British game developers are facing a troubled future, despite a bumper year for the industry. Leading game developers in the North of England have united to form Game Republic. Its chairman, Elliot Gay, explains what they hope to achieve.
The developers of Worms 3D back the project
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There is something of a quiet revolution going on in Yorkshire which, with a bit of luck, could shift the whole balance of power within the UK video game industry.
A group of us developers have decided it is time we took matters more into our own hands and formed a consortium with significant bargaining potential.
Seven of the region's leading developers, including Team 17, Revolution and The Code Monkeys, have been the driving force behind the move.
Now, after our official launch in Leeds, a further 10 developers have signed up and we are confident that by the end of July most of the other 40 games companies in the region will have joined the consortium, making it the most powerful grouping of developers in the UK.
So why have we come together to form Game Republic and what does this say about the state of one of the UK's most important creative industries?
Challenges ahead
For one thing, we play in a difficult marketplace and our region, once a rich cluster of gaming development which had the likes of Sony and Infogrames, (now known as Atari), as its investors, needs to reassert itself once more.
As a recent government report highlighted, the UK games development sector punches well above its weight. It is responsible for 16% of world sales from a base of 8% of the market.
But now there are many threats to indigenous games developers.
Competition is growing from Eastern Europe, India and the Far East for the 'grunt' developer work that has so often kept UK studios viable in the quiet periods between working on large and high risk projects.
With the multi-national games publishers controlling the heavy resources to invest in research and development, the coming of the next generation of consoles (Sony's PlayStation3 and Microsoft's Xbox2) brings new risks for UK developers.
Against this backdrop, there is the more immediate issue of the perceptions of the game development industry by the wider business community, regional and government agencies and, crucially, by investors.
Let's just say the somewhat individual attitudes and commercial behaviour of many developers has raised suspicion about the industry's aptitude and readiness to conform to established business practices, leading to a chronic lack of attention and financial support and backing.
With the formation of Game Republic we are recognising and accepting the need for change.
The impetus for the move has come from The Independent Games Developers Trade Association, our own trade body, and Yorkshire Forward, the regional development agency who have to be applauded for both their commitment and financial investment in the project.
Make no mistake, Game Republic is emphatically not just another developers' vacuous talking shop.
Gaming force
Consortium members have committed to supporting each other by sharing spare capacity and outsourcing each other.
They also intend to pool training and business practices to create a formal, homogenous code of best business standards to which all members will conform, improving quality of work, employee development and calibre of the products we produce.
Simpsons Skateboarding was developed by Code Monkeys
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In the latter respect we already have an established track record of quality products. Team 17 are legends in the industry for their world blockbuster game, Worms 3D.
The Code Monkeys have topped the best selling charts with Shrek Treasure Hunt and The Simpsons Skateboarding.
And Revolution Software made their name with Broken Sword to mention but a few of the region's great commercial successes.
We confidently expect this to be successfully built on with a succession of strategies implemented by Game Republic to flush out new talent and innovative creating thinking amongst the region's developers.
The consortium has already secured a three-year funding package with Yorkshire Forward, in conjunction with Screen Yorkshire, the local screen and digital industries body.
Other funding is on the horizon for specific projects and programmes, so we know our future, and our collective ability and strength to punch above our weight with the international publishers, is assured.
We're confident we've found the best way to meet the future and make the best of it.

Elliot Gay is Managing Director of The Code Monkeys Ltd and is Chairman of Game Republic.