Toronto’s growing gaming ecosystem

The global gaming industry is one of the few that is enjoying continued success. Technological developments and improved connectivity are two of the major factors that have helped the industry go from strength to strength in recent years.

The rise in gaming development has also helped a variety of other industries including the parts and manufacturing businesses that are required for hardware development, and the gamification of online services has helped with significant online migration.

The casino industry is one of the biggest winners of the boom in the gaming sector, and according to betting expert Vlad Grindu, many Canadian gambling sites now offer some of the top online gambling gaming experiences on the market.

So how is Toronto’s gaming sector measuring up in a tough financial climate?

Gaming in Canada

Video games have come a long way over the last forty years and have transformed from a fun and exciting new pastime to a multi-billion dollar industry.

A 2021 survey discovered that the Canadian video game industry was worth $5.5 billion to the country’s GDP. More than 60% of Canadians regularly play video games and of the companies operating here, three-quarters are Canadian-owned.

The industry is projected to show continued growth that could result in exceeding a value of $10 billion by 2027, with an increase of 35% in active video game businesses in Canada between 2019 and 2021 alone.

Studies showed that the country had more than 32,000 people employed in the industry in 2021, and this figure will have grown with the industry in the years since. As well as those directly employed by video game businesses, other areas of employment are also affected including retail and supply chain networks.

A similar percentage of Canadians who enjoy gaming also enjoy gambling, and the online gambling industry’s state-of-the-art gaming options give consumers an experience that rivals, and often surpasses that of retail casino betting.

The online betting industry contributes a significant portion of Canada’s $12.5 billion gambling industry, and this is set to continue to grow with mobile technology improving.

Toronto’s gaming development sector

While Montreal leads in Canada’s gaming ecosystems with more than 500 game companies, Toronto’s 300 is still extremely impressive.

Events including the XP Game Developer Summit that took place at Toronto’s Hyatt Recency in mid-June, welcome people from around the world and help to put Toronto on the map.

The event allows industry professionals to meet, create connections, and learn more about important industry factors including video game IP. Guests can listen to lectures from industry experts, take classes and workshops, and enjoy panels that provide valuable insights into how to achieve success in this competitive industry.

Toronto’s potential for growth

Canada’s attitude to the online gaming industry is one of the reasons why Toronto is in such a good position. Its early acceptance of iGaming has allowed the online gaming and betting industries to thrive.

One of the most significant benefits to video game developers that operate within Canada is the tax breaks. Gaming developers can take advantage of tax credits, with as much as 40% of salaries being reinvested back into the company. 

Because of this, many developers have set up in cities like Montreal, Vancouver, and Toronto, including Ubisoft, Cubix, and Big Viking Games.

Toronto’s 5G coverage also means that the majority of its citizens have access to high-speed internet connection which has been a huge boost to the mobile gaming development sector.

Smartphones and other mobile devices are being targeted by developers who are dedicating a lot of time and money to apps and sites that can provide gamers with a high-quality experience.

Previously, game developers were limited by the devices being used and their internet connections. Games that were too advanced would result in lagging and completely ruin the gaming experience. 

The proliferation of state-of-the-art mobile device use and access to high-speed Wi-Fi means that more people can enjoy the best games wherever they are. 

It also means that developers can implement AR, VR, and AI technology into new titles without the fear of it holding the gameplay back.

Challenges that Toronto’s gaming sector faces

All industries face challenges and the Toronto gaming industry is no different. One of the biggest challenges is industry saturation, with the fear that it could become the victim of its own success.

The gaming market is very fast-paced and with emerging technologies opening up new opportunities, thousands of new games enter the market every year.

While there are a number of platforms for developers to compete in and consumer choice is always welcomed, market saturation can make it difficult for developers and their products to stand out.

With free-to-play apps also growing in popularity, developers must look at models that sustain profitability including in-game ads and purchases. However, both of these models can lead to customer frustration, so finding a good balance is key to customer satisfaction and running a profitable business.

Consumers are no strangers to rising costs with food and fuel prices spiraling year-on-year. The gaming industry is not immune to rising costs within the tech industry, from the components required to make gaming devices, to transportation and logistics.

As well as rising costs and tough competition, game developers must also work within regulatory frameworks. The online gambling industry is strictly regulated, and even some aspects of regular games are coming under scrutiny.

Toronto’s gaming industry’s positives far outweigh the negatives at present, and this looks set to continue with consumer trends moving toward mobile gaming. 

The vast number of gaming companies in Toronto, and Canada as a whole, puts Canadian consumers in an enviable position with lots of homegrown options to choose from.

The decision of the gambling industry to embrace gaming aspects has been instrumental in the successful online and crypto gambling revolution. Retail casinos and betting facilities remain popular, but the quality of new and traditional casino games and slots makes it easier for bettors to enjoy a flutter at their own convenience.

As more industries understand the popularity of gaming, it won’t be long before we start to see other synergistic relationships pop up.