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Study suggests games industry ‘no value’ to Scots economy

Category: Scottish Economy — Paul Morgan on September 13, 2012

An official report has suggested that the computer games industry in Scotland is worth nothing to the country’s economy.

The findings of The Economic Contribution Study for Scotland’s Creative industries, commissioned by Creative Scotland and Scottish Enterprise, has come in for fierce criticism.

The DC Research report used data taken from 2010, finding that the Gross Value Added (GVA) to the economy was £0. It also claimed that the industry was only responsible for employing 200 people.

However, the news was instantly criticised by the CEO of TIGA, the games industry representatives, who claimed there was “anomalous information” used. Dr Richard Wilson went on to say:

“…TIGA believes the results do not reflect the true value of the games industry in Scotland.”

Creative Scotland admitted that there were some differences in the calculations. The report suggests, for example, that some games companies were classified in the Software and Electronic Publishing sector.

This sector, the report says, contributed nearly £1bn GVA while employing more than 19,000 people.

Separate TIGA research has suggested that just under 700 permanent staff are employed in the games industry, working for 50 companies. This, it says, is accountable to 10 per cent of the UK sector.

It is a growing sector too, with many firms having expanded over the last few years thanks to private investment and good strategies helping with commercial finance. Scotland has seen growth particularly in the Dundee area.

On Tayside, recent statistics have suggested that the digital industry alone is worth £185m, with 3,380 employed in the sector.

'Disclaimer: The information contained in these articles is of a general nature and no assurance of accuracy can be given. It is not a substitute for specific professional advice in your own circumstances. No action should be taken without consulting the detailed legislation or seeking professional advice. Therefore no responsibility for loss occasioned by any person acting or refraining from action as a consequence of the material can be accepted by the authors or the firm.

1 Comment »

  1. I would disagree entirely with this research. I know a number of Scottish gaming entrepreneurs who do extremely well and do put back into their economy. If it is found that these people move out of Scotland, perhaps the Government could see what they can do to retain home-grown talent.

    Comment by Octavia — November 22, 2012 @ 3:51 pm

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