CONFIDENCE is continuing to grow in the country’s video games sector with more than three quarters of them (77%) planning to increase their workforce over the course of the year, compared to 68% in 2018, according to new research.
The survey from Tiga, the sector’s trade association, which was carried out at the end of last year, also showed that 62% of respondents believed the economic and business environment in the UK is favourable to the games industry.
However, access to finance and skills gaps or shortages remained a key obstacle. Some respondents also expressed concern about “the challenge” of Brexit.
While almost two thirds of respondents saw the UK environment as favourable to their industry, the figure was down from 70% in last year’s survey.
More than half (52%) said the outlook for investment in their business – R&D, training and new game development – was more optimistic compared to a year ago, but 35% said it was unchanged and 12% said it was less optimistic.
On the future, 57% were more optimistic about their company’s prospects compared to 12 months ago, up from 46% a year ago and 77% said their company was performing either very well
or well (compared to 62% last year).
Tiga CEO, Dr Richard Wilson, was upbeat about the year ahead. He said: “The UK video games development and digital publishing sector is set for another year of expansion – 77% of respondents to our survey are planning to increase employment over the coming year; 62% of games businesses in our survey believe that the economic and business environment in the UK is favourable to the video games industry (although this is a lower proportion than a year ago).
“Video Games Tax Relief, which Tiga was instrumental in achieving, is fuelling growth in the sector.
“Games tax relief effectively reduces the cost and risk of games development and incentivises investment and job creation in the games industry.
“On finance, the Government should consider introducing Tiga’s proposal for a Games Investment Fund (GIF). The GIF would make grants or loans of between £75,000 and £500,000 available to games businesses on a matched funding basis.
“The Government’s emphasis on boosting STEM (science, technology, engineering and mathematics) skills is sensible.
“However, our industry needs to have access to highly-skilled employees from the EU, EEA and beyond.
“Currently, EU workers make up 15% of the UK games industry, while 5% come from countries outside the EU. UK games businesses will continue to invest in training, while Tiga will continue to accredit university games courses to encourage a good supply of high quality graduates.
“Yet if we are to achieve our potential, then the UK video games industry will need to continue to recruit global talent.”
Jason Kingsley, Tiga chairman, and CEO and Rebellion’s creative director, added: “This year shows all the signs of being another great year for our industry.
“We can strengthen our industry still further by improving
access to finance and skills and ensuring that the UK has a migration policy post-Brexit that is favourable to growth.”
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