TIGA Research shows UK video games industry on track for growth in 2022
LONDON, January 17, 2022 /PRNewswire/ — TIGA, the trade association representing the video game industry, today released a Business Opinion Survey (BOS) that shows 68% of respondents plan to increase their organization in 2022. In addition, 70% of respondents consider that the United Kingdom has a business and economic environment favorable to the games industry.
TIGA’s research was conducted in December 2021. The survey is based on a sample of 57 game companies, including small, medium and large companies, developing games on mobile/tablet, VR, PC and console.
TIGA Business Opinion Survey 2021-2022 includes the following main conclusions (percentages are rounded and therefore do not always add up to 100%):
- Use: 68 percent of respondents plan to increase their organization’s workforce in the next year. 30 percent expect to maintain their organization’s workforce at current levels. 2 percent think their organization’s headcount will shrink (compared to 9 percent in the previous BOS).
- Economic environment: 70 % of respondents to the TIGA survey believe that the economic and business climate is favorable to the video game industry. 11 percent consider that the environment is neither favorable nor unfavorable to the sector, 19 percent consider it unfavorable.
- Performance: 60 % of respondents said their business was doing either “very well” or “well” (up from 70% in last year’s BOS). 32 percent said their business was doing “neither well nor badly.” 9 % said their business was doing ‘badly’ or ‘very badly’ (up from 11% in the previous survey 12 months ago).
- Outlook: 53 % of respondents said they are more optimistic about the prospects for their business than 12 months ago. 35 percent said they were neither more nor less optimistic. 12 percent said they were less optimistic.
- Obstacles to success: 40 percent cited skills shortages and gaps as the biggest barrier to business success (up from 25 percent last year). 19 % cited discoverability (up from 36% last year). 18 percent refers to limited access to finance. seven percent noted the disruption caused by the pandemic. 4 percent referred to difficulties in accessing game tools, engines and middleware and 12 percent identified “other” barriers.
- Costs: 83 percent of respondents anticipate that their business costs (eg, employment, equipment, electricity, etc.) are likely to increase over the next 12 months.
- Competetion: country of which Canada, France and many states within the United States provide a variety of incentives to attract IDEs into games and now Ireland plans to introduce its own game development tax break.
Dr Richard Wilson OBE, CEO of TIGA, noted:
“The UK video games industry is on track for growth, with 68% of respondents to our Business Opinion Survey expecting an increase in employment over the coming year. Skill shortages and access to funding remain challenges for some studios, and competition for direct foreign investment in the games industry is expected to remain high.
“The government can strengthen the industry by taking three steps. First, improve the Video Game Tax Relief (VGTR) by increasing the relief rate from 25% to 32% to help the industry grow. Video Games Investment Fund (VGIF) to improve studios’ access to finance. The VGIF would provide funding of up to £500,000 to games companies on a matched funding basis. Thirdly, to increase the supply of well-educated graduates who can work in the gaming industry and promote education in the sector through a skills investment fund.”
TIGA is the trade association for the UK video games industry. Our vision is to make the UK the best place in the world to develop video games. Our main goal is to strengthen the game development and digital publishing industry. To this end, we focus on four strategic objectives:
For more information, contact TIGA:
Tel: 0845 468 2330
E-mail: [email protected]