Europe's 63% freelance spending surge marks structural OPEX shift per Mellow European freelance spending report
Summary
European studios increased freelance spending 63% in 2025, outpacing the 55% global rise, per Mellow's report covering 2,000+ freelancers and 150+ studios
Short-term contracts (1-3 months) grew 33-44%, confirming modular, phase-based production as the new default
Demand rose across every major role category: management (+37%), UX (+27%), artists (+23%), European illustrators (+68%)
Budgets are being redirected, not reduced, restructuring studio OPEX from fixed payroll toward variable, on-demand spend
"The industry isn't shrinking, it's restructuring"
01
Mellow European freelance spending report: volume and rates rose together
European studios spent 63% more on external talent in 2025 vs. 2024
Contractor count grew 24% in Europe and 21% worldwide
Volume and spend rising together rules out a rate-inflation-only explanation
Average monthly freelance income rose 19% globally to €1,900 ($2,225)
Short-term contracts (1-3 months) grew 33-44%, the fastest-expanding segment
02
Studios are converting fixed payroll into variable, milestone-tied spend
Budgets are not shrinking but redirecting from fixed headcount to project-scoped roles
This converts salary/benefits/severance obligations into flexible line items tied to production phases
Drivers: 2022-2026 layoff cycles, live-service burst capacity needs, AI tools reducing permanent generalist headcount
For investors, this improves burn predictability but compresses long-term talent retention
03
Management outsourcing signals depth beyond execution roles
Management led all categories globally at +37%
Studios are outsourcing coordination and oversight, not just creative execution
UX (+27%) and artists (+23%) reflect live-service update cycles requiring recurring but non-permanent output
European illustrators saw +68%, the sharpest single-category jump
04
Trade-offs the data surfaces but does not resolve
Modular hiring fragments institutional knowledge and creates recurring onboarding and IP continuity costs
Rising freelance rates (+19%) suggest demand outpacing supply in key categories
Traditional outsourcing agencies face margin compression as studios route spend directly to freelancers via platforms
Europe's 63% vs. 55% global average suggests European studios are restructuring faster than North American or MENA peers
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