UK Engages Video Game Business at E3; UK Trade & Investment Releases MPEG to Showcase Nation's Attributes and Commitment to Growing the Video Gaming Industry.

LOS ANGELES -- With the world's third-largest video game market and Europe's highest concentration of independent development studios, officials from UK Trade & Investment, the UK Government's business development agency, will be at E3 to explain why the UK is the European partner of choice for the US and international video games industry.

All the major international players -- EA, Activision, THQ, Sega, Atari, Microsoft Xbox, Sony Computer Entertainment, Codemasters and Nintendo -- have significant operations in the UK. Electronic Arts chose the UK to locate its European headquarters and then acquired a major development studio.

"The leading video game companies have found that the United Kingdom offers terrific business opportunities, in particular through collaboration with some of the world's most innovative and creative games developers and publishers," said David Slater, Her Majesty's Consul and UK Trade & Investment's Director for the West Coast. "More than 22,000 people work in the UK gaming industry -- 6,000 in the development sector alone."

In addition to helping overseas companies develop their business in the UK, the UK Government is working in close partnership with the industry to ensure that the UK remains a competitive environment for developing games.

"A highlight is our co-operation on Skillset, the Sector Skills Council for the Audio-Visual Industries. Skillset is proactively tackling the skills needs of the games sector, working with employers -- including big name publishers like EA, Activision and Eidos and SMEs like Blitz Games and Kuju -- to shape the future provision of education and training for the sector," Slater said. "Skillset is also working towards a new games industry accreditation program for UK higher education to ensure that graduates emerge with the optimum mix of skills required by employers. We believe that this initiative is unique, not only in Europe, but elsewhere."

The UK influence on this burgeoning market is continually growing. Eidos' "Tomb Raider" series has sold more than 28 million units and its star, Lara Croft, has spawned two films. Among the other best-selling games conceived and developed in the United Kingdom were: Rockstar Games' "Grand Theft Auto," EA's "Harry Potter" series and Team Soho's "The Getaway." Other innovative games and products of note include Lionhead Studios & Big Blue Box's "Fable" and Sony's "Eye Toy," a USB digital camera that makes the player the star of the game by tracking the player's body movements and integrating them into the action onscreen.

To underscore the United Kingdom's commitment to the video games industry, UK Trade & Investment, the Department of Trade & Investment and the British Council are, for the third consecutive year, sponsoring the UK State of Play Pavilion and the British Gaming Village at E3 to showcase some of the nation's hottest developers and publishers. The exhibition platforms are also sponsored by the Entertainment & Leisure Software Publishers Association (ELSPA), the trade group for publishers, and The Independent Games Association (TIGA), the trade group for the nation's developers. More than 30 UK-based developers and publishers are exhibiting at E3 this year. UK State of Play is in the West Hall at the Los Angeles Convention Center and the British Gaming Village can be found in Kentia Hall.

UK Trade & Investment also this week released an MPEG, which can be found at www.uktradeinvestusa.com/e3, to inform the video gaming industry and media that cover it about the benefits of expanding in the United Kingdom. The humorous video, produced by The Cannery in Hollywood, features a modern-day town crier at a busy urban intersection announcing some of the best features the UK has to offer video game companies.

"We wanted an edgy and industry-targeted device to get the attention of the video gaming industry. Our goal is to inform company decision makers about the unique opportunities that exist in the UK," Slater said. "The MPEG highlights that the UK has the talent pool, the market and infrastructure for US companies to tap into should they decide to develop their business in the UK."

The video games market has seen huge growth over the last 15 years as advances in technology have led to the introduction of affordable, mass-produced games consoles. In that time, the United Kingdom has become the world's third-largest market for video games -- behind the United States and Japan -- and the largest in Europe, ahead of France and Germany. Sales of software and hardware generated over USD 4.1 billion in 2004 and more than 25 million gaming consoles were sold in the United Kingdom between 1995 and 2003 -- enough for every household to own one.

"Ultimately, we want US companies to take full advantage of the opportunities in the UK and maximize their profits," Slater said. "UK Trade & Investment serves as a collaborative partner in the business development process and provides access to all resources that international businesses need to enter the UK and European market. Equally important, we want to introduce UK companies to the US market and assist them to invest, maximize profits and create wealth in the US. It is very much a win-win relationship."

About UK Trade & Investment

UK Trade & Investment is the government organization that both supports companies in the UK doing business internationally and overseas enterprises seeking to locate in the UK. The integrated services offered by UK Trade & Investment bring together a network of business sector specialists and support teams in British embassies and Foreign and Commonwealth Office (FCO) posts overseas, as well as key experts in government departments across the UK.

As a government agency, UK Trade & Investment is uniquely positioned to offer expanding companies access to a growing network of global business advisors and market entry intelligence and guidance on operational issues. With its government connections, in-depth knowledge of UK regional business, ties to leading institutions, and science and technology resources, as well as its global network, UK Trade & Investment is a unique strategic resource for companies that want to operate in the number one business location in Europe. For more information visit: http://www.uktradeinvestusa.com.