Developing computer games and off-the-shelf software

The UK video games industry contributes £8.6 billion in Gross Value Added (GVA) annually and supports over 75,000 jobs. In 2024, the consumer market reached £7.63 billion, with software revenue at £5.14 billion. Northern Ireland hosts 40+ studios contributing £200 million to the local economy, boosted by global events like Gamescom.

Within this varied industry, there are many different sectors of potential interest to businesses. These include:

• concept, prototyping and AI integration
• research and development in gaming and software sector
• art and design, 3D modelling, user interfaces
• marketing and selling your games product
• support material - eg manuals, brochures and advertising
• cultural adaptation through translation and localisation
• programming
• testing
• publishing and broadcasting
• distribution, including cross-platform on PCs, mobiles, consoles and web

To exploit business opportunities effectively, it is important you have a sound knowledge of different platforms - the architecture and framework which allows the software to run - and cross-platform development.

Cross-platform development involves the creation of a single program that operates on different computer architecture and operating systems.

You should also have a good understanding of:

• Proprietary software - software developed by a supplier and made available to users under a licence eg off-the-shelf software packages.
• Open source software - software made available under a licence that allows the licensee to make copies and pass them on to another individual. This gives you access to the source code, allowing you to develop and tailor the software to your own business requirements.

Read about the advantages of open source software for business.

For information on software licensing, see intellectual property in games and software.

Starting a video games business

There are a number of areas you need to consider when starting up a business in the video games and software industry. It's a good idea to ask:

• What is the unique selling point of your business?
• What are your strengths and specialities?
• What are your weaknesses?
• Where will you/your product fit into the industry?
• What partnerships can/should you create and maintain?
• What professional advice do you need?

Find guides to help you with starting a business.

For facts, stats and other useful information about the UK and global games industry, visit Ukiepedia.

Research and development (R&D) underpins success in competitive games and software markets. It validates product-market fit, identifies a unique selling proposition, and qualifies eligible businesses for certain grants and even tax creditsIf 

Key R&D activities in gaming and software include:

• ensuring that your product is both needed and wanted
• checking it is not available elsewhere under a different guise
• checking that it is not under development elsewhere - you can research this through industry networks
• producing a solid brand with real sales potential

Time spent on research is essential and valuable. It is important that you understand the industry and research, in particular:

• your target audience - determine what they want, what they will and will not buy, how their buying process works, whether they buy into a brand (eg a series) or a one-off product
• potential markets
• your competitors
• your unique selling point (USP)
• the history of the product life of similar or comparable products

It's always a good idea to take professional advice and consult those with experience in the industry. For more information, see how to manage your research, design and development.

Businesses in Northern Ireland may also be able to get help with R&D from Invest Northern Ireland (NI).

Good project management is key to the success of any R&D project. There are various models for managing projects, including agile project management - a method of delivering projects in a highly flexible and interactive manner.

Companies in the UK are turning to other regions such as China, India, and Eastern Europe to outsource operations. The benefits of outsourcing include increased efficiency and lower costs. However, you should consider the loss of direct control over a project and quality assurance.

Most computer games and software are developed in English. However, the globalisation of popular culture demands multi-language versions. Most successful games launch in more than five languages simultaneously, with top titles supporting 20+. Localisation is thought to increase lifetime revenue by 200-300% through broader market access.

It's important to consider translating and localising the games or software you develop for cultural fit, legal compliance and technical functionality across regions and markets.

What to translate in software products

Software translation involves extracting and re-integrating the translatable elements of your software, including:

• user interface - menus, buttons, error messages
• graphics and assets, including text in images, icons and cultural symbols
• user guides and documentation
• audio containing voiceovers, subtitles
• packaging and marketing literature
• licences and legal disclaimers

Consider AI dubbing tools and other services for easier and streamlined translation workflows.

Cultural localisation examples

The linguistic translation is not the only thing to consider - you should also localise your product. Localisation involves modifying your product with the customs and culture of your target market in mind.

To ensure your software is compatible with your market, you should consider:

• cultural sensitivities - eg some countries may be more sensitive to violence
• legal differences - eg age ratings for games may differ depending on country of release
• visual identity - eg character design and colour symbolism in the context of local culture
• payment systems – localising for regional wallets (eg WeChat Pay)
• dates and formats – regional differences such as DD/MM vs MM/DD

It's important to take localisation decisions early, so the tools and structure for changes can be built into the development. Test the localised material with native speakers at every stage of development, and consider outsourcing, partnering with a local organisation or selling the rights to localise your product and produce it in another region. However, you should ensure you retain control of your brand.

Intellectual property (IP) forms the core value of games studios and software - from proprietary engines to iconic characters. Well-managed IP forms an essential part of your marketing and branding, and enables merchandising, sequels, licensing deals and acquisition exits. 

UK law treats software as literary works under the Copyright, Designs and Patents Act 1988.

