Few parts of the UK creative industries are as dynamic as the video games sector.
The UK is the world’s fourth largest producer of games in revenue generation terms, outstripped only by the US, Japan and Canada, and it is the preferred location for European headquarters for most global games companies.
When Sony held the European launch of its PlayStation 3 console, western Europe was viewed the “most important territory” in the Japanese group’s global battle with its main rival, Microsoft, according to Paul Jackson, video games analyst at Forrester Research, the consultancy. Within Europe, the UK has commanding scale in video games.
Screen Digest, the specialist research group, estimates that by 2008 the UK industry will be worth €2.14 billion in annual sales – almost the size of the French and German games markets combined.
The UK games sector employs 21,000 people; it made a £200 million contribution to the 2006 UK balance of trade and boasts the highest concentration of independent games developers of any European economy.
The games sector is also genuinely regional. Clusters of excellence can be found in West Yorkshire, the Midlands, the south of England and Scotland.
It is little wonder that the world’s leading games groups such as Electronic Arts, Activision, Microsoft, Sony, SEGA and Nintendo have all invested in the UK as a way of increasing their share of the European games market.
In recent years, these names have been joined by firms such as Com2Us and NC Soft from South Korea, and by international venture capital firms investing in UK assets.
Although there are many reasons for this investment trend, arguably the chief draw is the UK’s strong track record in fostering talent to develop global games hits.
Ed Barton, analyst at Screen Digest, added: “The main reason the UK games sector is successful in attracting foreign investors is because of its incredibly vibrant talent pool.”
Industry-defining games series such as the Tomb Raider Grand Theft Auto franchises, and Electronic Arts’ Harry Potter properties were all British originated.
The impulse to snap up world-beating UK talent was all too evident when Microsoft bought Lionhead, a UK games developer led by Peter Molyneux, who has a long line of games successes to his name.
Peter Moore, the head of Microsoft’s gaming division, said: “What we loved about Peter Molyneux is the innovation he brings. He is probably one of the most accomplished game developers in the world.”
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In 2006, New Enterprise Associates (NEA), a US venture capital firm, also
invested $31 million in Realtime Worlds, a Scottish games developer
founded by David Jones, a force behind two hugely successful games series:
“Grand Theft Auto” and “Lemmings”.
Patrick Chung, NEA Principal, said: “NEA has spent three decades seeking
out and backing the world’s most visionary entrepreneurs. We were honoured
to have the opportunity to work with David Jones and his team.” Sony’s Eye Toy games accessory was created in the UK before being exported worldwide. The group’s Studio Liverpool has also been at the forefront of Sony PlayStation games development with series such as Wipeout and Formula One games. |
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The UK games sector has many other strengths. There is little games piracy compared with other markets, particularly the Far East.
It has well-respected industry bodies such as TIGA, the independent game developers’ association, and ELSPA, the entertainment leisure software publishers’ association, to argue its case with government and other stakeholders.
A digital media and creative industries fund for investing in gaming projects produced in Scotland has been created, and other regions have similar initiatives.
Furthermore, the popularity of the English language puts UK businesses in a strong position to re-version for the US market games originally created in Asia.
Technologically, the UK games industry has the further advantage of being a market with multiple platforms on which games can be tested and played.
Mobile, interactive television and broadband online games have joined and expanded the longer established games console and PC markets.
Jiyoung Park, CEO of Com2US, which specialises in mobile entertainment, calls the UK the “hub of the mobile telecommunications industry”.
Skillset, the sector skills council for the audio visual industries, has also been proactive in identifying the particular skills needed by games companies.
Games-related courses are proliferating. Two are at the University of Abertay, Dundee, and other pair can be found at the University of Paisley and Glamorgan Centre for Art & Design Technology.
Ian Livingstone, chair of Skillset’s games skills forum, said: “We believe this was the first instance globally of the games industry co-operating on a national scale to support and enhance the development of its workforce. It is a massive step forward in maintaining the UK’s position at the forefront of making games.”
The UK is thus sowing the seeds for future generations to continue its eminence in the games sector.
USEFUL CONTACTS
Research:
www.analysys.com
www.datamonitor.com
www.dfcint.com
www.gamesinvestor.com
www.screendigest.com
Organisations:
www.elspa.com
www.digitalyorkshire.org.uk
www.gamealliance.net
www.gamehorizon.net
www.gamesindustry.biz
www.scottish-enterprise.com
www.skillset.org/games
www.tiga.org
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