Russian studios in Serbia boost revenue, but integration gaps limit wider gains

Serbia’s gaming industry is moving into a more demanding phase of development, as the arrival of Russian studios—once viewed as a growth catalyst—has exposed structural limits in how value is created and shared locally. For investors and policymakers, the key question is no longer whether new studios can generate revenue, but whether they can integrate deeply enough to strengthen the wider ecosystem.

“Islands” inside a fragmented ecosystem

Industry analysis cited in the report says many Russian gaming companies that relocated to Serbia in recent years largely function as self-contained units with minimal interaction with local firms. Even with globally experienced teams, this operational model reduces the likelihood of knowledge transfer, supplier linkages and broader ecosystem-wide growth—effectively creating isolated clusters within the domestic industry landscape.

Growth decelerates as expansion normalises

The broader sector data points to a slowdown. The top 15 gaming companies in Serbia generated €222 million in revenue in 2025, equivalent to 3.7% nominal growth. That compares with 22% growth recorded in 2024; when adjusted for inflation, the industry is described as effectively stagnating. The report frames this shift as partly cyclical, but also structural: earlier momentum was tied to rapid scaling by newly arrived international studios, including Russian operators relocating their activities. As that influx normalises, growth becomes more dependent on organic development—highlighting weaknesses already present in the domestic ecosystem.

Revenue concentration raises exposure to shocks

A major vulnerability is increasing dependence on a small number of dominant clients. The report notes that 58% of revenues are now tied to a single main customer, up from 40% the previous year. Among domestically owned firms, dependency levels approach two-thirds of total income, which amplifies exposure if client demand or purchasing decisions change.

Foreign scale vs domestic participation

While international studios account for most industry revenues, locally owned firms generate only around 13% of total income. This difference underscores a widening structural gap between global players and domestic developers—reinforcing what the report describes as a dual-speed market: internationally connected studios are often foreign-owned, well-capitalised and export-oriented, while smaller domestic firms face limited access to capital, distribution networks and global partnerships.

Why Russian presence may not translate into spillovers

The “island” effect is linked to how these studios operate after relocation. Many Russian companies retain original client relationships, management structures and production pipelines. As a result, their presence can lift headline employment and revenue figures while contributing less to local supply chain development, talent diffusion and innovation spillovers.

Hiring slows despite global demand

The report also connects these dynamics to labour and production trends. Despite continued global demand for gaming content, Serbia’s industry is experiencing slower hiring and a reduced pipeline of new projects—signals consistent with a more cautious investment environment.

The next test: integration rather than attraction

The strategic implication is that Serbia’s gaming sector has moved beyond an expansion phase where attracting new entrants alone could sustain momentum. Going forward, integration, diversification and deeper ecosystem development are presented as primary determinants of growth. For policymakers and investors, that means shifting from attraction toward embedding foreign studios within the domestic economy through partnerships, outsourcing networks and talent development—otherwise the sector risks remaining structurally fragmented into high-performing but largely disconnected production nodes rather than an integrated digital industry capable of scaling innovation across the broader economy.