Ukie responds to CMS Committee State of Play

Submitted – 20th December 2024

The UK video games industry is not only a major economic contributor but also a hub for advanced and emerging technologies, which often spill over into other sectors. According to Ukie’s tech spillover report, technologies developed in the games industry have contributed £1.3bn in economic output and supported 10,000 jobs beyond the sector itself. However, the industry has faced significant challenges in recent years, including widespread job losses, studio closures, and project delays, with 248 studios shutting down in the UK alone between 2023 and 2024. These disruptions have had a considerable impact on the UK’s video games sector and workforce.

Despite these setbacks, the closure of studios has sparked the formation of new businesses and potential ‘phoenix’ studios, led by experienced teams eager to develop innovative intellectual property. However, these new ventures face a challenging environment with reduced investment and limited access to traditional financing. To support the industry’s immense potential, the Committee’s inquiry should focus on practical, evidence-based solutions. By addressing financial barriers, enhancing education and training pathways, and fostering the development of new IP, the Government can help create an environment where the UK video games industry continues to thrive.