How the Gaming Industry and Tech Are Shaping Startup Growth

Gaming isn’t what it used to be. Gone are the days of simple arcade machines and pixelated screens. Today, the industry is a global powerhouse, blending cutting-edge technology with immersive experiences that captivate billions of players worldwide. 

Advancements in the gaming industry and tech are giving UK startups the tools to compete globally, creating dynamic worlds where players connect, develop, and even shop.

For startups and entrepreneurs, this rapid evolution presents huge opportunities. The UK gaming scene, in particular, is thriving, driven by a growing appetite for new experiences.

From casual mobile games to complex social platforms, understanding these trends is crucial for founders aiming to resonate with a diverse, tech-savvy audience.

In this post, we’ll explore how the gaming industry and tech are shaping startup growth. 

1. Cloud Gaming Without Upfront Costs

Rather than relying on expensive consoles or high-spec PCs, players can now stream games directly from the cloud to a wide range of devices, from smartphones to smart TVs. 

This shift removes traditional barriers to entry. There’s no large upfront cost, making it easier and more affordable for anyone to start gaming.

Startups looking to create a startup in the gaming industry can leverage cloud gaming to remove barriers to entry and reach players on any device.

Games designed for cloud platforms often favour shorter, flexible play sessions, catering to on-the-go lifestyles. The rise of cloud gaming also encourages cross-platform multiplayer experiences, making gaming more social and community-focused than ever before.

UK companies are already capitalising on this shift. Valkyrie Hosting, a London-based startup founded in 2025, provides cloud-based game-server infrastructure for indie developers and multiplayer platforms. 

The company recently announced plans to expand with a new data-centre hub in Tampa, Florida, demonstrating the global demand for cloud gaming solutions. This success highlights how UK startups could compete internationally, while supporting a growing domestic market.

Startups can leverage cloud gaming to remove barriers to entry and reach players on any device.

2. Artificial Intelligence and Gaming

From generating immersive worlds to crafting quests and narratives that respond to individual choices, AI is helping developers design games that feel alive and engaging. 

Systems that dynamically adjust difficulty ensure players can enjoy games at their own pace, while AI-driven tools allow writers to produce storylines that react intelligently to player decisions.

On the production side, AI is a game-changer for efficiency. Automated testing, art asset generation, bug detection, and predictive analytics reduce manual workload, allowing smaller UK studios to iterate faster and compete with larger developers. 

A practical example comes from London-based studio Wixot, which integrated generative AI from Layer.ai into the art pipeline for their mobile game, Journey Home: Merge & Stories.

According to Layer.ai, tasks that previously took their art team three days (such as creating in-game items and backgrounds) can now be completed in a single day. 

Over a few months, this approach allowed the team to produce around 150 production-ready assets, freeing up time to focus on creative design and refining the game world. 

For startups, AI offers a way to work smarter, deliver richer experiences, and compete at a global level.

3. Integrating Augmented and Virtual Reality

AR and VR are not just innovative; they’re profitable. AR games businesses can achieve net profit margins of 15–40 % once they move beyond initial launch costs. 

Location-based VR experiences, such as VR arcades, also tend to operate at 10–30 % margins, with well-managed operations reaching up to 25 %.

These technologies allow players to engage with games in entirely new ways. VR delivers fully immersive 3D environments with motion tracking and spatial audio, while AR overlays interactive digital elements onto the physical world.

Mixed Reality (MR) combines both approaches, enabling virtual objects to respond dynamically to geometry and real-world movement. Hand gestures, environmental recognition, and sensor-driven interactions create gameplay that feels personal, dynamic, and engaging.

By investing in AR and VR, developers can differentiate themselves, explore next-generation gameplay, and capture a growing audience eager for interactive, innovative content.

Immersive technologies allow players to engage with games in entirely new ways. 

4. Blockchain Redefining Ownership

Blockchain is a decentralised, secure digital ledger that allows information and transactions to be recorded transparently. In gaming, this means developers can create verifiable digital ownership of in-game items, enabling new ways for players to interact with games and assets. 

By leveraging blockchain, developers can issue non-fungible tokens (NFTs). These are unique digital assets that players can truly own, trade securely, and use across compatible games and platforms. This opens up new revenue streams beyond traditional in-app purchases and gives players a sense of real ownership in their digital items.

Some games are also exploring “play-to-earn” models, where players earn tokens or cryptocurrency as part of gameplay. This aligns engagement directly with rewards and retention.

The business potential is tangible. UK Web3 gaming startup Eterlast secured £3.9 million to build blockchain game ecosystems tied to sports IPs, while mobile-first studio Ginger Joy secured £1 million to scale blockchain integration in gaming. 

These fundraising rounds show strong investor confidence in blockchain as a core gaming infrastructure, not just a speculative add-on.

5. The Metaverse: Gaming as a Social Platform

Only 8% of British adults visited a metaverse environment in the past 12 months, but among VR headset owners, that number jumps to 41%. 

While the fully realised metaverse is still emerging, these figures highlight a clear opportunity for UK startups: a growing audience of engaged, tech-savvy players eager for immersive gaming experiences.

The metaverse is transforming games from solitary entertainment into interactive social hubs. Platforms like Roblox and Fortnite show how virtual spaces can host concerts, branded events, and player-created content, allowing users to collaborate in ways traditional gaming doesn’t support.

For gaming startups, this trend is a chance to build social platforms where players engage and invest in virtual economies. By integrating social features, co-creation tools, and immersive environments, startups can differentiate themselves, boosting retention and opening new monetisation pathways.

While the metaverse isn’t fully realised yet, early movers who develop engaging, socially-connected experiences now can capture market share and position themselves as leaders in a growing digital ecosystem.

The metaverse is transforming games from solitary entertainment into interactive social hubs, allowing users to collaborate in ways traditional gaming doesn’t support.

How Tramshed Tech Can Help

The gaming and tech sectors are evolving fast, and startups need environments that foster creativity, collaboration, and rapid growth. 

Tramshed Tech supports startups navigating the gaming industry and tech, providing resources, mentorship, and collaborative spaces for growth.

Whether you’re developing the next AR game, exploring blockchain, or building social gaming platforms, our spaces are designed to empower you with the tools and inspiration to succeed. 

Book a space with Tramshed Tech today and join an environment built for innovation, growth, and long-term success.