Video Game Technology Spillover Report 2023
In 2023, Ukie and FTI Consulting published a report that assessed the impact of video game technologies’ contribution to non-game sectors in the UK and select Nordic economies. It is considered the first time such a report has been commissioned in the UK.
The report defined ‘spillover’ technology as instances where otherwise unrelated sectors have adopted and applied innovations from game developers to enhance their products and improve their business operations.
Contents
Games Spillover in the United Kingdom
In 2021, the video game industry significantly influenced the UK economy through technology spillovers. These impacts were not limited to the games sector but extended to other sectors, demonstrating the pervasive nature of video game technologies such as game engines, virtual reality (VR), and augmented reality (AR).
Key Figures
- Employment: Video game technology spillovers supported nearly 10,000 jobs in the UK.
- Output: The total economic output from these spillovers was approximately £1.3 billion.
- GDP Contribution: The spillovers added around £760 million to the UK's GDP.
- Labour Income: The spillovers generated £380 million in labour income.
- Government Revenues: The activities supported by these spillovers contributed £250 million to government revenues
Employment Impact
Video game technology spillovers supported nearly 10,000 jobs across various sectors in the UK in 2021 in the following area:
| Sector | Jobs Supported |
|---|---|
| Information Technology | 3,000 |
| Business Services | 1,560 |
| Energy Extraction | 990 |
| Wholesale and Retail | 910 |
| Healthcare | 450 |
| Machinery Manufacturing | 420 |
| Fabricated Metals | 310 |
| Finance and Insurance | 290 |
| Arts and Entertainment | 280 |
| Publishing and Audiovisual | 280 |
Games Spillover in selected Nordic Countries
The report also looked at the impact of video games technology in selected Nordic Countries. These countries were Denmark, Finland, Norway, and Sweden
Key Figures
- Employment: Video game technology spillovers supported over 5,300 jobs across Denmark, Finland, Norway, and Sweden.
- Output: The total economic output from these spillovers was approximately £1.3 billion.
- GDP Contribution: The spillovers added around £890 million to the combined GDP of these countries.
- Labour Income: The spillovers generated £260 million in labour income.
- Government Revenues: The activities supported by these spillovers contributed £320 million to government revenues.
Country-Specific Impact
Denmark
- Output: £190 million
- GDP Contribution: £120 million
- Employment: 1,100 jobs
- Labour Income: £50 million
- Government Revenues: £40 million
Finland
- Output: £130 million
- GDP Contribution: £60 million
- Employment: 890 jobs
- Labour Income: £30 million
- Government Revenues: £30 million
Norway
- Output: £700 million
- GDP Contribution: £570 million
- Employment: 1,670 jobs
- Labour Income: £100 million
- Government Revenues: £180 million
Sweden
- Output: £270 million
- GDP Contribution: £140 million
- Employment: 1,710 jobs
- Labour Income: £80 million
- Government Revenues: £70 million
Examples of Video Game Technology Spillovers
The report gave examples of video game technologies in use in other sectors. These include:
Healthcare
Beyond VR simulations, healthcare benefits from various game-based technologies:
- AR Applications: AR assists healthcare workers in locating veins and planning surgical procedures by overlaying digital images onto the real world, improving accuracy and efficiency.
- Haptic Technology: FundamentalVR’s HapticVR technology provides life-like surgical training using haptic gloves and controllers. This platform has been deployed by institutions like St. George’s Hospital and the Houston Methodist Institute, offering a realistic training environment for medical professionals.
- Patient Care: VR technologies like RelieVRx, developed by AppliedVR, aid in chronic pain management by employing cognitive behavioural therapy principles, significantly reducing pain for users in clinical trials.
Wholesale and Retail
Retailers leverage AR to enhance customer experiences:
- "Try-Before-You-Buy": AR applications allow customers to virtually try products before purchasing, improving customer satisfaction and engagement. This technology enables users to visualise how products like furniture or clothing will look in their homes or on them before making a purchase.
Machinery Manufacturing
Game technologies enhance manufacturing processes:
- Digital Designs and Simulations: Tools like Unity’s ArtEngine enable manufacturers to create detailed digital twins of products. For example, Flokk uses these digital twins to offer customers a realistic visualisation of customisable chair components, improving the online shopping experience and reducing returns.
- Interactive Product Visualisation: Companies like Autoliv use game engines to create interactive 3D views of automotive safety parts, allowing customers to explore products in detail from multiple angles.
Finance and Insurance
Advanced data visualisation tools derived from game technologies are utilised in the finance and insurance sectors:
- 4Sight by C4X Discovery: This tool uses Unreal Engine to visualise molecular data in a VR space, aiding in drug discovery and development. This technology enhances scientists' ability to interact with complex data and has been instrumental in projects like the development of a COVID-19 vaccine.
Fabricated Metals
The manufacturing processes in this sector are enhanced by game-based simulations and precision tools:
- Simulation and Visualisation: Game engines are used to create precise simulations of manufacturing processes, improving efficiency and accuracy in the production of fabricated metal products.
Publishing and Audiovisual
Game engines play a crucial role in producing interactive media and advanced visual effects:
- Visual Effects: The cinematographer of Disney+’s "The Mandalorian" praised game engines for speeding up production and improving the final product by offering real-time views of the finished VFX. This technology reduces the need for physical props and locations, enabling more sustainable and cost-effective productions.
- Virtual Production: Studios like Industrial Light & Magic and Film Soho utilise game engines to create dynamic, photo-real digital landscapes, enhancing the production of films and TV shows like "Thor: Love and Thunder" and "Rogue One: A Star Wars Story".
Aerospace and Marine
These industries utilise game technology for simulations and training modules:
- VR Training: Companies like Neptune Energy use VR applications for offshore worker training, allowing them to interact with realistic 3D models of platforms from onshore. This reduces the need for travel, lowers costs, and enhances safety.
- Digital Twins: Equinor employs digital twin solutions to navigate installations and collaborate in real-time, improving project development and operational efficiency.
