The London gaming industry is enduring a period of rapid growth. New figures show that London gaming incorporations have risen by almost a third from the previous year’s figure of nearly 1,400.
The recent League of Legends World Championship e-sports event delivered a 12 million pound boost to the city’s economy.
“They actually have the players in the (O2) arena, on their PCs, playing head to head,” says Arlen, 25, who attended the Championship event this year.
“You see them when they win, they get up, get really excited. It feels like you’re part of that.
The offering in London is excellent. There are gaming bars in London now, you can just rent a room with friends and get some drinks.”
London is evidently a burgeoning gaming hub. Sadiq Khan remarked on the incredible growth of the games industry in London, saying he will do all he can to support its development.
14,500 people attended the League of Legends world championships at the O2 arena
‘We’re having our wages frozen so a whole load of staff don’t have to be made redundant’
The picture is not all sunshine and rainbows. In a period of apparent advancement, why are so many studios laying off employees and/or shutting their doors for good?
Independent company Payload Studios has gone through another round of redundancies, and Sharkmob has confirmed a “reduction in headcount” at their London office.
“Both large AAA companies with substantial financial backing are shutting down, as well as smaller independent developers,” says Alexis from Chucklefish Games.
“Many of these smaller developers have had to shift to work-for-hire projects instead of creating their own original art.”
In 2024, there have been an estimated 750 layoffs in games across the UK, according to UK Interactive Entertainment. A considerable amount of these have been across games developers in London.
Ali, not their real name, works for a game developer in London. “I have co-workers whose bosses yell at them and harass them outside of work.
We’re having our wages frozen so a whole load of staff don’t have to be made redundant.
There are a lot of people at the company who are paid a lot of money, and haven’t been doing a good job for several years. People lower down on the chain are having to deal with the reality of that.”
There are numerous factors that impact layoffs in the industry according to UKIE, including inflation driving up development costs and traditional roles becoming redundant as a result of advancing technologies.
Most recently, during the COVID-19 lockdowns, the gaming industry experienced a surge in demand which led to rapid growth and widespread hiring.
However, as people returned to their pre-pandemic routines, this demand has diminished, prompting companies to reduce their workforce to more sustainable levels.
The industry is now recalibrating to align with post-pandemic realities, correcting the overexpansion that occurred during the peak of the lockdown era.
What does this mean for the future?
“What we need more of is grassroots investment in indie (independent) games regionally, and more regional events, more regional support,” says Hannah Flynn, communications director at independent studio Failbetter Games.
“There needs to be greater investment into the people creating the games.”
UK Interactive Entertainment says that government support is essential to bolster the gaming industry in London; enhancing tax reliefs will provide financial incentives to reduce costs for game developers.
The body highlights that increasing funding for development is imperative. This might include renewing and increasing the UK Games Fund to £30 million over the next three years.
The UK will remain a world leader in the cultural industries if it maintains the right business and regulatory environment, combined with a talented and innovative workforce. But government support is essential to achieve this.
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Headline“We’re having our wages frozen so staff don’t have to be made redundant”
Short HeadlineMany games studios in London are struggling
StandfirstThe London gaming industry is booming, but why are many studios laying off employees or shutting their doors for good?
The London gaming industry is enduring a period of rapid growth. New figures show that London gaming incorporations have risen by almost a third from the previous year’s figure of nearly 1,400.
The recent League of Legends World Championship e-sports event delivered a 12 million pound boost to the city’s economy.
“They actually have the players in the (O2) arena, on their PCs, playing head to head,” says Arlen, 25, who attended the Championship event this year.
“You see them when they win, they get up, get really excited. It feels like you’re part of that.
The offering in London is excellent. There are gaming bars in London now, you can just rent a room with friends and get some drinks.”
London is evidently a burgeoning gaming hub. Sadiq Khan remarked on the incredible growth of the games industry in London, saying he will do all he can to support its development.
14,500 people attended the League of Legends world championships at the O2 arena
‘We’re having our wages frozen so a whole load of staff don’t have to be made redundant’
The picture is not all sunshine and rainbows. In a period of apparent advancement, why are so many studios laying off employees and/or shutting their doors for good?
Independent company Payload Studios has gone through another round of redundancies, and Sharkmob has confirmed a “reduction in headcount” at their London office.
“Both large AAA companies with substantial financial backing are shutting down, as well as smaller independent developers,” says Alexis from Chucklefish Games.
“Many of these smaller developers have had to shift to work-for-hire projects instead of creating their own original art.”
In 2024, there have been an estimated 750 layoffs in games across the UK, according to UK Interactive Entertainment. A considerable amount of these have been across games developers in London.
Ali, not their real name, works for a game developer in London. “I have co-workers whose bosses yell at them and harass them outside of work.
We’re having our wages frozen so a whole load of staff don’t have to be made redundant.
There are a lot of people at the company who are paid a lot of money, and haven’t been doing a good job for several years. People lower down on the chain are having to deal with the reality of that.”
There are numerous factors that impact layoffs in the industry according to UKIE, including inflation driving up development costs and traditional roles becoming redundant as a result of advancing technologies.
Most recently, during the COVID-19 lockdowns, the gaming industry experienced a surge in demand which led to rapid growth and widespread hiring.
However, as people returned to their pre-pandemic routines, this demand has diminished, prompting companies to reduce their workforce to more sustainable levels.
The industry is now recalibrating to align with post-pandemic realities, correcting the overexpansion that occurred during the peak of the lockdown era.
What does this mean for the future?
“What we need more of is grassroots investment in indie (independent) games regionally, and more regional events, more regional support,” says Hannah Flynn, communications director at independent studio Failbetter Games.
“There needs to be greater investment into the people creating the games.”
UK Interactive Entertainment says that government support is essential to bolster the gaming industry in London; enhancing tax reliefs will provide financial incentives to reduce costs for game developers.
The body highlights that increasing funding for development is imperative. This might include renewing and increasing the UK Games Fund to £30 million over the next three years.
The UK will remain a world leader in the cultural industries if it maintains the right business and regulatory environment, combined with a talented and innovative workforce. But government support is essential to achieve this.
