Uk gaming industry

Uk gaming industry

Name: Cheng-An Hsiao P Number: P2421108 Tutor: Emily Baines Course: Design Innovation Module: Made5002

Contents: 1. Executive summary: p3 2. Introduction: p3 2.1 Gaming industry types of platforms: p4 2.1.1 PC Gaming：p4 2.1.2 Console Gaming：p4 2.1.3 Mobile Gaming: p4 2.2 Gaming industry types of games: p4 2.2.1 Action games: p4 2.2.2 Adventure game: p4 2.2.3 role playing game: p5 2.2.4 Simulation game: p5 2.2.5 strategy game: p5 2.2.6 sports game: p5 2.2.7 Puzzle game: p5 2.3 Number of companies: p5 2.4 Geographical spread: p7 2.5 Lifecycle: p7 2.6 Value structure: p8 2.7 Competitive dynamics: p9 2.8 Strategic groups: p10 3. Conclusion: p11 4. Figure: p12 5 Reference: p12

1. Executive summary: According to the latest quarterly update of Newzoo's Global Game Market Report.

According to the report, the total revenue of gamers worldwide will reach 99.6 billion US dollars in 2016, an increase of 8.5% compared with 2015. Mobile games will be $ 36.9 billion in revenue for the first time more than PC, an increase of 21.3% on a global scale. Newzoo predicts that by 2019, the global market will grow + 6.6% compound annual growth rate, and ultimately reach $ 118.6 billion, of which mobile gaming market was $ 52.5 billion. Now the game industry is still booming development, the global game companies are looting piece of the pie. Now the game industry is still booming development, the global game companies are looting piece of the pie. Analyzed the numbers of companies, geographic, value structure, distribution, competitive, lifecycle of the industry and strategic groups of the analysis industry in the UK game industry.

2. Introduction: Since the game industry in the 1970s, the first arcade game, Atari Inc was the first company to successfully commercialize video games in the company. The video game is called Pong. At the beginning, the game machine Magnavox Odyssey released the game industry, but by 1977 it began to lose signs of development, but the next year, a game called "Space Invaders" began to revive. Arcade games began to appear in various places, such as shopping malls, shops and restaurants. In the late 1970s, personal computers emerged to promote the development of the game industry, Nintendo has revived the game industry because of handheld games like game boy.

In 1990, due to the processing speed of computer, 3D graphics and the emergence of CDs can store and distribute software, bringing the value of the game industry to a higher level. The popularity of the Internet allows gamers to connect with multiple people. In 1994, American home consoles earned almost the same income as the movie industry. Mobile games began in the 2000s, and new game platforms emerged in the form of social media. After 2010, profits in this industry drove technological advancement and are still booming (Martin 2015).

This report mainly analyzes the UK gaming industry, analyzes the industry structure, geographical spread, value structure, competitive dynamics , lifecycle of the industry and strategic groups of the industry. The end of report will conclude with conclusions and recommendations.

2.1 Gaming industry types of platforms: 2.1.1 PC Gaming： PC games need to play above the computer via the mouse, the keyboard, the screen version of the game, you can play when there is no Internet connection, each PC games require different software and hardware requirements are not the same. PC games in the mid-1990s briefly lost the game console market, but due to digital distribution, the re-emergence in the mid-2000s (Martin 2015). Games can be played locally or online, you can use the Internet to download the game or purchase game disc to play.

2.1.2 Console Gaming： Specialized equipment for playing games, known as video game consoles. Video game consoles have now developed can browse the web and play CD, DVD and Bluray players and other functions on it. Video game consoles usually require a handheld rocker to control. Console games are also known as video games. Usually you need to buy the game or download a game disc on the Internet.

2.1.3 Mobile Gaming Mobile games are video games on smartphones, tablets, or portable electronic products. Mobile games are now usually downloaded to mobile phones on the Internet through the game platform. Some mobile games need to be played on the Internet, and some do not. Internet can be used to play, usually require a network of mobile phone games are able to connect with other players to play the game. Usually because the device is not as good as a PC or a game console, the game content is not richer than a PC or a game console. The first mobile game in 1994 on Hagenuk MT2000 equipment Tetris, followed by Nokia's Snake in 1997 (Martin 2015).

