A great British success story under threat

Games are an increasingly important part of British life, with 60% of the UK population now playing games. Only 3% of games sold last year were rated 18, and quiz and puzzle games are the most popular genre of games. A recent BBC survey found that young people under 15 claim gaming is their favourite entertainment. New, often British-made games have introduced education, fitness and social elements to gaming.

Gaming is the future, and the growth of this almost $18 billion global industry is outpacing most other media. But for the past 25 years, the UK has been the third largest producer of computer and video games in the world, generating more than 14 billion pounds in global sales since the early 1980s. The sector employs more than 22,000 people, with 10,000 creative staff in studios spread across the UK.

In 2006, the UK lost third position to Canada, where extensive, games-specific aid from government has created a world-beating industry from scratch in just 10 years. Canada’s growth outstrips the UK’s by 4:1. As a result an increasing number of UK companies have begun growing faster overseas than in the UK, some even relocating to subsidised territories like Canada. Recently, SCi / Eidos, the UK’s largest games publisher, announced that it would be moving production jobs to Quebec.

Ian Livingstone, Creative Director of Eidos, the company behind the global hit game Tomb Raider, stressed the need for the government to act now: “The industry is one of the jewels in Britain’s global business crown and UK games studios are significant contributors to the UK economy. Between 2006-8, UK studios will have invested nearly $1.4 billion in 10,000 jobs in the UK to create games grossing $4bn worldwide. But we’re struggling to compete on uneven international playing fields. Higher costs, lower access to finance and lower state assistance pose a major threat to our industry. We should not let this competitive advantage and such an amazing talent pool slip through our fingers.”

UK games are a force for good – economically, culturally & socially

• The UK is a world-class centre for games development, and has been the third biggest selling games development territory for most of the last 25 years – until 2006.
• UK studios have generated more than $14 billion in global sales since the industry began.
• With average salaries of more than $30,000, this is a classic knowledge economy. The average British games studio employee generated more than $124,000 in revenue worldwide in 2007.
• 10,000 staff in 200 studios country-wide created games that are projected to sell nearly $4bn between 2006-8, generating $1.4bn of expenditure on British jobs.
• We’ve created some of the world’s most successful games and revolutionised gaming by attracting a wider audience.
• Our games are now played by 60% of the UK population, and we’re a responsible industry, with only 3% of games sold in 2007 rated 18¹.
• Games can be good for you – mentally² , physically³ and socially⁴.
• Games are the future, with 6-15 year olds choosing games over TV, internet & film.

The UK’s world-class studio sector is under threat

• Making games in the UK is more expensive than every competitor territory⁵.
• Foreign subsidies, tax credits and better access to finance are diverting investment from the UK.
• Skills shortages are hampering growth for most studios.
• Despite being a UK success story, there is negative perception in mainstream media and Parliament.
• UK games fell to 4th place globally in 2007⁶, and will slide further in 2009.
• Many UK games studios are growing faster in overseas subsidiaries than in their UK head offices and some are relocating altogether to subsidised territories.

 

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1 - Source: ELSPA / Video Standards Council
2 - One example is Sony and Brighton-based Relentless Studios Buzz Schools game, which tests Key Stage 2 national curriculum content on a PlayStation2.
3 - One of the best-selling games in recent months has been Nintendo’s Wii Fit, which teaches and schedules physical exercises.
4 - Nearly half of gamers under the age of 24 consider gaming a social activity, playing with friends either in person or online. Source: BBC State of Play, 2006
5 - Source Playing for Keeps UKTI/BERR/GIC 2007
6 - In terms of the revenue generated at retail globally by studios located in different countries. In 2006 and 2007, USA came first, Japan second, Canada third, UK fourth and Korea fifth. Source GIC