The Welsh video games industry has enjoyed recent publicity, in terms of both game development and inclusion of Welsh culture. In June 2024, the Minister for Social Partnership, Sarah Murphy MS, said the games industry is a priority for the Welsh Government, which is “taking active strides to grow it at pace”.
However, research suggests the industry in Wales is lagging behind other UK nations. In this article we look at the current position of the sector. We also highlight Welsh Government support and recent Welsh Parliament activity.
The current state of play: recent activity within the sector
A Welsh-developed video game franchise has been headline news in recent months. ‘Sker Ritual’, a 2022 zombie horror shooter from the studios of Wales Interactive has enjoyed success across international gaming charts, reaching number three in PC downloads, top five on Xbox and top ten on Playstation. Sker Ritual is a follow up to the company’s ‘Maid of Sker’, which also enjoyed both critical and commercial success following its 2020 release.
The franchise was developed in Penarth and incorporates elements of Welsh language and culture. The Welsh Government has commended Wales Interactive on their achievements, with then Minister for Creative Industries, Hannah Blythyn MS, saying:
I am committed to giving games developers the backing they need [to] continue to grow and show what’s possible in this fast-changing and exciting sector. Look out for more international success!
In August 2023, US-based games company Rocket Science announced that they had chosen Cardiff as the location for their new European headquarters. At the time of its announcement, the company’s Bridgend-born co-founder Thomas Daniel stated his intention that Rocket Science would:
…be a foundational brick so that hopefully in a few years’ time we can say ‘if you love games and you want to work in games, stay in Wales’.
With financial support from Welsh Government’s Economic Futures Fund, Rocket Science’s new base will initially generate more than 50 sector specific jobs within Wales. Then Deputy Minister for Arts, Sport and Tourism, Dawn Bowden MS, said:
This significant investment will support the Welsh Government’s strategic objective of developing the games industry in Wales.
Is the Welsh video games industry lagging behind?
At a UK level, the video games industry is in a relatively strong position. Recent research by UK Interactive Entertainment set the value of the market at £7.8bn in 2023, a 4.4% increase on the previous year. The number of people playing video games is similarly healthy, with Statista figures citing 36.1 mn players in the UK in 2023, compared with 27.2 mn in France and 25.7 mn in Germany.
Research shows that UK industry employment figures are also on the rise. Findings from TIGA show that the number of creative staff in video game studios increased by 15.2% between December 2021 and April 2023.
A 2024 Games Survey update from the University of South Wales found the number of video games companies operating in Wales increased by 23 between 2021 and 2024, to 103.
Despite these positives, there are mixed findings about the current situation in Wales. Employment statistics are less encouraging and suggest that the Welsh video games sector may be under-performing. While TIGA’s report found that employment opportunities are not just London-based, with 77% of UK games development staff working outside the capital, only 0.6% of these employees are located in Wales. This compares with 9.1% in Scotland.
A 2021 Clwstwr report (produced as part of a wider project to build on south Wales’ success in making creative content) also found the sector to be underperforming, reporting it to be:
…currently under-developed and less well understood than the film and TV sectors in the Cardiff Capital Region, and Wales more broadly.
Current Welsh Government support
Assistance for the video games sector is provided by Creative Wales (the Welsh Government’s creative industries agency) across several streams of support. This includes:
- The Creative Skills Fund offers between £25,000 and £125,000 for projects that can deliver against one or more of ten priorities for skills in the creative sectors. A total of £500,000 is available in 2024-25 and again in 2025-26. In June 2024, the Minister for Social Partnership set out the Welsh Government’s continued commitment to this initiative.
- Creative Wales Production Funding supports Wales-based production and games development companies who are looking to develop productions intended for international audiences. Awards of between £50,000 and £500,000 are available, with more favourable award ratios for companies based in Wales.
- The Creative Wales Development fund aims to provide support for companies in the TV and commercial animation sectors to fully develop projects and concepts, meaning a greater chance of getting a project commissioned and into production. The most recent round of funding had a total of £1m available, with a maximum award of £35,000 for any one digital project.
- Games Talent Wales is a talent development programme which provides studio space, industry mentoring and development grants.
- There is also support via Business Wales to attend the San Francisco-based Games Developer Conference. This is the world’s largest annual gathering of professional video games developers, offering opportunities for networking and collaboration. The Welsh Government have highlighted this conference as a ‘catalyst of inward investment’, crediting Rocket Science’s Cardiff opening to connections made at GDC.
Welsh Parliament considers video games industry
The Culture, Communications, Welsh Language, Sport and International Relations Committee is currently looking into the video games industry in Wales. This work is considering several issues including the health of the sector and existing Welsh Government support. An engagement findings paper has been published following a Committee visit to meet with those involved in the sector in Wales.
While focus group participants acknowledged that current Welsh Government support is helpful, limitations were also identified. These include:
- Support offered by Creative Wales does not go far enough, nor is it tailored enough.
- Creative Wales’s support is geared more towards the television and film industries.
- A feeling that there is a lack of understanding of the industry amongst Welsh Government decision makers who develop funding models.
- Funding streams do not take into account the unique nature of video games production; including the ‘false starts’ that are often a part of the process.
What’s happening across the UK?
In February 2024, the Scottish Government gave its backing to a National Games strategy, making Scotland the first part of the United Kingdom to do so. Deputy First Minister Shona Robison stated:
The Scottish Government recognises the contribution that the sector already makes and the potential it has to contribute further social, cultural and economic benefits.
In May 2023, the UK government launched a Video Games Research Framework. This is intended to better understand the industry. The framework has four priorities including the identification of:
…broader contexts for how video games interact with societies, cultures, and everyday life…
With other nations taking these approaches, could the Welsh Government follow suit to further support the industry?
Article by Kirstin Mitchell, Senedd Research, Welsh Parliament
Senedd Research acknowledges the parliamentary fellowship provided to Kirstin Mitchell by the Arts and Humanities Research Council which enabled this article to be completed.
