The biggest British industry that no one's talking about

Given its economic size, the UK video games industry is probably the most under-represented sector in mainstream news. It’s the largest in Europe, and as of November 2018, it supported 14,353 full-time jobs. Games occupied more than 50 per cent of the UK entertainment market in 2018, and for the first time, outsold music and video combined.

In recent months, record numbers of people have bought games consoles, downloaded apps to their smartphones, and bought multiplayer games to stay socially connected with friends during lockdown. I must have invested hundreds of hours in Call of Duty Warzone, for an excuse to chat with friends over the phone. Activision, the company that developed games such as Call of Duty and World of Warcraft, has seen its stock price rise by $19 since March 13th. Electronic Arts, which is responsible for titles such as FIFA and Star Wars: Battlefront, has seen its share price increase by $41 in the same period.

So has the global pandemic been a blessing to the industry? In terms of sales revenue — unequivocally yes. But just like any other sector, its value does not merely rely on unit sales. Thousands of jobs depend on events, expos and tournaments, as well as hardware.

So far, events such as the UK Games Expo, EGX, and London ComicCon have already fallen victim to coronavirus. In 2017, EGX attracted 80,000 visitors to the National Exhibition Centre in Birmingham and similar numbers were expected this year. Not only do these conventions create jobs for ticket-tearers, hospitality workers, developers, journalists and influencers, but also for surrounding hotels, restaurants and bars. Many attendees will have flown in from Asia, Europe and North America. As long as social distancing measures remain in place, making such an event profitable is difficult, if not impossible.

Another area of the games industry that has suffered from Covid, is the e-sports tournament. To the uninitiated, these are similar to standard sporting events — huge crowds convene to watch the world’s best players of a particular game thrash it out for a multi-million dollar prize. In 2017, YouGov reported four million Brits had watched e-sports, a figure that would be far higher now. Most book keepers will offer odds on e-sports events, which often centre around games such as Counter-Strike, Fortnite, or DOTA 2. Last year, the 2019 Fortnite World Cup handed out $30 million in total cash prizes. Competitive video gaming has already been announced as a medal event at the 2022 Asian Games, due to take place in Hangzhou, China, while it’s been confirmed the 2024 Summer Olympics, in Paris, will include demonstration e-sports events.

E-sports are growing in popularity, and it’s vital that just like the theatre and live music industries, the UK supports this sector, which has the potential to grow into something as celebrated and popular as conventional sports.

Gaming hardware is responsible for £1.5 billion of annual revenue in the UK alone, and virtual reality technology misbecoming increasingly popular. The gargantuan problem the industry has faced is the relationship with China. Konami delayed the release of their new console the TurboGrafx-16 Mini in March due to supply chain problems in China. Additionally, the production of the handheld console, the Nintendo Switch, produced in Vietnam, had to be reduced due to similar Chinese supply chain problems. This resulted in stocks of the hugely popular console dropping significantly in Japan, with stockists in Europe and North America fearing similar shortages.

It is vital then, that the government takes the games industry more seriously, and considers it a core part of the post-Covid recovery. Tabloid newspapers and talkshows, which claim the medium encourages violence, or rots the brain (research shows the opposite is true) should not dictate government policy. Governments of all colours have for too long shied away from supporting the most fertile industry in Britain. It’s time for them to log on.