The United Kingdom's decision to leave the European Union (EU) has sent shockwaves through the UK's gaming industry. In the months since the vote, studios across the country have been grappling with the potential implications of Brexit and what it could mean for their businesses.
Lost Access to EU Funding
One of the biggest concerns for UK studios is the potential loss of access to EU funding. In recent years, the EU has been a major source of funding for UK games businesses through programmes such as the Creative Europe MEDIA programme. In the 2014-2020 funding period, the Creative Europe MEDIA programme provided €2.4 million in grants to UK games businesses. This funding has been vital for studios of all sizes, providing them with the resources they need to develop and market their games.
The UK government has said that it will look to replace EU funding with its own domestic programmes, but it is not yet clear how these programmes will be designed or how much money they will provide. This uncertainty is making it difficult for studios to plan for the future and is already leading to some projects being put on hold.
Increased Costs
Another major concern for UK studios is the potential increase in costs associated with Brexit. The UK is likely to leave the EU's single market and customs union, which will result in new tariffs and regulations for goods and services imported from the EU. This will make it more expensive for UK studios to import the software, tools and hardware they need to create games.
In addition, the UK is likely to see a decline in the value of the pound, which will make it more expensive for UK studios to hire EU-based workers and to sell their games in the EU. This will further squeeze profits and make it harder for UK studios to compete with their international rivals.
Uncertainty Around Regulation
The future of regulation in the UK gaming industry is also uncertain. The UK is currently subject to EU regulations, but it is not yet clear what regulations will be in place after the UK leaves the EU. This uncertainty is making it difficult for studios to plan for the future and could lead to delays in the release of new games.
Loss of Talent
The UK's gaming industry employs thousands of people, many of whom are originally from other EU countries. Brexit is likely to make it more difficult for EU citizens to work in the UK, which could lead to a loss of talent and expertise in the UK's gaming industry. This would further weaken the UK's competitive position in the global gaming market.
Conclusion
The UK's decision to leave the EU has created a great deal of uncertainty for the UK's gaming industry. The potential loss of access to EU funding, increased costs and regulatory uncertainty are all significant challenges for UK studios. The UK government needs to work closely with the industry to address these challenges and to ensure that the UK remains a competitive player in the global gaming market.
