The UK games industry is expecting to see significant growth in 2016, with many major businesses increasing their investment and seeking to hire new staff, according to UK video game trade association TIGA. However, many companies expect their overheads to rise, meaning that prices are set to increase to compensate.
A recent survey conducted by TIGA found that:
- 60 per cent of respondents plan to grow their organisation’s workforce a little over the next year. 12 per cent expect their workforce to grow a lot.
- 54 per cent of respondents to the TIGA survey said that the outlook for investment in their business (for example, in R&D, training, new games development, etc) was more optimistic than compared to 12 months ago.
- 66 per cent of respondents to the TIGA survey forecast that the trend in their company’s net profits over the next 12 months would be up.
- 67 per cent of respondents reported that their company was performing either ‘very well’ or ‘well’.
- 46 per cent of the respondents to the TIGA survey said that the principal obstacle holding back their businesses was limited access to finance.
- 56 per cent of respondents anticipate that their company’s costs are likely to increase over the next 12 months.
- 38 per cent of games businesses in our survey expect that their prices will increase over the next 12 months.
- 63 per cent of respondents to the TIGA survey believe that the economic and business environment in the UK is favourable to the video games industry.
“The UK video games development and digital publishing sector is set to grow in 2016. Our survey shows that games businesses are planning to increase investment and employment. This growth is being driven by three factors,” Dr Richard Wilson, CEO of TIGA, said.
“Firstly, the consumer market for games is significant and growing. Already games are played in 70% of households, and over 50% of all UK adults are mobile gamers.”
“Secondly, the increasing prevalence of mobile and tablet devices, the new console generation, and the advent of Virtual Reality and Augmented Reality are stimulating investment in games.”
“Thirdly, Video Games Tax Relief, which TIGA played a critical role in achieving, is fuelling growth. Games Tax Relief effectively reduces the cost and risk of games development and it incentivises investment and job creation in the games industry. Games Tax Relief is predicted to create 2,700 new development jobs and £320 million in investment over the next five years,” Wilson said.
“2016 is set to be another good year for the UK video games industry,” added Jason Kingsley OBE, TIGA Chairman and CEO and Creative Director at Rebellion. “There are new start-ups, existing firms are expanding and new technologies are boosting innovation and growth in the sector. I am particularly pleased that Video Games Tax Relief, a measure that TIGA consistently campaigned for over many years, is having a positive impact on growth in our sector.”