This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.
The UK Video Games Development Sector Surges Forward
TIGA, the trade association representing the UK video games industry, released new findings today which show the UK video games development sector grew to record levels in 2018, with studio headcounts, wider games industry employment, tax revenues and investment surpassing previous records. The UK’s games developer headcount grew to over 14,350 in 2018, an annualised increase of 8.1 per cent. The games development sector also now contributes £1.8 billion to the UK’s Gross Domestic Product (GDP). The findings come from TIGA’s definitive forthcoming annual report into the state and health of the UK video games industry Making Games in the UK Today (TIGA, 2019) which is based on an extensive survey of UK games businesses, with analysis by Games Investor Consulting. TIGA’s research shows that in the year from November 2017 to November 2018:
Dr Richard Wilson, OBE, TIGA CEO, commented: “The UK video games development sector surged forward in 2018, growing more than five times the rate of the UK economy. Employment and investment in the sector reached record levels in 2018 and the industry’s contribution to GDP reached an all-time high of £1.8 billion. “Our industry is growing for three reasons. Firstly, the UK is one of the finest games development centres globally, with outstanding small, medium and large studios creating content that sell all over the world. “Secondly, the prevalence of mobile and tablet devices, the launch of upgraded consoles,\u2028the popularity of PC games and\u2028the advent of Virtual and Augmented Reality are encouraging investment in games. “Thirdly, and most significantly, Video Games Tax Relief (VGTR) is enabling our sector to grow strongly. TIGA played a critical role in the long battle to win VGTR, which effectively reduces the cost and risk of games development and is incentivising investment and job creation in the games industry. There is a clear connection between the advent of VGTR and headcount growth in the UK games development sector. The UK games industry declined by an annual average\u2028of 3.1 per cent between 2008 and 2011, before VGTR existed. Since VGTR has been available, the average annual growth rate has been 7.5 per cent. “The sector still faces serious challenges, particularly with respect in access to finance and in access to highly skilled people, to exploit this rapidly growing market in which the UK is a golobal success story. We should now reinforce our successful industry by introducing a Video Games Investment Fund (VGIF) to improve access to finance. We should also continue to strengthen industry-university links, enhance skils and training and enable UK games companies to recruit highly skilled workers from the EU and beyond. This will ensure that our sector continues to create more jobs, more investment and more video games.” Jason Kingsley OBE, TIGA Chairman and CEO and Creative Director at Rebellion, said: “The UK video games development industry grew to record levels in 2018 demonstrating our position as a creative, economic and technological success story. This is great news for consumers, students and developers. “Yet, our industry continues to face challenges. Access to finance is challenging, particularly for smaller studios. Recruitment of highly skilled people can be difficult. We now need to reinforce our success by retaining and enhancing Video Games Tax Relief, establishing a Video Games Investment Fund to improve studios’ access to finance, continuing to strengthen education and skills and enabling studios to access highly skilled people from overseas following Brexit.” -ends- Notes to editors Research methodology Games Investor Consulting (GIC) continuously maintains a database of all extant, closed and exiting British games companies including all verified discrete independent and publisher-owned games development studios. It counts as a single studio all entities with holding/parent, sister and subsidiary companies that do not represent separate development concerns. It excludes companies in the process of being liquidated as well as any company that uses games-related Standard Industrial Codes (SIC) codes but which either are demonstrably not in games (e.g. are gambling or board gaming businesses) or cannot be verified from their published company profiles as operating in games development. Between September-November 2018, TIGA and GIC conducted an email and telephone survey of British games companies involved in the development of games including studios, publishers, service companies and broadcasters with games divisions. Distribution, manufacturing, peripheral device, marketing and retail companies were not profiled. Companies were asked how many staff worked full time in development or in roles supporting development. HR, admin, sales, marketing and commercial staff were excluded. GIC takes the latest data on development headcount to scale total development expenditure, and then uses current ONS economic data and Oxford Economics’ calculations from their report, “The economic contribution of the UK Games Development industry”, to establish estimates of the development industry’s GDP and tax impact. About TIGA TIGA is the network for games developers and digital publishers and the trade association representing the video games industry. Since 2010, TIGA has won 28 business awards and commendations and has been successfully accredited as an Investors in People organisation four times. TIGA focuses on three sets of activities:
This enhances the competitiveness of our members by providing benefits that make a material difference to their businesses, including a reduction in costs and improved commercial opportunities. It also means our members’ voices are heard in the corridors of power and positively represented in national, broadcast and UK video games trade media. TIGA CEO, Dr Richard Wilson was made an Officer of the Order of the British Empire (OBE), for services to the video games industry in the New Year's Honours list 2018. Get in touch: Tel: 0845 468 2330 Email: [email protected] Web: www.tiga.org Twitter: www.twitter.com/tigamovement Facebook: www.facebook.com/TIGAMovement LinkedIn: http://www.linkedin.com/company/tiga For further information, you can also contact: Dr Richard Wilson, TIGA CEO by email: [email protected]