{PAGE 1}

13 December 2016

and Warwickshire Growth A Blueprint for G a m e I s n d u s t r y i n C o v e n t r y {PAGE 2} Co-Chair of the All-Party Parliamentary Group on Video Games Video on Group Parliamentary All-Party of the Co-Chair &Leamington Warwick for of Parliament Member White Chris report. valuable this for Ukie and LEP &Warwickshire Coventry the thank again once and sector games video the supporting in ahead work to the forward I look work. this guiding in instrumental be will report new this and importance utmost of the is authorities LEP, local relevant the as well &Warwickshire as Coventry of the work the into this Tying economy. national and local to the contributor avital sector; games video the championing in are staff the diligent and dedicated how Iknow years, many for Ukie with worked sector. Having games video the for widely more and report this both to impact, significant their for representatives its and Ukie commend I also work. this guiding in instrumental be will report new this and importance utmost of the is authorities local relevant LEP, the as well &Warwickshire as Coventry of the Tying work the into this strengths. local to maximise places and industries people, to support structures best the to consider call the addressing directly particular, –in paper white strategy industrial recent government’s the in out laid pillars ten of the to most responds directly also report This more.”do to determined Iam Connect. Midlands for award a£5million and research, for million £60 package, investment and trade we have a£5million example, For delivering. already is Engine Midlands “The positive: was response The to reality?” concept from Engine Midlands wider the to transform and successes such on build to implemented being are measures What region’s prosperity. to the contributor agreat is economy local Leamington’s and Warwick manufacturers, or companies games video providers, energy MP, Javid through Sajid Skills, “Whether and Innovation Business, for of State Secretary then the Iasked months, recent In economy. local of the nature high-tech to the due Spa’ ‘Silicon dubbed been has Leamington involved. all for rewards reap can that of approach kind the illustrating locally, companies games between abundant is that collaboration the is note particular Of studios. design larger and of small mix avibrant into today evolving and 1980s to the back dating production, games in history astrong has area local Our Quarter. Creative the as such initiatives local important through least not opportunity, enormous is waythere effective most the in targeted is investment that ensure we If can base. skills astrong with coupled sector media interactive value high and export high way. growth, the to to ahigh lead home We are placed well is area local our UK, the in companies of games clusters biggest of the one With potential. its realises locally sector games the that ensure to support my offer and Growth for Blueprint the to endorse delighted Iam Games, Video for Group Party All- of the Co-Chair and Leamington and Warwick for of Parliament Member As Foreword

{PAGE 1} {PAGE manufacturing, healthcare, logistics and education. and logistics healthcare, manufacturing, as such sectors other in technologies of those application the in exists that only represents a smallBut fraction entertainment of the opportunity commercial Tempest Stratford. at of The production RSC recent the in of ‘avatars’ use the as such culture, media’ of ‘mixed developments original and amazing to some home is &Warwickshire Coventry media. of audio-visual genres all ownacross their into come to starting are industry, games the in developed first technologies, VR and AR decade. next the within industry billion+ a$100 be will VR and AR sectors. to other transferable are of which –many manufacture their for tools and technology in innovation creates games of developing process The sectors. other to transferable skills –all maths science, analysis, data programming, design, of art, afusion is games Making skills. 21st century transferable of a blend Games are an example of ‘digital manufacturing’, requiring and developing Leamington. in created were SkySaga MMO global and Freeblade like Warhammer hits recent teams; of local technology and talent the with developed were Supercell and Rovio Sega, Bros, Disney, Warner for hits Mobile Hero. DJ and Flashpoint, Operation Overload, Dirt, F1, Horizon, Grid, Forza McCrae, like Colin blockbusters console including world the in titles games best-known of the many for responsible been years have over the &Warwickshire Coventry from businesses them, Between industry. export-led and aglobal is Games Warwick. and Southam Leamington, around clustered firms ‘core’ of fifty GVA in 2015 the million in from £188 was –of which million £224 estimated an generated Midlands West the in industry games The jobs. productive and skilled highly are These Midlands. West the across professionals industry games 3,500 of 3,000- of atotal out Leamington, around and in companies games 50+ in employees time full 2,500 and 2,000 between are there time, one At any region. the throughout opportunities and jobs productive skilled, highly -creating, Spa Leamington around and in -notably Midlands West the in based are businesses 130 games UK’s of the best Around story. success cultural and economic an is industry games video global The industry. growth a21st century is Sector Games Midlands’ West The generation. next the for sector important culturally this to of how grow recommendations practical and of opportunities a list is report of the output The elsewhere. clusters games in working is what highlight to and games, on environment economic and political global of the impact of the overview to an give us allows –this clusters international other and Leamington in of businesses studies by case It’s illustrated workspace. and R&D skills, funding, as such areas in support sector-specific future for recommendations with along Warwickshire, South and Leamington in cluster games of the performance and size heritage, the about evidence provides report This summary Executive {PAGE 2} e r i h s k c i w r a W d n ya r t n e v o nC yi r t s u d n sI e m a G West Midlands. West are based in the businesses games the UK’s best Around 130 of that demonstrates clear advantages over its competitors in international markets. markets. international in competitors over its advantages clear demonstrates that asector in specialisation’ ‘smart through growth economic regional developing of example outstanding an is It creativity. and quality on focus a distinctive through decades two than over more developed has Coventry, in presence a growing with and Southam and Warwick as such towns nearby in taking Spa, is outside the capital. the outside is games in 85% Some of employment by London. dominated not is industry games UK sector, the creative of the parts other Unlike region. the for advantage competitive of asource are Spa’ ‘Silicon of culture and heritage The support. industries creative generic from differentiated to be need games for strategies level’,‘micro successful the at persist that to growth barriers structural the to overcome sector the for order In approaches. down’ policy ‘top many permeates still it although faulty, is model business have acommon these that assumption The industries. creative or visual of audio- of agroup one as outside the from viewed is it when overlooked often too is games for environment business of the complexity the But acknowledged. often –is world the around exported games successful creating technology, leading with creativity of British best the blends that –one itself product of the complexity support. and expertise specific sector and led industry need developers Games titles. new profitable to create producers independent for harder been never has it healthier, been never have entrants to new attraction its and industry games of the economics macro the Whilst granted. for Spa Silicon of success continued the take not We should • • • to skills: approaches industry-led to develop well-placed is region the here, sector games of the capacity the grow helping in interest an with studios and clusters international with co-operation in working and Skillset, Creative and Ukie with Working required. tools and environment development changing rapidly the understand to industry with engagement to improve need all they that understanding common is a there but courses, relevant some offer Midlands West the across and Warwickshire, and Coventry in Colleges and Universities &design. art and e r subjects ‘STEM’ both to tackle i students motivates –and entrants new educated h s k highly young, attracts c industry games The i talent. for amagnet are w Games r a W d n ya r t n e v o nC yi r t s u d n sI e m a G region. the outside from talent experienced and emerging for To amagnet as act Engine. Midlands wider of the needs pipeline talent future the underpin will skills games-related for support focused increasing to grow; going only is technology in skills transferable these ICT. for and need The creativity design, technology, development, of software opportunities of career range and applications principles, the in interested age school of primary children toTo get games use sector. games the in of employment awareness the raising and people of local skills the by developing talent for region’s need the To support The issues that face the games sector are complex and specific. The The specific. and complex are sector games the face that issues The 1 The cluster of games companies centred on Leamington Leamington on centred companies of games cluster The January 2016 January 28 online Accessed industry. games the (2014). Skills by needed 1/ Creative Skillset Creative Skillset

{PAGE 3} {PAGE {PAGE 3} {PAGE {PAGE 4} • • • • • • • • to: Ukie and Government national Engine, Midlands the Authority, Combined Midlands West the partners, authority local its with concert in work should LEP the that are recommendations Our of? consist model that does What support. focused locally to provide clusters games other in replicated be also can here proposed being model sector. The games the grow and support to strategy national wider a from benefit and into plugged be should activity local this activity, of the output the To maximise development. infrastructure and support innovation funding, of skills, areas the in businesses to games support specific sector to offer Leamington, in based resource, industry-led an to create Authority Combined Midlands West the and CWLEP with together come Ukie that We recommend sub-sectors. industries creative other from different structurally Whilst there are some similarities to the audio-visual industries, clusters. manufacturing digital leading UK’s the of one generalised growth of the creative industries in the region and celebrated as differentiated to be from need Spa widespread of Silicon and competitiveness and standing international the drive that factors the growth, and competitiveness regional for a driver as act and weight’ its to ‘punch ToSpa. cluster the allow of Silicon competitiveness and dynamism of the drivers the are innovation technological and quality culture, and history between interrelationship The place. market international afast-growing in cluster Leamington of the brand and profile the raise to opportunity further asignificant is This it. to monetise them help and platforms, those developing are which businesses the nurture and accelerate around them sector willof and the opportunities commercial the help eSports parts component the all in investment Encouraging industry. abillion-dollar be will of 51.7%. growth 2016, in year-on-year of $493m and revenues 2019, By eSports global estimated with business growth international an is eSports audiences, online and by TV live, watched gaming multi-player team-based competitive of Aform of. heard never have you sport spectator biggest the is eSports disadvantage to other UK regions and to international competitors competitors to international and regions UK to other disadvantage a –at particular in companies games –and &Warwickshire Coventry across businesses place that infrastructure communications digital the in shortcomings to address DCMS and providers service internet with Work investors inward and start-ups businesses, of existing needs diverse the meet to &Warwickshire Coventry across of workspace of arange supply to ensure Encourage information sharing between Councils, landlords and developers region the across innovation and R&D for climate looking forward and asupportive to build institutes research and Universities businesses, games between collaboration Encourage economy visitor the and investment inward education, to stimulus a offering innovation, UK edge of cutting of astory part as culture’ as ‘games Celebrate growth and IP new in investment to unlock co-investment ways to use Explore international best practice of evidence on building Universities, and colleges schools, in to skills approaches of industry-led arange through of talent supply the Underpin sectors industry priority other in growth to catalyse technologies enabling develops also that sector manufacturing digital adistinctive advantage; competitive of regional source as Spa of Silicon culture and heritage the Promote media and digital manufacturing cluster interactive of an development and support sector games specialist in Invest games are are games

companies across the UK. UK. the across companies media interactive and of games clusters of other competitiveness the to increase ablueprint as and sector; games thriving & Warwickshire’s of Coventry growth continuing the to drive twofold: is London outside support specialist for model this of proving importance The clusters. international other or London Games through whether elsewhere, developed practice and knowledge on build recommendations of the Many Midlands. West the across stretches that cluster manufacturing of adigital heart the at culture and innovation talent, of the abeacon as internationally projected to be games to allow places’ and sectors together bring to institutions right ‘the to create Strategy’ Industrial ‘Modern draft Government’s the within call the to enact opportunity agreat represents Spa’ ‘Silicon blueprint a as Leamington {PAGE 5} {PAGE {PAGEImage: 6} Excerpt from Backspace’s Timeline, 1980s Panel Backspace’s Timeline, from Excerpt Recommendations Bringing a competitive and international perspective South Innovation environment in Coventry & Warwickshire Warwickshire’s Midlands West the in industry games The USP Barriers 27 Market to Methodology trends 13 growth Introduction 17 Executive Foreword summary Contents 1 9 11 42 2

