DCMS figures underline urgent need for GTR green light

By January 15, 2014 Press Releases

TIGA, the trade association representing the video game industry, has responded to the Department for Culture, Media and Sport’s (DCMS) Creative Industries Economic Estimates, which were released yesterday and found the contribution of the UK video game industry to GDP fell from £946 million in 2011 to £540 million in 2012.

TIGA acknowledges that the DCMS’ findings are based on a relatively crude classification system, which is unlikely to capture all games companies, and is too heavily weighted towards publishers. Nonetheless, the key underlying issue behind this data remains the fact that the UK’s video games development sector has been on the back foot in recent years because many of our overseas competitors benefit from generous forms of Games Tax Relief in contrast to the UK. 

TIGA’s own robust research shows that since 2007, the UK has seen a decline in its global chart ranking, edged out of the top three video-game-making territories by South Korea in 2005, out of the top four by Canada in 2006 and then from the top five by China in 2010. In contrast to the rapid growth of the global market, the total number of games development staff employed in the UK shrunk by 7% between 2008 and 2012. Similarly, annual investment was approximately £30 million lower in 2012 when compared to 2008.  

Dr. Richard Wilson, CEO, TIGA, commented:

“We must not lose sight of the pressure the UK video games development sector has been fighting against. Our games development and digital publishing industry has been competing on an uneven international playing field and this has had a negative impact upon investment, jobs and projects.  

“The case for Games Tax Relief remains strong. This relief will support cultural products, is necessary and proportionate in design, and it will secure these results without distorting trade and competition within the EU. We trust that the UK Government will achieve the introduction of Games Tax Relief in the near future.”    

 

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About TIGA TIGA is the trade association representing the video game industry. We help developers and digital publishers build successful studios, network with the right people, save money and access professional business advice.   We also have outsourcing companies, technology businesses and universities amongst our membership. Since 2010, TIGA has won 16 business awards.  

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 game trade media.  

Get in touch:   Tel: 0845 468 2330

Email: info@tiga.org  

Web: www.tiga.org 

Twitter: @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 on: 07875 939 643, or email: richard.wilson@tiga.org

Drew Field, TIGA Communications Director on: 07720 643 344, or email: drew.field@tiga.org 

 

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