Games giant Sega is making a welcome return to the West Midlands with the launch of a new boutique studio creating the next generation of video games technology.
The company, known worldwide for blockbusters such as Sonic the Hedgehog and Football Manager, has chosen Solihull to set up a product development team which will focus on innovative new platforms, with the creation of 15 jobs.
The gaming giant has not disclosed the titles to be developed in Solihull, but said the studio currently has a project under way due for release in late 2012 described as “a unique action adventure experience”.
The move marks a return to Solihull for Sega, after it pulled out of its 60-strong Sega Racing Studio at Blythe Valley Business Park in 2008 over concerns about profitability.
The Japanese firm went on to sell the studio to local rivals Codemasters, which took on 40 of its staff.
A handful of Sega staff were retained by the firm to make up the Technology Group – a crack team of games experts who travel the world helping Sega developers explore the possibilities of new platforms, including movement-controlled consoles like Microsoft’s Kinect and the PlayStation Move.
Two members of the Technology Group will work with the new studio, which will be headed by Chris Southall who has more than 16 years technical, design and production experience.
Sega Europe senior vice president of production Gary Dunn said: “I am genuinely excited about the prospect of opening another studio, particularly one co-located with our Technology Group.
“We have seen some great and truly innovative prototypes coming out of the designers, artists and tech staff that form our Technology Group, and we fully intend to keep innovation at the heart of the new studio by keeping close links with the Technology Group who will ensure that this happens.”
The move by Sega builds on a thriving West Midlands computer games sector – the region is home to global firms like Codemasters and Blitz Studios, which are based around the Leamington Spa area.
Birmingham hosts an operation belonging to Microsoft subsidiary Rare Games, which is working on titles for the Kinect controller allowing players to use their own movements to interact with the game.
Wouter Schuitemaker, investment director at inward investment organisation Business Birmingham, said: “The decision of such a major player in the gaming industry to open a design studio in the region reflects our lead in this sector, and the increasing strength of our creative, digital and R&D talent pool.
“The West Midlands is home to 21 per cent of the UK games workforce with 64,000 people employed across the region’s wider creative, digital and ICT industries.
“This announcement will further boost our credentials and attract global attention to what we have to offer. With the Chinese Premier’s visit to MG, its recent opening of a £5 million design studio at the Longbridge site, and Sega’s announcement, our international reputation as the UK’s hub of games, serious games, interactive digital media and design is growing rapidly – we expect it to be a key growth area for the region in the future.”
But despite the strength of the West Midland sector, the good news from Sega comes at a time when some parts of the UK games industry are feeling less positive.
TIGA, the industry’s trade association, has been warning that the UK is in danger of seeing a games developer brain drain as other countries such as Canada and France have put incentives in place to support their home-grown sectors.
It has cited a report by the Canadian government which recently suggested that Canada was extracting games development talent from the UK thanks to more supportive policies.
TIGA has been calling for better tax incentives and other measures to support the UK’s video game sector.
