European studio expenditure on external talent rises 63% in 2025

The Rise of External Talent in Europe

According to the 'Talent Signals Reshaping the Games Industry' report, authored by Tanja Loktionova, founder of Values Value and co-founder of InGame Job, European studios are increasingly relying on specialized external labor. Data from the survey indicates that the number of freelancers collaborating with European studios grew by 24% last year. This shift coincides with a 19% global increase in average freelancer income, though the benefits of this growth are not distributed equally across the workforce.

Despite the rise in spending, the labor market remains characterized by significant friction for both employers and contractors. The report notes that nearly 60% of studios reported difficulties in sourcing qualified specialists. Conversely, 54.1% of freelancers expressed struggles in finding appropriate projects. While income has risen on average, approximately 63% of freelancers remain concerned regarding their long-term income stability.

A Two-Tier Workforce Model

Loktionova suggests that the current data points toward a maturing industry that has moved past its initial 'growth-at-any-cost' phase. The findings indicate a convergence toward a two-tier team structure. In this model, a small core of permanent employees—including directors, lead architects, and individuals responsible for maintaining a franchise's creative continuity—receive benefits such as equity, health coverage, and bonuses.

The remainder of the workforce increasingly operates on the periphery. These contractors and freelancers are often hired for specific sprints or distinct development phases and are released once those objectives are met. This structural change is reflected in the current employment instability: 30% of respondents reported experiencing layoffs within the past year, and the average time required to secure a new position is approximately six months.

Professional Stagnation and AI Concerns

The report also sheds light on the professional well-being and future outlook of European developers. Satisfaction levels appear low, with fewer than half of the respondents expressing contentment with their current roles. Furthermore, professional development appears to be lagging: only 26% of respondents felt they were growing professionally, while 36% reported stagnation. Notably, 55% of developers stated they received no formal training in the past year.

The integration of generative AI remains a primary concern for the workforce. The study found that 61% of European developers are worried that AI will be used to increase production pressure, forcing them to work faster or produce more content. Additionally, 35% of respondents believe that AI technology could lead to job losses or a decrease in demand for their specific roles.

Corporate Restructuring: PIF and Electronic Arts

In a separate but related development regarding industry consolidation, reports from Bloomberg suggest that Saudi Arabia's Public Investment Fund (PIF) is considering a merger between Electronic Arts and its subsidiary, Savvy Games Group. The move is intended to ensure better coordination between the PIF's various gaming assets.

The PIF recently became the majority owner of Electronic Arts following a $55 billion leveraged buyout completed last month. This acquisition was led by a consortium including PIF, Silver Lake, and Affinity Partners. While Electronic Arts has stated in communications to its staff that its mission, values, and creative freedom will remain unchanged, the potential merger with Savvy Games Group—which holds stakes in companies like Nintendo, Capcom, and Take-Two Interactive—could significantly reshape the global market landscape. The merger is expected to remain unlikely until Savvy Games Group completes its $6 billion acquisition of the Chinese mobile developer Moonton.