31 23 21 {PAGE 7} {PAGE {PAGEImage: 8} Radiant Worlds, maker of SkySaga wider economy. region’s the and sector games for advantages economic term long generate to potential future its to Spa’ frame of ‘Silicon heritage the projects and protects preserves, that plan action and astrategy for rational and analysis evidence, the out sets report This markets. international in competitors over its advantages clear demonstrates that asector in specialisation’ ‘smart alocal through growth economic regional of developing example outstanding an is It creativity. and quality on focus adistinctive through decades two than over more developed has cluster games Leamington The disciplines. creative and of technical arange in individuals of skilled apipeline provide of Warwick University the and University Coventry Both research. applied and development professional learning, in technologies of games application the in of excellence centre recognised internationally an is University, Coventry at Mathematics and Engineering of Computing, School of the out aspin Institute, Games Serious the Coventry, nearby In Ubisoft Leamington. addition, newest its and Hardlight Sega Exient, Games, Kwalee, Playground Worlds, Radiant Toys, Pixel Dream, ABottle, In Modern Fish Codemasters, include names Local of contractors. base awider supporting and 1,500 people some employing directly studios over 50 with Southam, and of Warwick towns the and Coventry in taking and Spa Leamington on cluster, centred games established an is Spa’ ‘Silicon region. the throughout opportunities and jobs productive skilled, highly –creating Spa Leamington around and in – notably Midlands West the in based are businesses 130 games Over UK’s of the best Spa’sSilicon heritage &Warwickshire. Coventry in sector videogames the for Growth’ for ‘Blueprint a out sets and plan that for base evidence of the part forms report This • • • • • areas: following the address will plan The Midlands. West the in industry games the grow and support will that plan strategic three-year anew to create together have come (CWLEP) Partnership Enterprise Local &Warwickshire Coventry and Ukie A blueprint for growth 1 Introduction

Export and investment support investment and Export Developing skills companies games amongst business generation, including the Schoolhouse Initiative Digital next the inspiring and skills improving pipeline, talent the Building support network and workspace Affordable cultural impact and economic its by celebrating industry games local the Promoting {PAGE 9} {PAGE {PAGE 10} geographies. wider these in policy innovation and science investment promotion, digital infrastructure, creative and digital industries and inward skills, education, for policies upon impacts growth for blueprint This level. Engine Midlands and (WMCA) Authority Combined Midlands aWest at skills and growth economic for benefits and spillovers has also activity manufacturing Stimulating growth in this knowledge-intensive and high value digital plans. sector audio-visual generic from differentiated to be need games for strategies successful level’, ‘micro the at persist that to growth barriers structural the to overcome sector the for order In companies. games of concerns specific the addressed have not strategies funding or support sector ‘umbrella’ to present Attempts approaches. down’ policy ‘top many permeates still it although faulty, is model business have acommon these that assumption The industries. creative or audio-visual of of agroup one as outside the from viewed is it when overlooked often too is games for environment business of the complexity the But acknowledged. often –is world the around exported games successful creating technology, leading with creativity of British best the blends that –one itself product of the nature hybrid The specific. and complex are sector games the face that issues The sub-sectors. audio-visual other even or industries, creative of the elements craft-based to the than manufacturing to advanced akin more is games distribute and to make used technology and tools the in innovations iterative drives process design and creative the way which in the content: creative and technology of digital ‘hybrid’ adistinctive is development Games Digital manufacturing • • • employment in the games sector. games the in employment and companies of number the of record a providing in statistics national of official shortcomings the highlights Nesta and by Ukie work previous then, Unsurprisingly, employment problematic. and of companies data census or of sample comparison and collection – makes delivered been has it once IP, of new rapidly production contracting for up gear businesses as rapidly grow can teams where and death, and birth of company rates high demonstrates that -one industry games of the nature project-based The • • • • • statistical record. the in gaps the to address to try sources, secondary and primary both using 2

geographies specific within media interactive and games in working of people populations and employment size, company on data of LinkedIn Analysis intervention. for case business a to develop data survey and research in-depth analysis, trends augment clusters international other from studies case here, industry; games the in changes of structural challenge the faces located, is it company, wherever videogames Every Europe. and America North in clusters games international successful into research secondary and interviews from up built studies Case UK the across and Midlands West the in Universities and LEPs authorities, local investors, businesses, games with interviews and groups Focus CWLEP and An online survey of games businesses, promoted through Ukie Ukie through promoted businesses, of games survey online An APS and BRES –primarily statistics national UK from Evidence sources international and UK both in review, taking Literature Midlands West the in sector games the in of companies databases Hub Growth &Warwickshire Coventry 2016 September from Map Games UK the in expressed that including Ukie’s owndata, Methodology 2 For this report, we used a mixture of methods, of methods, amixture we used report, this For

https://gamesmap.uk Map.UK Games 2/ Ukie Nesta and (2016).

{PAGE 11} {PAGE {PAGEImage: 12} Playground Games, makers of Forza makers Games, Playground independent games developers like those in Silicon Spa. Silicon in like those developers games independent to choices strategic and of challenges range awhole presents game a mobile developing in involved tools available readily and to entry barrier low unprecedently the versus games of console complexity and costs of spiralling polarisation The games. for platform popular most single the now and ago decade a barely market to the introduced smartphones, –including of devices a range across developers games for of revenue 1991, in exist source didn’t main the are that aconcept (F2P) games, to play’ ‘free within purchases in-app –and decade a twice roughly average on emerge gameplay for systems operating new wholly – platforms of console ‘generation’ eighth the on is later, industry the century ofa quarter A heavyweights’. office ‘box the undisputed were games console in up set 1991,was Leamington, around and in businesses games first of the one Codemasters, too. When evolving, constantly is games for model business The sales. overseas from generated is turnover 45% and games of UK exporters are companies 95% of games annum. per billion £2 –exceed apps and games mobile Theft Auto V (a 7th generation console game) was a combined £170m acombined was game) console V(a Auto 7th generation Theft Grand for budget marketing and development estimated –the audience a global to product the marketing on spent are more millions so fail, atitle of having risk the afford cannot publishers development, in much that invested Having millions. of multiples into run typically budgets and studios) games major the for titles console ‘Triple to flagship -A’ develop (the needed games be can 600 as large as Teams expensive. more becomes development their and complex creatively and technically more are that games in results This platform. latest of the capabilities new of the advantage take can that to consoles unique are that features including by experience game-playing of the bounds the to push need developers hardware), new in to invest ‘gamers’ existing to encourage (and audiences new To attract itself. console games of the purchase the is make will users most purchase single biggest the software: and hardware both sells that industry manufacturing adigital as of games nature ‘hybrid’ of the complexity the highlights and market, console of the economics the in lies to this answer The and hardwaresoftware development? of areas other many so in as costs, reduced with associated sector games the in progress technological why isn’t So to make. expensive more and complex, more have become platforms those for created games the have developed, consoles As marketing budgets and development Hollywood-level Hollywood-type sales call for 2016in $100 billion of nearly sales annual to reach entertainment of popular form other any than faster grown has but young, relatively still is industry games video The even.” break to publishers and developers game individual for difficult more been never has it surface the beneath -yet level macro the at well appears -all solidly growing still and been ever it’s than larger is today industry gaming the that is irony great “The 3

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- - {PAGE 13} {PAGE financially endowed publishers to gain share in the mobile market.” mobile the in share gain to publishers endowed financially and advancedchannels marketing make it campaigns impossible for nearly less- distribution better with coupled budgets production and development “Higher games: console in observed to that budgets) marketing bigger with bets those backing and development in investment (increasing Games, Supercell and King) are pursuing a similar ’consolidation’ strategy EA as (such space games mobile the in players big the risks, To those offset (10-15%), games of PC still even. break ever console and 27% and games PC for console 29% for –39%, versus revenues market of global share largest the constitute more quickly: played games on mobile tablets phones, now and handhelds growing and games, of console those than greater are games of mobile Sales platforms. FTP and PC console, both for to develop continue ones, larger the particularly indies, Some purchases. in-game from comes investment on return where F2P model, the on are lower. are of these Many to entry barriers and costs development PC, where and mobile for games develop to strategy: different a pursue Spa, Silicon in of those most including developers, independent Many The rise and risks of mobile games of pounds. millions of tens the into run can costs development that wonder, No then, experience. player enhanced an in technology the of power the reflect can that games produce to teams skilled more and larger ever requires systems operating of console complexity increased But sales. hardware the from benefitting aren’t you content, developing only are you If chain. value asingle in content and hardware combines that of aproduct modelling business and creative technical, the in sophistication increased for owndemands its brings also upgrade platform each But time. over profitable to be likely more are by DLC) and extended life’ (often ‘shelf have alonger again, much as to half up budgets marketing and -$80m $5m from ranging costs development despite games, Console increased. profitability of chances the and extended, be can IPs of individual lifetime the front, up expended be need risk, and cost, development of that all not that so model the change help will product, of a‘boxed’ part as game’, ‘in than rather upgrades and features to additional access to purchase gamers allows DLC) that or content, (downloadable model aService’ as of a‘Games development the and broadband faster technology, generation of 8th combination the that view industry an is There it reducing than rather risk the shifts generation 8th {PAGE 14} research Industry rewards. reduced in reflected also are risks and costs reduced But 7 suggests that only 15-20% of mobile games, and a smaller percentage percentage asmaller and 15-20% games, only that of mobile suggests 6 . 8