2.2 Gaming industry types of games: 2.2.1 Action games: Action game means that players in the game play, players pay attention to the hand and eye movement response must be coordinated. Action games are easier to use than other types of games and are usually the most popular video games. Action game subdivisions include platformer, shooters, Fighting, Beat-em up, Stealth, survival, and rhythm (Vince 2018).

2.2.2 Adventure game: Adventure gamers often interact with the surrounding environment and other characters to solve puzzles by clue, a game and a broken off. Adventure game

segments include action adventures, text adventures, Text adventures, Graphic adventures, Visual novels,Real-time 3D and interactive movies (Vince 2018).

2.2.3 role playing game: Role-playing is the second most popular type of game in which a player plays one or more characters, manipulating a character to break through, experiencing a game story or fighting an enemy to upgrade a weapon. Role-playing game segments include action role-playing, MMORPG, Rouguelikes, Tactical RPG, Sandbox RPG and First-person party-based RPG (Vince 2018).

2.2.4 Simulation game: Simulation games are usually players will simulate a role, the role of life experience.

Simulation game subdivisions include construction and management simulations, life simulations and vehicle simulations (Vince 2018).

2.2.5 strategy game: Like the board game gameplay, players need to use their brains in the game, players need to carefully formulate strategies to win the battle. Usually players have a turnbased game to play. Strategy game subdivisions are 4X, Artillery, Real-time strategy (RTS), Real-time tactics (RTT), Multiplayer online battle arena (MOBA), Tower defense, Turn-based strategy (TBS), Turn-based tactics (TBT) , Wargame and Grand strategy wargame (Vince 2018).

2.2.6 sports game: Sports games are simulated sports such as basketball, football, baseball, etc., so that players can experience or have a competitive experience. Sports activities are subdivided into racing, team competition, Competitive and Sports-based fighting (Vince 2018).

2.2.7 Puzzle game: Puzzle games are usually logic games to decrypt or solve puzzles. Most puzzle games need to solve the problems given by the game by various means. The puzzle game segmentation is divided into Logic game and Trivia game (Vince 2018).

2.3 Number of companies: British gaming industry has 2,261 active home game company (ukie 2018), as of November 2018, there were 14,353 full-time and equivalent-level staff engaged in

game development. The number of indirect related jobs in the studio increased from 24,274 to 26,241 in one year. Game development is to provide graduates with high knowledge and skills, and a typical game development studio will have 80% of university degree or above employees (TIGA 2019). Gaming are basically sold to the world as an export, because of the globalization and the age of Internet development. Like the Grand Theft Auto series developed by Rockstar. Other studios in the UK also have game franchises such as Batman and Lego, as well as top game companies such as RuneScape (developed by Jagex) and Sniper Elite series (developed by Rebellion) (TIGA 2019). Figure1 according to the data given by Nesta (2014), since the beginning of 2000, the establishment of British game companies has grown rapidly, and 90% of the companies have been established. The newly established companies have increased rapidly since 2005, with an annual growth rate of 22%. Figure 2 According to data from Nesta (2014), the newly formed company has more games to develop the ios platform, which is four times faster than other console platforms. In the past ten years, the establishment of gaming companies in the UK has grown rapidly, partly because of the advancement of computer technology and the emergence of smart phones, which has allowed the gaming industry to grow by leaps and bounds.

(figure1)

2.4 Geographical spread: The UK gaming industry is mainly distributed in the central and southern parts of the UK. According to data from Ukie 2018, London is the largest gaming companies with 614 companies in the place, and the second is Manchester has 96 gaming companies, third. More is Brighton has 73 gaming companies. Most gaming companies are located in big cities in the UK.

(figure2) 2.5 Lifecycle: The global gaming industry and the UK gaming industry are still in the growth stage.

