For immediate release - September 24th
Tiga said today that the decline in sterling against the dollar in the wake of the credit crunch reinforced the case for doing business with UK based games developers. Over the period November 2007 to September 2008, sterling declined in value by approximately 14% against the dollar. The fall in sterling has reinforced the intrinsic value and the competitive advantages of the UK games industry.
Richard Wilson, CEO of Tiga, said:
“It’s an ill wind that blows nobody any good. The credit crunch and the accompanying turmoil in financial markets are wreaking significant economic damage across the globe. However, the decline in sterling against the dollar and the euro that has ensued with the credit crunch will help UK exporters, including games developers. Sterling could decline still further over the coming months if the Bank of England cuts base rates to support the domestic economy.
“UK game developers already possess a hat-trick of competitive advantages: a skilled workforce; experienced management teams; and an effective approach to outsourcing.
“The industry has an exceptionally well-qualified workforce, with 80-90% of a typical UK studio’s staff being qualified to degree level. Our management teams have a wealth of experience: 42% of Tiga members’ organisations have been in business for six years or more. Costs are controlled and quality enhanced through an effective approach to outsourcing: approximately two-thirds of Tiga members outsource at least some of their production activities.
“UK games businesses offer high quality games, produced on time and at great value. The 14% decline in the value of sterling against the dollar over the last 11 months has enhanced the inherent value and competitiveness of UK games developers. It is great time to do business with UK based games developers.”
Notes to editors:
1. Tiga is the national trade association that represents games developers in the UK and in Europe. We have 157 members, the majority of whom are either independent games developers or in-house publisher owned developers. We also have outsourcing companies, technology businesses and university departments that are members.
2. Tiga’s vision is to make the UK the best place in the world to do games business. We focus on three sets of activities: political representation, generating media coverage and developing services that enhance the competitiveness of our members. This means that Tiga members are effectively represented in the corridors of power, their voice is heard in the media and they receive benefits that make a material difference to their businesses, including a reduction in costs and improved commercial opportunities.
3. In November 2007 the exchange rate was $2.115:£1.00. In September 2008 the exchange rate stood at $1.81:£1.00.4. Sterling’s trade weighted index (in which the euro has a weight of 54% compared with the dollar’s 16.5%) has declined by over 13% in the past 12 months. Sterling has now reached its lowest point since 1996 (see‘Vote of no confidence’, The Economist, August 30th 2008, p. 35).
5. For further information, please contact: Dr Richard Wilson, Tiga CEO on: 0845 0941095; Mob: 07875 939643; or: Email: email@example.com.