In a world of economic challenges, the UK gaming industry stands as a beacon of growth, driven by regional studios beyond London.
- Despite downsizing and studio closures, the UK gaming sector has expanded, showcasing resilience.
- London leads with rapid growth, yet 80% of development is outside the capital, indicating regional strength.
- Freelance opportunities surge as companies adjust workforce strategies to adapt to changing economic conditions.
- Foreign-owned studios now dominate the UK’s gaming workforce, reflecting international investment.
The UK gaming industry is experiencing a notable expansion even as the global market faces economic challenges. A recent report from TIGA reveals that despite some companies reducing their workforce and the closure of several studios, the UK gaming sector has grown over the past year.
London remains at the forefront with the highest growth, adding 468 new staff members. However, the North East and North West regions have shown impressive gains as well, with the addition of 280 and 247 new employees respectively. This demonstrates the increasing importance of regions outside the capital in contributing to the industry’s development.
Overall, the UK gaming development sector grew by 4.8% in the twelve months leading up to May 2024. However, this growth rate is the slowest since 2012, pointing to some underlying challenges within the industry.
Moreover, between April 2023 and May 2024, more than 28,500 individuals were engaged in game development in a professional capacity across the UK. The freelance workforce saw significant growth, increasing from 1,102 in April 2023 to 3,625 by May 2024. This trend is largely a response to companies downsizing full-time positions in favor of more flexible freelance arrangements.
While the number of active companies declined slightly to 2,148 from 2,175, the sector saw a net gain in jobs, as 678 companies expanded and added more roles than those lost due to downsizing. Despite this, 1,070 firms neither increased nor decreased their workforce, indicating a stability in some areas amidst the broader changes.
The UK currently houses 2,148 active gaming development entities, including 1,697 gaming studios and over 100 publishers, along with broadcasters and service firms. Foreign investment is quite prominent, with overseas-owned studios employing 62% of the development workforce.
With strengths such as world-renowned studios, a solid talent pool, and TIGA-accredited courses providing skilled graduates for the industry, the UK continues to attract international investment. The industry is well-positioned to benefit from any governmental enhancements to the Video Games Expenditure Credit, which could lead to more high-skilled job creation and investment, further driving growth.
The UK gaming sector’s growth amidst global economic challenges exemplifies its resilience and potential for further expansion.
