Italian Game Industry Sees Rapid Expansion

The Italian game industry has witnessed a remarkable surge in growth, with a 50% increase in employees since 2021, reaching a total of 2,400. Although this number may seem modest compared to other countries, it marks a significant milestone for Italy's previously underdeveloped gaming sector. According to Valerio Di Donato, CEO of 34BigThings, the introduction of a 25% tax credit for game developers in 2021 has been a catalyst for this growth. Thalita Malagò, director general at IIDEA, notes that local administrations are also supporting video game acceleration programs, providing funds and mentorship to startups. However, industry leaders like Luisa Bixio, CEO of Milestone, and Antonio Cannata, CEO of Stormind, emphasize that the current tax relief is insufficient to attract significant investment from international organizations. The biggest issue is the €1m cap per company, which is hindering huge investments. IIDEA is pushing for a prototype fund to provide direct financing to video game developers, especially younger teams. Moreover, Italian game companies face bureaucratic challenges, with complex taxation and high costs. The education system also lacks specialized courses for game development, with few institutions like Event Horizon School offering programs in game design and digital art. The real challenge, however, is the lack of business development skills and experience in running sustainable games companies. Italy is still waiting for a breakout success, with companies like Milestone and Ubisoft Milan developing hit titles based on foreign IP. The country needs a big studio with international success to attract talent and develop business expertise. Despite these challenges, Italian game developers have a unique advantage – the country's rich history, culture, and beautiful landscapes, which can inspire quintessentially Italian games. Developers like Pietro Rirghi Riva, creative director at Santa Ragione, are proud to create games that reflect their Italian heritage, while also catering to an international audience. The goal is to make video games recognized as a form of art in Italy, alongside other esteemed industries like fashion, cinema, and the arts.