The Courier & Advertiser (Fife Edition)
UK games sector set to grow but hurdles remain
Economy: Brexit casting a long shadow
The UK games industry is set to grow in 2018, but development studios are more cautious about their prospects than they were a year ago.
New research by industry body TIGA found 68% of studios planned to increase their headcount this year and 70% said the economic environment in the UK remained favourable to game development.
However, there was a marginal reduction in the number of developers optimistic about their prospects in 2018.
More than a third of the companies that responded said accessing finance was their biggest obstacle to growth, while a similar number said making themselves known in the marketplace was their greatest issue.
TIGA chief executive Dr Richard Wilson said the environment was generally positive for UK developers, with the video games tax relief scheme helping underpin growth.
However, he said there were major challenges facing the sector.
“Games tax relief effectively reduces the cost and risk of games development and incentivises investment and job creation in the games industry,” said Dr Wilson.
“However, the clouds of Brexit and the UK’s relative economic slowdown are beginning to cast shadows on our games industry.
“A smaller proportion of games businesses plan to increase employment and investment in 2018 in comparison to last year’s survey.
“While 62% of businesses believe that they are performing well, this is down from 72% in 2017.”