SCOTLAND’s video games industry has called for government action to maintain growth in the sector as new figures show it is worth more than £236 million to the UK economy.

Data released yesterday from trade association TIGA showed employment in the Scottish video games industry grew by 17% between November 2018 and April this year.

It said Scotland – the fourth largest games cluster in the UK after London, the South East and North West of England – had 1803 permanent and full-time equivalent (FTE) staff working on games development in 96 companies, up from 84 firms and 1537 staff in November 2018. TIGA said Scotland was home to 7.3% of UK games companies and 10.7% of developers in a sector that supported almost 3300 indirect jobs, up from 2810 on the 2018 figure.

Scots games firms were estimated to invest £106m in salaries and overheads, contributed £97m in direct and indirect taxes to the Treasury, and contributed £236m directly and indirectly to the UK’s Gross Domestic Product (GDP).

“Growth in headcount has been driven in part by inward investment by several major overseas companies, such as Epic and Unity; partly by strong growth in Scotland’s larger studios; and partly by a spate of start-ups,” said TIGA CEO Dr Richard Wilson.

“Scotland represents the fourth largest games cluster in the UK. Scotland has a critical mass of experienced games developers; renowned universities preparing skilled graduates for the games industry, including TIGA-accredited Abertay University; and supportive agencies including Scottish Enterprise and Creative Scotland. The UK Games Fund is also based in Dundee.”

Wilson said there were three ways to ensure the sector remained favourable for growth: “Firstly, by enhancing Video Games Tax Relief, a measure which effectively reduce the cost of games development. Secondly, by introducing a Video Games Investment Fund (VGIF) and developing the UK Games Fund to improve access to finance. Thirdly, by continuing to strengthen industry-university links, enhance skills and training and enable UK games companies to recruit highly skilled workers from the EU and beyond.”

Professor Gregor White, dean of Design and Informatics at Abertay University, said another period of strong growth was welcome news in uncertain times.

He said: “Recent developments in the Scottish sector reflect a period of consolidation, growth in studio size and inward investment by major technology companies, all of which is good news for graduates from games courses looking for entry level opportunities and strong career prospects.

“This year has seen Abertay University recognised once again, as Europe’s leading games school by the Princeton Review ... and recognised as University of the Year for Teaching Quality by the Times and Sunday Times Good University Guide.

“Young people and professionals making the decision to study and build careers in the games industry should look to do it here in Scotland.”

Jason Kingsley, TIGA chair and CEO and creative director at Rebellion, added: “Scotland is the fourth largest games cluster in the UK and it is important that the UK and Scottish Governments continue to support the video games industry there and consider new ways to support its growth.”