8/ 8/ Francisco, July 14 2016 Business Games. of San IDG Piece: Thought The 7/ 6/ IDG Consulting (2016). Consulting IDG IDG Consulting, ibid Consulting, IDG Newzoo, cit op models of digital and manufacturing ‘technology transfer’. ‘technology manufacturing and of digital models technological development; this is the opposite model to that in assumed most through pull can content creative games, in that highlights success Exient’s owngames. their distribute and to develop developers other for engine games amulti-platform as technology proprietary its out spinning in Exient developer Leamington-based of success the in exemplified is This ownright. their in products as commercially exploited be can and of games, chain supply manufacturing’ the of ‘digital part important an form They profitably. more and quickly more games to build companies games allow -GaaS) aService as Games as known (also engines games and (SaaS) aService as Software middleware, tools, Game Mindmaze. and Unity makers platform VR in investments significant See Exient case study, below. case Exient See 2016). ($150 by 2020, Digi-capital, 2016) billion Sachs hyperbolic to the Goldman by 2025, billion ($85 conservative the from range VR and AR in of growth Estimates overall. industry entertainment the into media of interactive proliferation the to drive models business new and will require the development partnerships interdisciplinary These of new skills companies. dance producers, theatre cinematographers, as such developers, games with contact into of talent range awider brings and opportunities market new creates both industries audio-visual the within content of AR/VR Development time. first the for product market mass aviable it making use, entertainment for hardware VR of consumer equation price/performance the in reached been has point atipping that seems it dawns, afew false After (VR). reality virtual and (AR) reality augmented for applications and of content development of the of much source the also is industry games sector. The games by the created were today market the on VR) PlayStation HTC Vive, Rift, (Oculus headsets VR main of the Most AR/VR four to one. four of by afactor developers application and of content those exceed by will 2020) (at $120m of technologies generation new this for shovels’ and ‘picks the build can who firms for Revenues industries. other within use for within platforms and tools AR/VR of creation the in is opportunity largest the that reflects analysis Industry shovels the building those are money most the making ones the rush, agold In 10 Last year saw a record $2.3 billion in investments in AR/VR, with with AR/VR, in investments in $2.3 billion arecord saw year Last

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- {PAGE 15} {PAGE {PAGE 16} publishers and for investment London to look firms based regionally while talent, effective cost for of London outside looking are investors inward and companies growing that fact the 2016 TechNation highlights &Warwickshire. Coventry in concentrated is of which most 25% than output, more of its and employment industry games UK the of one-fifth about representing clusters, largest of the one is Midlands West The manufacturing. resembles closely more it way which in – another London-centric been never has games sectors, industries creative other Unlike The games industry thrives across the UK by Brexit. posed investors their and developers games for opportunities and challenges of the some highlights (8.3) sector games aglobal to build intervention state of Malta’s determined study case Our Spa. like Silicon of clusters economies european-game-sector-is-best-in-the-world) highlights the added value to local (http://www.londonvp.com/news/20/10/2015value-creation-in- World the in Best is Sector Game European the In Creation Value report: Partners Venture London games in business Europe remains aplace to do good place. market international afast-growing in cluster Leamington the of brand and profile the raise to opportunity further asignificant is This it. to monetise them help and platforms, those developing are which businesses around them willthe opportunities commercial help the accelerate and nurture and sector eSports of the parts component the all in investment Encouraging initiatives.’ these of slipstream following are Many sponsors non-endemic traditionalaround sports. in the community viewer aging the for up make and millennials with away to engage as eSports traditional see companies media eSports: ‘Media embrace companies audiences. live importantly, as and, of players catchment huge potentially a with UK, of the middle the in sits region the and element; eSports a growing with enthusiasts games for events hosts already NEC the sport; of the basis the forms that of content kind the produce developers Spa Silicon UK: the in eSports of development the in start head apotential has Midlands West The audience. mass to anew eSports have opened ITV and by Sky 24 channel GINX.tv’s hour of launch the as such developments recent UK, the In fans. of eSports millions for platform media social and channel entertainment both as act www.twitch.tv) like Twitch (https:// platforms eSports Korea, South in pastime anational Already sports. ‘conventional’ in athlete asuccessful being with go that endorsements professional players have image the rights salaries, and deals commercial leading it; backing are brands media Leading industry. abillion-dollar be will of 51.7%. growth 2016, in year-on-year of $493m and revenues 2019, By eSports global estimated with business growth international an is eSports audiences, online and by TV live, watched gaming multi-player team-based competitive of of. Aform you’ve heard never sport spectator global biggest the is eSports culture as Games 12

report 2016 Global Market Games 12/ Newzoo Games (2106). Games Newzoo development team as soon as a publisher is secured. secured. is apublisher as soon as team development the to scale investment new in to get need you opportunity, growth that to capture then and markets. these of each in benefits and risks respective the to understand • • • • • • investment: sector tech and creative of both features worst of the some combines to games approach Investors’ that? for reasons the are what market, global mature is a games When govtech. and lifetech fintech, medtech, as such sectors newer with investment and attention for compete must now and financiers of mainstream attention the to attract struggled has asector as Games investment. way of the in barriers place which practice, and owncustom industry’s the in failings structural to address needs sector games video the for strategy Investment capital investment al and inefficient allocation workingof and irration to leads information Asymmetric profitable. most the still are titles, ‘Triple A’ blockbuster particularly games, However,entry. console to barrier lower a offer which games, to mobile drawn are developers small Many entry market barriers to Understanding issue.an also is companies growing for finance to mezzanine access and companies stage early for capital working Finding State. Washington in companies games growing for issue main a still is to finance access investment, tech for world the in regions successful most of the one being despite and market, US the in even this: reinforce below) 8.iii, (see Study Impact WIN the from Findings UK. to even the or to Leamington, unique not is IP games new in of investing costs to and barriers The Access to finance &Warwickshire. Coventry in industry games of the growth to barriers structural important of some existence to the point above trends The 4

Talent and skills. Talent skills. and opportunities. larger to address looking developers to independent abarrier presents away£150k –in that SEIS for Project development budgets overly by constrained funding thresholds – eg, relationships. to build London outside businesses for harder it makes investors of specialist community Small businesses. to scale management commercial experienced and investment of lack from suffer and connected not are of London outside clusters Games of investors. consortia together to put harder it makes – stage pre-development the at even of ideas to discussion any a precursor as of NDAs use -eg, IP to protect methods handed heavy on Dependence exit and to secure able to be want who investors deterring and liquidity limiting Project-based funding limits scope for development markets, of secondary professional investors. non-specialist and angel deters and funding of dent sources to retail access limits data, inadequate on based of risk, perception Exaggerated Barriers for Growth 13 Early-stage companies need to work with experienced investors investors experienced with to work need companies Early-stage - op cit op 13/ IDG Consulting, Consulting, IDG

{PAGE 17} {PAGE {PAGE 18} competitive. less region the across companies making levels, wage inflate can businesses, manufacturing digital and software-based all but companies, games for just not shortages, Skills challenge. amajor remains talent’ for ‘war the professionals, experienced of to apool access its is cluster Spa Silicon of the strengths of the one Although experience. five years’ and one between with artists and coders in shortages other with more; or of five years’ record track industry an with managers and artists programmers, for those towere fill roles hardest the that reported Employers intense. remains talent experienced of services the for Competition sufficient. not is necessary, whilst pipeline, graduate the on afocus that emphasised findings Our experience. 5years’ than more with people experience; 1-5 years’ with people entrants; new experience: of levels three at hiring of difficulty relative the about asked We also Design Production Affairs Public Development Business Sales, Marketing, PR Studio management disciplines: following the in staff to hire ability their about them asked which of employers asurvey out We carried Employer survey findings • • • of: terms in mostly concerns skills express Employers team. production the to form managers project and programmers developers, artists, identify up’ and ‘scale to quickly able to be need they games, larger particularly titles, new in investment secure companies When works. development games way which to in the relates that problem astructural is it term; long the over employees skilled of ‘pipeline’ the to fill need the about just isn’t This a region. to people skilled to attract likely more is pool talent existing of an presence the and locations; new considering when priorities their in high skills place typically investors inward own growth; their to further talent best the retain and develop to need companies Games industry. games UK of the to growth abarrier are skills, ready’ ‘work with graduates to find inability the and shortages, Skills Skills gaps and shortages retraining retraining them. Graduates are not ‘work ready’ and employers need to take time time to take need employers and ready’ ‘work not are Graduates Brexit). from threat one number the as perceived is nationals non-UK of (Departure incentives. better offer can which UK, the outside clusters to including staff– existing of losing Risk roles. management and creative in programming, key staff of experienced Shortages Quality assurance Quality andSocial community Audio Art Animation Coding Facilities Media Retail HR Legal Finance

most interaction was with universities.’ universities.’ with was interaction most although providers, education with activities outreach in engaged now they said communication andincreased collaboration. Encouragingly, 56% of employers through enabled years, recent in Education Higher and industries game UK the between relations to improved due possibly is change This subjects. technology to girls to attract more do should universities think still employers some although case, the been historically has than criticism less attract Universities to pursue. path career avalid represent or exist development game in careers that aware made nor subjects, technology in encouraged not are girls that worried employers many with criticism, for out singled consistently most is system school 'The schools: secondary and primary in message that communicating and women, for particularly industry, games the in acareer is there that message the improving also but skills, right the of developing one merely not is games for pipeline talent the strengthening around issue the that fact the highlights Academy Skills Gen Next by the report Arecent Africa. and America South Asia, in increases by population increasingly driven to be going is growth where markets, to global to appeal content new design to successfully to continue are they if audiences future and current their both to represent needs workforce Their gamers. of women number increasing an with old, and young races, of all people of up made is market whose companies to games critical increasingly is Diversity diversity and advice Careers Image from Sarah Emerald Group: Schoolhouse Digital 14 try-report try-report gramme-games-indus search-development-pro com/gender-balance-re nextgenskillsacademy. 2016.tember https://www. Report. London, 7Sep the Industryfor Games Development Programme der Balance Research & (2106).Academy Gen 14/ Next Gen SkillsNext - -

