By Sagar V. Mankar The UK gaming industry has demonstrated remarkable resilience in the face of global economic headwinds, according to the latest research from TIGA, the UK’s video games trade association. Their comprehensive report “Making Games in the UK 2024” reveals several interesting trends that shaped the industry between April 2023 and May 2024.
Growth Amid Turbulence
Despite the challenging global gaming market, the UK gaming sector achieved a 4.8% growth rate. While this represents the lowest annual growth since 2012, it’s particularly impressive given the broader industry downturn.
The sector now employs over 28,500 gaming professionals, marking a 13.9% increase in the workforce, as per TIGA survey data.
Shifting Employment Landscape
One of the most notable changes has been the dramatic shift in employment patterns. The number of freelancers in the industry has more than tripled, jumping from 1,102 to 3,625 professionals. This surge reflects a growing trend among companies to embrace contract work as a cost-optimization strategy.
The job market showed encouraging signs of vitality, with new opportunities outpacing losses. Companies created 3,932 full-time positions while 2,353 positions were eliminated during the survey period.
Regional Growth and Development
London continues to lead the UK’s gaming scene, adding 468 new staff positions and maintaining its position as the largest gaming cluster with 23% of the national workforce. The North East and North West regions have also shown impressive growth, adding 280 and 247 staff respectively.
The regional distribution of gaming activity remains diverse:
- South East: 18.7% of workforce
- North West: 12.3%
- West Midlands: 9.9%
- Scotland: 9.3%
Industry Consolidation and Challenges
The period saw significant industry consolidation, with the number of game studios decreasing from 1,801 to 1,757. A record 248 gaming companies ceased operations during this time, representing 10.4% of all gaming companies in the country.
The startup scene also showed signs of cooling, with 166 new ventures launching compared to 251 in the previous period.
International Investment
Foreign investment continues to play a crucial role in the UK gaming sector. Companies owned by overseas shareholders now employ 62% of the industry workforce, with 12,743 full-time staff working for foreign-owned studios compared to 7,854 in domestically owned operations.
Looking Ahead
Dr. Richard Wilson OBE, TIGA’s CEO, emphasizes the industry’s resilience: “Our sector is weathering the storm. This is a remarkable achievement.” He advocates for maintaining and enhancing the Video Games Expenditure Credit to sustain growth and create more high-skilled jobs.
Jason Kingsley CBE, TIGA Chairman and Rebellion CEO, acknowledges the challenges while remaining optimistic: “TIGA’s report is reflective of what is currently a challenging environment for some parts of the games industry. However, it also highlights that UK games development is faring better than certain areas of the global games industry.”