Malmö boosts games industry with new funding push for startups

• The initiative targets talent retention following recent industry layoffs
• The city is betting on startups to drive the next wave of game success
• The programme aims to create scalable studios with 15 to 50 employees

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The City of Malmö has ramped up investment in its games industry with a new funding initiative aimed at supporting startups and retaining talent following several staff cuts in Malmö’s games sector.

The city will provide SEK 3.6 million ($386,000) per year to back a joint effort between incubator Minc and industry organisation Game Habitat. 

The funding will support the creation of a new game innovation programme alongside a dedicated investment structure for local studios.

In the short term, the programme aims to retain experienced developers by helping them establish new studios. Long-term, the goal is to build scalable companies with 15 to 50 employees and encourage greater diversity. 

Industry transition 

A portfolio manager is currently being recruited to help design and lead the programme.

Game Habitat CEO Peter Lübeck described the initiative as one of the largest public investments in games in Sweden, marking a significant increase in the city’s commitment to the sector.

“The games industry globally is in transition, with this initiative we expect Malmö to emerge from this period stronger than ever,” said Lübeck.

“It will take a few years for game companies starting up now to get their games on the market, but once they are released, we will have a new billion-kronor success from Malmö.” 

The move comes as Malmö looks to strengthen its position as a leading games hub, with Lübeck expressing confidence the initiative could lead to the city’s next billion kronor success story.

Pocket Gamer Connects is heading to Malmö for a two-day summit on May 27th-28th.