2016 will see the UK video game industry increase investment and expand employment, according to a recent survey.
TIGA, the network for games developers and digital publishers and the trade associations representing the game industry, today released their findings of a recent survey and uncovered that 72% of respondents plan to grow their workforce in the new year.
The report was based on a survey of 52 games businesses including small, medium and large firms, developing games across all platforms.
“The UK video games development and digital publishing sector is set to grow in 2016,” said Dr Richard Wilson, TIGA CEO. “Our survey shows that games businesses are planning to increase investment and employment. This growth is being driven by three factors.
“Firstly, the consumer market for games is significant and growing. Already games are played in 70% of households, and over 50% of all UK adults are mobile gamers. Secondly, the increasing prevalence of mobile and tablet devices, the new console generation, and the advent of Virtual Reality and Augmented Reality are stimulating investment in games.
“Thirdly, Video Games Tax Relief, which TIGA played a critical role in achieving, is fuelling growth. Games Tax Relief effectively reduces the cost and risk of games development and it incentivises investment and job creation in the games industry.
“Games Tax Relief is predicted to create 2,700 new development jobs and £320 million in investment over the next five years.”
The report also found that 54% of respondents said the outlook for investment in their business was more optimistic compared to 12 months ago.
66% said they forecast that the trend in their company’s net profits over the next 12 months would be up and 67% reported that their company was performing either “very well” or “well”.
46% said the principal obstacle holding back their business was limited access to finance, 56% anticipate their company’s costs are likely to increase over the next 12 months, 38% expect their princes will increase over the next 12 months and 63% believe that the economic and business environment in the UK is favourable to the video games industry.
“2016 is set to be another good year for the UK video games industry,” added Jason Kingsley, OBE, TIGA Chairman and CEO and Creative Director at Rebellion.
“There are new start-ups, existing firms are expanding and new technologies are boosting innovation and growth in the sector. I am particularly pleased that Video Games Tax Relief, a measure that TIGA consistently campaigned for over many years, is having a positive impact on growth in our sector.”
For more information on TIGA, visit www.tiga.org.