Is the UK finally acknowledging the growing influence of video games?

The UK government has unveiled a £28.5m initiative aimed at bolstering video game studios, offering grants ranging from £20,000 to £250,000 for new and expanding companies. This move follows concerns about the sector’s economic potential being underappreciated, according to Creative Industries Minister Ian Murray, who described the support as a “clear endorsement” of video games as a key cultural and economic force.

A record downturn and the quest for investment

Industry groups like TIGA have raised alarms about a “collapse” in startup activity and a “record downturn” in employment. Meanwhile, Alanah Pearce, a veteran in the field since 2012, highlights the industry’s current struggles. “Investors have largely shifted to AI,” she notes, citing a decline in funding for video games despite their profitability.

“Most of the investors who are propping up the games industry have frankly fled to AI to a tremendous degree,” says Pearce. “So because that’s happened for a lot of our publicly traded companies, they’re just very nervous to make anything that isn’t almost guaranteed profit, which is very difficult.”

Despite these challenges, the UK remains a hub for major franchises. Titles such as Grand Theft Auto, Tomb Raider, and Football Manager are products of British studios. However, some argue that the industry lacks the same prestige as other creative fields. Christopher Dring, editor of The Game Business, points out that many of these studios are owned by global giants like Microsoft, which may limit their visibility.

A French hit and the promise of homegrown success

France’s Clair Obscur: Expedition 33, nominated for 12 awards at the Bafta Games ceremony, has drawn attention from leaders like President Emmanuel Macron, who has publicly endorsed its developers, Sandfall Interactive. Yet, the UK’s own gaming scene faces hurdles. Developer Adam Riches of Robust Games, which released the point-and-click adventure Loco Motive, sees the new grants as “generous” and a potential lifeline for smaller studios.

“As indie developers, we’re used to working with smaller budgets, so the newly proposed grants look really generous from our perspective,” says Riches. “This feels like a good fit for our team, so we’ll definitely be looking into the finer details.”

There is hope for more UK-made intellectual property (IP) to thrive globally. Two Point Studios, founded in 2016 by ex-employees of Bullfrog and Lionhead, has demonstrated the potential of British creativity through its humorous simulation games. These titles, set in hospitals and universities, have found success due to their unique blend of British wit and accessible gameplay.

The global games industry itself is navigating a period of uncertainty, with layoffs and closures affecting thousands. Yet, the UK’s recent focus on funding may signal a turning point, encouraging investment and innovation in a sector that has long been overshadowed by other media. As Dring adds: “The goal is to see more homegrown IP flourish on the international stage.”