Things are looking up for the UK's gaming industry after it was revealed that both employment and investment increased during 2012.

According to a report commissioned by Tiga, the industry's trade association, during the 12 months the number of studios and creative staff rose by 118 and 336, respectively, boosted by the on-going popularity of mobile phones and tablets.

The sector was found to have accounted for £947m of 2012 UK GDP, up £35m on the previous year.

However, it was not all good news, with a fifth (21%) of start-ups opened in 2010 failing to survive.

The organisation's Chief Executive Richard Wilson said: "The sector's return to growth has been driven by three factors. Firstly, the increasing prevalence of mobile and tablet devices have created a growing market for games: studios are setting up to meet this demand.

"Secondly, the closure of big console-based studios has been followed by an explosion of small start-up companies.

"Thirdly, the advent of games tax relief, which Tiga was instrumental in achieving, is already stimulating growth.

"Our challenge now is to help build sustainable independent games development and digital publishing businesses."

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