Video game companies plan for the future as pandemic-driven expansion slows

For many years, the development of computer games was considered a thriving sector in the Midlands, with successful companies creating major franchises that attracted a global audience. However, similar to numerous entertainment sectors, the vast array of options available for people’s leisure time has intensified the competition for attracting gamers’ attention. Codemasters, an EA-owned company with bases in Warwickshire and Birmingham, has been a significant contributor to this success in a region estimated to contribute £6bn annually to the UK economy. The company, which developed the Formula One game, acknowledges that the industry as a whole has faced difficulties following a surge in demand during the pandemic. The UK’s gaming industry is highly regarded worldwide, employing an estimated 76,000 individuals, and is considered larger than the film sector. Obsidian, a website that monitors job losses within the industry, has calculated that approximately 32,000 people globally have been made redundant over the past two-and-a-half years, with 13,000 of these occurring in 2024 alone. Both Microsoft and Sony have dismissed hundreds of employees in 2024, and smaller studios have also experienced adverse effects, reporting a decline in available investment. Ian Flatt, vice-president of Codemasters, stated that the industry needs to foresee changes and strategize for the future. “There’s always changes in what people want to do with their entertainment, you’re competing against such a variety,” he remarked. “I think for some they saw that growth during the Covid time and kept extrapolating through that but realistically that was a moment in time.” He added that “The Formula One game is one of the most critically, highest-rated sports games and it’s predominant base is right here in Birmingham, along with support from the team in Southam.” Flatt further noted, “The F1 licence allows us to be really creative, the games are always about the people who make them and the talent. We’re always thinking at least two years ahead.” George Humphreys, a software engineer at Codemasters from Wolverhampton, commented: “There’s a lot of people I know that have had move for their jobs, I’m lucky I’ve secured my job locally to where I live. “That was one of my biggest concerns, it’s tough to find jobs at the moment.” He advised, “My advice to people would be just to keep making things, get your name out there, you’ll get noticed.” According to UK Interactive Entertainment (UKIE), Britain hosts over 2,000 gaming businesses. Ahead of this summer’s election, the organization urged the government to increase investment in the sector and provide support to developers, including through tax reliefs. Despite these challenges, gaming companies remain willing to invest in the region. Facepunch Studios, also located in Birmingham and known for titles like Garry’s Mod and Rust, confirms it is still actively recruiting despite the industry’s contraction. Ashley Cook, the firm’s marketing manager, explained: “The key for us really was to not hire loads of people in a panic, but to try and actually work out how we do this in a structured and planned way,” He also stated, “We’re still growing post-pandemic, we’re seeing more and more players in Rust so have more reason to invest in the game.” For updates, connect with BBC Birmingham on BBC Sounds, Facebook, X, and Instagram. Copyright 2024 BBC. All rights reserved. The BBC bears no responsibility for the content found on external websites. Information regarding our approach to external linking is available.