LONDON, August 16, 2016 /PRNewswire/ --
TIGA, the network for game developers and digital publishers, released new findings today which show the UK video games development sector grew to record levels in 2016, with studio headcounts, wider games industry employment, tax revenues and investment surpassing previous records. The UK's games developer headcount reached 11,893 in 2016, an annualised increase of 7.5 per cent. The games development sector also now contributes more than £1.25 billion to the UK's Gross Domestic Product (GDP).
The findings come from TIGA's definitive forthcoming annual report into the state and health of the UK video games industry Making Games in the UK Today: August 2016 which is based on an extensive survey of UK games businesses, with analysis by Games Investor Consulting.
TIGA's research shows that in the year to March 2016:
- the number of creative staff in studios soared by 7.5 per cent to 11,893 full-time and full-time equivalent staff;
- the number of jobs indirectly supported by studios rose from 19,872 to 21,744;
- combined direct and indirect tax revenues generated by the sector for the Treasury increased from £460 million to £514 million;
- annual investment by studios rose from £503 million to £562 million; and
- the game development sector's contribution to UK Gross Domestic Product increased from £1,115m (over £1.1billion) to nearly £1.25 billion towards GDP in the year to March 2016.
Dr Richard Wilson, TIGA CEO, commented:
"The UK video games development sector is strengthening, succeeding and soaring to new heights. Employment and investment in the sector surged to record levels in 2016 and the industry's contribution to GDP reached an all-time high of £1.25 billion.
"The industry's growth over the last year has been driven by three factors. Firstly, the games market is buoyant, with new opportunities continuing to arise in mobile, PC gaming, console and VR and AR, which have combined to stimulate investment and job creation.
"Secondly, start-ups have increased in number while existing medium and larger studios have expanded, suggesting that we are getting closer to the efficient industry eco-system that TIGA has long fought for.
"Thirdly, and perhaps most importantly, Games Tax Relief (GTR) is powering growth. TIGA played a critical role in winning GTR, which effectively reduces the cost and risk of games development and is incentivisising investment and job creation in the games industry. There is now a clear causal link between the advent of GTR and headcount growth in the UK games development sector. Over the three years before GTR was announced, the UK's development headcount experienced an average annual growth rate of minus 3.6 per cent. Over the four years after the announcement, the average annual growth rate was plus 7.1 per cent. We should now examine how we can make GTR even more effective so that it will continue to create more jobs, more investment and more video games in the years ahead."
Jason Kingsley OBE, TIGA Chairman and CEO and Creative Director at Rebellion, said:
"The UK video games development industry grew to record levels in 2016 confirming its reputation as a creative, technological and economic success story. This is great news for consumers, students and developers.
"However, our industry continues to confront challenges. 12 per cent of all studios closed down in 2014. Access to finance is challenging, particularly for micro-studios. Recruitment of highly skilled people can be difficult. We now need to reinforce our success by enhancing Video Games Tax Relief, improving studios' access to finance, developing regional games clusters and continuing to boost education and skills."
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Notes to editors
Research methodology
Games Investor Consulting (GIC) continuously maintains a database of all extant, closed and exiting British games companies. Between January-March 2016, TIGA and GIC conducted an email and telephone survey of British games companies involved in the development of games including studios, publishers, service companies and broadcasters with games divisions. Distribution, manufacturing, peripheral device, marketing and retail companies were not profiled. Companies were asked how many staff worked full time in development. HR, admin, sales, marketing and commercial staff were excluded. 534 companies responded or publish up to date data on headcount, representing 70% of the UK's total headcount. Estimates for the remaining companies were established by desk research from a variety of other public data and GIC sources. GIC takes the latest data on development headcount to scale total development expenditure, and then uses Oxford Economics' calculations from their report, "The economic contribution of the UK Games Development industry", to establish estimates of the development industry's GDP and tax impact.
About TIGA
TIGA is the network for games developers and digital publishers and the trade association representing the video games industry. Since 2010, TIGA has won 24 business awards and commendations and has been successfully accredited as an Investors in People organisation three times. TIGA focuses on three sets of activities:
- Political representation
- Media representation
- Business services
This enhances the competitiveness of our members by providing benefits that make a material difference to their businesses, including a reduction in costs and improved commercial opportunities. It also means our members' voices are heard in the corridors of power and positively represented in national, broadcast and UK video games trade media.
Get in touch:
Tel: 0845 468 2330
Email: [email protected]
Web: www.tiga.org
Twitter: www.twitter.com/tigamovement
Facebook: www.facebook.com/TIGAMovement
LinkedIn: http://www.linkedin.com/company/tiga
SOURCE TIGA
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