UK video games industry can support export led economic recovery

TIGA, the tradeassociation representing the UK games industry, said today that the video games
industry could make an important contribution in supporting an export led economic
recovery for the UK economy. TIGA made the comments to accompany the
publication of a new research report entitled The UK Video Games Industry: Powering an Export Led Recovery[1],
which confirms that the games development sector has a very high propensity to
export.

The report presents
research on the UK video games development industry’s main export markets and
what percentage of turnover is generated by exports. The report also looks at
which markets UK games developers consider to be the most important emerging
markets for exports in the future.

Dr Richard Wilson,
CEO of TIGA, said:

“The
UK needs an export led recovery to power economic growth. The video games sector can make an
important contribution towards achieving this objective. TIGA’s research shows
that 95 per cent of UK games businesses export their products (games), compared
to just one third of small and medium-sized enterprises generally[2].
Additionally, on average, 45 per cent of a games business’s turnover is
generated from the export of games.

“For 65 per cent of UK games businesses, the
USA constitutes one of their most important geographical markets. This is
confirmed by the fact that UK games businesses including Blitz Games, Doublesix,
Eutechnyx, Headstrong, Kuju Entertainment, Firebrand Games, Rebellion, Relentless
Software and Zoe Mode are attending E3 on June 7^th – 9th 2011, the
annual video game conference and show at the Los Angeles Convention Centre.

“UK games businesses want to increase their
exports. 36 per cent of UK developers want to expand their business in the USA.
24 per cent wish to increase their business in Japan
and 19 per cent are interested in growing their business in China.

“The Government can help the games industry to contribute
towards export led economic growth in the UK by introducing TIGA’s Games Tax
Relief and by expanding the scope of the existing Small
Firms R&D Tax Credit. Other things being equal, these measures would have
the effect of enabling many UK owned games businesses to expand their
operations and export still more content.

“The
Government should also expand UKT&I’s Tradeshow Access Programme (TAP). TAP
supports UK businesses looking to exhibit at overseas trade shows by providing
eligible firms with grants. Additionally, TAP grants should be deployed more
flexibly to cover travel and accommodation costs as well exhibition expenses. This
would enable more eligible SMEs in general and games businesses in particular
to attend trade shows, thereby enhancing their potential to export.””

Jason Kingsley, TIGA
Chairman and CEO and Creative Director at Rebellion said:

“UK
games developers are export oriented. My own business, maker of games including
The Simpsons and Aliens vs Predator, generates 90% of its turnover from exports. TIGA
will continue to support UK games businesses to fulfil their export potential
through the UKT&I’s TAP programme. Additionally, because TIGA has been
named as the official partner for this year’s Gamescom event in Cologne, we will
oversee the UK’s official presence and promotion throughout Gamescom. TIGA will highlight the inherent creativity
and quality of the UK video games sector at Gamescom, which runs from August
17th – 21st.””

Ends

_{Notes for editors}

_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; or contact David Hodges on 02070911653}

---