Gaming industry keeps growing bigger and bigger, needs support

Apr 22, 2008 06:57 GMT  ·  By

It was last month when ELSPA (Entertainment and Leisure Software Publishers Association) noted the fact that European and especially UK game designers and developers are migrating to Canada, where they get better salaries and pay less taxes. Back then, ELSPA demanded that the government should offer more support to the gaming industry and it seems that their requests were not even considered since they are doing it again, offering further proof that the gaming industry truly deserves support.

A report that has just been published by analysts ChartTrack on behalf of ELSPA revealed that game retailers turned in ?418.4 million (about $840 million) across all software for the period 30th December to 29th March, with 17.89 million units sold. Compared to last year's sales figures, video games and home office software were up one third, with ?317 million ($634 million) market value and 15.62 million units sold.

Further more, ELSPA says that the gaming industry has already financially exceeded the old entertainment industries such as film box office, television and music and it is close to exceed home DVD sales, too. However, prospects for the UK development and publishing sector are tougher now than ever, lacking as they do the sort of tax breaks and other financial incentives afforded to their counterparts in countries such as France and Canada and, according to ELSPA, that should change.

Paul Jackson, Director General of ELSPA said, "The UK continues to blaze a trail in terms of creativity yet over the last few years it is becoming apparent that some talent is being lured away by more attractive prospects overseas. As it stands, the UK is already down to fourth place from third as the world's creative center for games. It is time the Government recognized the massive financial contribution we make to the UK economy, especially when compared to the film, TV and music industries today. We call for a level playing field in terms of incentive and support. We would like to see a pledge from the Government that encourages investment in our development studios and talent at home."

As a side-note, ELSPA found out in their reports that for the first quarter of the year, Nintendo proved again to be the biggest seller, securing 37 percent of all unit sales, the Nintendo Wii and DS securing the first two places, while PC software sales came up third and the Xbox 360, fourth. The best sold game during this period of time in the UK was Sega's Mario and Sonic at the Olympics.