Report: UK games industry shrinking

The number of gaming companies in the UK has fallen drastically in the last six years.

Last month, Uk-based SCi Entertainment announced it would be opening a studio in Montreal, Canada, which would be developing four new games for next-gen systems. And the Eidos and Lara Croft parent company is not the only one jumping ship, the Financial Times reports.

According to a survey undertaken by Tiga, the UK trade association for game developers, there were 400 independent game studios in 2001--but the figure has now more than halved to 150.

Initiatives from countries such as Australia and Canada, which offer enticing incentives for game companies relocating to those regions, are clearly working, as many international gaming companies have moved in--which may account in part for the drop in UK studio numbers.

In Australia, in the state of Victoria (home to the city of Melbourne), the local government is offering A$375,000 (approx $310,462) over two years to locally based game developers, and in Canada various incentives are offered, including grants and tax breaks.

Other reasons for the drastic drop in the number of British game companies include businesses closing, for example Argonaut and Warthog, or takeovers by big boys such as Microsoft, which bought Lionhead Studios a year ago.

67 Comments

  • bloodychimp

    Posted Apr 12, 2007 8:31 am GMT

    For those of you complaining about Canadian and British politicians, our country is lead by a man who is often compared (unfavorably) to a chimpanzee. I'll let you all guess where I live ;p.

  • OfficialBed

    Posted Apr 12, 2007 8:29 am GMT

    eep...that sucks

  • smidsy85

    Posted Apr 12, 2007 8:25 am GMT

    The main reason for this is the huge cost associated with the creation of games. Here in the UK there were alot of smaller companies which created some great games down the years but now they simply dont have the funds to compete with companies such as EA or Konami.

  • Mikael_S

    Posted Apr 12, 2007 8:23 am GMT

    It must be hard to start a new gaming company and I guess the future of the company is based on if your first few games is a success or not. I hope the number of developers won't shrink more than it has in the UK we need the smaller gaming companys too.

  • benleslie5

    Posted Apr 12, 2007 8:14 am GMT

    UK still has its fantasy moments such as Harry Potter, Tomb Raider or Hogs of War.

  • TTDog

    Posted Apr 12, 2007 8:01 am GMT

    I stand corrected, Patricia Hewitt is the half-wit who unfortunately stands in one of the constituencies in my home town.

  • Britishpixel

    Posted Apr 12, 2007 7:53 am GMT

    The protesting cabinet minister was Hazel Blears, who "coincidentally" is also running for deputy leader of the Labour Party. Trust me, she hasn't got a chance - and her hypocrisy isn't doing her any good

    Games is a surprisingly big part of our economy, especially around Bristol, so the Government does need to do more for our gaming industries however it can be difficult. We already have some of the lowest taxes in Europe, but its hard competing against Eastern Europe and Asia when our employees (quite rightly) have a decent minimum wage and safety standards.

  • TTDog

    Posted Apr 12, 2007 7:43 am GMT

    gbrading... I think Patricia Hewitt.
    If I'd gone on to list the wonderful acts of John Prescott the post would have been several pages long.

    Yuck_Foo... thats priceless, have any of your political party leaders been unveiled as screaming alcoholics (as happened to the lib dems) or have a member playing in a charity football match and proceed to nearly decapitate a member of the opposition with a sliding tackle?

  • tatu2004

    Posted Apr 12, 2007 7:41 am GMT

    i'm sure there will new gaming company's coming to the UK soon..

  • Le-Beave

    Posted Apr 12, 2007 7:36 am GMT

    Aww.. we need more gaming companies over here in the UK... anyone feel like setting one up with me.. PM me if ya want!

  • gbrading Site moderator

    Posted Apr 12, 2007 7:29 am GMT

    The government over here in the UK really do need to offer more incentives to game studios to set up shop here. At the moment, it simply isn't that economically viable.

    P.S. TTDog: Hazel Blears or Patricia Hewitt?

  • Yuck_Too

    Posted Apr 12, 2007 7:28 am GMT

    --TTDog --

    Wow...Canada is the Queens country but is it possible we share the same "Jane Doe"

    Recently one of our ladies held a press conference to gain public support and outcry against a proposed bill and then the very next day walked in and voted to pass the same bill she was fighting.

    She later said she made a mistake while voting.

  • TTDog

    Posted Apr 12, 2007 7:10 am GMT

    "Downside is we have the dumbest politicians on the planet...seriously, retarded hamsters have been proven more efficient, it's sad."

    This is an outrageous slur, UK politicians are just as retarded as their Canadian counterparts; for an example; one UK cabinet minister (we'll call her Jane Doe for the benefit of this example) recently protested about hospital closures in her constituency following a policy change by the Dept of Health, the head of which was one Jane Doe.

    I demand that UK politicians be regarded as just as mind numbingly stupid as Canadian MP's.

  • Terrorantula

    Posted Apr 12, 2007 7:08 am GMT

    Oh well the UK is still home of the most creative minds and some of the best games ever made. Only problem is the British Goverment doesn't suppport our businesses much and tyoo much tax Thats why we're losing all our car companies too.

  • 113871999

    Posted Apr 12, 2007 7:07 am GMT

    I'm not really bothered were the games are made, just as long as they are good.

  • Yuck_Too

    Posted Apr 12, 2007 6:54 am GMT

    Canada loves it's games, gamers and tech. Highest adoption rate of HD, highest percentage of High Speed net users, and we even win with global warming.

    Downside is we have the dumbest politicians on the planet...seriously, retarded hamsters have been proven more efficient, it's sad.

  • Somini

    Posted Apr 12, 2007 6:53 am GMT

    The UK should take a real good look at what Canada's been doing. It seems to work out really well for them.

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