Level up

Over the last 30 years, video games have grown from a niche hobby into a global entertainment industry. The arrival of a new generation of game consoles, alongside innovations like social and online gaming, has dramatically enlarged the size of the market, creating substantial opportunities for entrepreneurial companies.

But games have not just come of age in mainstream culture. They are also a source of innovation that benefits the broader economy. Technologies and business models developed in the video games industry are being applied to areas such as health, defence and architecture.

The popularity of video games amongst young people makes them a promising potential source of educational innovation.

But if the UK is to continue as a global industry leader, important challenges need to be tackled. These include skills shortages, unsustainable business models and barriers to accessing finance.

The industry must also raise its game in the rapidly expanding online market, and face up to intense - often subsidised - competition from overseas.

Published
December 2008

Author
NESTA

Report
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