Empowering gaming and esports in Wales
Author: Alex Cater
Key Contact: Declan Goodwin
In recent years, the video game industry has experienced significant growth, now valued at over $250 billion globally, with nearly three billion consumers engaging in virtual adventures worldwide. It should then be no surprise that Wales is looking to take advantage of this growth and make itself more attractive to developers and their affiliates. We take a look at video games in Wales and their increasingly important role in the Welsh business landscape.
Government support and funding
Speaking at an event hosted by Esports Wales and Ygam, Jack Sargeant MS, the Minister for Culture, Skills and Social Partnership, stated that “Gaming (including esports) is a priority sector for the Welsh Government and I’m keen to do all I can to support its growth and gain an international reputation for Wales as a centre for this rapidly growing industry.”
Since 2020, the Welsh Government has demonstrated this commitment by allocating £28 million to support the creative industries, contributing to the employment of over 35,000 people in Wales. Creative Wales, the government’s spearhead organisation, actively seeks out and offers funding to support production, games, and animation development companies based in Wales. The organisation also showcases Welsh talent at an international level, such as at the Game Developers Conference in San Francisco.
Notable success stories include: Wales Interactive, a Penarth-based studio that gained international acclaim with its gothic horror game, Maid of Sker; and the arrival of Rocket Science Group Cardiff in 2023, which has been involved in high-profile projects such as Fall Guys and has worked with developers of hit game Fortnite.
Challenges and the future
Despite the industry’s growth in Wales, challenges remain. The global gaming market has shrunk due to the decline in sales post-pandemic and tougher financial conditions, leading to significant layoffs from industry giants like Activision and Epic Games. However, these factors have spurred the formation of smaller indie studios, with many developers transitioning from larger firms to start their own companies – which Wales will be hoping to entice.
As such, developing a home-grown workforce will become an increasing priority for the sector in Wales. Initiatives like The Games Developer Foundry Wales, funded through the Creative Skills Fund, offer boot camp-style courses in key disciplines such as coding and self-publishing. Even now, Welsh universities are expanding their offerings of undergraduate courses in Computer Games Design with access to modern tools like Unreal Engine, preparing students for careers in game design.
Start-ups in Wales will need to navigate complex IP landscapes to protect their new creations. Preparing to address issues related to copyright, trademarks, and patents is essential for maintaining competitive advantages and surviving early growing pains in a field dominated by much larger companies.
Finally, AI has become nearly inescapable and presents exciting new opportunities within game development. Its use may increase efficiency and help cut costs, but developers should consider questions such as: who takes liability for its misuse; who really owns the output of the technology; and how can they ensure compliance with emerging regulations – not just for AI but for data protection as well.
A blossoming creative future
The gaming industry in Wales is on the up, driven by government support, a growing number of successful companies, and a focus on talent development. While challenges may emerge, we consider it likely that the sector will continue to grow as Wales nurtures and supports its blossoming creative sector.
We can help your gaming business navigate the legal landscape in Wales and beyond. Drop us a line to find out how we can help your business thrive.
