Northern studios have led a growth in the UK’s game development sector, in spite of a global downturn.
The report from TIGA, the trade association of the UK video games industry, shows that the UK sector has grown in the past 12 months, despite companies downsizing and studio closures.
While London is the fastest growing games cluster in the UK, with the capital’s studios adding 468 new staff, North East companies employed 280 new staff and North West businesses recruited 247 new staff. However, Scotland was one of 5 cluster to lose headcount.
Nationwide, it meant the UK games development sector grew 4.8 per cent in the 12 months to May 2024. Nonetheless, that is the lowest annualised rate of growth in the UK games industry since 2012.
“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,” said Dr Richard Wilson OBE, CEO of TIGA.
Between April 2023 and May 2024 more than 28,500 people were making games professionally in the UK. The number of freelancers increased from 1,102 (April 2023) to 3,625 (May 2024) – this is due to large companies downsizing full-time roles and switched to freelancers.
TIGA found that job growth outweighed company downsizing and closure: 400 extant companies shed 2,353 full time development jobs between April 2023 and May 2024; but 678 companies grew over the same period, adding 3,932 full time development jobs.
1,070 companies neither grew nor shed staff.
Overall games company numbers declined: The UK had 2,148 trading games development companies in May 2024 (down from 2,175 in April 2023). This includes 1,697 games studios, 60 publisher studios, 109 publishers, 4 broadcasters and 278 service companies.
Overseas owned studios now employ 62% of the UK games development workforce.
“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,” continued Dr Wilson.
“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.”
