BFI UK: 51.9% of all British game developers work in companies owned by foreign entities
So, the majority of the UK workforce is working for non-UK studios.
BFI UK studied the history of M&A transactions in the UK gaming market and assessed its impact on the industry. The figures are current as of the end of April 2023.
From 1993 to 2022, 118 transactions were completed, involving the acquisition of British studios. In 105 cases, the asset was a company, the majority of whose business is based in the UK.
49% of the transactions were carried out by companies headquartered in the USA; 15% were with HQs in China; 10% in Sweden.
The volume of transactions sharply increased from 2018 to 2021. During this period, 41 transactions occurred (39% of the number of "truly British" transactions).
In 2020 and 2021, the most money was spent (or earned - depending on the perspective), $2 billion and $2.7 billion, respectively. The largest deals were with Codemasters, Sumo Group, and Playdemic.
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The majority of buyers are actively involved in the gaming industry. Publishers accounted for 56% of all transactions.
Acquiring talented teams and strong IPs are the two main motivators for deals during this period, according to BFI UK.
Deals brought access to capital and marketing expertise. This is a positive outcome.
On the downside, studios lost autonomy (which may negatively impact innovation), and some revenue flowed out of the UK.