Michael Metzger (Drake Star) on Europe as a Gaming Location
How do industry executives rate Europe's position in the global market? We spoke to Michael Metzger, Managing Partner at Drake Star, to find out.
– 2 min read
The European games market is large and varied, but how does its level of competitiveness compare with that of the USA and Asia? So, how are companies dealing with these challenges? This series of interviews features numerous executives answering all these questions. We interviewed Michael Metzger, Managing Partner at Drake Star (US/GER).
GamesMarkt: What is your opinion of the current state of the European games market?
Michael Metzger: "Many of the world's leading gaming companies are headquartered in Europe, and the region will remain a key hub for game development. Finland’s Supercell is widely regarded as one of the most admired mobile game developers globally, while France’s Voodoo has innovated the mobile games market. Poland’s CD Projekt Red is Europe’s most valuable publicly listed gaming company, known for its highly successful PC and console titles. Several top European developer brands, including Ubisoft, Embracer, and Stillfront, have faced challenges post Covid, although there is optimism for a recovery in the medium term.
Europe offers a deep pool of highly skilled talent at generally lower costs than North America, supported by tax incentives and development grants in the UK, several Nordic countries, and to a lesser degree in Germany. As one of the world’s largest gaming markets, Europe sees Germany, the UK, and France generating the highest revenues in the region. With a large and dedicated player base, spending is expected to continue increasing in the years ahead."
GamesMarkt: Is Europe able to compete with the other major markets, particularly North America and Asia?
Michael Metzger: "Europe is well positioned to continue producing highly successful titles across all gaming platforms in the years ahead, supported by its highly skilled talent base and decades of development expertise. However, we expect studios in Asia, particularly in China, to keep expanding their global presence and increasing their share in Western markets. China offers a deep pool of skilled developers with very strong work ethics at a fraction of Western labor costs. The number of Chinese mobile games that entered the top 100 grossing titles over the past year is remarkable. Looking ahead, it is likely we will see many more high-performing PC and console games from China, building on the success of Black Myth: Wukong."
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