According to NewZoo 2017 statistics, the annual revenue of video games will grow from 2015 to 2017. According to data from the Entertainment Retailers Association (ERA), the entity and digital sales of UK games in 2018 were 3.86 billion pounds, an increase of 9.1% over last year. This sale is more than the sum of music and video combined. The market is 1.65 times larger than the UK video market (2.3 billion pounds) and 2.9 times more than the UK music market (1.3 billion pounds). The UK is the fifth-highest place in the global gaming market, with more than 2.5 billion video games players worldwide, including the largest number of Asian players, followed by Europe (The European Mobile Game Market, 2016). 75% of the UK game company's revenue source is derived from international sales, and the UK is an ideal place to develop new games around the world, Microsoft, Activision Blizzard, Sony Interactive Entertainment, Konami and Take-Two These big game companies all open branches in the UK (VB STAFF 2019). According to the data of the UK gaming industry, it shows that the UK game industry is still growing. Because computer technology has been continuously improving, smartphones are becoming more and more popular, and the

population of games is increasing. The virtual reality market is becoming more and more mature, which will bring more opportunities for the development of the gaming market. The industry will gradually develop into mobile games, because companies in the gaming industry want to make quick profits, mobile games can make profits quickly, and it takes less time to develop games.

2.6 Value structure:

(figure3) There are five important parts of the game industry value chain: Investment, Design and Creative, Production and Tools, Publisher/Distribution, Hardware and End User.

These value chains determine the final price of the game. Investment in the gaming industry has been growing in recent years, and investment may come from gaming platforms or large publishers. Some independent developers will choose to fund their own games. The main challenge for investors at this stage is how to prevent copyright infringement and piracy (Martin 2015). Design and Creative is an important part of the company's game designers and game developers to create games, from the basic concept of the game to plan. Before making a plan, you must first determine the purpose of the game, gameplay, story setting, role description and concept art, and plan to complete it according to the schedule (Martin 2015). The game needs a uniform appearance and style, as well as the rationality of the game.

Production and Tools is the platform for the game to be produced and used, as well as hardware and software, for example, the game tool and graphics processing tools may have larger settings that may have their own game engine, while smaller settings may use licensed middleware (Martin 2015). Issue Chamber of Commerce Publisher / Distribution game to study the current market in order to promote the development of the game can be, and ensure that the investment pays off. Hardware is the place where the game company decides to put the platform after developing

the game. Game companies may place games on different platforms because they can increase consumer purchases, like the current large-scale game hardware vendors include Apple, Sony, Microsoft, and Nintendo. End User is the most important part of the value structure. The progress of the game company and the income come from the game players. Because the development needs to invest a lot of money, the funds are not as expected, it is difficult to develop good game quality.

The value structure of the UK game industry, the game company must first have a game concept in the beginning of the development of the game to confirm the purpose of the game, gameplay, role description, artistic concept and certain content, then the program encodes the game content and uses the art to render the game screen. After the game is completed, it must be published. The game company can be published on any game platform, as long as the software and hardware requirements are complementary to the platform. Consumers can purchase games from the following ways. The first is Boxed physical retail, the second type of Digital and online. There are online subscriptions, downloads and in-app purchases, and the third is purchased with Mobile. It is also available for download and in-app purchase (Olsberg•SPI and Nordicity 2015).

2.7 Competitive dynamics: According to Newzoo's Global Game Market Report, more than 2 billion gamers worldwide generated $108.9 billion in revenue in 2017, an increase from the figures released the previous year. The report also expects the global gaming market will be steady growth of 6.2% growth in 2020 to reach $ 1,285 billion in revenues. This income has continued to rise, attracting game development companies all over the world to grab this piece of cake, coupled with the increasing popularity of mobile phones, and the emergence of Virtual reality, this is another business opportunity.

The global game industry is still in the development stage, so the competition is fierce.

2.8 Strategic groups:

(figure4) The first group console-dominant, 61% of players playing games per week, higher than 57%the average of all gamers, willingness to pay for gaming is higher than 40% the average of all gamers, about 65% of players willingness to pay for gaming.

Consumers are willing to pay to buy, the game content is rich, the time to play is longer, the game experience is higher than other ethnic groups, few consoledominant games are free, some can only let you experience, if you want to play you need to pay, the amount is relatively higher than the others. The game companies in console-dominant are almost all big companies. The amount of money needed to develop games is also higher, and the relative game price is higher than other groups.

The second group of mobile-dominants is 59% of players playing games per week, which is higher than 57% the average of all gamers, but lower than 61% of gamers who like game consoles. But willingness to pay for gaming is less than 40% of the average for all gamers, and only 25% of players willingness to pay for gaming, 15% below average. Almost everyone now has a mobile phone, which is always around, so the relative frequency of use is relatively high, but because the richness of mobile games is relatively lower than other ethnic groups, the playing time will not be too long. Many mobile games are now almost free, usually extra buy gifts when players

really like when they play this game.

