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      As the global video games industry grows in scale, sophistication, and economic importance, Ireland has an opportunity to strengthen its position as a high‑value European hub for game development, gametech, publishing and live operations.

      Building on established strengths across technology and creative industries, Ireland can capture a greater share of global growth, provided key constraints around talent, scale, finance, and visibility are addressed through a coordinated national approach.


      Executive overview

      The global video games market is entering a new phase of maturity. Value is increasingly generated beyond launch, with live operations, post‑release monetisation, and platform services becoming central to returns.

      At the same time, development costs are rising, studio consolidation is accelerating and governments are competing aggressively to attract and retain high value activity.

      Ireland’s digital games sector is small by global standards but strategically positioned. The sector directly employs 2,400 FTEs and generated over €570m in turnover in 2024, with development, gametech and publishing as the largest sub‑sectors.

      Ireland’s wider digital creative economy and technology base amplify this footprint, providing skills, infrastructure and spill‑over benefits across animation, film, cloud, AI and data services.

      Ireland’s opportunity is not to replicate the scale of the largest gaming hubs, but to specialise: focusing on high value, export-oriented activities where Ireland has comparative advantages while enabling indigenous studios to scale and attract sustained foreign direct investment (FDI).

      Christopher Brown

      Partner, Head of Strategy

      KPMG in Ireland


      Global digital gaming market size

      Graph 1: Video game market revenue worldwide by segment (USD bn)



      Graph 2: Growth indicators


      The Irish games value chain

      The Irish games sector is best understood as an integrated value chain spanning the full lifecycle of digital game creation, distribution and monetisation.

      Firms in Ireland participate across multiple stages from early development and enabling technologies through to publishing, live operations and player engagement.

      This reflects the industry’s shift toward long‑lifecycle, service‑led business models.


      Key areas of growth for the gaming sector in Ireland

      • Game development

        Indie, AA, and co‑development studios responsible for core creative and technical production, including design, engineering, art, audio and IP creation across PC, console and mobile titles.

      • Gametech and development tools

        Providers of game engines, middleware, analytics, cloud infrastructure and software development kits that underpin development, scalability and cross‑platform performance.

      • Quality Assurance (QA), testing and localisation

        Specialist services ensuring game quality, regulatory compliance and adaptation for international markets, languages and platforms.

      • Publishing and commercialisation

        Activities covering funding, project management, marketing strategy and coordination of global releases, increasingly integrated with data‑driven decision‑making.       

      • Distribution and promotion

        Digital storefronts, platforms and promotional channels enabling global reach across console, PC and mobile ecosystems.

      • Live operations and post‑launch support

        Server management, customer support, patching, content updates and community engagement that sustain games over multi‑year lifecycles.

      • Post‑launch monetisation

        Revenue optimisation through subscriptions, downloadable content, in‑game purchases and advertising, particularly in free‑to‑play and live‑service models.

      • Player communities and point of use

        End users, streaming platforms, esports and online communities that influence visibility, engagement and long‑term commercial success.


      Key players active across Ireland’s digital games value chain


      1. Game development

      • Black Shamrock
      • DIGIT, a Scopely Studio
      • StoryToys
      • Larian Studios
      • VOID Interactive

      2. Gametech

      • Havok
      • Demonware
      • Unity Technologies
      • Amazon Web Services
      • Microsoft Azure
      • Google Cloud

      3. QA, testing & localisation

      • Keywords Studios
      • Electronic Arts Galway
      • Activision Blizzard
      • Lionbridge Games
      • Welocalize

      4. Publishing

      • 2K Games
      • Activision Publishing
      • Electronic Arts
      • Playrix

      5. Distribution & promotion

      • 2K Games
      • Riot Games
      • Google / YouTube
      • Apple App Store
      • Google Play

      6. Post-launch operations

      • Demonware
      • Electronic Arts Galway
      • Keywords Studios
      • Riot Games
      • Amazon Web Services

      7. Monetisation

      • Playrix
      • AppLovin
      • Google AdMob
      • Meta

      8. Player engagement

      • Riot Games
      • Twitch
      • YouTube Gaming
      • GamerFest
      • Nativz

      Illustrative, not exhaustive; several companies operate across multiple stages of the value chain.


      Global context: why games matter to Ireland’s economy

      Video games have become one of the world’s largest entertainment industries, surpassing film and music combined. Growth is being driven less by unit sales and more by longevity and recurring revenue.


