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.
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.
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.”