Survey details declining workforce as 80 per cent of new companies focus on download rather than retail.

TIGA, a trade association which represents the UK game industry, has revealed new findings from a census of 278 UK-based studios.

The survey shows that over the last two years the number of people employed by the UK game industry has fallen by nine per cent.

TIGA noted that 131 businesses closed during the period, most of them development studios, and 145 companies were set up. Of the start-ups, 80 per cent had a focus on digitally distributed games.

Richard Wilson, TIGA CEO, said the rapid growth of the iPhone and Facebook game markets have allowed studios working in that area to excel: “Games studios in this space often have a higher potential to be stable and profitable, better able to raise finance, create original new games, retain copyright and attain greater financial stability.

“Network gaming grew in 2009 to represent 38 per cent of the global video games market,” he said. “Today, the largest games audiences and fastest growing games companies the industry has ever seen are in network gaming, particularly on Facebook.”

TIGA recently raised concerns about forthcoming government immigration plans.

Check back soon for an in-depth report from our visit with TIGA today.