GREENSTONE RESEARCH FINDS THAT ONE THIRD OF MPS WANT INCREASED REGULATION FOR VIDEO GAME BUSINESSES

There are significant regulatory challenges ahead for the video game industry that it will need to navigate to maximise returns

Greenstone Research’s new report, ‘Ahead of the Game’ shows that 39% of MPs think that there needs to be more regulation of the video game industry. Only 2% think there should be less regulation.

The report shows that 56% of references to video games in Parliament in 2020 have been negative in sentiment, with only 23% being positive.

This comes as significant political and regulatory risks face the video game industry, with loot boxes and online safety top of politicians’ minds.

London, 09 December 2020: Greenstone Research has today released new research which shows that the video game industry is at risk of increased regulation in the United Kingdom. Polling commissioned for ‘Ahead of the Game’ shows that 39% of MPs think that there needs to be more regulation of the video game industry. (Graphed poll results image available here.)

This week the UK Government launched a call for evidence as part of its review of the Gambling Act 2005. There have been many criticisms of loot boxes by parliamentarians in the last two years. Polling commissioned by Greenstone Research shows that 62% of MPs are either moderately or extremely concerned by loot boxes. This puts UK loot box revenue in the regulatory crosshairs.

It is also expected that the Government will launch its long awaited Online Harms proposals next week. This will capture in its scope popular video games such as Minecraft and Fortnite. Greenstone Research’s polling shows that 70% of MPs are concerned with young gamers staying safe in online video games. Businesses that fall foul may face significant fines.

This research comes as people have been playing more during lockdown. Recent research has shown that video games have helped people to cope with the pandemic and that play time is positively correlated with wellbeing.

McKinsey & Co estimate that around 30% of most companies' earnings are at risk of regulation in one form or another. As investor interest in video game businesses continues to grow, there are significant regulatory challenges ahead for the video game industry that it will need to navigate to maximise returns.

Ben Greenstone, Director of Greenstone Research, said: “Video game businesses have typically seen growth in players, revenues and investor interest during lockdown. This is great news for a brilliant industry, but in order to maximise returns it is important that businesses - as well as their investors - are fully prepared for the regulatory challenges ahead”.

Greenstone Research is an independent consultancy providing subscription research and bespoke projects on political, regulatory and policy issues relating to technology, media and entertainment.

Greenstone Research combines deep expertise, unrivalled networks and expert insight to allow clients to assess and price the risks and opportunities presented by politics, policy and regulation. This helps them to maximise returns and minimise risks.

Greenstone Research works primarily with the investment community to help them understand and price political, policy and regulatory risk.

For more information please visit: www.greenstoneresearch.com