SCOTLAND’S gaming industry grew by a quarter between December 2014 and March this year and contributed nearly £138 million to the UK’s gross domestic product (GDP), according to new research.
However, TIGA – the video games developers’ and digital publishers’ network and trade association for the industry – called for government support to help keep the sector competitive and growing.
TIGA said Scotland’s growth was more than twice the national average and the second fastest in the UK after Wales.
Scotland also became the third largest games cluster in the UK after the south-east of England and London.
The research also shows that Scotland has 1,290 permanent and full-time equivalent creative staff working on games development in 85 companies – up from 1,050 staff in 97 companies in 2014 – and the games development sector supports an additional 2,408 indirect jobs.
It says Scotland is home to 9.4 per cent of the UK’s games companies and 9.8 per cent of its developer headcount.
Scottish games development companies are estimated to invest nearly £62m a year in salaries and overheads and contribute £56m in direct and indirect tax revenues to HM Treasury.
TIGA’s CEO Dr Richard Wilson said: “TIGA’s latest research shows that the Scottish video games industry grew dramatically in 2015-16. The Scottish games sector is diverse, with companies working in games for mobile, online, educational and console markets.
“If the Scottish video games industry is to continue to grow then we need to ensure that more Scottish games companies benefit from games tax relief and research and development tax credits, both of which effectively reduce the cost of games development.
“We also need to provide start-ups and small studios with better access to finance and business advice.
“To achieve this, TIGA has proposed the introduction of a games investment fund which could make grants or loans available to games businesses on a matched funding basis.”
Wilson said the fund would also provide a commercial mentoring business advisory service, staffed by industry veterans, for games companies that access its grants or loans.
“A favourable tax regime, better access to finance and the provision of professional business advice will enable the Scottish video games industry to enjoy further growth in the years ahead,” he added.
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