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- {PAGE 19} {PAGE {PAGE 20} manufacturing sectors. and digital critical its for security energy ways to of new ensure to think Midlands West the in developers and makers to policy achallenge presents This State. the in businesses ICT large many of so establishment the for drivers of the one as WIN, organisation, cluster by the cited is It needs. user demanding most the meet can that grid scalable astable, and kilowatt-hour) per 4.25¢ as low (as energy low-cost State Washington in businesses offers solar) and wind as such sources energy of alternative adoption early (and power hydro-electric sustainable clean, example: For power. cheap to plentiful access with competitors international to disadvantage acomparative at &Warwickshire Coventry in companies ICT) other (and games put UK the in costs Energy of energy. consumers big –are them and otherfarms, desktops digital manufacturing hardware to needed support render of servers, infrastructure the particularly, more –or companies Games costs Energy investment. inward new for case any to underpin and businesses existing safeguard and to sustain both made to be need chain, value games whole the to support required characteristics performance the with wireless) and line fixed (both infrastructure digital capacity high in Interventions of 10 less. or Mbps speeds broadband by average constrained are &Warwickshire Coventry in 50% of SMEs infrastructure. digital its in shortcomings serious some has area Midlands West infrastructure Digital market. global of the UK’s the share maximise to strategies develop and protection; data and IP on rules new with comply and shape to help expertise legal and regulatory and models, business to new respond threats; competitive identify overseas; outputs UK sell and promote networks; international to develop skills the with those for need to agrowing lead will This of games. key success to are the that markets global of integrated nature focused export and international to the athreat pose trade to free threats and Brexit uncertainty Political supply chain of smaller developers willing to do ‘work for hire’ on other companies’ companies’ other on hire’ for ‘work to do willing developers of smaller chain supply a with ownteams their augment regularly Companies to programming. animation, to direction, art from of skills arange includes pool talent The time. one any at development, of games cycles on depending 1,000 people, and 500 of between professionals games freelance of skilled pool additional an upon draw can area the cluster, the in idea that the businesses supports South games Warwickshire across of contractors use high consistently reports survey, which online Our businesses. of games survey online an and LinkedIn; on accounts company and of personal by CWLEP; analysis held of companies adatabase sources: data other some we used of employment, estimate accurate amore at To to arrive try sector. the for UK average the than larger firms 2010 those since that and formed were CWLEP in companies games of active half than more that evidence our of 214% reflects This –increases 66% respectively. and Midlands West the in and 700 2010in CWLEP since 200 from have increased figures those that notable is it trends, of growth indicator an As jobs. of actual underestimate aserious be 1,100 2015 in and CWLEP in region to employees of 700 Midlands West the in record ‘official’ the expect we would so companies; 60% of games around only capture statistics official that fact the reflects map games UK Ukie/Nesta The Midlands. West the across 3,500 CWLEP, of 3,000- in region the in companies and 50+ in employees time full 2,500 and 2,000 between are there time one any at that We estimate Employment • • • • • • baseline Sector West Midlands West 5

IP in content and games technology. games and content in IP original success to create teams new to build pool talent local of the capacity and ability the in confidence industry continuing indicate cluster, and the for of success measures are M&A and FDI Both teams. development successful and IP acquiring by growing firms larger and investors with acquisitions, and mergers of other examples are -there Games of Freestyle by Ubisoft acquisition the –notably successes investment inward to recent addition In Games. Blitz and Codemasters as such firms to larger years more 20 or back lineage industry games their trace can founders Many 2010.since 2012, since two-thirds and established have been cluster the in businesses –50% of active high is Spa Silicon in formation of company rate The company. large asingle on dependent those or clusters, established well- less affect can that business of ahit-based troughs’ and ‘peaks the out smoothing time, any at game up’ anew for ‘gearing be will companies of those more or one that likelihood high avery is there sub-region: the in professionals forof the underpins companies games employment larger opportunity spread This Worlds. Radiant and Games Playground Games), Freestyle (previously Leamington Ubisoft Exient, Codemasters, cluster: the ‘anchor’ that employees) 500 and 50 (between companies sized of medium acore is There £5m. than over more turning minority asignificant with 20%+ at annum) growing per and of trading, 3years within £1m turnover (hitting high-growth are Leamington in of companies proportion high a that confirm cluster the in of companies survey online to our Responses area. WMCA of the remainder the in 80 afurther and Coventry) in one-third and Leamington, around and in are two-thirds (of which &Warwickshire Coventry in companies games active 50 than more are There The Games industry in the the in industry Games The

{PAGE 21} {PAGE employment and 25% of GVA directly generated by the UK games sector. games UK by the 25% and generated of GVAemployment directly of one-fifth about represents & Warwickshire Coventry that suggests This • • • follows: as is sector games the for of output estimate our So professionals. software and games for statistics national on -based annum per -£45k GVA capita of average view per conservative amore have taken so region, of the parts other in companies games for evidence detailed We have such don’t • {PAGE 22} • • industries. audio-visual and creative of the sectors other than manufacturing of advanced to that closer is games in Productivity Economic impact region. the of productivity and employment on technologies manufacturing digital related and AR/VR of games, impact discrete of the consideration the into factored be should Rover, Land Jaguar for design engine new on to work parks ‘4D theme for rides’ of development from ranging aportfolio has and over 130 people employs which Holovis, specialist AR/VR Lutterworth-based and like Rare companies Engine, Midlands of the area wider the across cluster. to Looking the extension another as seen be can M42 Leicestershire in over the just employees) 200 some with studio Xbox (a Microsoft of Rare presence the Midlands, West the in not Although 500-800. lower, are around businesses these for of employment estimates our Therefore, productive. less and smaller average on are aresult as cluster, and Spa Silicon the of effects agglomeration the from benefit directly not do They ‘micro-enterprises. typical more mostly are Midlands West the in companies games 80 remaining The cluster. the for advantage competitive of source and resource asignificant represents sector, but the for statistics official in captured be not will workforce mobile and of interdisciplinary kind This basis. hire’ for ‘work on a services offered they that said surveyed IPs; 60% of companies Total £224m. WMCA: in GVA games for £36m. Midlands: of West remainder the in GVA employees of 800 £188 million. cluster: Spa’ ‘Silicon the in freelancers skilled and GVA employees of 2,500 estimate. aconservative is employee per £75,000 –we think still productivity higher has Coventry and Spa ‘core’ of Leamington inner the that suggests turnover, company of actual records account into takes which research, Our Ukie data Ukie 2010). since of £3,000 over £12,200of just increase (an in 2015 capita GVA average per gives industries, creative of definition DCMS the on based &Warwickshire, Coventry for data APS and of BRES Analysis 15 suggests that average GVA per UK games worker is £68,000. £68,000. is worker GVA games UK average that per suggests 16

Sectors. London. Programming Animation TV, Video Game, and the UK’s Film, High-End of Contribution nomic Nordicity (2015). Eco 16/ 15/ Ukie Nesta, and ibid Olsberg SPI with - • • • • • sector: to the approaches of complementary amix take region the in FE institutions and HE that helpful is it –so of graduation months six within games in work obtaining 12% few as as of graduates report studies some industry, the in employment of levels high show institutions local –although need employers’ and courses games computer of content the between ‘fit’ the on evidence mixed is There Midlands. 2014. in UK the in the West are offer on 18% throughout of courses courses game video masters-level 40 and 215 provide undergraduate colleges and universities 60 industry. games of the supporter astrong is education higher UK economy. UK 37% and wider of the workforce Media Creative to 57% wider of the compared degree 63% a having with qualified, highly is workforce games computer The talent Role of Universities in supply of graduate universities. and industry games the between engagement increase tonumerous funding opportunities bring the agenda to ‘fused’ the region and are there alone, developments AR/VR Within markets. new into and level, next to the technologies games and games to take opportunities on to capitalise position agreat in stand now academia and Industry (DMLL). Lab Learning Media Disruptive the and project IDM the Lab, Digital Warwick’s SGI, include Examples years. ten past over the support R&D for sector the prioritised has region The Research and innovation Warwickshire & Coventry 6

students and employers. and students amongst reputation best have the industry with engagement meaningful had have BCU, that including institutions, those that fact the reflects It programme. development X48 game Microsoft’s with nationally as well as projects, on Sony with working been by up BCU, has set Camp, Gamer the Birmingham, In VR. and programming design, art, games animation, including subjects in accredited, Skillset Creative of them many courses, time part and time full dedicated of number greater much a runs University Staffordshire afield, Further campus. Hinckley its at Design Screen and Animation Games in HND an runs College Leicestershire South and Warwickshire North and Leamington in Art Games in Degree Foundation two-year a offers College Warwickshire resource. avalued as industry within recognised is it and courses physics and maths of its graduates themselves are employers Spa Silicon Several institute. research and department mathematics ranking world a has it but curriculum; games tailored a offer doesn’t of Warwick University ayear. graduates to 30 up producing Mathematics and Electronics optional year’s with placement an employer) within its School of Computing, an includes (which Technology Games in aBSc and Design and of Art School the from Art Games in BA a courses: two focused offers University Coventry Innovation in environment 17

17/ 17/

Creative Skillset {PAGE 23} {PAGE {PAGE 24} object. metal asingle to cast having without products new whole and features safety technologies, control new trains, power new test and to develop them allow which applications in VR, and of AR use extensive –make JLR as such players major –including companies manufacturing advanced Midlands’ West of the Many sectors. industry other in ground gaining also is manufacturing and testing prototyping, in technologies of AR/VR benefits and applications safety and training education, of the Understanding AR/VR in Opportunities Leamington. in cluster technology-driven games and content to the a complement acts –which businesses games ownserious their to create heritage by this inspired to be continue graduates company. Coventry software training and educational commercial successful a as out spun was and manufacturing advanced as such sectors in production of transformation managing and staff training for technologies new for market the develop helped has which Institute, Games Serious of the form the in on to capitalise quick was University Coventry that games serious in opportunity an out by carried Research Advantage West Midlands in the last decade highlighted games Serious • • • develop approaches industry-led to skills: to well-placed is region the Skillset, Creative and Ukie with Working required. tools to thewith rapidly changing industry understand development environment and engagement to improve need all others and institutions these that understanding common a promote to potential offers institution Midlands West combined ‘virtual’ in a Universities and Wolverhampton Staffordshire Coventry, to link proposal The environment. political and economic overall to the and products specific in to changes respond may consumers and markets how to anticipate expertise require increasingly Firms technologies. new adapt and exploit to best ways to identify strategically think can who those seek also will They technology. to respond and to adapt able best are who workers those value will Employers and community management. engagement of customer areas in skills other and creativity expertise, of technical a‘fusion’ seek increasingly industry games the in employers that mean pressures competitive greater and expectations client higher change, technological Rapid Supporting the development of ‘fused’ skills region. the outside from talent experienced and emerging for To amagnet as act Engine. Midlands wider of the needs pipeline talent future the underpin will skills games-related for support focused increasing to grow; going only is technology in skills transferable these ICT. for and need The creativity design, technology, development, of software opportunities of career range and applications principles, the in interested age school of primary children toTo get games use sector. games the in of employment awareness the raising and people of local skills the by developing talent for region’s need the To support identifying investors with relevant sector. relevant with investors identifying and developments; gen’ of ‘next scanning horizon requirements; industry defining signposting; and coordination in role acentral playing Ukie with region, the across environments of innovation network of adispersed disposal the at institutions of their assets knowledge and physical the to put undertook partners The • • • including: system, innovation of aregional elements other to some add to agencies sector public and investors industry, with work would ‘sandpit’ The • • • jointly address: to capacity offer would base knowledge the and of businesses combination the return, In audience. global to a offer can region the in Universities the what project to region the in industry games of the reputation the use would initiative The locations.’ physical multiple but point entry ‘single with development product new and innovation’ ‘open for platform -ashared ‘sandpit’ games regional a to create aproposal outlined partners The region’s universities. of the potential and capacity R&D the access better companies games to help collaboration region-wide for opportunities the 2016 October in highlighted Hub Growth &Warwickshire Coventry and Council District Warwick Council, City Coventry Council, County Warwickshire of Warwick, University with held group A focus mega-markets unlock to Wider collaboration and knowledge exchange the resulting applications and technologies. and applications resulting the of licensing and services from earnings export of increasing and Midlands, West the for specialism aregional as manufacturing of digital breadth the identifying closely more of benefit combined the has This industries. value-added high other in application wider its in also but sectors, entertainment other in only not VR of AR/ exploitation the for models business and technologies skills, the both develop help will This ABottle. In Fish company technology games Leamington with collaboration House’s VR Motion company dance and Ariel) as avatar an featured (which Tempest Stratford-upon-Avon at of The production RSC’s recent the in observed those as of VR applications of interdisciplinary kinds the upon to build looking is University Coventry at Performance and of Media School The general investors. Co-investment funds to provide opportunities for sector specialist and and specialist sector for opportunities to provide funds Co-investment commercialisation. and growth for Funding funding. to prototype approach A structured space. technologies’ emerging and ‘enabling the in Technologies models. SaaS wider within delivery online for developed technologies AR/VR and games of elements refining of services, Stacks more. or of 25 million population a with conurbations and –megacities of ‘megamarkets’ world A future

