WEATHERING THE STORM: TIGA RESEARCH REVEALS UK GAMES DEV SECTOR CONTINUES TO GROW, DESPITE GLOBAL SECTOR DOWNTURN

Despite the global games industry downturn, the UK games development sector grew 4.8 per cent in the12 months to May 2024, according to new research published today by TIGA, the trade association representing the UK video games industry.

Against a backdrop of companies downsizing and studio closures, the UK's games development sector proved to be comparatively resilient, growing to 25,419* full time equivalent development roles by May 2024, which, at 4.8 per cent, was the lowest annualised rate of growth in the UK games industry since 2012.

The UK's fastest growing games clusters in the 12 months to May 2024 were London (468 new staff), North East (280 staff)and North West (247 staff), but 5 regions contracted.

The findings come from TIGA's definitive report on the state of the UK video games industry Making Games in the UK 2024 (TIGA, 2024), which is based on an extensive survey of UK games businesses, with analysis by Games Investor Consulting.

TIGA's research shows that in the period from April 2023 to May 2024:

Dr Richard Wilson OBE, CEO of TIGA, said:

"The UK games development sector has continued to grow in very difficult economic circumstances. Our sector is weathering the storm. This is a remarkable achievement.  Our games development sector has a number of strengths including world-renowned studios, a deep talent pool and TIGA accredited games courses equipping highly skilled graduates for the industry. The UK has the largest development workforce in Europe.

"We need to enable more start-ups to scale-up, continue to enhance our skills base and improve access to investment to enable our sector to fulfil its potential. If the UK Government retains and enhances the Video Games Expenditure Credit, this will help to sustain a favourable environment for games development, create more high skilled jobs and boost investment. A successful video games industry will in turn contribute to the Government's objective of securing the highest sustained growth in the G7."

Meanwhile, the TIGA report has highlighted that the UK's fastest growing games clusters were London (468 new staff), North East (280 staff)and North West (247 staff).

London extended its lead as the largest cluster to 5,931 full time and full time equivalent staff in 584 companies. Five clusters (East of England, South East, East Midlands, Scotland and Northern Ireland) lost headcount between April 2023 and May 2024, the East Midlands for the second consecutive year. All areas saw reduced start-up activity, but London (81), South East (48) and the South West (22) added the most start-ups.

Dr Richard Wilson OBE, TIGA CEO, said:

"While London remains the biggest and fastest growing games cluster in the UK, almost 80% of all games development is carried out outside of the Capital. In addition, there has been impressive growth in the North East and North West between April 2023 and May 2024.

"At the same time, although London saw the greatest number of new start-ups, we also witnessed strong entrepreneurial activity in the South East."

Jason Kingsley CBE, TIGA Chairman and CEO and Creative Director at Rebellion, offered:

"TIGA's report is reflective of what is currently a challenging environment for some parts of the games industry. However, it also highlights that UK games development is faring better than certain areas of the global games industry. We need the Government to continue to improve the environment for games development in the UK so that our industry in turn can contribute to economic growth across the country."

* Full time equivalent roles: FT roles above plus a pro-rated % of all the freelancers we recorded in the survey.

** Full time roles: 100% full time roles recorded by companies in our survey.

Notes to editors
The findings in this press release come from TIGA's definitive report on the state of the UK video games industry Making Games in the UK 2024 (TIGA, 2024) which is based on an extensive survey of UK games businesses, with analysis by Games Investor Consulting.

Research methodology
Games Investor Consulting in conjunction with TIGA and its partners conducted surveys concluding in July 2008, September 2010, November 2011, December 2012, December 2013, December 2014, March 2016, November 2017, November 2018, April 2020, December 2021, April 2023 and May 2024 of all known games companies involved in the creation of games (including developers, publishers, publisher studios, service companies and broadcasters with games divisions) in the UK. Assessments of every database entry are made on a company-by-company basis with strict vetting and verification rules to ensure each entry is discrete (to prevent duplication via subsidiary or parent companies) and confirmed to be active in games development. The survey counts staff working in development and development support roles in games studios, games publishers and development service companies. A broad array of additional data is also captured including studio location, primary platform focus and company ownership structure as well as company start-ups and exits/closures.

Games development
Games development is defined as including all production staff, QA, support, localisation and technical staff but excludes admin, finance, sales, marketing and commercial staff not directly involved with games production. Full-time equivalent staff comprise multiple part-time staff aggregated based on typical usage throughout a year to represent a single full-time employee.

About TIGA
TIGA is the trade association for the UK video games industry.  Since 2010, TIGA has won 28 business awards and commendations. Our vision is to make the UK the best place in the world to develop video games. Our core purpose is to strengthen the games development and digital publishing sector. We achieve this by:

Get in touch:

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Web: www.tiga.org
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