Gaming is regarded as a part of everyday society and is no longer seen as a gimmick. Additionally, the Covid pandemic fuelled the gaming market, as many non-gamers picked up a controller for the first time – it was one of the few sources of entertainment during those times.
The gaming industry isn’t a small world of a few kids playing games before homework anymore. It has boomed into a vast and successful market worth almost £143 billion in 2024 alone. The United States and China are in constant competition each year to claim the top gaming industry spot. However, in 2024, China managed to overtake the US with a whopping £36 billion and the highest player count – over 700 million gamers.
More and more people are looking to start gaming businesses. However, it is crucial to consider the country you choose to launch in, as some – like China – already offer a head start in resources compared to others.
Why Does Location Matter For Gaming Businesses?
Choosing the right location for your business is a strategic decision. A region offering vast talent, ample resources, strong connections, and funding can directly influence the scale of your success.
Some of the most important factors to consider when choosing a location for your gaming business include:
- Potential Customer Base: It’s crucial to evaluate if the region has a large gaming population.
- Infrastructure: The area must have the necessary resources for gaming, such as high internet speeds.
- Network: Does the gaming industry or government in this area offer incentives or funding for gaming start-ups?
What Are The 5 Top Countries For Starting A Gaming Business?
Here are the countries that stand out as the top choices for starting a gaming business:
1. United States
The United States has long been a global leader in gaming. It offers many resources for game development and is home to top publishers such as Electronic Arts, Activision Blizzard, and Microsoft.
There are several gaming hubs in the US, with Silicon Valley – also a thriving tech centre – making it easy to find top talent.
Gaming businesses choose America due to its incredibly large market of over 200 million gamers. This means your company has a massive consumer base ready to play your games. Another attractive reason is the strong investment opportunities for start-ups, making funding and growing your business much easier.
Drawbacks of the US:
- Operations: Extremely high operational costs.
- Fierce competition: Only truly unique ideas tend to stand out.
2. China
China’s mobile gaming sector has become a dominant force in recent years. Cities like Shanghai, Beijing, and Shenzhen are development hubs, with many businesses choosing to set up there due to robust support for start-ups.
The customer base in China is unparalleled, with more than 600 million gamers – making it easier to reach potential players. Leading mobile gaming companies like Tencent are based in China, offering valuable insight into what works in the region.
Drawbacks of China:
- Strict social norms must be followed – your games need to align with these expectations.
- The government enforces strict regulations and censorship, which can be difficult to navigate.
3. Canada
Canada is becoming an increasingly popular destination for gaming businesses, largely due to the government’s supportive stance. Tax incentives and funding programmes make it a strong environment for start-ups.
Studios like Ubisoft in Montreal are known globally, and Canada is home to top universities, making it easy to find educated talent.
Canada is also recognised for its slower pace of life and high quality of living – making it an attractive place to build a gaming business.
Drawbacks of Canada:
- Smaller Market: Compared to China and the US, the market is relatively smaller, so you’ll need a strategy for reaching international players.
4. Japan
Japan needs no introduction when it comes to gaming. As the birthplace of Nintendo, Sony, and Square Enix, Japan has played a defining role in shaping the global gaming landscape.
Japan is known for its uniqueness in games, offering standout gameplay mechanics, intricate storylines, and polished graphics.
The influence of Japanese games makes it an attractive option for business, and the local market is enthusiastic about both console and mobile gaming – offering diversity in consumer interest.
Drawbacks of Japan:
- Taxes: The country is known for imposing high taxes.
- Regulatory Environment: Regulations can be complex and tricky to navigate.
5. South Korea
South Korea is globally recognised for its success in esports, which has helped drive its gaming development industry.
The country has highly skilled game developers thanks to a strong educational focus, particularly in STEM fields.
The South Korean government is also supportive, providing funding and strong infrastructure. It also boasts some of the fastest internet speeds in the world – a major benefit for game developers.
Drawbacks of South Korea:
- Saturated Market: The market is crowded, and success here requires a deep understanding of local tastes and a truly unique idea to stand out.
The Global Gaming Industry in 2025: Trends to Watch
There are key trends booming in 2025 that could influence your decision on where to launch your gaming business. The most popular trends include mobile games, esports, and virtual reality.
What trends are shaping the market?
- Mobile Gaming: Many people are switching from consoles and PCs to mobile platforms.
- Esports: Competitive gaming continues to attract the largest investments globally.
- Technology: AI and VR are transforming the gaming space. This sector is not yet saturated, leaving room for new innovation.
