Exclusive:£1bn vision for Scotland's video games industry as the chase for world leader status is on
New strategy proposes fund to help emerging developers
Scotland can build on its decades-long track record of creating acclaimed video games to become a global leader in the sector, according to a new report calling for a significant shake up of how the industry is funded and supported by the Scottish Government.
A proposed national action plan for the nation’s gaming sector argued that a multimillion pound public investment could deliver “significant” returns and create thousands of new jobs over the next four years, while also addressing key skills gaps in the wider economy.
The Scottish industry currently delivers more than £150,000 gross value added (GVA) per head, but the action plan, which will be officially unveiled later this week, sets out a roadmap to scale the sector so that it can achieve a £1 billion turnover by 2030.
In doing so, the plan, ‘Level Up Scotland’, aims to position Scotland’s as the UK’s first “games supercluster” and a world leader in creative technology, with the establishment of a new targeted fund to help game developers create new titles.
In the longer term, it also hopes to create a national games innovation centre, a physical hub designed to sit as a “legacy asset” for the country, and a catalyst for ongoing international investment in the sector.
The action plan’s author, Brian Baglow, chief executive officer of the Scottish Games Network and a veteran figure of the Scottish industry, told Scotland on Sunday that the sector was well placed to become “golden thread” of Scotland’s digital economy.
“It’s a really misunderstood sector,” he explained. “Everyone knows we punch above our weight and have a great legacy, but the focus on the success of Grand Theft Auto and the console versions of Minecraft completely obscures what’s happening across the rest of the industry.
“The opportunity to do something strategic, but also integrated, because we’ve got all of the pieces and all of the right people. We just need a shared goal and the chance to bring everything together, because we can be one of the most significant game hubs in the world.”
The action plan points out that although Scotland’s games ecosystem has a proud history, its full potential has been held back by “a lack of a unified national vision or strategy.” As a result, the report warns, the sector has been left fragmented and volatile within the global marketplace.
Read more: How Scotland became the beating heart of the video game industry and the revolution ahead
It states: “As an economic and cultural force, games are Scotland’s secret weapon - an undervalued asset with an exceptional capacity for growth, job creation, transformational impact and international influence.”
From a global consumer’s perspective, the Scottish games industry is best known for Grand Theft Auto, the critical and commercial hit series that was devised by Dundee firm, DMA Design, and which is now overseen by Edinburgh-based Rockstar North, a subsidiary of the US-based Take Two Interactive.
The latest instalment in a franchise that has sold more than 440 million copies around the world is expected to smash sales records when it is released later this year, shining a light on the work of its Scottish developers.
Yet it is just one of around 130 gaming firms across Scotland, with smaller studios - such as indie outfit Sad Owl Studios, who won two BAFTA games awards with their debut title - enjoying breakout success. Across the industry, staff numbers have doubled from around 1,045 in 2015 to around 2,125 last year, with the sector commanding an annual turnover of around £340m, according to the Scottish Government.
Mr Baglow, who worked as a writer, designer and PR manager at DMA Design and Rockstar Games, said: “Anybody with the inclination can now make and publish a game, essentially for free, depending on its scope and scale, so the challenges facing developers are about user acquisition, monetisation, and lifetime value - that requires data and analytics, communications, and community building.”
The action plan also proposes a key way of helping smaller firms prosper in the form of a games growth catalyst pilot fund, a £5m pot capable of providing prototype grants for the creation of new Scottish intellectual property, and targeted grants for the work-to-hire sector.
As well as ensuring Scotland can capture a bigger slice of a global games market worth hundreds of billions of pounds, Mr Baglow said the action plan is also a way of leveraging transferable skills that benefit the wider economy, and address critical skills gaps in areas such as programming and data science.
One of the five recommendations detailed in the plan is the creation of a collaborative national games skills and education forum, a framework Mr Baglow said could “build a lifelong learning pipeline” that can marry up industry needs with education.
“We’re absolutely not thinking about games as a transformative technology,” he explained. “That is problematic, because we have a huge amount to offer. So many of the tools, technologies and techniques from games are being used in different areas, and we’re a small enough country to bring all of those stakeholders together.
“I think we need to simultaneously treat games more seriously, and also stop treating fun like it’s a four letter word.”
The plan has also been welcomed by the International Game Developers Association, which boasts thousands of members around the world.
In a foreword to the action plan, the association’s executive director, Jakin Vela, said he was “excited” to see the games sector in Scotland taking an “ambitious” and “structured” step towards creating a more connected and supportive environment for those who produce games.
“Scotland’s games community has long demonstrated exceptional creativity, technical excellence, and global influence,” he explained. “Yet as we see in many regions around the world, talent alone cannot sustain an ecosystem.
“Developers succeed when they are supported by evidence-based structures that uplift careers, encourage innovation, and reduce the barriers to building and scaling game projects.”
Business minister Richard Lochhead said: “Scotland's games industry is an incredible success story. As the birthplace of titles such as Grand Theft Auto and home to companies involved in globally significant titles such as Minecraft it an important part of our economy, creating skilled jobs and positioning Scotland as a global hub for digital innovation.
“I am grateful to Brian for leading the work on this plan. The Scottish Government will consider this carefully and consult closely with stakeholders before responding in detail. In the meantime, I am clear that we stand squarely behind the industry. Over the last year we’ve seen Scotland’s talent to the world by hosting the DICE Europe conference while establishing a dedicated Scottish trade body – Interactive Entertainment Scotland.
“From £20 million for Creative Scotland to record funding for entrepreneurs and tech start-ups, the proposed Scottish Budget 2026-27 will continue to support our games sector and wider tech industry.”
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