The UK games industry has reached a critical point in its development, according to e-commerce minister Stephen Timms.

Mr Timms was talking at the launch of a Department of Trade and Industry (DTI) report on the video and computer games sector.

The launch was attended by representatives from the Sussex games industry, including Brighton-based games developer, Wide Games, Hove-based video games outsourcing specialists, Babel Media and The Independent Games Developers'

Trade Association, also based in Brighton.

Babel Media managing director Algy Williams said: "The commissioning of this report by the DTI may promise more than it delivers but is still a step in the right direction.

"Our industry contributes greatly to the UK's balance of payments and employs thousands of people.

"It galls me games are still perceived as pernicious influences on youth and played by weird people and kids.

"That perception is false.

Games are more popular than films and those who play them encompass a broad demographic sweep.

"Like his predecessor, Patricia Hewitt, Stephen Timms knows what he's talking about. In 1987, he wrote a report about broadband and this experience will help him greatly when talking to people in the industry.

"At Babel, we have all worked hard to get where we are, making a profit and increasing revenues at a difficult economic time.

"We would like to see more support from the financial community and Government initiatives that push this business to the next level.

"It is crucial that this happens sooner rather than later. Otherwise, like the UK's PC industry, this country will let another great opportunity get away."

The UK is the third largest market for games, generating more than £1 billion in revenues a year and employing about 20,000 people.

The report said the games software industry was a significant contributor to the UK balance of trade when compared to other creative industries, delivering a positive trade balance of £186 million in 2000.

It also provided a total positive contribution of £757 million in the preceding three years, compared to film, which made a positive contribution of £462 million, and television, which made a negative contribution of £944 million over the same period.

Although the report said the UK games industry was innovative, creative and at the cutting-edge of technology, the report said there were three areas for improvement:

Industry reputation.

Training and skills development.

Communication across
different communities.

Mr Timms said: "The games industry is an important part of the economy and the Government is determined to play its part in helping it towards a successful future.

"It is at the cutting edge of innovation and technology and the UK is among the global leaders in the sector.

"We will be working with the industry trade associations to increase growth, competitiveness and productivity."

The DTI would be sponsoring a major stand at E3 in Los Angeles, the world's principal games industry trade show, to raise awareness of the UK games industry, fund a fact-finding mission to Canada, the United States and France and help organise a forum to promote communication in the industry.

According to the Entertainment Leisure Software Publishers' Association (ELSPA), the UK market for computer games and consoles grew again last year to reach £1.6 billion, a 36 per cent increase on the previous year.

In the first nine months of this year, the value of sales of UK video games was up 12.9 per cent on the same period last year, reaching an all-time high of £684 million.

ELSPA predicts this upward trend will continue through to a bumper Christmas, boosted by releases such as FIFA Football 2003, Timesplitters 2 and Harry Potter and The Chamber of Secrets.

www.dti.gov.uk
www.babelmedia.com
www.widegames.com
www.tiga.org.uk
www.elspa.com