Despite the turbulence and certain problems that affected the IT industry in the past year, largely caused by the rapid progress of artificial intelligence, it seems that the gaming industry has not felt a setback in its operations. In 2023, more than 330 new job positions were opened, increasing the number of employed individuals. According to the latest data from the Association of the Video Game Industry in Serbia (SGA), the industry’s annual growth rate was around 11 percent.
Indeed, Serbia, in just over a decade since the first domestic video games were released for sale, has found its place on the global gaming scene. This is further confirmed by the fact that the first Serbian video game appeared on the Netflix platform early last year. The market for our video games has significantly expanded over the years, especially in the United States, Germany, the United Kingdom, and France. Judging by all indications, this trend is expected to continue in the future.
2,500 employees in 140 companies
Based on the latest data from SGA, more than 2,500 employees are working on the development of the Serbian gaming scene in approximately 140 companies. Sanja Žugić, the Director of Culture and Engagement at Playstudios Europe and a member of the SGA Board of Directors, emphasizes that people with diverse educational backgrounds and professions are involved in game development.
“It is interesting to note that, in addition to artists, designers, programmers, and others, people with traditional education can also specialize in the gaming industry. We have examples where graduates from the Faculty of Dramatic Arts become narrative designers, and 3D modelers often come from the Faculty of Architecture,” notes Žugić.
In the market, small domestic studios dominate, numbering more than 60, followed by around 50 medium-sized companies and around 10 registered large firms.
Stefan Čupović, a game designer with over ten years of experience in the field, emphasizes that with the development of the internet and digital game distribution, solo creators and small teams have been given an opportunity for growth. He also notes that with the arrival of larger global companies, the narrative has been elevated to a much higher level.
“Small teams have the advantage of lower operational costs and greater creative freedom, while large teams have much larger resources to ensure better production value and optimal workload distribution,” says Čupović.
Interestingly, and as a recent trend, there is an increasing presence of women in the gaming industry, with the highest percentage of female employees in Europe. On a European scale, around 22 percent of women are in gaming, while in Serbia, the female population’s share is around 30 percent, according to SGA statistics.
Despite the certain development and progress in this young industry in Serbia, there are specific challenges that the Serbian gaming scene faces, such as a lack of trained professionals, a shortage of experienced personnel, and the general perception of the gaming industry in the public opinion, which still sees it as a kind of hobby, far from the potential for building a career.
“Considering that the gaming industry in Serbia is very young, we have not yet managed to develop enough experts as needed for our market. We still face a shortage of skilled personnel. There have been significant strides in this field, and representatives of the gaming industry are actively involved in the development of educational programs, but there is still a lot of work to be done, especially regarding filling job positions,” notes Žugić.
IT crisis and artificial intelligence
Although the year 2023 was exceptionally challenging for the IT sector, particularly in terms of job closures and numerous layoffs, as well as a reduction in job postings and salaries, experts believe that the gaming industry largely defended itself against these challenges, mostly triggered by the rapid progress of artificial intelligence on a global scale.
“The IT industry did experience significant upheavals during 2023, and the domestic industry is closely linked to the global one, which, of course, reflected on the domestic market. Some companies did have layoffs, but the outcome is much more positive than what happened in the global IT world. Nevertheless, we expect the industry to expand next year,” says Žugić, adding that artificial intelligence will accelerate and facilitate the production of video games.
“This means a lot for creatives because tasks like rendering and polishing in games, for example, are assigned to artificial intelligence. It is also expected to lead to a kind of hyperproduction where only the best products will stand out. Certainly, AI is just a tool, and any tool is only as good as the person using it. Copywriters, programmers, and numerous other positions also use artificial intelligence, and for our industry, generative art and its use in visual production are specific,” she emphasizes.
According to a report from the statistics platform “Statista,” the annual revenue of the video game industry in 2024 will increase by nearly $50 billion globally. It is expected that most trends will come from the markets of the United States, the United Kingdom, and Japan, along with the extensive use of cutting-edge technologies in game development – AI, VR, and the like.
“The main problem with artificial intelligence is that it ‘feeds’ on the works of other artists, and there is a big question about copyright. Certainly, for now, we are far from the point where artificial intelligence will replace humans in gaming because users are primarily looking for authentic and creative products, which are currently only created by humans,” explains Žugić.
Statistically speaking, in Serbia, different types of video games are developed, ranging from those for computers and consoles to mobile video games, which have gained the greatest popularity outside the country.
“The majority of studios develop so-called casual video games. They are the main source of income for as many as 45% of studios in Serbia. These are games intended for play on mobile phones, easy to use, and mostly free to download. For example, such games include Tetris and Solitaire,” says Žugić, adding that there are many factors influencing which game will be downloaded.
“Some may want to pass the time while waiting for the bus, so they choose a short game that doesn’t require much concentration. Some prefer imaginative worlds, so they opt for games that will take them there. There are truly numerous preferences, and I believe if you stop more people on the street, each would have a different answer as to why they choose a particular game,” she said.
A concrete vision is crucial
As designer Stefan Čupović suggests, there are many different types of games and even more ways to create them, but in the process itself, the most important thing is to have a clear vision of the kind of video game one wants to make.
“Significant deviations from the vision are often why games in this industry don’t become successful, or they are never completed. Of course, the nature of development and pure creativity is such that many aspects of the game will evolve as the process progresses, but if the essence is clear, everything will fall into place,” says Čupović. He adds that after this, the next important step in developing a video game is working on its design.
“In this phase, creative juices flow, but it also involves sharp analytical eyes ensuring that all elements are harmonious. In short, it defines how things will look and function in the game. What is the visual style of the game? How do characters move in the game, and what can they do? What is the story of the game? Does the game even have a story? How will the game world look, and what about the levels? How will the music sound? All these things, and many more, are developed in this so-called design phase,” explains Čupović.
He further explains that after the fundamental aspects are worked out, the process moves on to turning all of that into something tangible: coding for game mechanics, visual effects rendering, character or object control, modeling 3D objects, creating 2D illustrations, developing sound effects and composing music, writing necessary text, and much more.
“Different elements are refined, changed, and often completely discarded along the way. What ideally remains at the end is a good game,” says Čupović.
During the time of the COVID-19 pandemic, the development of video games has been significantly accelerated, making them a dominant branch of the entertainment industry and an integral part of people’s daily lives.
As Žugić notes, there is a prevailing belief that modern video games transcend subcultures and generations, becoming universal and all-encompassing. This is reflected in individuals’ music playlists, movie and series scripts.
“The gaming industry is one of the most creative and innovative industries. Most technological innovations are first tested in gaming, which makes it very attractive for both employees and players. With the development of technologies, this industry will evolve in every sense. We expect that the global situation will spill over into the Republic of Serbia, and the domestic gaming scene will also experience growth,” concludes Žugić.
