TIGA's proposal for a Video Games Investment Fund would create over 1,200 new jobs and add £174 million to GDP by 2025 - PRNewswire | Canada News Media
LONDON, Feb. 8, 2021 /PRNewswire/ — Today, TIGA, the trade association representing the video games industry, has published a new report calling for the establishment of a UK Video Games Investment Fund (VGIF) to support the growth of the sector. Powering Up: A Video Games Investment Fund (February 2021) analyses industry survey data, international comparisons, and economic modelling to outline the case for a VGIF.
Difficulty accessing capital has consistently been one of the top factors holding back many games developers in the UK. UK games studios often find it difficult raise capital for growth. This finance gap means that many small, start-up and innovative companies struggle to scale up and are vulnerable to closure or collapse.
The VGIF would address this funding gap by providing funding of between £75,000 and £500,000 to games developers nationwide. Funding between £75,000 and £100,000 would be delivered as grants while allocations above £100,000 would require companies to match pound for pound to ensure that games companies find new investment from other sources.
A survey of 45 independent and publisher development studios conducted in October 2020 found that:
The top impediments to games studio growth were seen as access to finance and market saturation.
Access to finance in general (whether equity, debt or government funding), was cited by 50 per cent of indie studio respondents as a barrier to their growth.
82% of studios see positive benefits to a VGIF and only 18% would not apply.
Creation of original IP, company stability and headcount growth were the top 3 benefits.
The report calculates that the VGIF, costing an aggregate £26.5m over 5 years, would yield a net contribution to HM Treasury of £45 million (i.e. a 170 per cent return on investment) and would benefit the UK’s games industry and wider economy yielding the following impacts:
441 new full-time development roles would be created between 2021 and 2025.
806 new development support roles would be created between 2021 and 2025.
£78 million in additional investment by studios between 2021 and 2025.
£72m million in additional tax receipts to HM Treasury would be generated between 2021 and 2025.
£174 million in additional GDP would be generated between 2021 and 2025.
The Government has stated that it is ‘looking closely’ at TIGA’s proposals for a VGIF. On 2 February 2021, the Minister for Digital and Culture, Caroline Dinenage MP, answered a written question on TIGA’s proposal, noting that the Department for Digital, Culture, Media and Sport is looking into the idea of creating a new, large-scale video games investment fund.
Dr Richard Wilson OBE, CEO of TIGA said:
“The UK video games industry is one of the sectors that the UK Government should aim to promote over the coming months and years. It is a high-skilled, high-tech, and export focused industry. Our sector has the potential to support employment and growth throughout the UK, with clusters of games development from Brighton to Dundee and 80 per cent of the workforce based outside of London.”
“Difficulty accessing capital has consistently been the top factor holding back many games developers in the UK. This is why TIGA has called for the Government to introduce a Video Games Investment Fund to support the long-term growth of the video games industry. This initiative, alongside the improvement of Video Games Tax Relief, would allow the continued success and growth of the tech industry for years to come.”
About TIGA
TIGA is the network for games developers and digital publishers and the trade association representing the video games industry. For more information visit: www.tiga.org
TORONTO – Canada’s main stock index was down more than 200 points in late-morning trading, weighed down by losses in the technology, base metal and energy sectors, while U.S. stock markets also fell.
The S&P/TSX composite index was down 239.24 points at 22,749.04.
In New York, the Dow Jones industrial average was down 312.36 points at 40,443.39. The S&P 500 index was down 80.94 points at 5,422.47, while the Nasdaq composite was down 380.17 points at 16,747.49.
The Canadian dollar traded for 73.80 cents US compared with 74.00 cents US on Thursday.
The October crude oil contract was down US$1.07 at US$68.08 per barrel and the October natural gas contract was up less than a penny at US$2.26 per mmBTU.
The December gold contract was down US$2.10 at US$2,541.00 an ounce and the December copper contract was down four cents at US$4.10 a pound.
This report by The Canadian Press was first published Sept. 6, 2024.
TORONTO – Canada’s main stock index was up more than 150 points in late-morning trading, helped by strength in technology, financial and energy stocks, while U.S. stock markets also pushed higher.
The S&P/TSX composite index was up 171.41 points at 23,298.39.
In New York, the Dow Jones industrial average was up 278.37 points at 41,369.79. The S&P 500 index was up 38.17 points at 5,630.35, while the Nasdaq composite was up 177.15 points at 17,733.18.
The Canadian dollar traded for 74.19 cents US compared with 74.23 cents US on Wednesday.
The October crude oil contract was up US$1.75 at US$76.27 per barrel and the October natural gas contract was up less than a penny at US$2.10 per mmBTU.
The December gold contract was up US$18.70 at US$2,556.50 an ounce and the December copper contract was down less than a penny at US$4.22 a pound.
This report by The Canadian Press was first published Aug. 29, 2024.
The crypto market has recently experienced a significant downturn, mirroring broader risk asset sell-offs. Over the past week, Bitcoin’s price dropped by 24%, reaching $53,000, while Ethereum plummeted nearly a third to $2,340. Major altcoins also suffered, with Cardano down 27.7%, Solana 36.2%, Dogecoin 34.6%, XRP 23.1%, Shiba Inu 30.1%, and BNB 25.7%.
The severe downturn in the crypto market appears to be part of a broader flight to safety, triggered by disappointing economic data. A worse-than-expected unemployment report on Friday marked the beginning of a technical recession, as defined by the Sahm Rule. This rule identifies a recession when the three-month average unemployment rate rises by at least half a percentage point from its lowest point in the past year.
Friday’s figures met this threshold, signaling an abrupt economic downshift. Consequently, investors sought safer assets, leading to declines in major stock indices: the S&P 500 dropped 2%, the Nasdaq 2.5%, and the Dow 1.5%. This trend continued into Monday with further sell-offs overseas.
The crypto market’s rapid decline raises questions about its role as either a speculative asset or a hedge against inflation and recession. Despite hopes that crypto could act as a risk hedge, the recent crash suggests it remains a speculative investment.
Since the downturn, the crypto market has seen its largest three-day sell-off in nearly a year, losing over $500 billion in market value. According to CoinGlass data, this bloodbath wiped out more than $1 billion in leveraged positions within the last 24 hours, including $365 million in Bitcoin and $348 million in Ether.
Khushboo Khullar of Lightning Ventures, speaking to Bloomberg, argued that the crypto sell-off is part of a broader liquidity panic as traders rush to cover margin calls. Khullar views this as a temporary sell-off, presenting a potential buying opportunity.
Josh Gilbert, an eToro market analyst, supports Khullar’s perspective, suggesting that the expected Federal Reserve rate cuts could benefit crypto assets. “Crypto assets have sold off, but many investors will see an opportunity. We see Federal Reserve rate cuts, which are now likely to come sharper than expected, as hugely positive for crypto assets,” Gilbert told Coindesk.
Despite the recent volatility, crypto continues to make strides toward mainstream acceptance. Notably, Morgan Stanley will allow its advisors to offer Bitcoin ETFs starting Wednesday. This follows more than half a year after the introduction of the first Bitcoin ETF. The investment bank will enable over 15,000 of its financial advisors to sell BlackRock’s IBIT and Fidelity’s FBTC. This move is seen as a significant step toward the “mainstreamization” of crypto, given the lengthy regulatory and company processes in major investment banks.
The recent crypto market downturn highlights its volatility and the broader economic concerns affecting all risk assets. While some analysts see the current situation as a temporary sell-off and a buying opportunity, others caution against the speculative nature of crypto. As the market evolves, its role as a mainstream alternative asset continues to grow, marked by increasing institutional acceptance and new investment opportunities.
