Norwegian Game Development Revenue Reaches Heights Despite Staff Cuts
The Norwegian video game industry crossed one billion Norwegian kroner in total revenue for the first time during the 2025 financial year, according to a Gamer.no investigation. Total revenue jumped 72 percent to 1,47 milliardar kroner, up from 856 million kroner in 2024. This financial milestone masks severe contraction beneath the surface, including a net loss of approximately 50 full-time positions across limited companies and widespread negative equity.
Funcom Revenue Masks Deep Norwegian Gaming Deficit
Funcom drove the vast majority of the revenue surge through the release of Dune: Awakening. Without Funcom’s financial figures included, the combined annual result for the Norwegian gaming sector sat at a 51.4 million kroner deficit. When accounting for write-downs in Funcom Oslo AS and financial costs in Funcom SE, the total collective deficit reached nearly two billion kroner. Maria Eriksen pointed out that the domestic market represents only a fraction of these earnings, noting that Funcom generated roughly one percent of its revenue inside Norway.
Arctic Hazard Fails to Hit Internal Sales Targets
Smaller studios faced steep financial hurdles while trying to commercialize their titles. Arctic Hazard launched its turn-based Viking game, Norse: Oath of Blood, in February. Nils Terje Lundberg, creative director and general manager at Arctic Hazard, stated that the game peaked at 3,329 concurrent players on Steam. Despite generating a seven-figure dollar revenue sum, sales failed to hit internal targets. Lundberg estimated it will take years to break even, if it happens at all. The studio posted a 16 million kroner deficit and a negative equity of 35.6 million kroner for 2025, while staff numbers dropped from roughly 30 contributors down to five permanent employees.
Employer Tax Hinders Growth of Norwegian Studios
Operating a game development company in Norway carries financial penalties compared to rival regions. Lundberg, who has managed Arctic Hazard for over 15 years, described Norway as a terrible country for running a business. He identified the employer tax as a major roadblock that prevents studios from expanding their headcounts. Lundberg suggested that Norway should emulate Canada, which offers comprehensive tax credits to build large development enterprises. Despite these pressures, Arctic Hazard recently secured 1.2 million kroner from the Norwegian Film Institute for a prototype titled Jotunheim: The Curse of Loki.
Selected Firms Distribute Millions in Dividends
A small group of companies managed high profit margins while the broader sector contracted. Evaluated companies took out 109 million kroner in ordinary dividends, with millions distributed across three firms: Bertheussen IT took 67 million kroner, Kristanix pulled 23 million kroner, and Photo Roulette took 10 million kroner. Brothers Vidar and Tor Martin Kristiansen of Kristanix AS extracted a supplementary dividend of 91 million kroner, bringing their total 2025 payout to 114 million kroner. Kristanix achieved this through mobile puzzle and Mahjong titles like Mahjong Titan by relying on mobile games rather than expanding into a larger studio.
Uncertainty Ahead for Creative Talent
Industry leaders remain anxious about the future stability of the workforce as international and domestic contractions continue. Maria Eriksen noted that over 50,000 workers have lost their jobs internationally in recent years, creating a tense atmosphere locally. Growth engine Breach cut 17 employees, and Funcom announced additional layoffs of an unspecified size. With 34 percent of companies that filed 2025 financial statements reporting negative equity, the core question remains whether smaller Norwegian studios can successfully transition into resilient, internationally competitive businesses.
