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TIGA’s Making Games in the UK report 2023 also reveals an increase in tax revenues, investment and shows the contribution of the games industry to the Levelling Up Agenda
According to new figures released by TIGA (the trade association that represents the UK video games industry), employment in the United Kingdom’s games development sector increased by 11.4%, while the number of studios has risen by nearly 18%.
The employment in the games industry, as well as tax revenues and investments, will also grow significantly between December 2021 to April 2023.
Making Games in the UK, 2023, TIGA’s definitive report, is based upon an extensive survey and analysis of UK gaming businesses by Games Investor Consulting.
TIGA’s analysis shows that between December 2021 and April 2023, the following will occur:
- Studio creative staff increased by 15,2 percent and 11.4 percent annually from 20,975 full-time staff and equivalents in December 2021, to 24,155 in April 2023. Total workforce, including freelancers, grew to 25,026.
- The number of indirect jobs supported by studios along the supply chain increased from 38,348 up to 44,161.
- Studio numbers increased from 1,528 up to 1,801, a 17.8 percent increase.
- Estimates show that the combined direct and indirect taxes generated by this sector for the Treasury have increased from PS1.2bn to PS1.5bn.
- The annual investment of studios has increased from PS1.3 billion up to PS1.66billion.
- The contribution of the UK game development industry to gross domestic product has increased from PS2.9 billion (£2.9 billion) to PS3.68billion (£3.68billion).
Richard Wilson, OBE (Chief Executive Officer of TIGA) said that the UK video game development sector was booming. “Employment levels are soaring, and studios continue to hire at rates nearing records. The sector supports economic growth in the UK with high-growth games studios located across many regions.
The sector has outstanding long-term prospects, thanks to strong consumer demand and rising foreign direct investments, attracted by the highly skilled workforce of our country, as well as Video Games Tax relief, which lowers costs for games development.
The UK should increase the generosity of its Video Games Tax Credit (which will soon be transformed into the Video Games Expenditure credit), establish a Video Games Investment Fund that would help small studios scale up, and create an Industrial Secondments Programme for skills development.
The TIGA report also highlights that 80 percent of UK games developers are located outside London. London is home to over 22 percent of the UK’s games development workforce, spread across 587 different companies. However, 77% of the UK’s games development staff are located outside the capital. Around one-fifth of the development staff is located in the South East of England. The third, fourth, and fifth largest centres of game development are North West of England (West Midlands), Scotland and the North West of England.
Indirect staff support more than 53,000 jobs outside London. The North East (45,7%), Yorkshire and Humber (33,9%) and Northern Ireland (33.5%) had the highest percentage growth in headcount between December 2021 and April 2023.
|
UK regions |
Share of UK development workforce by 2023 |
| London | 22.4% |
| South East | 19.9% |
| North West | 12% |
| West Midlands | 10% |
| Scotland | 9.1% |
| East of England | 6.7% |
| Yorkshire & Humber | 5.8% |
| North East | 5.4% |
| East Midlands | 4.9% |
| South West | 2.5% |
| Northern Ireland | 0.7% |
| Wales | 0.6% |
Wilson stated that “London employs more than 22 percent of the UK’s games development workforce, spread across 587 different companies. However, 77 percent of the UK’s games development staff are located outside the capital.” Wilson said that approximately one-fifth of the development staff is located in the South East of England. The third, fourth, and fifth largest centres of game development are North West of England and the West Midlands, respectively.
Indirect staff support more than 53,000 jobs outside London. The North East (47.5%), Yorkshire and Humber (33.9%) and Northern Ireland (33.5%) had the highest percentage growth in headcount between December 2021 and April 2023.
The video games industry is a huge contributor to the Levelling Up initiative, thanks to its 44,000 employees, most of whom are located outside London. The sector provides high-skilled jobs and has created strong creative industry clusters across the UK.
Jason Kingsley OBE, Chairman of TIGA, Chief Executive Officer, and Creative Director at Rebellion, stated that the research shows the potential for the video game industry to stimulate regional economic growth. My personal experience with Rebellion Developments confirms that our studios are actively contributing to the economic growth of cities and areas such as Liverpool. Oxford, Warwick, and Yorkshire. We can strengthen the UK’s video game clusters by enhancing Video Games Tax Relief and improving access to financing and skills development. This will have a positive effect on the economy.
This press release contains the findings of TIGA’s definitive report on UK video game industry state, Making Games in UK 2023 (TIGA 2023), based on a survey of UK gaming businesses and analysis by Games Investor Consulting.
Research Methodology
Games Investor Consulting, in conjunction with TIGA, and its partners, conducted surveys in July 2008, September 2010, November 2011, December 2012, December 2013, December 2014, March 2016, November 2017, November 2018, April 2020, December 2021, and April 2023, of all UK-based games companies (including developers and publishers) involved in creating games. The database entries are assessed on a per-company basis, with strict verification and vetting rules in place to ensure that each entry is distinct (to avoid duplication by subsidiaries or parent companies), and confirms its involvement in games development. The survey includes staff in development roles and those who support development in games studios and publishers, as well as development service companies. Additional data such as studio location, platform focus, company ownership structure and company start-ups/closures are also collected.
Games development
The term games development includes all production staff including QA, support and localisation staff. It excludes administrative, financial, sales, marketing, and commercial staff that are not directly involved in the production of games. Full-time equivalents are multiple part-time employees aggregated according to their typical usage over a calendar year in order to represent one full-time employee.
