One of the most successful industries in the United Kingdom is the video games sector and it is a vital source of tax revenue for the UK. The industry is expected to be worth over $137 billion by the end of 2018 and by 2021 that is expected to increase to more than $180 billion. With so much money up for grabs, it has led to amazing innovations and in this article, I will talk about the current state of affairs along with what to expect moving forward.
With more than 2,000 games development companies located in the United Kingdom, there is an abundance of talent working on a vast range of different titles. The UK is at the forefront of innovation in the industry and is heavily involved in the latest VR and AR titles along with mobile, console and PC iGaming. Many online casinos have also started to create their own unique games titles to suit the new generation of gamblers. With casino promo code offers that are extremely attractive, they are aggressively marketing toward esports which is one of the fastest growing sectors for online gambling.
One of the biggest success stories is Rockstar Games who are responsible for the Grand Theft Auto titles which have taken the world by storm. In only three days of releasing their latest title, the company managed to take in over one billion dollars in revenue making it the world’s fastest selling product for entertainment. With more than six billion dollars in revenue worldwide and generating £240 million in the UK alone, it is a vital part of the British economy.
One of the main reasons why the UK gaming sector has done so well is down to the Government supporting the industry via a video games tax relief which was implemented back in 2014. With the uncertainty surrounding Brexit, the industry is going to require this support to continue if they are going to cope with the challenges ahead. The VGTR helps to support around 10,000 full-time employees in the sector and if removed could have a damaging effect. It is estimated that without this relief in place that the UK would lose up to 68% of games made in Britain.
The fastest growing sector is esports with it experiencing a 7.5% growth each year. By the end of 2019, the size of the esports audience will be over 8 million in the UK. Watching esports online attracts over 3.1 million views each month in the United Kingdom and is on a trajectory path to reach more than 8 million by 2020. Due to these huge numbers, it is attracting lots of revenue in digital advertising and by 2021 over £12 million in revenue is expected to be generated.
If the UK gaming sector is going to continue to move forward in 2019 it will depend on the outcome of the Brexit negotiations along with continued government support. With the largest workforce for mobile games development in Europe that employs full time 5,000 workers, it is a vital part of the economy in Great Britain. The smartphone games marketplace is one of the world’s largest with 47% of owners having at least one game they play regularly on their phone. If the correct policies and tax incentives are put in place, it could make the UK the world’s number one destination for this ever-growing industry.