The computer game industry could lose up to 90 million euros in turnover thanks to the coronavirus crisis. this is often one among the most conclusions of the survey administered by the Spanish Association of Companies Producing and Developing Video Games and Entertainment Software (DEV) to seek out the impact of the health crisis within the sector.
Among the most results, including the cancellation and/or postponement s regarding agreements with publishers. 26% of the surveyed entities affirm that cancellations and/or postponements have already occurred regarding agreements. This percentage rises to 40% within the case of medium-sized studies (from 11 to 50 professionals), which are the foremost affected segment from now of view.
Regarding the estimated losses in billing thanks to the Covid-19 crisis, 32% of respondents estimated losses in their billing thanks to the coronavirus crisis. 13% fear losing up to twenty of their turnover. 4% risk seeing quite half their turnover disappear (a percentage that reaches 7% within the case of studies with but five professionals). On the opposite hand, at the instant, only 9% of the surveyed studies decide to reduce their team.
Computer Game Industry, Another fact to spotlight is that for an outsized 46% if the crisis lasted quite three months, their business would be at risk; the percentage that drops to 11% within the case of larger companies, with quite 50 professionals on their staff.
Among the foremost immediate effects that the pandemic has on their business, professionals highlight the cancellation of major events and meetings, resulting in the loss of opportunities with publishers and investors and therefore the consequent decrease in funding, additionally to contacts with the press to publicize their games and projects.
Other collateral effects are going to be the fixed costs they need to face, like VAT, Social Security or taxes., The stoppage of investments and bank financing, delays within the processing and payment of public aid, like that of Red.es, and therefore the loss of clients and the revocation of projects, for those studios that employment for third parties or offer services.
11% Of Turnover In 2018
Taking under consideration the results of the survey, DEV estimates that the impact of the crisis generated by the Covid-19 pandemic on the videogame development industry would translate into an immediate, short-term loss of 90 million billing euros.
This amount is like 11% of what the industry billed in 2018. additionally, they assess a big slowdown in annual employment growth, like 500 jobs that might stop being generated in 2020; At now, the association recalls that 65% of the turnover of production companies comes from exports.
In addition, they make sure that if the health crisis lasts quite 3 months, there’s a risk of business continuity for 46% of the industry, that is, 240 companies. during this case, they value the direct loss of a 3rd of the sector’s turnover and employment, that is, up to 270 million euros and a couple of,300 jobs.
These estimates, they warn, refer only to the Spanish developer and producer industry and “do not include the damage caused by the sale of video games thanks to the closure of specialized stores and therefore the stagnation of consumption.”
To avoid this example, the Association involves the payment of aid and subsidies already promised to not be paralyzed and for the quota of the self-employed to be reduced and payments to be made more flexible. additionally, they demand guarantees that the road of guarantees for a worth of 100,000 million that’s contemplated within the decree approved by the govt reaches SMEs and therefore the self-employed.
“We will now need quite ever the support of national and international investors, the establishment of the tax incentive for the assembly of video games, modifying article 36.2 of the Corporation law,” they affirm.