{PAGE 25} {PAGE {PAGEImage: 26} Coventry Digital Laboratory technologies into other markets and industry sectors. industry and markets other into technologies of games reach the extending up, and to scale up start from development IP, new developing accelerated talent, retaining and attracting in ‘ecosystem’ Spa Silicon of the importance the demonstrates of which each typologies, business different four represent firms games of Leamington studies case These studies case Leamington 2021. in status of Culture City UK for abid through including offer, cultural its promoting and growing actively is Coventry environment. built and natural attractive the complement schools good and links transport diverse towns), market surrounding and Warwick Leamington, in options upscale more to families young and graduates recent for accommodation affordable relatively (from options housing of range life: of a quality attractive an offers Warwickshire cluster,South creative urban ‘typical’ of a typology the reflect doesn’t it Although • • • • significant: is cluster of the diversity and reputation international history, The investors. and employees companies, to games attractive it make that of factors acombination has Warwickshire South 7

members of the cluster. of the members experienced more from support and mentoring access can companies Newer product. anew in investment secure they once sub-contracting and workers freelance of employment, mixture a through teams development build quickly can they that knowledge the in secure IPs, new of development in invest to afford can they that means cluster the within of skills arange access can they developers: by larger enjoyed typically benefits of strategic kind the access cluster the in companies Smaller development. games new for locations evaluating when advantage asignificant is games, successful of globally publication and development the of leading experience with executives mid-level and senior including of disciplines, arange across labour of skilled to apool access investors, inward and employers larger For company. of asingle fate to the tied not -are freelancer a or employee an as –whether prospects career individual labour, and skilled for demand always is there that means cluster. This the across development in IPs new always are there that means companies smaller and of large mix The South Warwickshire’s USP South

{PAGE 27} {PAGE CASE STUDY 2 {PAGE 28} CASE STUDY 1 this boosted Playground Games to revenues of over £10m 2016. in to revenues Games Playground boosted this Triple other Atitles, on work of contract stream asteady with Combined awards. industry 80 than more earned has which franchise, Horizon Forza acclaimed critically the series, game console new amajor in investment secure it allowed team management of its contacts and experience The people. 300 than of more studio to a swelled quickly that team development a100+ person to assemble region surrounding the and Leamington in available skills and experience and games of racing heritage strong the upon built It players. games console of audience global a for titles genre-defining to create vision the with industry, UK the from developers talented and experienced most of the some together brought 2010, in Games Playground Established growth’. cyclical of ‘counter kind this demonstrates Games Playground Leamington, In to entry. barriers high present that markets in even platforms, or genres different for trends revenue overall as well as cycle development hardware the IPfor over profitability of levels different the recognise to investor experienced an need you that case the sometimes is It game development console =profitable up +scale experience Games: Playground Pixel Toys Pixel – building on the heritage and talent base talent and heritage the on –building

CASE STUDY 4 CASE STUDY 3

performance and VR. VR. and performance live mixing experiences interactive new to create House Motion company dance local with working content, of entertainment forms other into out to branch VR in expertise its used has ABottle In Fish recently, More Play. Google and Store App the on application children’s atop-ranked Machines, Monster The and Blaze developed it which for Nickelodeon, and Brothers Disney, Warner include clients Its entertainment. interactive children’s in specialist aleading as it business, has developed a globalPrimarily reputation a service-based Day. First The Casualty: drama, a prime-time of episode interactive BBC’s the first includes that record track ten-year a with agencies, interactive UK’s of the leading one is ABottle In Fish creative supply chain and digital wider the in technology games –applying aBottle in Fish

distribute their owngames. their distribute and to develop companies other for engine games multi-platform aproprietary as out spun successfully then was -which engine games XGS -its house’ ‘in techniques and of tools aset developed Exient UK. the in developer mobile growing fastest- the becoming Birds, Rovio’s Angry including history, recent in games mobile successful most of the some on worked It games. mobile to titles debut console IP, big from companies’ to other ranging provider aservice as quality graphical and gameplay in excellence its applying games, video of popular ‘re-imagineering’ the in specialised has Exient excellence. technical of its advantage to take model business its evolved has that of acompany example agood is Exient developer Leamington-based tools and technology to development content –from Exient {PAGE 29} {PAGE {PAGE 30} There needs to be a focus on the competitive and international position of the of the position international and competitive the on afocus to be needs There 8 and international perspective international and and analysis. and continues to grow it. to grow continues that pool talent of the depth the nor position world-leading its recognise don’t investors that &Warwickshire, of Coventry case the in outset; the from cluster Setting that international context means that mapping at a local level to level alocal at mapping that means context international that Setting understand the existing capacity, potential and any critical gaps needs to needs gaps critical any and potential capacity, existing the understand be accompanied from the start by a programme of international research research of international by aprogramme start the from accompanied be

Bringing a competitive competitive a Bringing

{PAGE 31} {PAGE structured supply side intervention i. product inthe historyofFinland. Xbox Onedebutgamenext Aprilwhichistobethemostexpensiveentertainment required forPCandconsoles. Forexample,RemedyEntertainmentlaunchesits panies confidencetoembrace thehigherlevelofriskandupfront ininvestment Most Finnishgamecompanies focusonmobile,butTekes supportgivescom- segments market profitable more into Diversification nies likeEA,UbisoftandUnityinFinland. Tekes’ Skeneprogramme hashelpedsecure investmentofglobalgame compa- A magnet for foreign investment direct move away,” saysSkeneprogramme managerKariKorhonenfrom Tekes. “We expectFinlandtogethi-techjobsandknow-howthatisdifficultcopy sector knowledge as a games of Differentiation investments. project costsincompanieswhosepromise isvalidated byotherprivatesector Tekes isaco-investmentfund:itfundsonlymatchedshare ofdevelopment Public investment is de-risked by private sector leadership proach p a tax payers.Tax incomealready totalshundreds ofmillionseuros. h s i Every euro Tekesn hasputintogamecompaniesyielded€6to€24Finnish n Fi e h t f Return on publico investment s t fi e n e B game. wellness worklife and games based episode concept, combination comic-game games, watch of smart development also funded has Skene platforms. distribution innovative and tools development engine, of game e.g. development have covered networking and investorsBesides pitching in funded projects Skene sessions, investor. to an company potential of avery asign Tekes is funding alone. investments 70 over MEUR private in have raised companies game Finnish "In 2012–2015 Skene. time in Skene's operating projects under development their 28 MEUR into have invested themselves companies and 30 MEUR with companies game Finnish funded has Skene networking. and development business of game funding been has programme of the goal The Refueled. –Games Skene industry, game Finnish to the solely dedicated 2012In aprogramme Tekes launched appr. million. with €70 companies over 100 game Tekes 10 funded last years has the During industry. game for funder public important Tekes most Finland's is 2013. in turnover industry IT whole of Finland's 10 percent formed turnover its as Finland in business aremarkable is industry Game barrier. billion €2 the to break about is turnover the and persons 2.500 over €1.8 2014. in employ billion Today companies game 260 to 2004 in million €40 from grown has industry game Finnish of the turnover The target. investment lucrative increasingly an and industry games Finnish significant internationally an build have helped networks Tekes and and funding investments private talent, Best {PAGE 32} PERSPECTIVE INTERNATIONAL AND COMPETITIVE Finland Finland COMPETITIVE AND INTERNATIONAL PERSPECTIVE INTERNATIONAL AND COMPETITIVE interactive media and ICT sectors supply chains and talent retention across strengthening coordination, led Industry ii. • • Talent • • • • #Trends • • Wider economic impacts • • • • • The cluster years. ten last over the region the in jobs over 2,500 create helped has that organisation support industry-led an (WIN), Network Interactive Washington by the boosted been has sector of this growth The world. the in clusters media digital successful most the of one has Northwest Pacific US The

