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International Factfile 2015: Luxembourg - MCV

International Factfile 2015: Luxembourg

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Despite being one of the smallest countries in Europe, Luxembourg plays a big part in the global games industry.

The tiny nation has long been regarded as a flagbearer for online gaming, thanks to dedicated investment in the sector by the local government.

Game streaming service OnLive set up its data centres in the country in 2011 due to its advanced infrastructure, including low-latency fibre optic networks.

MMO outlets Nexon and Kabam soon joined OnLive in the country.

According to Luxembourgish cloud service provider EBRC, 70 per cent of Europe's GDP can be accessed within a radius of less than 700km in Luxembourg, highlighting the key role the region can play for online companies on the continent.

Luxembourg's tactical positioning between two of the biggest games markets in Europe – Germany and France – has led many other retail firms to open offices in the country, including PayPal, Amazon and eBay. The geographical placement also has benefits for localisation and language support firms.

Steam owner Valve moved into the region in 2012, utilising the country's VAT laws to cut down the price of games on its digital platform. However, the loophole allowing firms to charge a minimum VAT rate of three
per cent was closed at the start of 2015.

In terms of consumer behaviour with games, the Luxembourgish market mimics the UK sector. Popular franchises include Call of Duty and FIFA, with local retailers telling MCV that demand for more recent releases has grown in recent years, allowing more games retailers to successfully set up a business.

Population: 549,680

Capital City: Luxembourg

Currency: Euro

GDP (Per Capita): $96,267

KEY RETAILERS

La Caverne Du Gobelin, Le Rservoir, Domino, Electric Viaduc, Free Record Shop, Coin BD, Saturn, Pixmania, Player One, Amazon, eBay

TOP DISTRIBUTORS

BigBen Interactive, Koch Media

TOP DEVELOPERS

Nexon, Kabam, Live Gamer

PUBLISHERS IN THE REGION

Zynga, Valve

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