Scotland's video game industry, which gave birth to the Grand Theft Auto franchise, has grown from 15 companies in 2010 to about 130 in 2024, with turnover rising from £38.1m to £339.7m, but developers say sustaining studios and retaining talent remain significant challenges.
The original Grand Theft Auto was built by Scottish studio DMA Design, laying the foundations for what became one of the most successful video game franchises in history. "It was entirely the work of a Scottish team, all novices, we had no games design degrees at that point," says Brian Baglow, who worked as a writer on the game. "The only people who believed in it were DMA Design. The publisher wanted to kill it."
DMA Design later became Rockstar North, moving to Edinburgh and employing more than 1,000 people. But the story extends beyond GTA. Dundee-based 4J Studios, co-founded by Chris van der Kuyl, adapted Minecraft for consoles. Van der Kuyl estimates those console editions have sold about 70 million copies. He says Scotland is now recognised internationally as one of the leading places to make games, comparing its reputation to Sweden and the west coast of the United States.
Abertay University in Dundee launched the world's first computer games degree in 1997, helping establish a formal pathway into the industry that van der Kuyl says created a flow of new talent crucial to its growth. “Without a talent pipeline and new people coming into the industry, there would be no industry.”
But Glasgow-based Screen Burn co-founder Jon McKellan says Rockstar's dominance can make it difficult for smaller companies to attract the same attention. He describes Rockstar as “a massive, immovable object” within Scotland's games sector. “It's kind of like if you spend all your water on the one plant, you'll have one great tree and the rest of it will die out.”
McKellan says the biggest challenge is creating enough opportunities to sustain and grow studios, with many graduates struggling to find work. "We're maybe hiring one or two people a year, we can't absorb every graduate that's coming out."
Baglow says the biggest challenge today is not making games but finding players. “The challenges facing developers is not making video games, it's now user acquisition, as in finding players.” He says studios can need a major commercial hit to survive. However, he notes that expertise built within game studios, including user engagement and digital design, could be applied in other industries such as healthcare, education and financial services.
For Baglow, Scotland's challenge is no longer proving it can create successful games, but ensuring the industry has the investment and support to build on that success. "The fact that not only has it achieved the success it has, but it's still being made here in Scotland, should be seen and championed as our biggest cultural export ever."
Analysis
Why This Matters
- Scotland's games industry is a significant economic contributor, with turnover nearly £340m, but its growth may be uneven due to the dominance of one large studio.
- The sector's ability to retain talent and absorb graduates will determine whether it can sustain its global reputation as a development hub.
- The skills developed in game studios, user engagement, digital design, are increasingly valuable in other industries, offering potential for diversification.
Background
Scotland's video game industry emerged in the 1990s with DMA Design in Dundee, which created Grand Theft Auto. The sector grew through formal education pathways like Abertay University's games degree and successes such as 4J Studios' Minecraft ports. By 2024, about 130 games companies operated in Scotland, but Rockstar North remains by far the largest employer.
Key Perspectives
Brian Baglow (writer on original GTA, industry voice): Celebrates the franchise's continued creation in Scotland as "our biggest cultural export ever." Highlights that the main challenge now is user acquisition, not development, and that game industry skills can apply to other sectors. Stresses need for investment and support.
Chris van der Kuyl (co-founder, 4J Studios): Emphasises growth and recognition, crediting Abertay's degree programme and a talent pipeline for the industry's expansion. Notes that Scotland is now seen internationally as a leading games making location.
Jon McKellan (co-founder, Screen Burn): Points to the challenge of Rockstar's dominance, describing it as "a massive, immovable object." Says smaller studios struggle to attract attention and cannot absorb all graduates. Argues that with the right opportunities, Scottish talent can create "a wave of cool content."
What to Watch
- The commercial performance of Grand Theft Auto VI, which could bring further attention and investment to Scotland.
- Whether smaller studios like Screen Burn can secure funding for sustained growth, given the pressure for breakout hits.
- Government and industry efforts to create more opportunities for graduates and retain developers in Scotland.
Checked
12 claims in this story checked against 1 source: 10 supported.
Show each claim
- Partly supportedScotland is a leading games centre.BBC News: “Van der Kuyl believes Scotland is now recognised internationally as one of the leading places to make games”
- SupportedGrand Theft Auto VI is nearing launch.BBC News: “Grand Theft Auto VI is scheduled to launch on 19 November”
- SupportedThe original Grand Theft Auto was built by Scottish studio DMA Design, laying the foundations for the franchise.BBC News: “The original GTA was built by Scottish studio DMA Design, laying the foundations for what would become one of the most successful video games franchises ever made.”
- SupportedThe number of games companies in Scotland grew from 15 in 2010 to about 130 in 2024.BBC News: “Scottish government figures show the number of games companies operating in Scotland was about 130 in 2024, up from just 15 in 2010.”
- SupportedIndustry turnover rose from £38.1m to £339.7m over the same period.BBC News: “Over the same period, industry turnover grew from £38.1m to £339.7m.”
- SupportedDevelopers say sustaining studios and retaining talent remain significant challenges.BBC News: “McKellan says the biggest challenge is creating enough opportunities to sustain and grow studios in Scotland, with many graduates struggling to find work in the sector. He says Scotland already has the creative talent to compete internationally, but needs more opportunities to keep developers in the country.”
- SupportedBrian Baglow said, “It was entirely the work of a Scottish team, all novices, we had no games design degrees at that point.”BBC News: “"It was entirely the work of a Scottish team, all novices, we had no games design degrees at that point," says Brian Baglow, who worked as a writer on the game.”
- SupportedBaglow said, “The only people who believed in it were DMA Design. The publisher wanted to kill it.”BBC News: “"The only people who believed in it were DMA Design. The publisher wanted to kill it," he says.”
- SupportedDMA Design became Rockstar North, moved to Edinburgh and employed more than 1,000 people.BBC News: “Over the last three decades, the game has sold hundreds of millions of copies while DMA Design became Rockstar North, moving to Edinburgh, and employing more than 1,000 people.”
- SupportedVan der Kuyl estimates the Minecraft console editions adapted by 4J Studios have sold about 70 million copies.BBC News: “He estimates that those console editions have sold about 70 million copies.”
- Partly supportedVan der Kuyl says Scotland is recognised internationally as one of the leading places to make games.BBC News: “Van der Kuyl believes Scotland is now recognised internationally as one of the leading places to make games”
- SupportedBaglow said, “The challenges facing developers is not making video games, it's now user acquisition, as in finding players.”BBC News: “"The challenges facing developers is not making video games, it's now user acquisition, as in finding players," he says.”
