Arctic Global Game Jam 2025.
Sweden’s gaming industry, once a global leader, is now deep in stormy waters
Bankruptcies, lay-offs and bruising headlines have become part of the landscape – and for the international talent that helped build Sweden’s creative reputation, the consequences have been especially stark.
In The Local, one anonymous insider described the situation as “pretty horrific”, saying friends and colleagues – many from outside the EU – have been forced to pack up and leave Sweden after being unable to secure new work in time. Another source, originally from South Korea, didn’t mince words: the industry, they said, is “doomed”.
But in the Skellefteå region, there’s a different energy.
Yes, times are tough. But inside the city’s growing creative and tech scene, there’s a noticeable undercurrent of resilience – and a willingness to adapt.
– While the mood across Sweden’s gaming industry remains bleak, up in the Skellefteå area there’s a more layered story unfolding.
Tim Lukas Leinert, project manager at Arctic Game, is clear-eyed about the challenges – but also about the mindset that’s helping local developers move forward.
– Up here in the Skellefteå area, we have much smaller companies, typically one-to-fifteen people, such as Spinoff Games or Gold Town Games, or Silent Factory and many other small indie start-ups, Leinert explains.
The same financial pressures that haunt studios across the country are felt locally too.
– Despite being able to demonstrate success, there’s unfortunately very limited local interest in funding local initiatives.
It doesn’t help that games aren’t officially recognised as culture, making it harder to tap into public funding streams.
– Most of the funding comes from Stockholm or abroad, which means that when success does happen, the economic benefits rarely stay in Skellefteå, Leinert says.
Still, he sees a shift underway. Freelancers and remote workers are moving north in search of a better work-life balance – and bringing their skills with them.
– But it remains a tough situation, and we’re definitely feeling it when it comes to securing funding for our teams, Leinert admits.
– However, the mindset is here; people are eager to take a risk and start something in Skellefteå, which is pretty awesome and shows that we have a strong creative and entrepreneurial mindset.
Gold Town Games recently released Pocket Hockey.
Skellefteå, in fact, may be slightly ahead of the curve. While other parts of Sweden are just beginning to feel the sting of lay-offs, this city experienced its wave more than a year ago – and out of that disruption, new ventures have emerged.
One example is Hex Foundry, founded by Kristofer Stenskog after being laid off. Others, like Silent Factory – launched by ex-North Kingdom creative Chris Coniglio – are carving out new space in the local ecosystem.
Many of these startups have leaned on Arctic Game, which is stepping up efforts to support incubation and cross-sector collaboration, working closely with companies, schools, and international partners to nurture fresh ideas.
Still, securing funding remains a major hurdle. Arctic Game tries to bridge that gap by helping young teams develop strong business foundations and shape their products to fit real-world market needs.
But the fact remains: national investment in game development is slim, and the reliance on international capital continues to shape the future – for better or worse.
– In times like this, attracting international funding takes a lot more outreach, Leinert emphasises.
– It would be great to see more local and regional funding opportunities, so promising teams in Skellefteå can get the chance to succeed without having to move away.
Tim Leinert, Arctic Game, Chris Coniglio, Silent Factory
That ambition – to root success here in the north – is part of what sparked Skeå: Creative Connect, a new Skellefteå conference that launched in May 2025. The event gathers creatives from gaming, film, and digital experiences to ask bigger questions.
– The initiative aims to spotlight the flourishing creative and game industries in Skellefteå, moving beyond traditional conference formats to explore:
– What’s next? What does creativity look like in the future? How can we collaborate?, says Leinert.
With new studios forming, fresh talent arriving, and resources like the city’s motion capture studio gaining traction, there’s every reason to believe the next chapter of Skellefteå’s creative story is already being written.
– Overall, we’re hopeful, Leinert concludes.
– Times are changing, but so are we. We keep learning, keep evolving, and keep reinventing – and we’re here to support playful creative startups do the same.