TIGA, the trade association representing the UK video games industry, said today that GAME’s business difficulties confirmed the dramatic shift in the games industry from retail to digital gaming and reinforced the case for independent developers and digital publishers to embrace network gaming. TIGA made the comments in the light of a 64 per cent collapse of GAME’s share price on Monday March 12 th 2012.
Dr Richard Wilson, TIGA CEO, said:
“This is clearly a deeply worrying time for GAME’s 6,000 employees and we wish them the best of luck during this crisis. GAME’s difficulties are due to a combination of factors: the economic downturn which has hit the high street generally; intense competition from other physical and online retailers; the decision by big global publishers not to stock GAME with new releases; and the shift by consumers from purchasing boxed products to digital games. Retail sales of video games have declined for four consecutive years, as consumers change their spending habits.
“The situation at GAME will reinforce the trend which has seen UK game developers and digital publishers move towards network gaming – mobile, massively multiplayer, social and online gaming. TIGA’s research shows that 80 per cent of new development studios are working either exclusively or in part on network gaming. This move towards digital self-publishing enables developers to create original games, retain control of their IP and achieve greater financial stability.”
Patrick O'Luanaigh, CEO of nDreams Ltd and TIGA board member, said:
“I wish GAME and their employees the best of luck in a very difficult time. Unfortunately, the rapid transition to digital means life is likely to be tough for all high-street game retailers with more and more money being spent on platforms such as Steam, Origin, the App Store, PSN, XBLA and Android market. Fortunately, the UK has an increasing number of exciting new small to medium sized digital publishers who are growing stronger all the time. TIGA are working hard to support this growth in a variety of ways, as well as talking to the Government about policies that can help these companies expand and become the large publishers of the future.”
TIGA is the trade association representing the UK’s games industry. The majority of our members are either independent games developers or in-house publisher owned developers. We also have games publishers, outsourcing companies, technology businesses and universities amongst our membership. TIGA won 10 business awards and was nominated a finalist for 9 other awards during 2010 and 2011. In 2010 TIGA won two business awards including ‘Trade Association of the Year’ from the Trade Association Forum.
In 2011, TIGA won eight business awards including ‘Trade Association of the Year’ from the Trade Association Forum, ‘Outstanding Organisation’ from the Chartered Management Institute and two Global Business Excellence Awards, including ‘Outstanding Marketing Campaign’. Richard Wilson won the ‘Leadership Award’ from the Trade Association Forum and the ‘Outstanding Leader’ award from the Chartered Management Institute. TIGA is an Investors in People organisation.
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.