Gaming companies in the UK grew by 22% in 2023, according to a new report from the RSM UK.

Per the analytics firm’s data, the market sector grew from 2,008 to 2,450 last year. Layoffs in the market drove the creation of new gaming firms.

East England saw the most new gaming studios among the UK’s regions as it grew by 80%.

Meanwhile, the west region was second with 32% company growth, and London was third as it expanded by 30%.

“It’s encouraging to see further growth in the gaming industry despite widespread challenges, suggesting there’s reason to be optimistic. But there’s no denying that layoffs in the sector were rife throughout last year, and 2024 got off to an equally difficult start,” said Richard Heap of the RSM UK.

“…While layoffs are often seen as damaging to the gaming industry, they can fuel growth, as these individuals may have taken the leap of starting their own company. With more staff reductions made at the beginning of this year, UK gaming incorporations could be set for another uptick.”