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industry overall. industry entertainment the into (IM) media of interactive proliferation the and AR/VR into diversification to support skills for demand the to support talent IT for market regional larger the with competition in also is However, sector IM the innovation. and growth strengthening Amazon, and Microsoft as such corporates of major presence by the attracted part in industry, region’s ICT the throughout of talent backbone by astrong supported is cluster media State’s interactive Washington strategies. in diversification increased seeing now is market this aresult, acompany. As grow and to sustain which on model business adifficult present market, game overall of the segment growing a (F2P), whilst games to play free that recognition increasing an is There dollars. investment to attract continue will it that predict experts and successes fundraising and capital venture increased seen has subsector AR/VR This more. and actors cinematographers, as cluster, such the into of talent range awider in bringing is content of AR/VR development The industry. the within trends biggest of the one as (VR) reality virtual and (AR) reality augmented in growth Rapid $7.6 and taxes. state payroll in billion the throughout revenue in $28 billion almost generates cluster the Overall, impacts. induced and indirect direct, through jobs 94,200 of a total supports cluster The significant. are Washington’s economy throughout cluster of the impacts economic total The annum. $109,000 per almost at occupations related media- interactive in wages of average terms in US the in third ranks Seattle 107,000 with occupations, employees. related media- interactive within employment in cities US among fourth ranks Seattle of $21.4 revenues billion. boasted cluster 2015,In media Washington’s interactive cluster. the in working freelancers 2,400 further a with firms, mid-size to small at and firms multi-purpose large at both media, interactive in employees 20,800 Estimated Valve. and Bungie, Amazon, Microsoft, as such businesses global to field, reality augmented and virtual burgeoning the in working companies 40 than more from ranging 423 companies, {PAGE 33} {PAGE related queries and business support needs. support business and queries related investment- all with to deal of contact point specialist asingle, around coordinated and streamlined is industry region’s games of the marketing that to ensure and firms finance specialist to attract asset an as sector games the to promote region wider the and CWLEP for scope still is there over taxation, powers devolving of way short some fall will Engine Midlands the for settlement the Although advice. specialist and investment both to access have continuing businesses that ensuring is –Malta platform investment its EU for the in base apost-Brexit of developing intention express (PANL), the with Ltd Management Asset Portcullis Malta-based the acquired recently Capital Ariadne VC firm London-based –renowned partners investment major attracting In mobile. on games to VR titles, AAA large from everything producing companies games over 35 boasts now of Coventry population and size the A country Report. Competitiveness 41st ranks Global has the -it in of 148 countries enterprise for reputation global Malta’s to enhance designed have above been outlined incentives and policies The competitors. on edge an obtaining niches new to explore operators existing permitting while projects new to conceptualise start-ups new for opportunities varied into translating are industry, the for initiatives government’s the and industry of the growth The market. games of the dimension the to address apt ajurisdiction as itself presents Malta Benefitsof approach Malta’s there. operations up set or business their to relocate seeking companies attracting hub, games sought-after a becoming fast is Malta that mean location, strategic its and measures, These • • • • by: island the on industry games the of potential growth exponential the about bring to efforts for agency lead the is Enterprise Malta growth. their to support funds investment and technology companies, including companies games and the specialist digital growth high of attracting respect in policy aggressive an pursuing is Malta Building the right environment for games iii. {PAGE 34} PERSPECTIVE INTERNATIONAL AND COMPETITIVE EU.the in rate tax 5% effective as low to as lowest -the tax effective the reduces which 6/7ths), (generally charged tax Malta of the refund to a entitled are shareholders the of dividends, 35%, adistribution upon at stands rate tax corporate the While profits. of company taxation double economic the eliminates which system tax imputation afull operates Malta a 15%tax. rate flat enjoy office eligible an in working individuals whereby incentive, creativity and innovation in employment qualifying the as such policies, fiscal Favourable relocation. or up start to facilitate to €200,000 up of grant cash development business as a such incentives, direct Offering solutions. hybrid or straight-forward through traders of other those from services and goods the distinguish or creations artistic their protect may companies Malta’s games markets; international and European the in property of intellectual protection to access gives that EU jurisdiction awell-regulated as status its Leveraging

Malta COMPETITIVE AND INTERNATIONAL PERSPECTIVE INTERNATIONAL AND COMPETITIVE perspective competitive and international • • • • including: pressures, competitive those address to looking firms to open responses strategic of appropriate number alimited only are there option, an not is cost on competing If perspective. international an from development games for location alow-cost represent ever will it that prospect immediate no is there London, than option cost alower represent may &Warwickshire Coventry ocean’. –a‘red Although competitive extremely is market games global The respect? this in us tell studies case international the do thrive? What and survive can medium-sized, to the micro the from companies, of arange which in conditions the create help Spa Silicon for astrategy can How iv.

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{PAGE 35} {PAGE • • • sector: the for development skills in intervention asignificant includes studied clusters international four of the Each talent. management and technical creative, to combine need the highlight They sectors. industry and markets other into technologies of games reach the extending up, and scale to successfully companies for conditions the providing start-ups, IP, growth new high out developing spinning talent, retaining and attracting in ‘ecosystem’ Spa Silicon of the importance the demonstrate companies games of Leamington-based studies case four The critical. is cluster the in diversity and experience retaining Spa, Silicon For development. to skills approach astrategic demonstrate all clusters international Successful v. {PAGE 36} PERSPECTIVE INTERNATIONAL AND COMPETITIVE Harnessing Talent Harnessing international campuses that offers: that campuses international and start-ups. and the toprogramme development support of prototypes, games products interdisciplinary an as Sciences of Applied 2012in University the at

University) and MCAST and University) (a private Martin’s St University) (a public of Malta University the Malta, In by Valve to market. it to take hired were and project class their as Portal game the built class graduating first The graduate. they before many industry, the in work get graduates of the 90% over that boasts It industry. games emerging the in working in interested students for university aprivate as by up Nintendo set was DigiPen _ _ Supercell developer games mobile Finnish in stake billion TenCent’s $8.6 example, –for investment inward for opportunities new to to respond capacity way develops this in pool talent the Growing and opportunities. jobs of new creation the through area the in rates unemployment the decrease to effort in Microsoft, and like Nokia companies from of talents recycling the supports also LAB Game Oulu field, building game the for required skills of specialised development the in to assisting addition In technologies. and content games new to develop up’ quickly to ‘scale companies _ _ for the sector. the for apprenticeships specialist and courses short degrees, part-time and full- Institute of Technology byDigiPen is offered training specialist West, North Pacific the In Lab Game Oulu learning. pupil-centred and creativity on focus its for world the across admired is system education Finnish The _ _ _ _ Two-week exploratory workshops and online courses for middle- middle- for courses online and workshops Two-week exploratory degrees. undergraduate and Graduate Continuing education programs for industry professionals. industry for programs education Continuing Comprehensive high-school programs. students. school high and

21 (a college of further education) all offer a mix of mix a offer all education) of further (a college 20 , a specialist private sector provider with several several with provider sector private , aspecialist

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mt/ 21/ edu/about/ 20/ cell-1466493612 of-clans-maker-super agrees-to-acquire-clash- com/articles/tencent- 19/ lugamelab.net/ 18/ http://www.wsj. https://www.digipen. http://www.ou http://www.mcast.edu. - - COMPETITIVE AND INTERNATIONAL PERSPECTIVE INTERNATIONAL AND COMPETITIVE sector support through scale up to global commercialisation. to global up scale through prototyping from gears the through move quickly companies helps that support business and financial to specialist access provide and requirements, specialist those to reflect needs games for support Business domains. these all across quickly up scale to capacity the with firms individual provides offer can a cluster that support and technology to talent, of access kind the proven, is opportunity market or investment once games, for marketplace global of the nature competitive ‘IP’. anew hyper- the Given developing in involved capabilities marketing and technical creative, of the complexity the appreciate who investors with to work able to be need companies games commercially, and creatively To succeed • • • • &Warwickshire: Coventry in companies by games expressed to those priorities similar very identified State in Washington firms media of interactive WIN’s survey sectors. audio-visual of other that from distinct model abusiness has Games a sector proposition Articulating vii. investment. for adriver is talent of experienced to apool access others, and Sega Ubisoft, as such by companies Leamington in decisions investment recent from know as we And, there. out jobs other are there that confidence employer, but first the just not – opportunities of range a offer that clusters near themselves to locate drawn to be likely more are experience and skills relevant with People investment. commercial new over in times many repaid is that retention talent and development professional continuing attraction, of talent circle virtuous a creates and aregion in capacity builds skills in investment how demonstrate Finland, in Lab Games Oulu of that and example, Digipen The office. Ubisoft new of a by opening created demand of the because but Agency) Development Media government’s MDA (Singaporean from of support because only not Singapore in campus anew in developed Nintendo, from investment initial an through West North Pacific the in established DigiPen, base. talent diverse and astrong with regions to first drawn are investors inward and clusters; existing are there where place to take likely most is development skills in Investment talent. follows Money vi.

Attraction and retention of talent Favourable fiscalpolicy environment regulatory Benign cluster Media Interactive connected A highly Access to capital Avoiding pitfalls in public public in pitfalls Avoiding

