Coproduction is a widely recognized concept in the film industry, but relatively rare in the video game sector. Indeed, coproduction is primarily employed by major international studios to develop their AAA games (Assassin's Creed titles, for instance, are usually co-developed by a minimum of ten studios). Yet, this concept could greatly benefit small independent studios.

Finding a foreign partner brings forth numerous advantages, such as:

• Developing more ambitious projects without inflating one's own budget (the partner funds their own costs),
• Bringing a different perspective, fresh creativity, and cultural diversity,
• Enhancing project visibility by reaching the partner's local community,
• Accessing funding from the respective funds of both studios.

In a hyper-internationalized market largely dominated by America and Asia, where small studios struggle to make their projects visible, could coproduction be an initiative to boost the European video game industry?

 

COPRODUCTION: AN ADMINISTRATIVE BURDEN

Many benefits that seem to address the current issues faced by European independent studios. So why isn't coproduction more popular and widespread?

There are two major reasons for studios' lack of interest in this concept. Firstly, the lack of standards. Coproduction can take multiple forms, and each case is unique, with no standardized contract models. Thus, multiple questions must be discussed: IP sharing? What share of revenue sharing? Geographical or global? What type of management? Independent studios usually lack the in-house expertise to navigate these discussions effectively. However, having a clear shared vision is crucial for project success.

The second reason stems from project financing. Today, indie studios heavily depend on public funding. It's entirely possible to apply for funding in each country to finance the joint project. However, the issue arises with the compatibility of funds. Each fund has its own rules, constraints, and administrative procedures. In some cases, simultaneous applications may conflict and jeopardize project financing. A few years ago, a case arose between France and Germany. Both funds demanded proof that the rest of the budget was secured. But how to obtain this proof if the other fund is waiting for the same thing? A solution was found through the drafting of an official funding promise addressed to the other fund. However, such situations significantly delay the project—not to mention that some funds prohibit working on the project before their final decision.

Thus, embarking on a coproduction with a foreign studio can be highly advantageous, but also costly in terms of time and energy.

 

TOWARDS BETTER COLLABORATION BETWEEN PUBLIC FUNDS.

 

However, European authorities are starting to realize the need for more effective collaboration between European countries. Numerous initiatives have been implemented in recent years to simplify and promote coproduction. Belgium is a pioneer in this regard, with the Walloon and Flemish regions actively coproducing (as they are independently financed). The Flanders Audiovisual Fund (VAF) has now integrated a dedicated coproduction section into each of its funding instruments (allowing, among other things, an increase in the maximum percentage of the project budget eligible for VAF funding). The recently introduced Tax Shelter is also a maneuver to attract foreign projects to Belgium. Other countries are also showing international interest, like the case of Denmark, where the Danish Film Institute launched a Canada-Denmark project call in partnership with Canada Media Fund (CMF) in 2023.

Thus, although still limited, coproduction is gaining popularity in Europe with the support of public authorities, and it's only a matter of time before its usage becomes a standard practice, as seen in the cinema sector.

 

MATCH - FIND A COPRODUCER!

SpielFabrique organizes a yearly program for around fifteen European countries. The objectives are manifold: promoting coproduction, establishing a platform for studios to meet and interact, and assisting studios in conceptualizing their joint projects. More information is available directly on their website