dario Migliavacca, managing director at Ubisoft Milan, agrees that managing taxation and bureaucracy is one of the most difficult aspects of leading a company in Italy. On the education front, there is a lack of specialized courses for game developers, although some public universities and private schools are now offering such programs. Malagò mentions that IIDEA launched a video games student conference to help students understand job opportunities in the industry. The conference drew 400 attendees in person and over 1,000 participants online. One of the participants, Safe Place Studio, developed the debut game Venice 2089, which won best debut game at the Italian Game Awards. The team emerged from the Event Horizon School, which focuses on game development and digital art. However, such courses are rare, and Andrea Leoni, co-founder of BitNine Studios, notes that the infrastructure for game design education is still behind. The real challenge, according to Malagò, is the lack of business development skills among Italian game developers. IIDEA aims to work on building these competencies through acceleration programs. Di Donato emphasizes that making successful games is key to learning how to develop successful games, and that one or two successful studios can spark a larger movement. Italy lacks a breakout success in the gaming industry, with most hit titles developed by international companies using IP from other countries. The country needs a 'unicorn' company, similar to CD Projekt, to attract international interest and develop talent and business expertise. De Grandi points out that it's difficult to find skilled professionals who can help companies scale up, as there are not many big companies to draw from. However, Italian game developers have a unique advantage – the country's rich history, culture, and beautiful landscapes, which can inspire and influence game development. Many developers spoken to expressed a deep love for Italy and a desire to create games that reflect the country's culture. Pietro Rirghi Riva, creative director at Santa Ragione, notes that his studio aims to make quintessentially Italian games while structuring itself as an international studio. Leoni concludes that video games are not yet recognized as an art form in Italy, but the industry is working to change this and be included among the country's renowned arts and cultural achievements.