For many people around the world, it came as a shock with the United Kingdom surprise decision to leave the European Union.
A large number of citizens have come together in a historic campaign to leave the European Union. But now what remains to be seen is how will it affect the Gaming and technology sector.
Even though Britain finally exit from the EU would only be possible by 2018 but their decision have apparently left every business community live in the year of uncertainty and what the future holds for them.
The United Kingdom gaming industry is worth $3.83 billion and is known as the sixth largest market for gaming spending in the world.
UK has tied up with local currency exchange rates for pricing of games and hardware in the UK. So with the devaluation of pounds just after UK announcement to leave the EU it would certainly affect the price of video games.
Many gaming operations are based in UK and export talent from around the world. For games like Candy Crush Saga and Clash Royale, it is a billion dollar market.
Even though support of the people remain quite high but due to the devaluation of pound it will have a direct impact on the increase in the price of games and will for sure affect the purchasing power of the consumers.
This turmoil will directly have an effect on gaming operators who were looking for investment in this market. Global companies like Microsoft have already protested on UK decision to leave the EU.
But as of now companies such as Sony, EA, Ubisoft, etc. which have invested a large sum of their money in creating development studios have refused to comment on what the future hold for them.
But some UK game developers have already raised doubts about if they will get an opportunity to work at other studios in Europe. Also, one other concern has been that the new tax environment for video game industry won’t be as favorable as EU
But as for now all the gaming organization set up in the UK or UK based operators set up in different part of Europe will have to wait and see how everything will play out for them shortly.
While if we look at the technology sector, it was found out by the technology industry group survey that about 84 percent of British technology firms still wanted to be part of the European Union and they were worried about the damage to the reputation of London as a technology hub.
In recent time London Technology firm has seen a rise and now with British exiting from the EU it apparently would make it near to impossible to secure funding for start-ups.
Along with this British exit will also harm the tech industries to hire skilled workers from around the world.
For now, both the technology and gaming industry which are the biggest contributor to British economy will have to wait with bated breath as to see what the future holds for them.