Portugal's games industry revenue quintuples in three years under eGames Lab initiative

Portugal's video games industry has undergone a dramatic transformation since eGames Lab launched in 2022. The consortium of 22 entities, consisting of 14 commercial organisations, two academic institutions, and six government or trade organisations spread across Portugal, Madeira, and the Azores, has reshaped the country's games sector from a scattered collection of passionate developers into one of Europe's most dynamic emerging hubs.

The numbers tell the story. Before eGames Lab was founded, Portugal's games industry generated approximately €20 million annually. By the end of 2025, that figure had surpassed €100 million. This fivefold growth reflects both the consortium's direct support and broader shifts in how the global games industry operates.

"Although it was only a few years ago, the Portuguese games ecosystem was fragmented and underdeveloped, with a few notable exceptions," said Cláudio Telo Pestana, eGames Lab's project manager. "We had a few international publishers, such as Miniclip and Saber Interactive, that had opened offices in Porto, but there was very little structured support for local talent or young studios." The bias towards larger cities like Porto and Lisbon meant that talent in other regions remained largely untapped.

Before eGames Lab, the core challenge was not a shortage of skilled developers but rather the absence of a coordinated support framework. The consortium addressed this by establishing physical hubs where start-ups and early-stage companies could work, collaborate, and learn. Four games-focused hubs are now being built under eGames Lab's guidance. The newest, located in Funchal on the island of Madeira, represents a significant investment in regional development alongside planned hubs on Terceira Island in the Azores, in Évora in southern Portugal, and in Lisbon.

Industry engagement has grown substantially. DevGAMM Lisbon, a major games conference, saw attendance climb from around 400 in 2022 to over 1,200 at the November 2024 event. eGames Lab has now partnered with DevGAMM to establish a standalone event in Madeira, further raising the region's profile.

Success stories demonstrate the economic impact of government investment. Infinity Games, based in Lisbon, repaid its grant allocation within a single year of operation. Other homegrown companies like Redcatpig, based in the Azores, now compete on the global stage, showcasing talent from regions that previously lacked industry infrastructure.

Global market conditions have also favoured Portuguese studios. Financial pressure on established international studios has made partnerships with Portuguese companies more economically attractive. Simultaneously, the trend toward international companies downsizing internal teams and seeking cost-effective co-development partnerships in Europe has created significant opportunities for nimble Portuguese studios.

eGames Lab's model emphasizes the integration of academia and industry. "R&D and creativity must go hand in hand," Pestana explained. This approach distinguishes Portugal's emerging sector from competitors that rely solely on lower labour costs. By combining university research with commercial development, the consortium positions Portuguese studios as strategic partners rather than simply cheaper alternatives, fostering longer-term relationships with international companies.

Looking forward, eGames Lab is shifting focus from supporting early-stage companies toward facilitating the scale-up process. The consortium plans to consolidate existing achievements while expanding the ecosystem through additional hubs and partnerships. In Lisbon, eGames Lab is working with the Association of Portuguese Video Game Developers and Unicorn Factory, an innovation incubator with existing workspace in the city.

Pestana's vision for success extends beyond financial metrics. "If you ask me what success looks like, I'd love for one of the companies we help to go on and create Portugal's equivalent of The Witcher, a game that achieves global success but is rooted in the culture and history of the Portuguese talent that creates it," he said. The goal remains to build a complete games ecosystem where talent and companies can collaborate, learn, and grow together, whether under the eGames Lab brand or through evolved structures.