Mary Upton (Dublin South Central, Labour)
Link to this: Individually | In context

Question 101: To ask the Minister for Enterprise, Trade and Innovation if he will provide an overview of the video game industry here; if he will provide a list of the companies located here working in this industry; the total employment in the sector; the estimated net benefit to the economy; and if he will make a statement on the matter. [30654/10]

Mary Upton (Dublin South Central, Labour)
Link to this: Individually | In context

Question 102: To ask the Minister for Enterprise, Trade and Innovation his views on whether the video game industry could benefit from direct oversight by a semi-State agency in order to assist growth in this market; and if he will make a statement on the matter. [30655/10]

Mary Upton (Dublin South Central, Labour)
Link to this: Individually | In context

Question 103: To ask the Minister for Enterprise, Trade and Innovation the supports for video game companies here; the way in which these compare to our international rivals, particularly Canada, France and the United Kingdom; and if he will make a statement on the matter. [30656/10]

Batt O'Keeffe (Cork North West, Fianna Fail)
Link to this: Individually | In context

I propose to take Questions Nos. 101 to 103, inclusive, together.

The industrial development agencies, Enterprise Ireland and IDA Ireland, and the City and County Enterprise Boards, which are under the aegis of my Department, are the bodies responsible for investment and enterprise development across a broad range of sectors, including the video game and related industries. The majority of Enterprise Ireland clients in the indigenous games sector are established less than 10 years and the potential for growth is strong. Additionally, a growing number of start-up companies are also focused around the Internet.

Statistics for the video game sub-sector are incorporated within Enterprise Ireland in the broader digital sector encompassing communication, health, media, entertainment, education, and financial companies. The digital sector consists of approximately 350 Enterprise Ireland client companies. Approximately 60 companies have a high profile and have closed significant deals with large telecom operators and media/entertainment companies. An opportunity exists to deliver supports to management teams on business opportunities and exploit the key areas of high potential growth for the next 3-5 years.

Irish companies in the games sector include KORE, Zamano, Selatra, Trust5, Silly Goose, Tribal City, Dark Water, Steve Trout & Smith, Red Wind, Marino Software, Ideal Binary, Mercury Girl, Eclipic Labs, Blue Aura, Magnosphere and Breakout Games. Multinational firms purchased a number of other Irish companies. An emerging trend is the massively multiplayer online role-playing games, casual games and funware games and Enterprise Ireland is working closely with start-up companies in these areas. The business models for the majority of social gaming is Freemium, which means initially free to use with revenue coming from virtual gifts to enhance game play and with a fee for the higher levels or more intense play. Advertising is also an additional revenue stream.

Enterprise Ireland has funded or co-funded the majority of incubator and hub space in Ireland for early stage business. Incubator space for start-ups in the Gaming/Entertainment is focused in Dublin and provided by the Digital Depot and Media Cube. Both centres provide spaces for over 50 digital related companies.

Enterprise Ireland is the agency tasked with supporting indigenous companies across a variety of sectors and in relation to the Digital Sector, the agency provides funding support to third level institutions, start-up and established companies. Specific support to individual companies includes research and development grants for technology development, support for management development and key hires, support for implementing lean processes, for market assessment and for attending specific trade shows and support for working with Business Accelerators in key markets. At the start up stage, Enterprise Ireland can invest by way of equity in the companies and over the last number of years a vibrant venture capital market has been developed to invest in early stage start-ups. Overall, the agency's comprehensive suite of supports compares favourably with competitor countries.

In relation to foreign owned companies, Ireland is well positioned to become a leading player as an international centre for games companies. The marriage of computing communications, content and consumer electronics is creating many opportunities, but is also blurring the boundaries between market sectors and is proving to be a powerful force for innovation and change. Of the overseas companies located in Ireland, many work across multiple platforms. A number of companies are publishers setting up localisation and support centres for their European games sales such as, companies like Microsoft and Activision/Blizzard. Indeed, in the case of GALA Networks, they have set up their European publishing Headquarters. There is also a strong presence from casual games companies such as PopCap, BigFish, and Crowdstar. Joining this list is GameStop, which recently acquired the Irish company Jolt. Other companies include Intel / Havok and Electronic Arts.

IDA Ireland offers a wide range of supports both financial and non-financial to companies in the games industry seeking to establish in Ireland. The agency monitors competitor countries such as the UK, Canada and France and their product offerings and the Agency is confident that Ireland is an attractive location for overseas games companies to service and grow their European and international operations. There are approximately 20 overseas and indigenous companies employing 1,500 people in the video games industry sector representing growth of more than 400% since 2002 and the potential for future growth continues to be strong.