{PAGE 37} {PAGE Coventry & Warwickshire (and for the wider WMCA and Midlands regions): Midlands and WMCA wider the for (and &Warwickshire Coventry for replicated be might howthis shows below figure The media. interactive for chain supply the across partnership astrategic created has particular, in WIN, intelligence. and of data sources other use of the corroborate us helps and statistics official UK in games for evidence quantitative of available lack to the balance auseful provides This it. within investment and interventions prioritise and sector of the scale the measure they how on perspectives new introduced has clusters established other with Dialogue definition cluster and chain Supply • • by: effect that replicate help could Engine CWLEP, Midlands the and WMCA messages. marketing regional strengthens and sectors, adjacent in AR/VR) (eg, technologies of new adoption on effect amultiplier sector, has the across failures information overcome helps This trends. market and technologies new to evaluate require experience industry and skills the having without winners’ ‘pick agencies: inpitfall the publicly tendency support funded for public to bodies to try major one against guards businesses, of ICT=-based arange across opportunities of view angle’ ‘wide its combined structure, membership WIN’s sector private ‘core’ businesses. just not media, to interactive chain supply wider the includes membership its that is success lobbying and of WIN’s commercial Part Clustering and ‘smart specialisation’ agencies. public with collaboration in make can expertise specialist sector and local that contribution the demonstrates cluster IM the growing in success WIN’s rapidly. to advance continues technology as industry of the needs the with up to keep policymakers for challenging is it that acknowledged survey WIN The Providing expertise and industry a sector-based approach to achieve. wants business end-user the what of terms in objectives corporate expresses marketing its and funding; and support business both of in terms progression of ‘escalator’ clear a offer programmes its products; of set defined aclearly presents customers; as businesses addresses It businesses. to offer of the presentation and approach structured its in model a agency,provides funding Tekesinnovation (www.tekes.fi),Finnish the view of point user’s the from proposition service the Defining • • precedence: to take need that considerations two are sector, there and place to both appropriate institutions for support expressing is Government and needs their meets that offer specific sector a define to need the identified have themselves businesses the where &Warwickshire, of Coventry context the In {PAGE 38} PERSPECTIVE INTERNATIONAL AND COMPETITIVE investment marketing and business priorities support accordingly inward tailoring -and ‘ecosystem’ business shared of their advantages technological and market the on drawing all region, the across places different in ICT and media interactive of sub-sectors different in firms class world -truly specialisation’ ‘smart of promoting importance the Understanding level aregional at sector ICT wider the and media interactive games, of interrelation of the account take that policies education and skills Framing competitiveness regional and local address that drivers distinctive to identify approach sector-based industry-led, an as proposals Articulating view of point user the from proposition service the Defining COMPETITIVE AND INTERNATIONAL PERSPECTIVE INTERNATIONAL AND COMPETITIVE product they are developing. are they product the on revenues earn they before taxes paying up end not do they that up to scale attempting are that SMEs critical is It value. cash their as important as is taxation, through of benefits recoupment of any timing and of incentives, duration the So, approach] Canada’s with contrast and benefits health and tax WIN about point the {reinstate projects. of finished release and commercialisation successful the for time allow also should property intellectual new in investment promotes that environment An time. over profitable become will that of aproduct release the and development and research both in invest to developers support that policies fiscal and regulatory need SMEs policy regulatory and fiscal supportive and Balanced region. the across outputs indirect and £1.5 direct in as much billion as creating be may media interactive and digital that suggests basis same the on –which £786m are region Midlands West the for industries for software estimates GVA of 100%. as much by Official as – perhaps output underestimating significantly are statistics official the that clear is it so figures, total GVA for digital (software) industries (software) GVAtotal digital for of only figures APS and BRES on based estimate to the compares & Warwickshire, £150m Coventry in ofis which Midlands, West the in sector £186m games the for of output of total estimate of GVA. Our terms in context into this put also We can strategy. industrial of awider context in media interactive and of games impacts wider the to set model a useful provides also It chain. supply or market, potential of their part as sectors adjacent in businesses have ‘seen’ not will companies –some self-awareness promotes also context sector wider of the representation avisual with companies Providing level. engine Midlands and national at technology’ enabling’ and ‘emerging an as of digital prioritisation strategic the with well sits cluster of the view wider This for Creative Industries Image: Digital tech and cluster Coventry for model &Warwickshire 23 . The games sector would be included in both of those of those both in included be would sector games . 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{PAGE 39} {PAGE • • • theyincluded because for highlight international opportunities cooperation: also are cluster. They Leamington by the adopted be could that approaches and strengths different demonstrate Malta and US Finland, from examples study case The for cooperation international Opportunities to markets. access to safeguard and talent to international access to retain strategies develop to potential the to understand need them support that agencies and companies to evolve –games policy government for wait simply cannot sector UK The one. this as such sectors export-led in acute particularly are services and goods UK on barriers non-tariff and of tariff imposition potential the about Concerns US. the in voices protectionist and by Brexit exacerbated are uncertainties and UK, the in pertains factors of those neither –but planning term long for allows that environment external the in by stability enhanced is policy Consistent political andStable policy environment {PAGE 40} PERSPECTIVE INTERNATIONAL AND COMPETITIVE island a unique place for games companies. companies. games for place aunique island investment and continuing to opportunities access European markets making the new brings –this connections trading and historical strong basis the on businesses UK with cooperation for potential also is there –but post-Brexit EU base an for looking parties from investment inward to attract threatens Malta’s strategy other retail brands major Bungie), developers (Microsoft, and publishers (Amazon) platforms and with with working market, eSports the developing around cooperation offering is WIN events and courses Lab Gamer new to create University City Birmingham with collaborating is Lab Game Oulu Image:

TinyTechs {PAGE 41} {PAGE and its people. its and region Midlands the for of growth driver enabling and atransformational provide Their aim sector. of the potential investment the have hobbled that failures information to address opportunity an represent below out set actions and recommendations the developers, games UK in investment private and public to coordinate agency national aspecialist to create proposals other with Along sub-sectors. industries creative other from different structurally are games that is response any in reflect we would that point The industry. games the for including strategy, industrial to approach its to refresh looking is Government when atime at comes report Our clusters. manufacturing digital UK’sthe leading of one as celebrated and region the in industries creative of the growth generalised and widespread from differentiated to be need Spa of Silicon competitiveness and standing international the drive that factors the growth, and competitiveness regional for a driver as act and weight’ its to ‘punch ToSpa. cluster the allow of Silicon competitiveness and dynamism of the drivers the are innovation technological and quality culture, and history between interrelationship The clusters. celebrated most and UK’s of the oldest of one dynamism and heritage the promote and to support approach specialist and adistinctive We propose infrastructure. digital and spaces physical development, games talent, in investment to stimulate makers, policy and industry for routes, best the highlight recommendations these that We believe cluster. games video of the growth the to support Plan Economic Strategic its in commitment CWLEP’s renewed develop and findings research our on build report of this recommendations The 9 {PAGEImage: 42} Recommendations Blizzard Expansion by 2noLogo Expansion Blizzard

: to unlock the creative and technical excellence of the games sector to sector games of the excellence technical and creative the : to unlock {PAGE 43} {PAGE • • • • Actions agency. games national a through expression find might that approaches pilot to serving also whilst world, of the part this in companies of games structure industry and heritage distinctive the to reflect tailored astrategy deliver could that initiative pilot place-specific and sector abottom-up, for case the makes Spa Silicon in sector games the of reach global The investors. with games of profile the raising in successful been has GLA, and Ukie between initiative ajoint London, of Games approach sector-specific The initiative. sector audio-visual or industries creative overarching an not – resource sector-specialist for need the identified consultees our All physical size. to its relation of all out competitive globally it make that characteristics distinct with asector to create combine that factors human and of structural – acombination industry UK in specialisation’ of a‘smart example arare represents Spa Leamington around businesses of games cluster of the base talent and ‘hub’.physical heritage The a and identity aclear both lacks Midlands West the in sector creative and digital The places.’ and sectors together to bring institutions right ‘the to create, need of the speaks also It sub-sector. export-led and important an as named explicitly were games of which The Government’s ‘Modern draft Industrial Strategy’ prioritises creative industries, cluster manufacturing digital development of an interactive media and i. Specialist games sector support and {PAGE 44} RECOMMENDATIONS agencies and marketing teams in a central Leamington location. Leamington acentral in teams marketing and agencies innovation support, business other with support sector-specific this collocate to DC) Warwick and Hub Growth &Warwickshire Coventry (including Partners support. focused locally provide to clusters games other in replicated be also can here proposed being model The sector. games the grow and support to strategy national wider a from benefit and into plugged be should activity local this activity, of the output the To maximise building. capacity and marketing investment inward to inform region, Authority Combined of the stakeholders, educational and sector public other and by UKIE supported media, interactive and manufacturing digital for ecosystem and cluster regional of wider Mapping infrastructure development. and support innovation funding, of skills, areas the in businesses to games support specific sector to offer Leamington, in based resource, industry-led an to create Authority Combined Midlands West the and CWLEP with together to come Ukie

differentiated set of marketing messages to attract inward investment, including FDI. FDI. including investment, inward attract to messages marketing of set differentiated and distinctive a makes this Warwickshire, South in offered of life quality the and pool, talent local of the breadth and depth the with Combined growth. high and skill high intensive, knowledge focused, export IP-creating, value, high Midlands: West the in manufacturing digital for sector a‘beacon’ as games identify should strategy Regional markets. international in advantage of competitive asource with region’s companies the provides specialisation’ ‘smart represents genuinely that sector a with identified Being it. around messages marketing investment inward the sharpens and clusters UK other from &Warwickshire Coventry in industry games the differentiates – Engine Midlands the within sector manufacturing’ akey as ‘digital games identifying -and Spa’ of ‘Silicon culture and heritage the Promoting region. Midlands West the across industries creative for case of ageneric over that Leamington, around and in sector games the for support to prioritise case, of its nature specialised the emphasise would This region. of the parts other from it distinguish to focus investment adifferentiated needs &Warwickshire Coventry advantage competitive con Spa’ as asource of regional ii. RECOMMENDATIONS Diagram: Connecting legacy and opportunity for Silicon Spa Silicon for opportunity and legacy Connecting Diagram: appeal wide market & quality games: class World supply chain supply the through Experience quality games high ducing years pro of built over up Ecosystem Promote the heritage and culture of ‘Sili

LEGACY - (re) investors Knowledgable History people by games managed fund Co-investment England Creative or BFI -not support Specialist in the world the in studio major in every DNA piecemeal not - approach Joined-uo OPPORTUNITY

Leamington in investment to promote ‘diaspora’ Use Promotion

- {PAGE 45} {PAGE • • to to region allow will Spa of Silicon base talent and heritage the Emphasising advantage competitive ‘Silicon Spa’ as asource of regional ii. • • • • • with the objective of generating: gamesinternational hub of capable market unlocking international opportunities, an as DIT with and Engine Midlands the and WMCA within Leamington of promotion investment inward of prioritisation the establish to CWLEP and Ukie Action {PAGE 46} RECOMMENDATIONS other high value sectors, such as automotive. as such sectors, value high other innovation a globally competitive ‘digital manufacturing’ environment that includes to spillovers generating VR) AR, AI, UX, UI, (including technologies digital enabling’ and of ‘emerging development in companies of games role pivotal the Highlight Midlands. the within alone let UK, the across sites five or four sell can’t you that case business aclear making advantage, economic regional of driver as a specialisation’ of ‘smart benefits investment inward the Project Start up Start Relocation Scale up projects Expansion FDI New Promote the heritage and culture of c tn ed) ntinu (co

• • • to: region the across Colleges and Universities with to work Skillset Creative and Ukie Action - developing employer-led provision towards finding a way of developing the idea in Warwickshire schools. in Warwickshire idea the a developing way of finding towards working is and principle in scheme DSH the supports Council County Warwickshire tournament. eSports DSH ever first of the winner the to become teams in competing country the across Schoolhouses Digital from students form sixth and secondary 400 over see will which competition, eSports inter-school UK’s the first launched has DSH professions.” creative digital wider and sector games the eSports, in careers to discover people young for opportunities -opening thinking strategic based, team and technology with people young engage can and social inherently are “eSports to entry barriers lower with industry, games the into route alternative an offers eSports potential, commercial to its addition In help. more from benefit could they But industries. of other average the double - of staff to amember of training days 14 provides studio average the extraordinarily, and, training in investing are studios UK 80% of that shows -research well do already employers games that something is This talent. of experienced to apool access and development professional continuing for need the emphasise also they but cluster; Leamington the within of talent exchange by the mitigated are talent experienced in Shortages iii. RECOMMENDATIONS industry to the to entry routs diverse more provide below) (see advice careers and skills digital around education secondary in initiatives upon building and, provision funded level of this from to benefit microbusinesses and early-stage to allow Establish frameworks of higher level apprenticeships and group training schemes of subjects. range acomplementary deliver and needs employer with ‘fit’ best to assess courses Masters and of undergraduate curriculum on Consult demand. to meet capacity lack which Camp) Gamer BCU (eg, practice and of knowledge examples out roll and gaps and shortages skills of critical areas CPD in for provision of employer-led models Establish

