Europe needs to attract and invest in skills and talent: Insights from Larian Studios

In an era where digital skills are pivotal for economic growth and innovation, video games, as unique complex works that combines technology and creative works, play a crucial role in Europe’s digital and creative economy. 

Nick Pechenin, the Director of Design at Larian Studios*, spoke to Video Games Europe about the importance of fostering young talents, bridging the digital skills gap, and attracting and retaining diverse digital expertise to ensure Europe remains competitive globally.  

Video Games Europe: What is your role at Larian Studios?  

Nick Pechenin (Larian Studios): As the Director of Design means I provide direction for a team of designers who create the rules for how the game works. This includes the user interface that the player interacts with, such as buttons, as well as combat encounters like goblins, skeletons, and other enemies. We also design the loot, such as magic items, swords, and bows that your fantasy party will be equipped with.

I also do hands-on work from time to time, such as creating spells or items myself. This helps me understand the challenges our designers face in their daily work. 

Video Games Europe: Tell us about your team and the roles in your team.  

Nick Pechenin (Larian Studios): I work with three teams of designers.

The first team is the systems design team. These are the people who define the formulas behind interactions, for example how damage [in game] works or how much a spoon will cost if you sell it. One of our team members, Pandu, made over 600 magic items for Baldur’s Gate 3. He's a specialist, and it's been both a huge challenge and a huge amount of fun to see him work. We also have people who are technical designers. They create script calls and backend systems that allow other designers to create cool spells and interesting magic items.

The second team I work closely with is the combat design team. These are the people who set up bombastic fights for players, making them feel heroic.

The third team is the user interface (UI) team. They design the buttons, icons, and other elements you click on. Their goal is to make the game more accessible and easier to understand, so your experience is intuitive, and you don’t have to think about how to do things. 

Video Games Europe: What is one challenge you see the video game industry in Europe facing now or in the near future? 

Nick Pechenin (Larian Studios): Honestly, the video game industry is in a bit of a crisis worldwide, not just in Europe.

The current state of the economy, especially high interest rates, is a big reason for this. Video games are a mix of art, self-expression, and entertainment, but they’re also a business. The business side determines what is possible for the art side. Right now, high interest rates mean fewer projects are green-lit, and companies are scaling back their plans. This has led to layoffs and many projects being frozen.

Another challenge specific to Europe is the global competition for talent. You can make games from anywhere with an internet connection, meaning Europe is competing with places like San Francisco, Silicon Valley, Shanghai, and Singapore for top specialists. For Baldur’s Gate 3, when we needed someone who was excellent at creating magic items, the best person we could find was Pandu, who is from Indonesia. We relocated him to Belgium, and we were lucky to bring him on board. Europe is competitive for young talent right now, but we need to keep it that way, and that's a challenge. 

Video Games Europe: Which factors allowed Larian Studio to deliver Baldur’s Gate 3, a hugely successful game that won many awards globally? 

Nick Pechenin (Larian Studios): The success of Baldur’s Gate 3 surprised us as well.

We knew we had something special, but we didn’t expect it to reach such a broad audience. One of the key factors, from a design perspective, was that we had enough time to iterate on the game. This allowed us to improve it and address feedback from the community. Our community is very engaged and has provided a lot of suggestions, often pointing out areas for improvement.

For example, during the early access period, which ran for three years, we received consistent feedback that players wanted a way to pause the game to think and react to what was happening. At the time, we didn’t have the technology to allow players to pause and make decisions, so we had to build it. Having that early access period and time, along with community feedback, allowed us to continuously improve the game, to the point where it exceeded many expectations upon release. 

*About Larian Studios:
Larian Studios are the developers of the Divinity series and Baldur’s Gate 3, a highly successful game that has won over 300 awards including several ‘Game of the Year’ awards such as the 2024 BAFTA Games Awards, 2024 D.I.C.E Awards, The Game Awards 2023, plus more global game award celebrations.

Started in 1996 in a small office in Ghent, Belgium, Larian Studios now employs 300 people around the world, including Ghent (HQ), Barcelona, Dublin, Guildford, Warsaw, Kuala Lumpur, and Quebec.