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Brexit: what does the UK video game industry say about EU exit

Brexit: what does the UK video game industry say about EU exit

The victory by the majority of conservatives in the British elections accelerated that the United Kingdom leave the European Union.

The United Kingdom will cease to be a Member State of the European Union from January 31 at 11 p.m. (British time). That is when Brexit will be consummated and the Government led by Boris Johnson will see his dream of abandoning the European project materialized. While the rest of the countries of the club are considering the role model, the United Kingdom will have to face more negotiations to determine their fit in the territory. In that equation, where is the video game industry?

The then executive of Theresa May, the former prime minister, reaffirmed her commitment to video games and highlighted their importance. "The videogames sector plays an important role in the success of the creative industries in the United Kingdom, so we are listening to shareholder concerns." The intention, already outside the Digital Single Market, was to seek an agreement that allowed the flow of talent not to be lost.

Brexit: what does the UK video game industry say about EU exit
Boris Johnson, British Prime Minister. Photo: Frank Augstein | AP

Uncertainty in the surveys

Although the situation has been resolved without resorting to a hard Brexit, the scenario presented for British industry is uncertain. The TIGA trade organization, which published the results of its survey almost two years after the referendum, surveyed 63 companies related to the videogame business. 29% of respondents indicated that their respective businesses had already been damaged by a Brexit that had not yet occurred. According to the survey, many of these companies were having trouble recruiting international staff.

Even so, of the entire percentage, 11% acknowledged that they had benefited, since the devaluation of the British pound had allowed some British developers to be more competitive, as noted in GamesIndustry.biz. Other respondents were still not sure if Brexit would impact their businesses (33%), while 27% said they had not noticed any consequences at that time. "Brexit has increased economic uncertainty in the United Kingdom, but has had consequences faced in the British video game industry," said Richard Wilson, CEO of TIGA.

British studies are supported, in many cases, by employees from other countries, a fact that TIGA highlighted when talking about the future. "To grow and prosper as before, the British video game industry will need to continue recruiting talent on a global level."

Brexit, video game industry.
Leamington Spa is one of the places where UK studies are concentrated. Photo: Kotaku

What consequences will there be?

A report published by the anti-Brexit Games4UE organization also warned of the consequences of the march of the United Kingdom, both in a scenario with agreement and in which case it was done in the toughest way, something that has not finally happened. The group commented in the document that the exit of the European Union would cause “considerable uncertainty”, in addition to a “bureaucracy” that would lead to an increase in costs that will impede the day-to-day business.

Brexit could cause "the rupture, reorganization or replacement of part of the business fabric that sustains the industry." All this will depend on the relationship that the United Kingdom maintains with the European Union, a link that has been closed with an agreement, but that will require further negotiations to settle the territory. On the other hand, within the EU itself, the forces will have to rebalance, given that with the march of the English, Paris and Berlin will try to fill the power gap left by the United Kingdom.

Join the Game, Brexit
Join the Game, a campaign to attract international talent to France.

France tries to seduce UK employees

In full debate about the future of the British video game industry, France launched a campaign to attract developers working on the islands. Join the Game outlines the French country as a good place to create video games in an international environment. In order to convince the undecided, the French offer tax advantages and various financing plans. "Proud of its history and dedicated to becoming the leading country in this industry," says the announcement. "France has focused its attention, over the years, on continuing to be important in the development of video games."

The campaign defends that France has a dynamic network of studies and publishers that are part of an "active ecosystem" composed of "regional groups, research laboratories" and schools "that constantly train international talents."

"Do you have doubts when you settle in France?" They ask rhetorically. "Join the Game illustrates the French Government's commitment to offer foreign publishers and developers — studies and independent — opportunities to discover the ideal environment for excellence." The French industry already has 5000 jobs related to the development of videogames and has become one of the most powerful cultural industries in the country.

What will happen to the British industry? Time will tell. The only thing clear is that many unknowns remain to be resolved that will not be elucidated in the short term, but will evolve depending on how the negotiations of all parties crystallize. The only certainty is that on January 31, the United Kingdom will cease to be part of the European Union.

About author

Chris Watson is a gaming expert and writer. He has loved video games since childhood and has been writing about them for over 15 years. Chris has worked for major gaming magazines where he reviewed new games and wrote strategy guides. He started his own gaming website to share insider tips and in-depth commentary about his favorite games. When he's not gaming or writing, Chris enjoys travel and hiking. His passion is helping other gamers master new games.

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