Sign on Options
Theme:
To Dark

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

  • Ottothebobcat

    Posted Apr 13, 2007 9:35 am GMT

    rodimus prime- Yeah, American McGee tried that and the result was that turd Bad Day LA. I'd say gaming is relatively safe from outsourcing based on those results.

  • clyde46

    Posted Apr 13, 2007 9:27 am GMT

    i hope rockstar north doesnt move

  • theKSMM

    Posted Apr 13, 2007 9:18 am GMT

    Unfortunately, making big games is big business, too big to be undertaken by an individual. But hopefully the new distribution model that allows smaller games to be downloaded directly (instead of competing for shelf space in a store) will allow some small fish to step in and fill the void created by the departure of many larger studios.

  • Hedfix

    Posted Apr 13, 2007 7:34 am GMT

    150's still a lot considering the number of decent titles released each year.

  • kornopolis

    Posted Apr 13, 2007 5:23 am GMT

    This sucks, blame sony and MS

  • rodimus_prime85

    Posted Apr 13, 2007 3:49 am GMT

    Thats because the cost of actually developing a game in the UK is so high. It's like when they move call centres to India....

    ....Give it a couple of years and they'll all be re-locating again to Korea and China.

  • kappareign

    Posted Apr 13, 2007 3:36 am GMT

    decline in independent game dev studios isnt good for anyone

  • StOcKoHeArTs

    Posted Apr 13, 2007 12:56 am GMT

    OMFG its away us UK..... o well i'll just import

  • choasgod

    Posted Apr 12, 2007 11:44 pm GMT

    Sucks for the Brits ... but at least the video game industry is bigger in the UK than it is down in Australia ...

  • kavadias1981

    Posted Apr 12, 2007 11:21 pm GMT

    As a Brit I am not pleased by this news

  • RaiKageRyu

    Posted Apr 12, 2007 11:10 pm GMT

    That kinda suks for you guys. But I live in Canada, so that's great for me.

  • Atomic_Mutant

    Posted Apr 12, 2007 10:02 pm GMT

    Console-i-dation.

  • mike2kcool

    Posted Apr 12, 2007 8:55 pm GMT

    dam we SUCK at developing

  • matrixman2k

    Posted Apr 12, 2007 6:14 pm GMT

    Oh well, as long as the titles are good - don't care where they're develop... most of my fav. companies are in japan anyway.

  • Pete5506

    Posted Apr 12, 2007 5:36 pm GMT

    what comthitnuong said

  • UGAH

    Posted Apr 12, 2007 5:23 pm GMT

    I thought gaming industry was rising

  • solidsnake2050

    Posted Apr 12, 2007 5:05 pm GMT

    It's not like the companies are making little money, but governments in australia and canada(and others) are offering money and other things that make companies want to move.

  • Sharvie

    Posted Apr 12, 2007 3:50 pm GMT

    It's sad news that the lack of jobs available for the aspiring students who want to enter the game industry has fallen.

  • GizmoVirus

    Posted Apr 12, 2007 3:00 pm GMT

    With so many games on so many platforms I dont know why developers dont make any money and studios close

  • comthitnuong

    Posted Apr 12, 2007 2:38 pm GMT

    As long as they get their games, it shouldn't matter too much on how many companies are there.

  • Col-Neil

    Posted Apr 12, 2007 2:32 pm GMT

    Yeah this seems to be happening a lot the bigger companys scoop up all the smaller ones

  • Somini

    Posted Apr 12, 2007 2:24 pm GMT

    I live in Sweden, which is a really small country and still our video-game industry has started to make a name for itself lately with developers like Starbreeze, Avalanche and DICE. That makes me proud.

    You can do well even with minor developers in far-off places.

  • Daymos

    Posted Apr 12, 2007 2:11 pm GMT

    veveqa Daymos - Huh, I've got limited 3DStudio experience, and I got three job offers working with 3DStudio the last time I put my CV up, all of them from UK games companies. They weren't paying great, and one of them would have involved moving (no great shakes if you're renting), but they were there.

    ~~~~~~~~~~~~~~~~~~~~~~~~~~
    My point exactly.. send me a link dude..
    Ive got loads of 3d modelling and animation experience.. done alot of freelance stuff... the pic by my name was done with 3ds max and photoshop.. Its a shame I cant find many 3d positions in London.. no disrespect to yourself.. but it seems alot of people who dont have much skill or experience are getting the best jobs over better candidates..

    No escuses but I have evolved alot since this work but check my stuff out anyway

    2d stuff
    http://www.youtube.com/watch?v=8jcmn_9MmNQ

    3d animation stuff
    http://www.youtube.com/watch?v=L59RV50LpJY

  • ert47

    Posted Apr 12, 2007 1:56 pm GMT

    I think that most of the games produced in the UK are kinda crappy in the first place. To me, they sound uncool because the games are made in Europe.

    Japan and the US sound exciting, Europe is just teh continent that tries to be cool, but still sucks no matter how hard we try.


    Thats why once I've finished my games course @ uni, I'm moving to Canada or Japan (provided my language skills have improved).

    well... that is in 5 years time... (taking a gap year and going to Japan next year).

  • gatsbythepig

    Posted Apr 12, 2007 1:39 pm GMT

    I feel like the # has fallen because they are moving somewhere else. Why? I have no idea.

  • rokkuman09

    Posted Apr 12, 2007 1:34 pm GMT

    Ouch. But then again not a lot of games ever game out of Europe anyway. They mostly come from the US and Japan.

  • Bored1ed

    Posted Apr 12, 2007 12:50 pm GMT

    Alright kids, start pretending like you know how the world works....NOW!.......

