How Wales can benefit from 'indie' gaming shake-up

An office above a bubble tea shop on a Welsh high street is not where you would expect to find the European headquarters of a global games developer.

But that is exactly where Rocket Science and its 28 workers are based, and having worked on games including hit multiplayer Fall Guys, it is part of a new wave of firms being enticed to the UK by regional and government funding.

Rocket Science, which develops components for games, has its main headquarters in the United States but opened European offices in Cardiff in 2023.

With the global industry experiencing a well-publicised decline, those working in it have said there is still a future for gaming careers - it just looks a little different.

The global games market generated more than £147.9bn in 2023, but over-hiring in the pandemic and tougher financial conditions for companies have led to well-publicised lay-offs.

Website Obsidian, which tracks redundancies across the sector, estimated the global number of jobs lost in 2024 reached 14,600, up from 8,000 in 2022.

But some believe the stats are hiding a wider picture, with many developers who have been made redundant from larger "triple-A" firms now going on to set up their own, smaller, indie gaming studios.

Regions across the UK are benefiting, with gaming hubs developing in places like Guildford, Brighton, Cambridge, and now Cardiff.

One expert said that despite cuts in big gaming companies, there has been "phenomenal growth" in the last five years of developers forming small companies, often working out of homes or shared offices.

"I read a statistic that said approximately 21% of games jobs had been lost in Europe in the last 12 months, which sounds frightening," said Rich Hebblewhite, a senior lecturer in games and media at Wrexham University.

"But what you're not seeing in that statistic is, where are they now? Many of those would have been picked up by other studios, but many may have gone on to start their own studios."

Analysis by RSM UK found the number of new gaming companies incorporated in the UK jumped by nearly a quarter (22%) in 2024.

UKIE, the trade association for the UK games and entertainment industry, added they are seeing a "growing trend of phoenix companies" set up by people with experience in the industry.

In Wales, Creative Wales - the Welsh government agency set up to support the creative industries - has been working to attract both large and smaller developers.

Now more than 35,000 are employed in creative industries in Wales, with about 100 gaming companies - about 23 more than in 2021.

Rocket Science has worked on popular multiplayer game Fall Guys, as well as with the publishers which produced Fortnite and The Sims.

The company got support from the Welsh government's Economy Futures Fund, which helps businesses to invest, grow and build the Welsh economy.

Rocket Science's co-founder Tom Daniel, who grew up in Bridgend, said his firm has benefited from being one of the first in the sector to move to south Wales, with cheaper costs attracting the best talent.

"There's a reset happening and these companies will need to rebuild," he said.

"Where are they going to rebuild? Do you think they'll do the same thing - go big in San Francisco again or Los Angeles?

"Or do they start looking at Cardiff and go 'this could be a better investment for us'."

He believes now is a good time for young people in the area looking to get into games development.

"If you're a student and you're doing the games courses, you should be pretty optimistic," added Tom. "You'll come in at the reset point."

South Wales-based Copa Gaming make TV and films, and turned to gaming in the pandemic, and its founder and director Osian Williams said having a global company like Rocket Science "on our doorstep" has helped.

"We can text and say, 'hey, can I ask you a stupid question?'" he said.

"Their understanding and experience has been so beneficial for us. It's opened so many doors."

Games development is also increasingly appearing on curriculums in Wales.

Pupils at a school in south Wales are studying a BTEC in games design, where they are learning to code, animate and market computer games.

Alexia, 16, has been doing the course at Ysgol Gyfun Cwm Rhymni in Blackwood since September and now wants to either study games design at university or develop a game while working.

"There's a gap for indie developers to make smaller games with lots of love put into them," she said.

"For me, one big benefit is the ability to be mobile. I can work off a laptop and be anywhere."

Fellow pupil Daniel, 17, added: "The idea of making a game has been at the back of my mind for years now, and this course has allowed me do that. It would be great to be able to get a job locally one day."

The Welsh government said bringing companies like Rocket Science was "just the start".

"We see this industry growing and we're proud of what we've achieved to date, but there's much more to do," said Jack Sargeant, the Welsh government minister for culture, skills and social partnership.

"Wales is the place to be, I think, and I look forward to seeing what that brings."