Government's £4m video games fund pays out to SMB developers in sector now valued at £84bn

£50,000 funding packages distributed among leading SMB development houses

The UK government has followed through on its promise to distribute a £4m investment among small-to-medium-sized video games developers.

First announced back in October 2015, the UK Games Fund - then known as the "Video Games Prototype Fund" - was to be dispersed in packages of £50,000 to support individual projects at individual games developers. A second round of funding in £25,000 packages is also due to initiate, with a deadline for applications running until mid-April 2016.

Recipients of the funding include Dundee's Ruffian Games, who have previously worked with Microsoft on first-party Xbox 360 titles, Hewson Productions - founded and still run by Andrew Hewson, who as Hewson Consultants published many of the games that marked the beginning of the UK industry back in the eighties - and Newcastle-based Nosebleed Interactive, who are currently "working together with Sony Computer Entertainment on a unique PlayStation game".

The UK games industry is now worth an estimated £84bn to the UK economy.

The UK Games Fund is managed by UK Games Talent and Finance (led by Digital Catapult's Paul Durrant, who also conceptualised the fund itself) and, according to the government's announcement, is also to "explore joint initiatives with organisations" including Digital Catapult, BAFTA, Creative England, Creative Scotland, the BFI, Ukie and Tiga.

The latter two trade organisations have been fighting for games industry assistance such as tax breaks for years, with CEO of TIGA Richard Wilson telling Computing back in 2012 - when the government finally award industry tax breaks - that "there is a God - he's answered our prayers".

Ed Vaizey, Minister for Culture and the Digital Economy, offered the following words after the UK Games Fund announcement:

"The UK is home to some of the world's most successful video games and this cash boost will help these games companies grow their business and create the blockbusters of tomorrow.

"I hope this fund will give them the boost and extra support they need and urge other games companies and developers to apply for funding."