Sponsored: Investing in the UK’s digital games market
The UK digital games sector boasts the highest number of games development publishers and companies in Europe. With a sales value of £1.34 billion and a workforce of 26,000 people, it is evident that this is an important and growing area within the creative industries. It also means that the digital games market is ripe for smart financing, and with responsible and accurate advice behind them, investors can expect fast and rewarding returns.
Growth areas
Audience profiles from a study published in September 2014 indicate that the gamer audience in Britain has reached about 33.5 million people – 69% of the population. Free games and mobile apps are estimated to represent 61% of all those sold, and there has been a growth in the number of women playing games. The increased usage in the tablet market may be a reason why more people aged 44 years and over are now gaming regularly.
The opportunities for interaction seem to be a key driver of growth. Today’s gaming world takes people away from the 1980s idea of isolated players beating their bedroom high scores. Now, multiplayer online games networks create virtual links between participants the world over and encourage new social paradigms. Collaborative gaming and virtual universes have soared in popularity and the advent of mobile tools and products that improve connectivity for people on the go means there are plenty of interesting areas for software developers to exploit.
Strengths of the market
As access to high-speed internet continues to improve, potential investors in the digital games market will also get a boost from 4G and the roll-out of additional Wi-Fi hotspots. While this might serve as an indicator of the strategic, economic and social benefits that investment in communications technology can bring, it is also underpinned by the development industry’s willingness to pump resource into keeping tech skills at a level where they can be used to exploit the full potential of burgeoning technologies.
For the potential investor, it seems that there are myriad possibilities; but like everything else the holy grail of good returns requires accurate, independent information. While national newspapers often produce lists of top performing digital companies that detail the products they offer, more precise, informed intelligence is needed, – particularly if there is a substantial pot available from which to make an investment.
In these cases, taking soundings is highly recommended. For example, Fisher Investments employee and writer Todd Bliman on TheStreet monitors all things financial across a range of global markets, succinctly weighing up the pros and cons of opportunities across many different sectors.
World-class digital abilities
One of the areas main areas of consideration for those looking to invest in digital companies is their position on the global stage. A developer capable of building a good game is merely the starting point – in order to be successful in the digital games market, companies also need experienced content developers and strong partnerships across both traditional and new media sectors.
Naturally, developers need superb design and interaction skills and as the UK has the largest media content and platform businesses in the world, it is undoubtedly leading the way. Effective marketing of digital games also requires strong partnerships with key players in the advertising industry and with companies developing search engines and systems.
The future of the digital games market
The future looks like it will be determined by extensive investment in mobile and static fixed internet. Coupled with the success of the UK’s data centre sectors, the signs are good that the UK is the best place in Europe in which to grow and nurture a consumer base.
Of course the relationship between internet, device and price is also key. As cheaper and smarter smartphones enter the market, social networks will continue to flourish. The signs are already there – apps are now the most popular format for playing video games, enjoyed by 55% of the online population. Of the total gaming population, online games appeal to 48% and disc-based games to 40%. More than a quarter of people, at 27%, play games using all three formats. Among 8-12 year olds, this rises to 70%, indicating that the next generation will be well versed in using multiple platforms for digital games.
Young people aged 8-15 years also spend more time gaming per week, about 20 hours, than gamers aged 16 years and older, who usually play for between six and 11 hours per week. Most gamers play during the 6pm-8pm time slot.
Win, win
As the world’s fourth largest digital games market, the UK is performing extremely well and is also home to the European headquarters for an impressive number of overseas games companies. For those people who have taken professional, independent and bespoke advice, it seems there has never been a better time to invest in UK digital games developers and companies.
