TIGA, the trade association representing the UK video games industry,
said today that GAME’s business difficulties confirmed the dramatic shift in
the games industry from retail to digital gaming and reinforced the case for
independent developers and digital publishers to embrace network gaming. TIGA
made the comments in the light of a 64 per cent collapse of GAME’s share price
on Monday March 12th 2012.
Dr Richard Wilson, TIGA CEO, said:
“This is
clearly a deeply worrying time for GAME’s 6,000 employees and we wish them the
best of luck during this crisis. GAME’s difficulties are due to a combination
of factors: the economic downturn which has hit the high street generally;
intense competition from other physical and online retailers; the decision by
big global publishers not to stock GAME with new releases; and the shift by
consumers from purchasing boxed products to digital games. Retail sales of
video games have declined for four consecutive years, as consumers change their
spending habits.
“The
situation at GAME will reinforce the trend which has seen UK game developers
and digital publishers move towards network gaming – mobile, massively
multiplayer, social and online gaming. TIGA’s
research shows that 80 per cent of new development studios are working either
exclusively or in part on network gaming. This move towards digital
self-publishing enables developers to create original games, retain control of
their IP and achieve greater financial stability.”
Patrick O'Luanaigh, CEO of nDreams Ltd and
TIGA board member, said:
“I wish GAME and their employees the best of
luck in a very difficult time. Unfortunately, the rapid transition to digital
means life is likely to be tough for all high-street game retailers with more
and more money being spent on platforms such as Steam, Origin, the App Store,
PSN, XBLA and Android market. Fortunately, the UK has an increasing number of
exciting new small to medium sized digital publishers who are growing stronger
all the time. TIGA are working hard to support this growth in a variety of ways,
as well as talking to the Government about policies that can help these
companies expand and become the large publishers of the future.”
End
About TIGA:
TIGA is the trade association representing the UK’s games industry. The
majority of our members are either independent games developers or in-house
publisher owned developers. We also have games publishers, outsourcing
companies, technology businesses and
universities amongst our membership. TIGA won 10 business awards and was nominated a finalist for 9
other awards during 2010 and 2011. In 2010 TIGA won two business awards including
‘Trade Association of the Year’ from the Trade Association Forum.
In 2011, TIGA
won eight business awards including ‘Trade Association of the Year’ from the
Trade Association Forum, ‘Outstanding Organisation’ from the Chartered
Management Institute and two Global Business Excellence Awards, including
‘Outstanding Marketing Campaign’.
Richard Wilson won the ‘Leadership Award’ from the Trade Association
Forum and the ‘Outstanding Leader’ award from the Chartered Management
Institute.
TIGA is an Investors in People organisation.
TIGA's
vision is to make the UK the best place in the world to do games
business. We focus on three sets of activities: political representation,
generating media coverage and developing services that enhance the
competitiveness of our members. This means that TIGA members are
effectively represented in the corridors of power, their voice is heard in the
media and they receive benefits that make a material difference to their
businesses, including a reduction in costs and improved commercial
opportunities.
For further information, please contact
Dr Richard Wilson, TIGA CEO on: 07875 939 643, or email richard.wilson@tiga.org.