The whole world was surprised after the United Kingdom voted to exit the European Union. Dubbed, "Brexit," the nation's move will certainly result to massive economic and cultural changes, including the British pound dropping to its lowest value in three decades.
Brexit will cause huge ramifications to several industries, including the gaming sector. The full effect will take years to complete, although people in the country are already concerned about the challenges that they have to face.
Phil Harrison, a former Microsoft corporate vice president and Sony Computer Entertainment Worldwide Studios president, told Polygon that Brexit is quite complicated and the effects will depend on where people are in the value chain. For gamers, he thinks that there will not be a huge difference. The prices of games may change when tariffs are resolved, although he finds it unlikely.
The bigger effect of Brexit may be felt on studios, especially in recruiting diverse staff. At present, citizens of the EU's member states can live in any country easily. However, U.K.'s departure will make it challenging for those born outside the country to transfer due to more immigration restrictions. As a result, gaming studios may not have the same variety in terms of talent that will ultimately create more dynamic and exciting games.
VentureBeat cited Michael Pachter, a research analyst at Wedbush Securities, in saying that access to EU talent by U.K. developers will be limited. The upside is the lower cost of developing games, which may compel publishers to work within the country. Furthermore, sales in the U.K. will be less profitable due to the effects Brexit in currency translation. If prices are not increased the market will be less profitable compared to others.
Game publishers Chucklefish and Team17 stated that the gaming industry is now entering a period of uncertainty. Chucklefish said that they were shocked and disappointed with Brexit. Although there were rumors that the studio will exit England soon, they announced that they will remain in the meantime. According to Team17, they hope that their progress on the local level will continue, and they plan to continue growing through their reliance on talented people.
Other game makers were optimistic about Brexit. Disney stated that the U.K. games business is very lucky to have a strong trade association with UKIE. Moving forward, they expect a good business environment and successful exporting sector. More updates and details are expected soon.
