Enric Cabestany, a Barcelona-born entrepreneur, highlights the significant economic power of Catalonia's video game industry. This sector now generates more revenue than the entire cultural industry combined. Cabestany, who previously held a global marketing vice president role at Swiss multinational FunPlus, points to the industry's rapid growth and innovation.
Cabestany's career spans Latin America and Silicon Valley, where he gained extensive experience with apps and video games. He played a key role in the 2018 arrival of Chinese mobile game company IGG in Barcelona. He now participates in numerous technology projects, two of which remain connected to the video game world.
"The video game industry alone generates much more than the entire cultural industry combined," Cabestany stated. He explained that this often goes unnoticed, despite its substantial financial contribution. The industry has successfully transformed itself, becoming a pioneer in user acquisition through a data-focused approach.
Data-Driven Growth and Innovation
Video game development has changed dramatically. The process now integrates community building and user understanding from the initial stages. Development times have shortened significantly, from over three years to just over one year for many titles. This rapid pace demands constant innovation to meet user expectations.
Strategy games, targeting an adult demographic with disposable income, are particularly lucrative. These players often invest in communities, playing with others. Mobile versions of games like Age of Empires exemplify this model. While less mass-market, these strategy games generate much higher average revenue per user. Marketing is critical for success, alongside a strong product.
Artificial Intelligence Transforms Development
The Catalan video game industry has embraced artificial intelligence (AI) throughout its processes. AI tools now allow internal teams to create video advertisements in just two or three hours. Previously, external agencies would take weeks or even a month for similar tasks. This integration of AI speeds up content creation and enhances efficiency.
Cabestany's current ventures include Apptonomy, an App Store Optimisation (ASO) platform. This platform functions like SEO for apps, helping them gain visibility in a crowded market. Apptonomy uses AI to compete with much larger companies, offering subscription-based strategies for visibility. He also advises Appgrowing, an Asian platform providing competitor data, and serves as Chief Marketing Officer (CMO) for Pickem, a fast-growing social games company in the United States.
Barcelona as a Tech Hub
Barcelona has become an attractive hub for technology talent, particularly since the advent of the Mobile World Congress. The city offers straightforward regulation and administrative support, which helps attract companies. Major firms like King, Scopely, and various Chinese companies have established operations here. Many professionals who come to work in Barcelona choose to stay.
However, local video game entrepreneurs face a significant challenge: securing large-scale investment. While initial capital of up to 2, 3, or 5 million euros is often available, larger funding rounds are scarce. Cabestany noted, "We have lacked the investor who believes we can take companies from Barcelona to the world." This investment gap can lead successful local companies, such as Social Point, to be acquired by foreign entities like Zynga for substantial sums, like 250 million euros.
The Role of Returning Talent
Catalans who have worked abroad play a vital role in promoting Barcelona and bringing back valuable expertise. Individuals like Pepe Agell, who sold his company in San Francisco and now works for venture capital firm Pear VC, have returned to the city. Àngel Llull, a former senior executive at Booking and now with The Knot Worldwide, also represents this trend. Josep Lluís Vall-llossera, who brought Apple to Barcelona, is another example. These returning professionals contribute their experience and leadership, enriching the local tech ecosystem and helping to bridge the investment gap for future growth.
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Originally published by Ara Cat. Read original article.
