Cyprus is ranked first globally per capita for the number of video game companies, industry revenues and mobile game installations, according to the Cyprus Video Game Industry Report 2025, published by the Cyprus Game Makers Association (CYGMA) on Tuesday.
The report records more than 400 video game companies operating in Cyprus, revenues of more than €3.2 billion in 2025 and more than 4,300 people employed in the sector. Games published by Cyprus-based companies also rank third globally for mobile downloads.
In a foreword to the report, Deputy Minister of Research, Innovation and Digital Policy Nikodemos Damianou described game development as being at the forefront of the digital economy.
He said the sector could create high-value jobs, provide young people with opportunities to build their future in Cyprus, attract talent from abroad and generate knowledge and expertise that benefit the wider economy.
Industry growth accelerates
According to CYGMA Director General Andrey Ivashentsev, more than 400 studios and companies linked to the industry now operate on the island, ranging from major international companies to independent developers and specialised businesses.
The report says the video game industry in Cyprus grew significantly between 2019 and 2024. The number of companies increased from 169 to 393, a 133% rise, while employment increased from 1,438 to 4,320, representing 200% growth.
The strongest annual growth came in 2022, when employment increased by 43% and the number of companies rose by 24.3%. In 2024, the number of companies increased by 8.3%, while employment rose by 6%.
The turnover of game development and publishing companies increased from €1.26 billion in 2019 to €4.35 billion in 2024. The sector’s contribution to GDP also rose from around €300 million to €1.15 billion, increasing its share of the economy from 1.3% to 3.3%.
Mobile games lead the sector
For 2025, the report estimates total video game industry revenues at more than €3.2 billion. Around €1.8 billion came from mobile games, while approximately €1.4 billion came from PC and console games.
Cyprus-based companies released 571 new mobile games in 2025, generating a combined 615 million downloads. Cyprus ranks third worldwide for mobile game downloads and 11th for revenue from in-app purchases.
However, most of the sector’s revenue came from games released before 2025. Of the approximately €1.8 billion generated by mobile games, only around €66 million, or 4%, came from titles released during 2025.
For PC and console games, companies released 36 new titles in 2025 and sold approximately 1.5 million copies. Of the roughly €1.4 billion in total revenue, about €200 million was generated through Steam, while the remaining 86% came mainly from direct-to-consumer sales and other channels.
Talent and funding remain challenges
The report attributes the industry’s growth partly to its strong export orientation, with almost everything produced in Cyprus targeting players outside the island.
Most Cypriot studios also focus on mobile games.
Despite the rapid expansion, the report identifies shortages of skilled workers and early-stage funding as key challenges for the video game industry.
Cypriot universities currently produce only three to six graduates each year from specialised video game development programmes, while industry demand is estimated at between 100 and 300 entry-level hires annually.
CYGMA said it is working with Cypriot universities to introduce specialised video game development programmes. According to the report’s estimates, these could eventually produce between 45 and 85 additional graduates each year who would be ready to enter the industry.
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