TIGA, the trade association representing the UK games industry, said today that the decline in inward investment into the UK confirmed the need for the Government to look again at measures to promote economic growth and to turnaround this disappointing trend. The number of foreign direct investment projects fell 11 per cent to 1,434 in the year to March, according to UK Trade and Investment. This is the second annual decline.
The UK video games industry relies to a crucial extent on global publishers for inward investment. In 2010, 76 per cent of all investment in the UK games industry was from global publishers. Investment by UK video games studios fell by £41 million between 2008 and 2010. In recent months THQ and Disney have announced studio closures in the UK.
Dr. Richard Wilson, TIGA CEO, commented:
“The second annual decline in foreign direct investment projects shows that the UK cannot afford to be complacent. If the UK economy is to experience a stronger recovery then the Government must reverse this decline in inward investment projects. As far as the video games industry is concerned, some global publishers are divesting from the UK and increasing investment in other jurisdictions.
“The Coalition Government should reconsider the case for a sector specific tax break for games production. Activision Blizzard, THQ and Ubisoft have previously stated that they would be more likely to invest in the UK video games sector if we had a tax break for games production. TIGA will continue to refine the case for Games Tax Relief and propose other measures to the Government, included enhanced R&D Tax Credits, in order to encourage inward investment into the UK video games sector.””
-Ends-
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 was awarded ‘Trade Association of the Year’ and the ‘Member Recruitment Award’ at the Trade Association Forum Best Practice Awards 2010. TIGA has also been named as a finalist in the 2010 Chartered Management Institute (CMI) National Management and Leadership Awards in the category of ‘The Outstanding Organisation of the Year Award (SME)’. 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 07875939643: or email richard.wilson@tiga.org;