This report assesses what is required to ensure that the UK remains at the forefront of creativity, innovation and growth in video game development.

Key findings

• Generous subsidies in other countries make it tempting for studios and developers to relocate there. This has led to a decline in the UK’s studio sector that could intensify unless the sector receives more government support
• But support needs to be properly targeted. Analysis of countries that have implemented policies to support the video game sector shows variable results
• Key goals for the UK studio sector should include: increasing the flow of original new ideas, exploiting the massive potential of online gaming, and increasing the calibre of graduates 

This report, commissioned by Nesta from Games Investor Consulting, assesses the competitiveness of the UK's games studio sector in an international context. It shows that, in spite of its high levels of technical and creative skills and its continued production of world-class games, the UK games studio sector faces important structural weaknesses, including a lack of global scale publishers, limited access to finance and skill shortages.

Creativity and innovation are where UK studios have always excelled, but these two sources of competitive advantage are being severely tested.

Studios, government support agencies and universities all have a role to play in helping overcome these barriers.