Cyprus: Gaming's Quiet Superpower
Written by Phillip Black, Game Economist, Game Economist Consulting.
On Tuesday, Nov 4th, at approximately 6 am, one pretend Swede, one French-Canadian, and two Norwegian Forest Cats will board an airplane in Stockholm. The destination? Europe’s next gaming mecca: Cyprus.
I was skeptical of the claim, but after attending GDCy and interviewing the who's-who of the Cyprus game scene, I’m starting to become a believer. This small Mediterranean island has quietly become one of Europe's most lively and confusing hubs for game development. A combination of political shitshows in surrounding regions has created this wild mixing pot of Russians, Ukrainians, Israelis, Cypriots, Turks, and now one pretend Swede. Wish me luck.
Wargaming’s flagship HQ is already in Nicosia, and Owlcat Games (Nasdaq listed!) has over 400 employees stationed on the island. Agglomeration effects that economists talk about are already at work, and spillovers from these development hubs mean more startups and, down the line, more big firms. The machine is just getting started.
Despite Sweden ranking among the top 5 in trust and despite endless conversations about the country's homogeneity, the game development scene is siloed. No one talks to each other. This is despite DICE, the creator of Battlefield, spawning something like 30% of the game development scene within 2km of the physical office: Fatshark, Ubisoft, Epic, Avalanche, Paradox, Outsiders, MAG, Snowprint… I still remember writing messages on a poster board in the DICE office and putting them in the window, to which Avalanche employees would respond with their own messages. Seriously, that was the most communication I've had with developers outside my employment firm. Yet, it seems that as soon as someone gets a person number in Finland, Supercell sends them a Tableau login. Cyprus is starting from a different and healthier foot.
Leonid Zhuravskyi, CEO of MysteryTag, said he’s found Cyprus to have a rare sense of openness - competitors who still share notes over coffee or wine.
Aleksandr Bogdanov, CEO of Studio 42, spoke about Cyprus as a new mixing pot, with veterans from Turkey, Ukraine, and Russia now calling Limassol home. He believes the island could rival Istanbul as the next tech powerhouse.
Then came Andrey Feinberg (Kuznetsov), an independent advisor who's seen the investment side of the story. Despite tougher global conditions, he says Cyprus remains busy, with founders rebuilding after relocation and finding stability in a global business that rarely offers it.
GDCy founders Tim Fadeev and Andrey Ivashentsev shared the story of how a single pub meetup evolved into the region’s largest developer festival. They credit the island’s mix of sunlight, low taxes, and openness to business. Cyprus, they say, isn’t just a haven for founders - it’s starting to feel like Europe’s next creative cluster.
And while the sun is great, what's driven people to the region is clearly the tax regime. Not only is there zero percent tax on dividends with an unlimited cap, but there's also an IP Box regime that can bring the effective tax rate down to as low as 2.5%.
As with most successes, it's up to the government not to fumble and even embrace the changes that are happening. Cyprus's infrastructure is poor, and getting from the airport to Limassol, the central development hub, remains a rip-off, with no clear public transit option. Roads are poorly maintained, and the Mediterranean work ethic still leaves something to be desired. The government has a long road ahead to ensure that local Cypriots have the requisite education to benefit directly from wealth creation.
Alexey Morozov of Horns Up Games shifted the tone completely. His project, Lord of Metal, is a festival-management sim built with the Swedish band Sabaton, combining the logistics of live events with the chaos of rock culture. It's equal parts management game and love letter to heavy music.
Finally, Julia Lebedeva of WN Media Group spoke about launching the first Women in Games Cyprus event, while Alex Siamantas of Holyday Studios reflected on eleven years of building a profitable idle-RPG studio as one of the island’s few Greek founders.
As Tim and Andrey discussed, they're working to shift how gaming is perceived in Cyprus. Gaming isn't some hollowed-out form of entertainment. It's actually a path to prosperity, something Cypriots are shockingly skeptical of.
If the island can stay politically nimble, and surrounding political situations worsen, it could become Europe’s most unlikely game success story. Maybe I'll even get to play a part in that.
