TIGA, the network for video games developers and digital publishers and the trade association representing the video games industry, published new data today which revealed that the Scottish video games industry’s development headcount grew by 25 per cent between December 2014 and March 2016. This was more than twice the national average and the second fastest growth in the UK after Wales. Scotland also became the third largest games cluster in the UK, after the South East of England and London.
TIGA’s research shows that:
- Scotland has 1,290 permanent and full-time equivalent creative staff working on games development[1] in 85 companies (up from 1,050 staff in 97 companies in 2014). Scotland is home to 9.4 per cent of the UK’s total games companies and 9.8 per cent of its developer headcount.
- Scotland’s games development sector supports an additional 2,408 indirect jobs.
- Annually, Scottish games development companies are estimated to invest nearly £62 million in salaries and overheads, contribute £56 million in direct and indirect tax revenues to HM Treasury, and make a direct and indirect contribution of nearly £138 million to the UK’s Gross Domestic Product (GDP).
Dr Richard Wilson, TIGA CEO, said:
“TIGA’s latest research shows that the Scottish video games industry grew dramatically in 2015-16. The Scottish video games industry is now the third largest games cluster, after the South East and London. The Scottish games sector is diverse, with companies working in games for mobile, online, educational and console markets.
“If the Scottish video games industry is to continue to grow then we need to ensure that more Scottish games companies benefit from Games Tax Relief and Research and Development Tax Credits, both of which effectively reduce the cost of games development.
“We also need to provide start-ups and small studios with better access to finance and business advice. To achieve this, TIGA has proposed the introduction of a Games Investment Fund. The Games Investment Fund could make grants or loans available to games businesses on a matched funding basis. The Games Investment Fund would also provide a commercial mentoring business advisory service, staffed by industry veterans, for games companies that access its grants or loans.
“A favourable tax regime, better access to finance and the provision of professional business advice will enable the Scottish video games industry to enjoy further growth in the years ahead.”
Notes to editors
Research methodology
Data on the Scottish video games industry is published in TIGA’s annual report into the state of the UK video games industry, Making Games in the UK Today: August 2016. TIGA produces the report with Games Investor Consulting (GIC). 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.
[1] Definition: This includes all production staff, QA, support, localisation and technical staff but excludes admin, finance, sales, marketing and commercial staff not directly involved with games production. Full-time equivalent staff comprise multiple part-time staff aggregated based on typical usage throughout a year to represent a single full-time employee.
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: info@tiga.org
Web: www.tiga.org
Twitter: www.twitter.com/tigamovement
Facebook: www.facebook.com/TIGAMovement
LinkedIn: http://www.linkedin.com/company/tiga
For further information, you can also contact: Dr Richard Wilson, TIGA CEO by email: richard.wilson@tiga.org
[1] Definition: This includes all production staff, QA, support, localisation and technical staff but excludes admin, finance, sales, marketing and commercial staff not directly involved with games production. Full-time equivalent staff comprise multiple part-time staff aggregated based on typical usage throughout a year to represent a single full-time employee.