Written evidence from Greater Glasgow
Games Group
1. We note that the games industry as a
whole is undergoing rapid and significant evolutionary changes
that have seen the opening significant new opportunities and markets
in the likes of direct-distribution downloads for mobile, console
and PC devices, casual gaming, family gaming and social network
gaming and outsourced development. New opportunities and markets
continue to evolve and emerge alongside the traditional market
of boxed retail products for home consoles and computers. Multi-million
pound generating hits may now come from the work of small teams
producing games for mobile and social markets.
2. We believe that despite recent major
losses to the Scottish Games Industry, that we have the potential
for significant growth and regeneration. We believe that what
is required is effective support for innovation, growth and support
for existing and new game development companies that are able
to respond rapidly to changing market conditions and establish
prominent positions in key niche markets. Such investment would
represent a better spread of risk than large investments into
just one or two large developments.
3. The Greater Glasgow area is currently
not well known for its game development industry, yet as a major
population center with a concentration of digital media and a
cluster of FE and HE institutions, the games industry should be
able to thrive in the area, should suitable support for existing
and new companies be available to encourage growth.
4. Inward investment incentives have to
be very significant to match those offered in other international
centers—especially Canada. Without these an inward investment
strategy is likely to be futile, and the government should focus
of incentives to grow native businesses instead.
5. The Greater Glasgow area is well served
with educational institutions that can support growth with the
provision of graduates. There are four local universities, two
of which (Glasgow Caledonian and University of the West of Scotland)
offer degree courses which are focused specifically on games industry
careers—in both programming and art disciplines. Currently
many of the graduates of these courses leave the local area due
to lack of opportunities.
6. While it has a low media profile, the
game development industry in the Greater Glasgow area does include
companies with established global reputations for high quality
and ground breaking work. Firebrand Games are established leaders
in developing third-party and licensed racing games for the Nintendo
platforms (DS and Wii). Firebrand Games products regularly score
highly favourable reviews in the games industry press. Axis Animations
principally produce animations for TV and film, but have a well
established, and award winning, business in providing animation
content and services for the game industry.
7. The Greater Glasgow games industry revolves
around small companies. Axis Animations and Firebrand Games are
currently the largest development and animation studios in the
area, respectively. Between them, these companies employ around
60 full time staff in the area. There are over a dozen smaller
employers in the area working in the areas of game development,
animation for games, games industry recruitment and PR specialists
and industry services. Some of these (eg e4e Entertainment Services)
employ a small full time core, with larger numbers of contract
staff employed depending on current work-load. This is supplemented
by a larger number of digital media, animation and production
companies more aligned to traditional TV and film.
8. Over the past decade, one of the keys
to success for the Dundee games industry has been Interactive
Tayside—a single Scottish Enterprise point of contact covering
the entire area. In contrast, the Greater Glasgow area was served
by no less than four separate Scottish Enterprise offices, with
no clear focus, preferred contact point or specialist expertise
for the games industry. The creation of Interactive Scotland has
gone a long way to resolving this, and it is hoped that Interactive
Scotland and Creative Scotland can work together effectively in
the interests of digital media companies and organisations.
9. We believe support needs to be targeted
at helping small companies grow, and in helping new companies
establish themselves.
10. Existing small companies can benefit
especially from support that reduces costs in hiring and retaining
new staff. Recruitment services and aid, National Insurance and
tax support, grants and loans should all be explored. This can
support greatly boost organic growth, spread across many companies.
11. Start-ups can benefit from advice, mentoring
and support that is specific to the games and animation industries.
Government and Enterprise support to encourage and enable industry
veterans to mentor new start-ups alongside traditional start-up
services and support could greatly aid the success of new companies,
in avoiding common development pitfalls and in supporting the
route-to-market. Existing support for this from Interactive Scotland
should be extended and enhanced.
12. The production model for the games industry
is such that a company may operate for many months before receiving
any income, and income may be irregular. This can be problematic
for opening business accounts. Similarly, reductions to the Corporate
Tax rates do little to support the establishment of new companies.
9 September 2010
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