- 86% of closed studios never grew beyond four staff, while 83% failed to surpass 15 staff.
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According to a recent report by TIGA, only 52% of game studios founded between 2008 and 2018 survived to their fifth year, with 53% (468 studios) not making it to 2023.
The report, titled ‘Scaling up the UK Video Games Industry,’ highlights that the riskiest period for game studios is between their second and fifth year of operation.
TIGA’s research reveals that 64% of studios closed within this four-year window. The report also shows that studios with fewer than five staff are particularly vulnerable to failure, with 86% never growing beyond four staff, and 83% failing to exceed 15 staff. In contrast, only 14% of studios with over 15 staff closed.
During the research period, 50.2% of studios did not experience growth, and 30.9% saw a decrease in size.
So how can studios achieve scalability?
TIGA recommends five measures to scale up the UK video games industry, including:
- Establishing a National Games Accelerator for start-ups.
- Introducing a Video Games Investment Fund for funding matching.
- Providing subsidized co-working spaces for local developers.
- Enhancing the Video Games Expenditure Credit.
- Supporting developers through the UK Games Talent and Finance CIC.
Dr. Richard Wilson OBE, CEO of TIGA, stated, “The key challenge for the UK video games industry is enabling start-ups to grow and scale. While the UK is a favorable place to start a studio, the growth process can be challenging, especially for independent studios.”
Jason Kingsley, CBE, TIGA chairman and CEO of Rebellion, added, “TIGA’s policy proposals are essential to help more UK games studios grow beyond the danger zone of under five staff.”
For more information and to access the full report with analysis on 882 studios founded between 2008 and 2018, visit here.