Talent and skills Talent and Digital Schoolhouse tournament. eSports 23 the as UK esports an hub 24/

Ukie (2016). Growing {PAGE 47} {PAGE • • • • • sectors: manufacturing digital and software other all into transferable are that ones and games, for skills essential ‘teaches’ It of games. medium the through coding about pupils age school to by teach Sony, aims backed that initiative, an is -http://www.digitalschoolhouse.org.uk/) (DSH Schoolhouse Digital The Schoolhouse -Digital Action thinking. computational and programming up to take pupils to inspire games use (DSH) Schoolhouse like Digital Initiatives onwards. age school from roles economy knowledge and manufacturing digital for skills to need theirbusinesses, address talent pipeline development and encourage of manufacturing digital and software-based all but companies, games just Not Games as education iii. {PAGE 48} RECOMMENDATIONS The key to all these activities was engagement with industry. Digital Schoolhouse, Young Rewired State, Coder Dojo Code and Academy. report, several local national and have programmes started been such as curriculum launched and Academy. Gen the Next Since publication the of report. This helped report computer put science back into the school research the on skills gap the for games industry called Gen the Next Back in 2011 games industry leader Ian Livingstone Nesta and undertook in schoolsGames Digital literacy and e-safety and literacy Digital processing and Hardware Data representation Communication and the Internet Algorithms and programming

Talent and skills skills Talent and c tn ed) ntinu (co • • • to: efforts its in Authority Combined and LEP of the support the enlist will Ukie addition, In • • • • • above would: identified post specialist sector The Actions smaller seed funds. funds. seed smaller as well as investments, large to access able to be cluster the within businesses all for important is It But companies. some –have helped incentives SEIS/EIS and Tax Relief Games Video as –such Government UK by the interventions Fiscal developmentproduct and prototypes new in investment promote and investors and companies games between asymmetries information the reduce to measures pilot to aplatform as Leamington in role support specialist use to Ukie iv. RECOMMENDATIONS and investors. and companies games of priorities and needs the reflects reform SEIS/EIS that Ensure . of Brexit threats from ‘ringfenced’ is Tax Relief Games Video Ensure worldwide. business to do marketplace digital and environment tax best offers UK the that to ensure to lobby Continue individual investor. to any risk the reducing and visibility their by increasing IPs of new development the of £10-15k accelerate aseries and into R&D to down promote ‘sprints’ breaking for fund investment pooled/co- and environment development shared Factory’ ‘Script aLeamington-based to establishing given be consideration that We recommend break-even. reach today released of games percentage asmall key: is only model business on focus and small in of success likelihood the where development games to early-stage approach imaginative amore to take investors and publishers Lobby innovation outputs. and impacts social their on based technology of games applications and games for funding identify to Nominet, and thresholds) at £10k/£40k/£300k grants offers (which Wellcome eg foundations, and trusts with coordination increased Promote sector. of the knowledge detailed more with co-investors to provide groups angel to local investors games Introduce platforms. or genres different for trends revenue overall as well as cycle development hardware the IPfor over profitability of levels different the to recognise companies to help mentors investor of experienced anetwork Build and funders.’ investors 60 meeting investment for looking companies ‘60 to deliver target annual an with hub, Ukie’s in Leamington based programme, ayear-round into London Games through established Market Finance Games of the success the translate to fund aco-investment CWLEP, with Work to establish UK Innovate and ME

Funding {PAGE 49} {PAGE including around an international eSports competition to be held at NEC. at held to be competition eSports international an around including ideas, to explore Group NEC with to meet -CWLEP cluster Spa Silicon of the output to highlight studio eSports of an development the in WIN, with internationally, and NEC, with locally, to partner opportunity an presents of eSports growth Exponential hub eSports an as &Warwickshire Coventry –identify Action region. the for offer distinctive and exciting an represent stage, Theatre Shakespeare Royal the on live sprite the of Ariel avatar digital an to render games) in (developed technology capture performance of use first Tempest, the of The 2016 Winter Company’s production Shakespeare Royal the and House Motion company dance local with working Bottle a in Fish as such experiences reality over virtual collaborations sectors: to other programme this Link Studio. Open and Backspace as –such before run successfully have been that of formats programme aregular of creating value the Consider cluster. Leamington of the heritage the and tourism promoting in together technology and culture brings that installation of anew feasibility to consider DC Warwick sector games the for programme acultural –Establish Action games. for pipeline talent and education detailed in the Schoolhouse programme, Digital developing a eSports between links the through and, economy visitor promotion, investment inward to reconcile opportunity an present industry of the development future the in role its and cluster Leamington of the heritage the between links The innovation UK cutting-edge v. Promote games-as-culture and celebrate {PAGE 50} RECOMMENDATIONS businesses in a timely fashion and in an appropriate form. appropriate an in and fashion atimely in businesses to exchange knowledge for opportunities about information disseminating and of coordination effective addressing in invaluable be will resource Ukie specialist proposed the recommendations, other of the many with As • • • including: projects in this for precedent /international national is There project. of the requirements technical specific the on depending organisations, other or HEIs, partner the of one any at accessible be should facilities Prototyping spaces. working co- or incubators physical new than rather incubation of business processes and exchange knowledge for sites of hub anumber to create is intention The R&D. in to invest sector public the and investors companies, games for incentives of range a provide FDI, of levels high sustained of expectation areasonable with cluster, along of the nature export-led and dynamism The needs. industry to meet offers skills and of curriculum tailoring its through sector games the with to engage commitment its demonstrated already has BCU region, Midlands West the Within Wolverhampton. and England, in HEI other any that degrees games specialist more offers which of Staffordshire, universities of the capacity added the brings university combined Midlands West ‘virtual’ of the creation The development. for platform ashared to develop institutions other and industry with engaging for amethodology provide studio, design auto world-class its as such technology, and art combine that fields other in research interdisciplinary in excellence University’s Coventry games; for system innovation aregional in widely more to participate willing is and fields, other in of innovation adriver been has of Warwick University off. them carry to successfully skills management and production the and technology digital in foresight, technical knowledge and industry to accurately evaluation opportunities the haveboth region’sinstitution the that confidence to provide serve SGI, as such successes, cluster. Past Leamington of the legacy and heritage the on built games for environment innovation class aworld to build opportunity an has area The technologies games in R&D for ‘sandpit’ amulti-site Create vi. RECOMMENDATIONS

Tekes (www.tekes.fi) projects/) (http://ciid.dk/education/industry- Design of Interaction Institute Copenhagen enterprise.com/agency/) (http://www.fashion- Agency Innovation of Fashion’s Fashion College London

Innovation {PAGE 51} {PAGE This could be furnished either by a new build or conversion of an existing building. existing of an conversion or build by anew either furnished be could This • • cluster, offering: a as heritage Leamington’s and of games culture the celebrate also will hub The • • • • including: businesses, games for support specialist sector collocates that Leamington in hub a central for funding capital and case business space, required to establish study feasibility out Carry Leamington in industry games the for hub aphysical –Create Action • • • • premises business games-ready of apipeline -Ensure Action teams. development build and quickly to scale companies allow would that floorplates larger to identify keen were investors and Developers • • • parts’. of its sum the than ‘more is away in that investors and to businesses investment suggested that greater coordination to is needed the present opportunities inward and incubation business workspace, for environment physical of the A review vii. {PAGE 52} RECOMMENDATIONS A venue for eSports events and ‘games in education’ initiatives. education’ in ‘games and events eSports for A venue cluster. games Leamington of the heritage the through creativity digital and of games aspect cultural the to celebrate visitors and community local the businesses, for Space shared workspace. than rather region, the across HEIs from support R&D and exchange knowledge to access space, meeting and project –offering ‘sandbox’ innovation regional the to of entry apoint including exchange, knowledge and innovation for Brokerage providers. private FE and HE, multiple from support to skills of access point Single LEP. and County District, from services support investment inward and business Other manager(s). to finance access including support, investment Specialist housing). from pressure (eg. space of industrial to loss lead may that threats resist and demand address them to help departments planning authority local for a‘toolkit’ Provide projects. new large for teams development up scale to rapidly companies for space (b)provide to and investors inward (a) attract to floorplates, bigger to offer potential the with Street) Far Gosford Friargate, (eg Coventry in developments new other and Warwickshire, and Coventry in capacity existing using at Look commercial premises. new for permission planning or workspace existing with developers and to landlords opportunities those promote -and provision in gaps any Identify of town’ ‘out and settings. park business urban, in investors for typologies of building range awider to present CWLEP across premises of business supply Map businesses. start-up new for capacity offer all College Warwickshire and CUE SGI, Centre, Innovation of Warwick University on space. grow- and incubator in investment further for arationale provides of demand evidence and good, havebeen date to space up start creating around Efforts messages. of marketing coordination in helpful less but businesses, of existing managers and founders company for environments of range a offering in good is cluster of the nature polycentric and distributed The hscl infrastructure Physical • • • from: arise to invest Opportunities • • • SMEs, including: manufacturing digital for broadband to ultrafast 100% access to ensure options at Look Actions and to offer future proof capacity for developing 5G networks. 5G developing for capacity proof future to offer and centres data exchanges, of digital provision but broadband, just not to address investors other and ISPs with together to come needs Authority Combined the and LEP the region, the across sector manufacturing digital wider the and companies of games needs future and current the to meet order In broadband. ultrafast to 10% of access terms bottom in the of LEPs in is &Warwickshire Coventry viii. RECOMMENDATIONS New investment. New 1of NBS). Phase in broadband funded publicly of up take higher from investment of public (return share’ of ‘gain Reinvestment underspend). Scheme Broadband National (of existing Clawback apriority. as connectivity SME address and Scheme Broadband National in 3investment Phase to complement intervention demand-side Possible sharing. infrastructure and engagement Supplier broadband. business to ultrafast access of SME Survey

Digital infrastructure infrastructure Digital {PAGE 53} {PAGE

{PAGE 54} {PAGE 55} {PAGE {PAGE 56} February, 2017