Skip to main content

As global companies such as Sony and Nintendo invest in Canadian studios, development takes off across the country

Open this photo in gallery:

In the past five years, foreign companies have made major investments in video game development studios across the country.iStockPhoto / Getty Images

When global companies invest in Canada’s video-game industry, it doesn’t just lead to fund new games for players to immerse themselves in. In fact, according to Kay Wong-Alafriz, chief financial officer of Vancouver video game developer Kabam, which was acquired by South Korean gaming giant Netmarble in 2016, that type of investment has the potential to shape the future of Canada as a whole.

“When we think about foreign investment into Canada, it’s always been about opening up opportunities for Canadians,” Ms. Wong-Alafriz says. “It’s a two-way street. What you give to Canadians in terms of economic prosperity, it brings back diversification, it brings back stability, it brings back economic sustenance to the country.”

Trent Oster agrees. In 1995, he co-founded BioWare, the Edmonton-based video-game developer that was subsequently acquired by industry giant Electronic Arts. Then, in 2009, he and BioWare alumni Cameron Tofer founded Beamdog, a developer with the mission of making gaming more accessible for Canadians. So, he has seen how Canada’s video game industry has grown in recent years—largely thanks to foreign direct investment.

“The biggest change has been the growth of the industry worldwide and the huge increase in the scale of the companies involved,” Mr. Oster says. “In 2009, there were a few larger companies, some mid-sized studios and a few smaller studios in Canada and that was about the extent of Canadian game development. Today, every major city has a number of smaller studios fighting hard to succeed and the larger studios can employ thousands of people in the city. The success of direct-to-consumer digital sales has created an opportunity for small game developers that simply did not exist before.”

This is something Mr. Oster has seen first-hand. In 2017, the company moved into an 11,000-square-foot space, tripling headcount from 24 to 75 employees. Perhaps most notably, in April, 2022, Beamdog was acquired by Aspyr, a subsidiary of Sweden-based Embracer Group, and one of the world’s biggest gaming companies.

Open this photo in gallery:

"What you give to Canadians in terms of economic prosperity, it brings back diversification, stability [and] economic sustenance to the country," says Kay Wong-Alafriz, chief financial officer at Kabam, which was acquired by Netmarble in 2016.iStockPhoto / Getty Images

In many ways, Beamdog’s trajectory mirrors the growth that has been happening in Canada’s wider gaming industry, fueled by substantial foreign direct investments from international companies looking to recognize the country’s home-grown talent and innovation, while also contributing to Canada’s economy, creating new jobs and driving innovation, not just in gaming technology and software engineering, but in other industries, including medical imaging.

This is said to be true in Quebec, which is the third-largest video game market in the world, according to Nathalie Jasmin, studio director of Ubisoft. The province’s gaming industry has grown by 35 per cent since 2019, thanks in part to a roster of big names who have put down roots in Montreal. These include Sony’s PlayStation studios, which acquired video-game developer Haven Studios Interactive earlier this year, and U.S.-based New World Interactive, which announced it would be building a new studio in the city in 2020. And of course, France-based Ubisoft has been a major player in Quebec (and across Canada) for the past 25 years, opening eight studios currently employing 5,000 people throughout the country.

When we think about foreign investment into Canada, it’s always been about opening up opportunities for Canadians. It’s a two-way street. What you give to Canadians in terms of economic prosperity, it brings back diversification, it brings back stability, it brings back economic sustenance to the country.”

And it’s not just happening in la belle province. This dynamic has played out time and time again throughout the country. Halifax-based Alpha Dog, which is known for games including Mighty DOOM and MonstroCity: Rampage, was acquired in 2019 by ZeniMax/Bethesda, which was in turn acquired by Xbox in 2020. In 2021, Japan-based Nintendo acquired Vancouver’s Next Level Games, which had already been working on Nintendo properties, including Luigi’s Mansion 3 and Mario Strikers Battle League.

Earlier this year, Irish video game services company Keywords Studios acquired Vancouver-based Smoking Gun Interactive, which is known for games such as Freefall Racers and Phobies.

In short: The growth of Canada’s gaming industry, supported by foreign investment, is much more than fun and games.

“With this support, Beamdog has a more stable future and the springboard on which to grab great future success,” says Mr. Oster. “The acquisition also means that this Edmonton-grown games studio can stay in Edmonton and will continue to be an active part of the local games industry as we continue our local growth story.”


Advertising feature produced by Globe Content Studio with Invest in Canada . The Globe’s editorial department was not involved.

Interact with The Globe