At Toronto's XP Game Summit, Canadian game developers described an industry undergoing transformation rather than recovery. Triple-A development is in decline due to studio closures and layoffs, while smaller indie studios are finding ways to survive through lean operations, government funding like the Canadian Media Fund, and community collaboration. Speakers highlighted a fundamental shift in investor expectations — deals now require demonstrated market traction (wishlists, community, trailer views) before funding is granted, creating a paradox for early-stage developers. The CMF's new Commercial Third Party Investment Fund was viewed as somewhat contradictory given the difficulty of securing third-party investment. Developers emphasized that Canada's path forward lies in stronger domestic industry connectivity, cooperative models, and a holistic ecosystem approach beyond tax credits alone.