The third group of multiplatform players, 56% of players playing games per week, is lower than 57% of the average of all gamers, willingness to pay for gaming is higher than 40% the average of all gamers, willingness to pay for Gaming players are about 61%. Nowadays multiplatform players are slowly joining both mobile-dominant and console-dominant, as smartphones are becoming more advanced, and gaming consoles are also. Very few multiplatform player games are free, some can only let you experience it, if you want to play, you have to pay, the amount of the money is higher. The multiplatform players are in the middle of the mobile-dominant and console-dominant, so they will be phased out slowly.

The fourth group of pc gamers is 50% of players playing games per week, which is lower than 57% the average of all gamers. It is the lowest among the four groups.

The willingness to pay for gaming which is lower than 40% the average of all gamers, willingness to pay for gaming players about 20% are also the lowest of the four ethnic groups. There are fewer and fewer players in the pc gamers, and they are slowly being absorbed by other ethnic groups, so the players who play games every week and willingness to pay for gaming are the lowest of the four ethnic groups.

3. Conclusion: Now the global game industry is booming, driving other industries, such as e-sports industry, game live broadcast industry, computer production industry and so on.

Smartphones are also becoming more and more popular, giving the game industry more opportunities for development. From the analysis reported above, the UK games industry can more from the console games and mobile games these two aspects of development, as the two most gamers now play mode, the host game although the game a long time to develop, but the return on investment Higher. In the beginning, you have to invest a lot of money, so you should do a good job in market research when developing new games. The story of the game should attract consumers and gameplay to attract players. Although the development time of mobile games is relatively short, the development of games is relatively simple, but because the price of mobile games is relatively low, the sales volume is high enough to be as high as the sales of console games. Virtual reality (VR) is emerging from the gaming industry and is a new gaming experience. The UK gaming industry can also more develop Virtual reality (VR) games. There aren't many games for Virtual Reality (VR) yet, and this type of game can be developed to attract gamers to play. Game companies can also add more e-sports to increase the exposure of the game to add

new gamers. Game companies can also work with other game companies to launch new games, use each other's resources to develop new games, and give gamers on both sides a new gaming experience, also can let game companies add new gamers, or work with other game companies to increase the exposure of the game when the game is updated, for example, the characters in the game cooperate with other game companies to play the game characters into another game. Game companies can also think about new game types to attract players to play and increase player play games.

4. Figure ➢ Figure 1- Juan Mateos–Garcia, Hasan Bakhshi and Mark Lenel (2014) A MAP OF THE UK GAMES INDUSTRY ➢ Figure 2- https://gamesmap.uk/#/map ➢ Figure 3- BFI form Olsberg SPI with Nordicity (2018) Screen Business-How screen sector tax reliefs power economic growth across the UK ➢ Figure 4https://www2.deloitte.com/us/en/insights/industry/technology/digital-mediatrends-consumption-habits-survey/trends-in-gaming-esports.html 5 Reference: ➢ BFI form Olsberg SPI with Nordicity (2018) Screen Business-How screen sector tax reliefs power economic growth across the UK (access 2019) ➢ Christopher Dring (2019) UK video games market is now 80% digital https://www.gamesindustry.biz/articles/2019-01-02-uk-video-games-market-isnow-80-percent-digital (access 2019) ➢ Denzel Dome (2018) UK Games industry generates £2.87bn for UK Economy https://ukie.org.uk/press-release/2018/10/uk-games-industry-generates%C2%A3287bn-uk-economy (access 2019) ➢ Eraltd (2019) Streaming Boom Powers Entertainment Market To New All-TimeHigh Of £7.24bn In 2017 https://eraltd.org/news-events/pressreleases/2018/streaming-boom-powers-entertainment-market-to-new-alltime-high-of-724bn-in-2017/ (access 2019) ➢

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James Batchelor (2018) Games industry contributes £2.87bn to UK economy, supports nearly 50,000 jobs https://www.gamesindustry.biz/articles/2018-1009-games-industry-contributes-2-87bn-to-uk-economy-supports-nearly-50-000jobs (access 2019) Jimmy Blake (2019) How the UK became a major player in the gaming world https://www.bbc.co.uk/news/newsbeat-46757989 (access 2019)

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