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Scottish developers contributing £99m to UK GDP

Regional recovery sees local industry returning to 2008 levels

New figures from TIGA indicate that the Scottish games industry is recovering from a period of decline, returning to levels of activity and profit last seen in 2008.

The numbers track growth between 2012 and 2013, a period during which the number of studios in Scotland grew from 81 to 94, employing 964 staff. Tax revenues, both direct and indirect, also rose by 17 per cent, from £35 million to £41 million. Contributions to the UK's GDP from the region's developers now stands at £99 million.

The report also makes some predictions about the future of Scottish games development, particularly the impact of the games tax relief. Based on its study, TIGA believes that GTR will create 200 new studio jobs and safeguard over 160 existing studio jobs as well as creating over 360 indirect jobs and protecting nearly 300 indirect jobs; generate an extra £48 million in tax receipts and increase the region's GDP contribution by £65 million.

"The Scottish games development sector is set for growth, powered by the advent of Games Tax Relief and supported by Scotland's excellent higher education institutions," said TIGA's Richard Wilson. "Yet we can do more to enable Scotland's games development sector to achieve its potential. TIGA proposes the introduction of a prototype fund (potentially financed via the National Lottery) to help developers surmount the barriers to accessing finance; the establishment of a Creative Content Fund to co-fund new content development and IP generation; and designating dedicated games development incubators in universities to promote high technology video games clusters in Scotland and around the rest of the UK. If adopted, these measures would support start-ups and strengthen the games development sector."

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Dan Pearson

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