A new scoping study on the economic consequences and potential market failures
The BFI’s Research and Statistics Unit and Creative PEC, with Games Investor Consulting and Oxford Economics, have published a new scoping study – ‘How to measure the impact of overseas mergers and acquisitions on the UK video games industry.’
The study specifically assesses the feasibility of research into the economic consequences, including possible market failures, of overseas acquisition of UK games development studios.
The UK’s video games industry has grown rapidly to be an important economic and creative contributor to the screen sector and UK economy. The nation’s technical and creative accomplishments in globally successful video games has made the development companies attractive to international companies seeking acquisitions and mergers.
As of publication in October 2023, there has been no detailed assessment of the economic impact of these acquisitions on the industry, even though mergers and acquisitions have contributed to 49% of all UK video games development staff being employed at companies owned by overseas entities in December 2021.
This report was written by Nick Gibson of Games Investor Consulting, Chris Warner of Oxford Economics, Yvonne Harris at BFI, and Prof Hasan Bakhshi and Dr Tom Cahill-Jones at Creative PEC.
Creative PEC is funded by the UKRI via the Arts and Humanities Research Council.
Photo by Luis Villasmil on Unsplash