  • scottabc

    Posted Apr 12, 2007 12:44 pm GMT

    Generic_dude try actually reading some of the earlier posts like Britishpixel's before you chime in with your 'generic' right-wing propaganda. By the way you arent thinking about the fact that taxes in Canada and Australia are relatively high compared to the US plus Canada, at least, has 'socialized' health care . I think its ridiculous that you think you're qualified to lecture a whole continent when you havent done much 'homework' yourself.

    This article doesnt really take into account that the numbers of developers are shrinking everywhere due to increased development costs.

  • PacoL250

    Posted Apr 12, 2007 12:42 pm GMT

    @Generic_Dude: I agree that the EU needs to stop taxing the bee-jesus out of everybody and everything, but that's not a knock on socialism. Socialism can work just fine, but in this case, it's not being implemented properly, IMHO.

    You'd think the UK would start offering incentives as well, especially for home-grown developers to stay and flourish...

  • liljon546

    Posted Apr 12, 2007 12:36 pm GMT

    Start making good games then.

  • HarlockJC Site moderator

    Posted Apr 12, 2007 12:32 pm GMT

    Orlando Florida opened a special gaming school just to get EA to move there.

  • paulkon

    Posted Apr 12, 2007 12:16 pm GMT

    they should stop making garbage games then

  • blacktorn

    Posted Apr 12, 2007 12:10 pm GMT

    Looks like i'm going to have to move away from the UK in 2 years once i've finished my course,hopefully there are some good companies left in the UK though that make good games,but yh just like this article says there being bought by bigger companies (Microsoft buying rare and lionhead for example).

  • Droynas

    Posted Apr 12, 2007 12:10 pm GMT

    If they only move to another country it doesnt matter but if they stop the whole campany its bad

  • Generic_Dude

    Posted Apr 12, 2007 12:08 pm GMT

    If the UK -- and Europe in general -- didn't tax the hell out of everybody, more business -- and people, for that matter -- would flourish. Do your homework, Europe. Socialism doesn't work.

  • DrMario57

    Posted Apr 12, 2007 11:37 am GMT

    Here (UK) is only ment for two things now. >Old people homes

    >Chav Hang-outs

    Im not surprised that no one wants to work here, on this land, as you get taxed through the roof so much. And the Tax is to keep Chavs and all poeple 'happy'.

  • diablobasher

    Posted Apr 12, 2007 11:36 am GMT

    They bought lionhead?!

    Ugh, that ain't good... I was hoping to get a work experience placement with them as part of the course i want to do.

  • hawkeye_12

    Posted Apr 12, 2007 11:34 am GMT

    it is a shame, but it doesn't make the games market smaller here in UK though...

  • KamaKase

    Posted Apr 12, 2007 11:16 am GMT

    In general Indie studios are on the decline. THe market hasn't closed, it's just being run by the big players.

    I mean seriously...we don't need release dates to be pushed back any further!!

  • Satanmar

    Posted Apr 12, 2007 10:39 am GMT

    Sad News, but not that surprised to be honest. Like many previous comments have said, most companies in the UK are small and can't compete with the likes of EA and Konami. Only a few years ago there was Codemasters, Eidos and many more. Are Rockstar games still based in the UK because originally they were, I believe the GTA games (except for the PSP Games) are made in Edinburgh Scotland although that might have changed. A bit disapointing to be honest, Want to be in the games industry, your going to have to go to the US or Japan

  • bobreturns

    Posted Apr 12, 2007 10:29 am GMT

    i didnt know of any other developers apart from lionshead and acclaim acclaim closed up shop awhile bak tho didnt it

  • Mr_Cynical

    Posted Apr 12, 2007 10:26 am GMT

    The other point being that a game now costs many times more to make, so small, independent game studios simply can't afford to make games any more.

  • zeus_gb

    Posted Apr 12, 2007 10:20 am GMT

    Quite a lot of industries are moving away from the UK, it's not just the games industry.

  • veveqa

    Posted Apr 12, 2007 10:17 am GMT

    Daymos - Huh, I've got limited 3DStudio experience, and I got three job offers working with 3DStudio the last time I put my CV up, all of them from UK games companies. They weren't paying great, and one of them would have involved moving (no great shakes if you're renting), but they were there.

    If you're refusing to move outside of London, despite being a renter, you can't really complain about the lack of 3DStudio jobs. Most games companies have always been outside London. If you have a mortgage, I've got a bit more sympathy.

  • Adz44

    Posted Apr 12, 2007 10:14 am GMT

    Not the best of news, but there's still the likes of Rare, Lionhead and Free Radical (as well as the very promising Media Molecule) here in the UK. I'm sure it will pick up...eventually...

  • Tom1243

    Posted Apr 12, 2007 10:13 am GMT

    That sucks

  • zsc4

    Posted Apr 12, 2007 10:08 am GMT

    UK suffers a lot of companies from a lot of different sectors to shut down

  • Yuck_Too

    Posted Apr 12, 2007 10:06 am GMT

    --sanjt --

    Dude you need help...it's bad enough we have taken over the thread with political bashing of various sorts but you are still way out in left field...

    What in the world does English companies going to Canada have do to with MS?...actually never mind...you've said enough already.

  • Daymos

    Posted Apr 12, 2007 9:22 am GMT

    I have been trying to get a job in 3d modeling and animation for ages.. theres just no opportunities in London unless you have worked on at least 2 released games/ films etc..
    never mind what skills you have.. this whole ignorant industry attitude needs to stop because theres enough talent around to make many strong groups but just like me.. could end up being wasted away...

    ps I'll never be wasted away....

  • sanjt

    Posted Apr 12, 2007 8:55 am GMT

    Damn you MS!!

Subscribe to GameSpot's YouTube Channel

Hot Stories

Newsmakers

Featured Stories

Submit News

Got tips? Send them in!