TIGA outlines 5 Steps to Scaling-up the UK
Video Games Industry
LONDON, Aug. 13,
2024 /PRNewswire/ -- TIGA, the trade association
representing the UK video games industry, has published a new
report showing that the most dangerous period for games studios is
between their second and fifth year. TIGA's report, Scaling-up
the UK Video Games Industry (TIGA, August 2024) includes analysis from Games
Investor Consulting on 882 studios founded between 2008 and 2018.
TIGA's report also outlines five proposals to enable more start-ups
to scale-up and grow.
TIGA's report reveals the following key findings, derived from
data from 12 successive surveys of the UK games development sector
between 2008 and 2023:
- 53 per cent of studios (468) did not survive to 2023 and only
52 per cent of studios founded between 2008 and 2018 survived to
their fifth year.
- The most dangerous period for games studios is between their
second and fifth year. 64 per cent of studios that closed shuttered
in this 4-year window.
- Studios that fail to reach over 5 staff are particularly
susceptible to failure, while those that reach over 15 staff are
much less likely to fail. 86 per cent of closed/exited studios
failed to grow beyond 4 staff while only 14 per cent of
closed/exited studios grew above 15 staff.
- Games studios have become less able to grow over the Research
Period. An average of 50.2 per cent did not change in size at all
during the Research Period. An average of an additional 30.9 per
cent fell in size across the Research Period.
- Most studios (83 per cent) failed to grow above 15 staff.
TIGA proposes five steps to scaling-up the UK video games
industry:
- Establish a National Games Accelerator to enable more start-ups
to scale-up.
- Introduction of a Video Games Investment Fund to provide £ for
£ match funding.
- Provision of subsidized co-working hubs for local games
developers.
- Enhance the Video Games Expenditure Credit.
- Retain and boost the UK Games Talent and Finance CIC to
support developers via the Prototype Fund and Content Fund.
Dr Richard Wilson OBE, TIGA CEO,
said:
"The crucial strategic challenge facing the UK video games
industry is how to enable more start-ups to scale-up and grow. The
UK is a great place to start-up a studio, but growing is difficult,
especially for independent studios. 53 per cent of all studios
founded between 2008 and 2018 did not survive to 2023. Many studios
stay small. 78 per cent of all UK games studios employ four or
fewer people.
"We can help more start-ups to scale-up and grow by introducing
a National Games Accelerator, games hubs, a Video Games Investment
Fund, an enhanced Video Games Expenditure Credit and continuing to
support the UK Games Fund's Prototype Fund and Content Fund."
Jason Kingsley, CBE, TIGA
Chairman and CEO and Creative Director at Rebellion, said:
"The endemic problems and opportunities around starting up and
growing to scale suggest that TIGA's policy proposals are needed to
help more UK games studios grow from the danger zone (under 5
staff), where most studios close, to more commercially viable
scales (above 15 staff), where most studios thrive."
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. To this end, TIGA
- engages with policymakers to create an environment favourable
to video games development;
- enhances education and skills through our accreditation
programme, the TIGA Games Education Awards and our
education conference;
- promotes best practice through our membership services,
including the TIGA STAR Employer Award and the TIGA
Games Industry Awards;
- conducts primary research into the games sector, surveying
hundreds of companies each year about the business environment,
support policies and the health of the industry.
Get in touch:
Email: info@tiga.org
Web: www.tiga.org
Twitter: www.twitter.com/tigamovement
Facebook: www.facebook.com/TIGAMovement
LinkedIn: http://www.linkedin.com/company/tiga
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SOURCE TIGA