Key Moments:
- In the year leading up to September 2025, UK game development employment fell by 1,537 jobs, marking a 4.5% decrease and the fastest decline on record.
- The number of new UK game studios dropped over 30% for the third consecutive year, with 2,110 companies remaining as of the latest report.
- TIGA has urged the UK Government to enhance the Video Games Expenditure Credit, proposing increased support that could generate thousands of new jobs.
Industry Employment Sees Record Decline
TIGA, the trade association representing the UK video games industry, has sounded the alarm as the sector posted its swiftest decrease in employment on record. According to its latest “Making Games in the UK” report, the sector shed 1,537 positions in the year leading up to September 2025, equating to a 4.5% contraction – the most severe rate ever tracked. This marks the first decline in workforce numbers since 2011, as employment numbers in the industry had previously grown for fourteen years.
Studio Formation and Closures Highlight Ongoing Challenges
The report notes that from May 2024 to September 2025, the total workforce decreased from 28,516 to 27,347, despite a rise in freelance contractors, which accounted for more than 4,245 individuals. Over the past year, the foundation of new development studios has plummeted by more than 30% for the third straight year. In 2023, the number of game development companies peaked at 2,175, but has since dropped to 2,110.
During the survey period, 206 companies either closed or exited the market – the second highest figure ever recorded, surpassed only by 2024.
| Timeframe | Workforce Total | Number of Companies | Companies Closed/Exited |
|---|---|---|---|
| May 2024 | 28,516 | 2,175 | – |
| September 2025 | 27,347 | 2,110 | 206 |
TIGA’s Policy Proposals for Sector Recovery
TIGA has put forth policy recommendations, urging the UK Government to modify the current Video Games Expenditure Credit (VGEC), which allows studios to claim 34% on 80% of eligible development expenses. The association has proposed an expansion of the credit rate to 53% for projects with budgets up to £23.5 million. TIGA estimates this would result in the creation of 6,952 jobs. While the proposed change is projected to cost His Majesty’s Revenue & Customs £135 million, it could generate £156.4 million in tax revenue.
Additionally, TIGA has suggested altering the qualifying cost threshold from 80% to 100%, arguing that the adjustment could deliver 10,551 new jobs, including 1,292 developer positions.
Industry Leadership Advocates For Action
In a statement, TIGA CEO Dr Richard Wilson OBE said: “The UK video games industry is the largest in Europe, has world-class talent, studios and universities, and previous TIGA research with the University of Portsmouth shows that the sector generates £12 billion in GVA.
“However, after 14 years of uninterrupted growth, we are now seeing a decline of unprecedented scale and speed. Without decisive policy intervention, the UK risks losing thousands of highly skilled jobs and ceding ground to better-supported international competitors. Enhancing the VGEC could create thousands of development jobs, improve studios’ financial strengths, enable the development of new IP and put the sector back on the path of growth.”
- Author
Daniel Williams
