The 'Cyprus Video Game Industry Report 2025,' published by the Cyprus Game Makers Association (CYGMA) has revealed that, despite a population of just one million, Cyprus hosts over 400 game companies and generates more than €3.2 billion in annual games industry revenue, making it the global leader in the number of game companies, revenue, and mobile game downloads per capita.
Also impressive, given Cyprus' population, is the fact that the country is the world's third-largest source of games, as noted in the report, by mobile in-app revenue, it ranks eleventh.
Among other things, the report, which was revealed on 18 August, also notes the rapid growth and global impact driven by mobile and export orientation. More specifically, between 2019 and 2024, the number of game companies more than doubled and employment tripled.
The figures also reveal that the industry is overwhelmingly mobile-first, with 82.7% of studios building for mobile and 57.5% focusing exclusively on it. Almost all revenue is generated from international markets, not local consumers, positioning Cyprus as a major global exporter of games, especially in the casual and hyper-casual mobile segments, CYGMA's findings also show.
The report, meanwhile, also reflects Cyprus' favorable economic environment and early adoption of Direct-to-Consumer (D2C) models. As noted, Cyprus's growth is underpinned by a competitive tax regime (notably the IP Box and R&D super-deduction), attracting both startups and established studios. The country was an early adopter of direct-to-consumer sales, allowing studios to retain more revenue and build direct relationships with players. This, combined with a strong talent pipeline and active capital market, has established Cyprus as a recognized global hub for game development.
These points highlight Cyprus's unique position as a small but highly productive and globally connected center for video game development, CYGMA's report reveals.
Despite the growth, the report identifies shortages of skilled workers and early-stage financing as key constraints. Cyprus universities produce only three to six graduates a year from specialised video game development programmes, while demand is estimated at 100 to 300 entry-level hires annually.
CYGMA says it is working with Cyprus universities to introduce specialised video game development programmes, which the report estimates could produce an additional 45 to 85 graduates each year ready to enter the industry.
In a foreword to the report, Deputy Minister of Research, Innovation and Digital Policy Nicodemos Damianou describes game development as “at the very frontier of the digital economy,” noting that games bring together art, storytelling, engineering and imagination.
“This industry matters for Cyprus. It can create high-value employment, offer young people opportunities to build their future here, attract international talent and generate knowledge and expertise that benefit the wider economy,” Damianou says.
He adds that the sector reflects the type of growth Cyprus seeks to promote: “outward-looking, technology-driven and founded on creativity, skills and innovation”, positioning Cyprus as a technology and innovation hub for the wider region and globally.
According to CYGMA General Manager Andrey Ivashentsev, meanwhile, over 400 studios and companies linked to the industry are now active on the island, ranging from major international companies to independent developers and specialised businesses.
“The figures presented in this report demonstrate the exceptional position Cyprus holds in the global games industry,” he says, noting that companies generate more than €3 billion in annual gross revenue, placing Cyprus among Europe’s 10 largest video game markets by industry revenue.
With a population of about one million, Cyprus has more video game companies, higher industry revenue and more mobile game installations per capita than any other country, Ivashentsev says.
“This is not a future ambition. It is the reality of the industry that already exists here,” he says.
You can view the full report here.