What IP protection covers in games and software industry

The following rights can be used to protect IP in software and games design:

• copyright - protects source code, artwork, music, dialogue, UI layouts (automatic, 70 years post-mortem)
• trade marks - protect studio names, game titles, logos (you must register for 10-year renewable protection)
• patents - protect novel algorithms, VR mechanics, anti-cheat systems (you must register; 20 years protection, requires inventive step)
• design rights - reserved for character models, UI layouts (3-25 years protection, it can be unregistered or registered)
• trade secrets - can apply to engine technology, balancing formulas (indefinite protection with non-disclosure agreements is possible)

Game mechanics and ideas remain unprotected - only their specific expression.

Invest Northern Ireland can provide IP support for local businesses.

Software licensing essentials

A software licensing agreement protects the author's copyright and IP rights by placing restrictions on the end-user in relation to the usage of the application. The software licence sells the use of the software, not the software itself. Most software is covered by copyright.

If you are considering becoming a software publisher, it is critical that you licence your software very carefully to retain your IP rights and to ensure you are able to generate revenue from your work.

A software licence usually comes in one of three major forms:

• a proprietary licence
• a free licence
• an open software licence

A licence can be an author licence that stipulates how the rights holder wants the software to be used. A developer licence allows the end-user to use a computer program to develop an application, eg for a smart or android phone.

Under the licence, royalties are payable. These are usage-based payments made by the licensee to the licensor for the ongoing use of software or an application.

A proprietary software licence is typically provided with commercial software and allows the user to use a program but the software developer retains ownership of the program and source code. Read about types of software licences for business.

An open source licence makes the source code available for everyone to use. Open source licences are also usually free and allow for modification, redistribution, and commercial use without having to pay the original author. See open source licensing and legal issues.

For more information, see digital intellectual property and your business.

Getting your sales and marketing right is crucial to selling your product successfully. Successful games typically require 30-50% of total budget allocated to marketing, targeting audience research, platform optimisation and community engagement to convert players into buyers and advocates.

Marketing strategies for software and games

Creating a marketing strategy will help you identify potential customers, understand the market and target them with appropriate products or services.

Marketing strategies for games and software focus on building excitement well before launch through digital channels like TikTok gameplay clips, YouTube developer updates, Twitch streams and Discord communities that engage players directly. Pre-launch hype via playable demos, Steam Next Fest participation and closed beta tests creates urgency and wishlists, while micro-influencers often deliver the best return on investment through authentic endorsements. 

Complement these with targeted paid acquisition on Facebook/Instagram ads, mobile-focused AppLovin campaigns or Google Universal App Campaigns, alongside traditional PR in specialist games press, plus podcast features that reach dedicated audiences

Sales strategies for software and games

To increase the chances of your product being successful, you should ensure you understand and plan for the following at an early stage in development:

• the industry
• your target market(s) - eg whether they are seasonal or niche markets
• your competitors
• economic factors
• timing of bringing your product to market
• your unique selling point

You should look at developing the appropriate sales channels for your product to engage the customer through:

• direct sales
• franchising
• selling through agents /publishers- especially in foreign markets
• online selling - through your own website or other digital storefronts
• economic and logistical considerations - warehousing, supply chain, fulfilment - ensure you can provide stock levels to maximise your sales and profits - and returns

Successful product launches require a full understanding of your industry landscape, target markets and competitors from the earliest development stages. Identify whether your audience represents seasonal gamers, niche professional users or evergreen casual players, then align release timing with peak demand periods like holiday sales or back-to-school seasons.

For more information, read about selling online.

Branding of games and software

You should carefully consider all elements of the branding for your product, including:

• packaging
• localisation - see translation and localisation of computer games and software.

Depending on your target market and audience, you should also consider designing, or redesigning, products, services, processes or systems to prevent or repair damage to the environment, society and the economy. 

For more information, read about branding for our business.

Games and software businesses must navigate complex regulations protecting consumers, creators and platforms. Essential compliance areas cover:

• intellectual property rights and licensing
• consumer protection - including rules around refund, cooling-off periods
• age ratings and classification - including PEGI (Europe), ESBR (US), CERO (Japan)
• advertising laws
• data protection and privacy - with UK GDPR and the Children’s Code requiring privacy policies, consent banners, parental verification for under-13s, and more
• gambling legislation and age verification for loot box systems
• responsibilities concerning staff and employment practices

Non-compliance can put businesses in jeopardy, risking takedowns, fines or legal action.

For detailed advice on regulations, you should seek expert advice. Search for solicitors in Northern Ireland.

There are also various trade associations, which protect the interests of businesses in the industry:

• the Association for UK Interactive Entertainment (UKIE) is the UK's leading video games trade body
• the Independent Game Developers' Association (Tiga) is the trade association which represents the interests of independent games developers
• the Business Software Alliance (BSA) is the trade organisation representing the global commercial software industry
• the Federation Against Software Theft (FAST) represents both software publishers and users, and aim to combat software piracy
• techUK, the UK trade body for the digital technology industry aims to improve growth in the industry and to provide its members with knowledge and advice