Courier reporter Graeme Strachan looks at the importance of the computer games industry in Dundee, which is now a key part of the city’s economy.

THE BILLION DOLLAR computer games industry has been an important part of Dundee’s economic make-up for more than 20 years and continues to produce new generations of highly-skilled people.

Dundee is a major international centre and the largest concentration in Scotland of games companies.

The city is responsible for 10% of Britain’s digital entertainment industry, with an annual turnover of £100 million.

Groundbreaking computer games such as Lemmings, F1 2000, Grand Theft Auto, State of Emergency and Denki Blocks have been developed by Dundee companies.

“Since the very early days of computer gaming, Dundee has been an important location for the industry,” said the convener of Dundee City Council’s economic development committee, Lord Provost John Letford.

“The high-value, highly creative and highly mobile workforce choose to come to Dundee, not because it is seen in many quarters as one of the cradles of the modern computer games industry, but because it is a such a good place to live and work.”

There are several games companies operating in Dundee and they have been inspired by pioneers such as David Jones and Chris van der Kuyl.

A former Abertay University student, Mr Jones created DMA Design in 1988 with a £3000 redundancy payment from his job as an electrical engineer at Timex and went on to create best-selling titles such as Lemmings and Grand Theft Auto.

He is now CEO of Realtime Worlds, which has recently released Crackdown for the Xbox 360, and is responsible for employing over 200 people of multi national origin, primarily in Dundee.

Mr van der Kuyl set up his company Vis Entertainment straight from Dundee University using a £5000 loan from the Prince’s Trust.

He was installed as president and chief operating officer of Californian software firm BAM! Entertainment after a merger with VIS in 2003.

That same year he was named Scottish Entrepreneur of the Year 2003 ahead of 28 other Scottish businessmen.

Mr van der Kuyl has held a number of senior posts in various national organisations, including the chairman’s seat at 4J Studios, The Independent Games Developers Association (TIGA) and was visiting professor in digital entertainment at Abertay University.

The university has gone on to create some of the world’s first computer games technology degrees.

In 1997 the university’s school of computing launched the world’s first MSc in software engineering (games and virtual environments).

The following year, students from around the world enrolled on the first university level degree course in computer games writing, the BSc (Hons) in computer games technology.

Today, the university houses one of Europe’s few centres for research in computer games and virtual entertainment.

Realtime Worlds studio manager Colin MacDonald said the video game market is increasingly important to Dundee. “We’re now employing 220 people in Dundee and these are high-value jobs,” he said.

“We attract some of the best engineers and artists from around the world which provides a real boost for the local economy. There is tremendous potential for that number to grow and the scope for doing so much more.

“The games industry is worth billions of dollars but so much of the money ends up in other countries.

“Companies will go where the price is cheaper, even if development in the UK is of a higher quality.

“With more support and awareness we can continue to grow because we have got a great bed of talent in Dundee.”

“Canada, France, Australia and the US already offer tax breaks to studios.

“For example, in Canada they can get back 40% of the cost of producing a game, which makes it increasingly difficult in attracting companies over here.

“So in terms of us creating another Lemmings, or another Grand Theft Auto, it’s all the more difficult just because it’s 40% cheaper elsewhere.”