      How digital gaming revenue streams are evolving

      • Long‑running titles supported over 10+ years through live services
      • Recurring monetisation models (subscriptions, battle passes, DLC and in‑game advertising)
      • Cloud infrastructure, cross‑platform play and creator‑led ecosystems
      • Consolidation and acquisition as publishers seek scale, IP depth and operational efficiency

      These trends favour locations such as Ireland, which can combine technical capability, creative talent, regulatory stability and access to international markets.


      Ireland’s gaming strengths

      A strong technology and infrastructure base


      Ireland’s established role as a European technology hub underpins the gaming sector. Global leaders in cloud computing, software, AI and digital platforms provide infrastructure that is increasingly critical to modern games, particularly for live operations, multiplayer services and data‑driven monetisation.

      This enables Ireland to compete for post‑launch operations, live services and gametech, segments characterised by stable employment, recurring revenue and long project lifecycles.


      Deep creative and digital spill‑overs


      Ireland’s award‑winning animation, film and digital creative sectors provide adjacent skills in storytelling, visual design, audio and production management.

      Cross‑pollination between games, animation and film supports higher‑quality IP development and reduces talent risk, particularly for smaller studios.


      Lighthouse Studios, a Kilkenny-based studio, has grown into a significant international production partner, delivering animation for globally recognised titles including Rick and Morty, The Cuphead Show! and The Bob’s Burgers Movie, while supporting a substantial cluster of specialist animation employment in the south-east.


      Proven FDI track record


      Ireland has a decades‑long track record of attracting and retaining multinational investment in high‑value digital activities. Existing gaming‑related FDI spans publishing, localisation, QA, gametech and live services, providing anchors around which the ecosystem can deepen.


      Attractive policy foundations


      Recent extensions to the Digital Games Tax Credit and Ireland’s broader R&D incentive framework strengthen the country’s competitiveness, particularly for content‑rich and technically complex production.



      Key challenges to address

      • Talent and cost pressures

        Talent is the most frequently cited constraint. Competition from multinational tech employers, housing costs and international salary arbitrage make it difficult for Irish studios to attract and retain experienced developers, particularly in engineering, live operations and senior creative roles.

      • Scale and financing gaps

        Games are capital‑intensive, high‑risk and hit‑driven. Ireland has limited access to scale‑appropriate funding instruments, including bridge finance and risk‑sharing mechanisms, which constrains indigenous firms from moving beyond one‑off projects.

      • Ecosystem maturity

        Ireland’s ecosystem is still developing relative to European peers such as the UK, France and Poland, which combine tax incentives with dedicated funds, training pipelines and global market visibility.


      Strategic opportunity areas

      Ireland is best positioned to focus growth in four mutually reinforcing areas:

      • Live operations and post‑launch services

        Live ops, community management and post‑launch monetisation offer long‑term revenue and employment stability. Ireland’s cloud infrastructure, analytics capability and multilingual workforce provide a strong foundation.

      • Gametech and platforms

        Middleware, tools and services scale more predictably than content‑only studios and attract higher investor appetite. Ireland can leverage its software and AI strengths to deepen this segment.

      • High‑value development and co‑development

        Rather than volume production, Ireland can specialise in technically complex or creatively distinctive development, co‑development and IP‑rich projects aligned with global publishers.

      • Publishing and European market access

        Ireland’s regulatory stability, EU access and English‑speaking workforce support growth in publishing, marketing and localisation, particularly as platform and advertising regulation evolves.


      Looking ahead: from potential to platform

      Ireland’s next phase of growth in digital games will depend on moving from a collection of capable firms to a cohesive national ecosystem. This requires:

      • A clear talent strategy spanning education, international hiring and mid‑career upskilling
      • Targeted financial tools that recognise the risk profile of games IP
      • Coordinated international promotion and ecosystem branding
      • Cross‑sector alignment with animation, film, AI and wider digital policy

      With focused execution, Ireland can establish itself not as a large‑scale games producer, but as a high‑value, resilient and globally connected gaming hub—capable of sustaining indigenous growth, attracting differentiated FDI and capturing the next decade of digital entertainment opportunity.


      Get in touch

      If you would like to discuss this analysis, please get in touch with our team.

      We would be happy to discuss your specific requirements and support your decision‑making.

      Christopher Brown

      Partner, Head of Strategy

      KPMG in Ireland

      Byron Smith

      Associate Director, Strategy

      KPMG in Ireland

      Muireann Mullane

      Manager

      KPMG in Ireland

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