The Development of the Swedish Game Industry - The Video Game Industry: Formation, Present State, and Future - page 118

programs have been established for enthusiastic students who want to
be part of the industry. There has been a political interest and willing-
ness to support “new” cultural industries like the game industry (e.g.
Astudillo 2008). This willingness can also be found internationally where
politicians are eager to support the game industry. In Sweden and other
countries there have been discussions about implementing tax reductions
for game companies (Sundberg 2008; Motion 2007/08:Sk293). 2 In the
Swedish context it sometimes becomes paradoxical: on the one hand, the
industry is expanding and lucrative, but, on the other hand, it needs help
and subsidies.
The Swedish case might be a relevant research object that can refl ect
the situation of game developers in smaller countries and also expand the
understanding of the game development industry as a whole. Relatively
little has been written about the conditions for game developing studios
and the economic reality for these companies. It seems like the industry and
its history have been treated somewhat perfunctorily. Within Game Studies
it is, for example, not uncommon that scholars have to rely on journalistic
material when it comes to facts about the industry development.
The research that actually has been done about the gaming industry has
often had a general macro-perspective and a focus on the hardware devel-
oping companies. Less interest has been directed towards the game devel-
opment part of the industry. Sadly this follows the general tendency within
computer history research as a whole where hardware development is by far
more explored then software development (Akera and Nebeker 2002, 3).
There is also a bias toward companies and industry in the U.S. and to
some extent Japan. Little research has been done about the game industry
outside these large economies and these historically leading game markets.
The problem is that the game industries of Japan and the U.S. have unique
properties. Therefore, results made in studies of these industries and mar-
kets cannot always apply to other countries. Game developers from smaller
countries will have small domestic markets and few actors in support
industries. There will also be a physical and cultural distance to the major
markets for developers to overcome. Developers will be force to adapt and
to create games almost exclusively for the international market. They will,
for example, exclusively have to search for fi nancing and contracts from
foreign publishers.
Swedish companies are facing certain barriers that seem to rise from
their position within the global game industry. They seem to have problems
keeping the rights to the intellectual properties (IPs). These IPs are often
transferred over to, or are owned by, large international publishers. This
makes the game developers economically vulnerable. Publishers can, for
example, choose to terminate contracts on short notice. Game developers
will quickly have to reduce the workforce if a contract is withdrawn. Low
profi ts suggest that game development can be a problematic low-return
industry overall.