Want to help the economy? Get gaming!

Let’s not beat around the bush, gaming is massive, not just with regards to the sheer volume of avid gamers out there, but also its contribution to the United Kingdom’s economy.

Last year, a detailed report was conducted by the British Film Industry (BFI) which examined the extent of all ‘screen sectors’ (Film, TV and Games) on the economy. It concluded that £1.43billion was contributed extra to the economy, thanks in part to retail aspects and merchandising (£61.5million) but mainly Development and Multiplier effects, with net contributions of just over £1.2billion.

The games sector clearly makes a significant cultural and economic contribution to the UK

With just over 12,000 direct employees in the industry, it contributes massively to direct employment, with skills ranging from marketers, to developers and programmers. What’s more is that the business is massively lucrative, with the average GVA per employee in the industry at around £68,000.

Dr Jo Twist, CEO of UKIE (UK Interactive Entertainment) commented on the findings, saying that “The games sector clearly makes a significant cultural and economic contribution to the UK”. According to the report conducted by UKIE, 33% (>£800million) of consumer spending on video games is attributed to digital and online games with a further 18% (>£400million) spent on mobile phones on apps.

It is hard to analyse the multiplier and spill over effects in great depth due to the sheer volume of gaming merchandise, associated films and music that is attributed. However with estimates of just over £600million, it is expected to be quite considerable to UK employment ratings and GDP.

UKIE has examined the games industry globally, concluding that in 2018, it is expected to be worth just over $113billion, with compound growth rates of 8%.