Swedish games industry revenue hit $3.3 billion in 2023

Swedish games companies collectively generated SEK 34.6 billion ($3.3 billion) in domestic revenue in 2023, outperforming industries like fashion and iron ore exports in the country.

According to the Swedish Game Industry Association’s Games Industry 2024: Game Developer Index, total revenue saw a 6.4% rise over 2022, though was “dulled” by the euro’s increasing value compared to Swedish krona.

Domestic revenue across Swedish games companies has nearly doubled over the last five years, up from a collective SEK 17.8 billion ($1.9 billion) in 2019.

A rising industry

The report said that “the Swedish games industry stands strong”, with the majority of games companies turning a profit despite falling access to capital.

The number of games companies continued to grow last year, albeit less so than in recent years prior. There were a record 1,010 games companies in 2023 employing a total of 9,089 employees, both up 8% over 2022.

That’s almost double the 586 companies that existed in Sweden in 2019. The ratio of women in these companies has also grown from 21% in 2019 to almost 24% in 2023.

Last year there were 15,792 employees in Swedish companies abroad, though this was down 4% from 2022.

“2023 ought to have been a really bad year for Swedish game companies,” said the Swedish Games Industry Association managing director Per Strömbäck.

“But it turned out to be a new record year. Employment increased. So did revenue. And the number of women. The increases weren’t as big as some previous years, but nonetheless: all-time high.”

Foreign vs domestic

For the past three years, Swedish companies’ revenue in foreign subsidiaries has outpaced domestic revenue, generating almost SEK 56 billion ($5.1 billion) in 2023, a rise of 733% since 2019.

The report noted there are greater challenges at “a local level”, with fewer investments and acquisitions, more industry players selling than buying, and Swedish employees hit with layoffs like much of the industry at large.

Meanwhile, games companies in the country paid SEK 1.8 billion ($165 million) in corporate tax on their profits and another SEK 1.9 billion ($174.2 million) in payroll taxes during 2023.

Players contributed SEK 1.7 billion ($155.8 million) in VAT when purchasing games, giving Sweden’s treasury a total SEK 5.4 billion ($495 million) for the year because of this industry.

“2023 was a year when many companies restructured and the media reported on setbacks in the industry,” said the Swedish Games Industry Association head of analytics Johanna Nylander.

“That’s why getting figures on how the industry is still growing feels particularly good.

“Despite fewer investments and poorer access to capital, the Swedish game development companies are stable.”