A US video games company that worked on Call of Duty and Fortnite will open its European headquarters in Wales.
Rocket Science Corporation will employ more than 50 people, creating tools for some of the world’s most popular games.
The global video games market is expected to be worth more than £200bn by 2025.
The Welsh government has helped to fund the move in a bid to grow the games sector in Wales.
Rocket Science, which already has studios in New York and Austin, Texas, will set up a new studio in Cardiff.
The company has worked with the world’s biggest games developers including the makers of Marvel games and Activision Blizzard, which produces Call of Duty, Candy Crush and World of Warcraft.
Originally from Bridgend, Rocket Science’s co-founder Thomas Daniel, 38, said: “We’re coming in to work on the biggest games in the world and we’re bringing the experience of our American-based teams to Cardiff.
“It’s going to create a skill-set and experience I’m not sure Wales has had to date.
“I was like any other kid growing up in Wales, playing on my Amiga or Super Nintendo, but I didn’t know anyone who worked in games in Wales.
“Playing for Manchester United seemed more achievable than being successful in the games industry.
“I had to move to the south-east of England because at the time that’s where most jobs were and then on to America.”
He added: “How do we do our best to make the kid in school who wants to make games actually think it’s a reality?
“We’re looking at how can we be a foundational brick so that hopefully in a few years’ time we can say ‘if you love games and you want to work in games, stay in Wales’.”
Rocket Science has received £825,000 from the Welsh government to open its new base and to provide employment for at least the next five years.
Deputy Minister for Arts, Sport and Tourism, Dawn Bowden said: “This significant investment will support the Welsh government’s strategic objective of developing the games industry in Wales.”
Wales has a small but growing video games development sector compared with other parts of the UK.
According to the The Independent Gaming Developers Association, there were 140 games developers in Wales in 2022 compared with fewer than 100 in 2020.
In 2021, Wales had a 0.7% share of the development workforce, which was far smaller than places such as London, the south-east of England and Scotland, which is home to one of the UK’s biggest games development companies, Rockstar North, made famous by its Grand Theft Auto series.
Cardiff has the largest number of games developers in Wales, along with smaller clusters in the north-east and Swansea.
The largest publisher, Wales Interactive, has helped create games for Nintendo, PlayStation and Xbox.
Chief executive and co-founder David Banner said: “The games industry makes more money than the film and music industries combined so it’s really something Wales should tap into more going forward.
“There was a time gaming didn’t have a tick box for support but now we do. There is a pathway to get investment in the games industry in Wales.
“The reality of it is, there are lots of people who are eager to get a break in the game industry not matter what their skills are, whether it’s programming, art or accountancy.
“Investment into the games industry will hold some of that talent and make sure it doesn’t leave Wales and help the local economy.”
There are a growing number of games design and development courses across Wales.
The Games Developer Foundry Wales initiative was established last year by iungo Solutions in partnership with Bridgend College and Creative Wales.
Chief executive Jessica-Leigh Jones said: “The gaming sector in Wales is unique in its composition.
“We don’t currently have a major games business such as Rockstar North in Scotland. Instead, we have a highly interconnected cluster of indie developers powered by a predominantly freelance workforce.”
She said Wales punched “well above its weight” in the creative economy, adding: “We have a strong TV and screen sector and whilst the games development cluster is smaller than in other regions, we’ve seen an explosion in new gaming businesses since 2020.”
The Welsh government said it was “committed to working in partnership with the industries of the future to create new, high quality skilled jobs, while supporting its staff already working in these sectors to further develop their skills”.