Slaying the Bad Guys – what’s threatening UK video gaming and how can it be saved?
The UK video gaming industry, once celebrated for its innovation and creativity, is facing significant challenges in recent years. Despite a storied history producing iconic games like “Tomb Raider” (created in Derby, UK) and “Grand Theft Auto” (birthed in Edinburgh, UK), the industry now grapples with challenges which may threaten its existence. Here, we provide a rundown of the villains threatening the industry, and suggest how we might defeat them:
- Economic Malaise: The increasing cost of living, high interest rates and squeezed personal budgets have affected sales and profitability on all types of games, meaning that many smaller studios are struggling and finding it difficult to secure funding.
- Brain Drain: The UK is losing skilled developers and creatives to better opportunities overseas, depleting the UK of talent and new content.
- Speed of Technology: AI and VR are taking massive leaps forward every day, demanding continuous investment in research and development. Smaller UK studios often struggle to keep up.
- Regulatory Barriers: The industry is highly regulated perhaps too much so…talented teams are spending more time on compliance requirements than they are on creating the blockbusting new games of tomorrow. navigating stringent regulations and compliance requirements can be costly and time-consuming for developers, adding complexity to the already challenging environment.
- Market Saturation? The market is saturated with new games and platforms, making it difficult for developers to stand out and attract players. This leads to fierce competition putting pressure on studios to lower profit margins at a time when they’re already struggling to stand out and win new fans.
So, how can UK Video Gaming slay the bad guys?
- Seek Help Early: Studios and developers which are struggling financially should always call third party advice sooner rather than later to put more options on the table... Cork Gully has the expertise to help struggling firms restructure to weather the storm and get back on the path to growth.
- Government Support: Gaming is a great British export and should be supported as such. We welcome initiatives like the UK Games Fund, which provides grants to emerging developers, to scale their businesses and bring new games to market.
- Talent Development: Game development offers an exciting career to the UK’s aspiring creatives. Investing in education and training programmes can help retain and develop local talent, fostering a strong ecosystem of skilled developers ensures a steady supply of creative minds to drive the industry forward.
- Embracing Innovation: Encouraging the adoption of cutting-edge technologies like AI, VR, and blockchain will give UK studios a competitive edge…but they cost money. We’d love to see more VC and angel investors putting their money into enabling the UK gaming industry to stay at the forefront of technological advancements.
- Cut the Red Tape: Simplifying regulatory processes and reducing compliance costs makes it easier for developers to bring their games to market. A supportive regulatory environment fosters innovation and growth.
- Collaboration and Partnerships: Building strong partnerships between developers, publishers, and the investment community will mean more successful projects. By working together, the industry and its investors can overcome common challenges and achieve greater success.
It’s time that developers, regulators, Government, educators and investors all came together to slay the dragons of decline and get the UK video games industry on to the next level.
