UK games sector primed for growth despite 2023 challenges | Opinion

gamesindustry.biz:

It would be easy to believe that the outlook for the games sector is all doom and gloom based on recent headlines about record numbers of layoffs in the sector, with estimates that up to 6,400 people have lost their jobs globally in 2023 after some of the biggest names in the industry, Microsoft, Epic, Sega, Unity, and Roblox, reduced staff numbers.

This is undoubtedly exacerbated in the UK by factors such as lack of funding for the sector, high-interest rates, inflation, slowed growth, rising production costs, and increased global competition.

One of the key external factors is that the world has changed drastically since the pandemic when the games industry expanded dramatically while lockdown measures were in place.

There was a period of exponential growth and now the industry is sobering up and having to make corrections based on the fact money is tighter. Reducing personnel is one consequence of these changing circumstances but despite this, it is important to note there has been overall growth within the sector.

A recent TIGA report with analysis by Games Investor Consulting estimates that the UK games industry grew by 11.4% between December 2021 and April 2023 with the total UK industry workforce (including freelancers) reaching 25,026, and 44,162 jobs indirectly supported by the sector.

While these figures may have declined slightly in recent months, it's important to reiterate that we are growing as a sector and the outlook remains positive.

I expect that we will see a reduction in the number of game job vacancies in November and December because those who have lost their jobs are a windfall for companies that are hiring right now and many of the current vacancies will disappear quickly.

And, despite current