While the UK has manifestly been in a downturn phase for the past six months, it was only today that the Office for National Statistics (ONS) could confirm that Britain is officially in recession.

Gross Domestic Product (GDP) needs to fall in two successive quarters for a nation to be qualified as one in recession. And while everyone was expecting official government figures to show a second quarterly drop in GDP, few analysts had predicted a 1.5 percent fall from the last quarter. That figure represents the biggest three-month decline since 1980.

“In regards to the UK slipping into recession, obviously we’ve had such an unrelenting series of bad news that I don’t think anyone was surprised by what happened today,” says Richard Wilson, CEO of UK game industry association Tiga.

“In some ways the general public will find it hard to understand that the UK games industry has some concerns. Obviously, total sales in the UK went up 23 percent year-on-year in 2008. But, because consumers are cutting back, because publishers are going to be affected by the consumer slowdown, this is bound to have an impact on developers. As you have seen, some developers have already had to cut back on studio capacities already this year.”

Few would call it coincidence that, on the same day that the UK officially enters recession, Eidos closed the doors of its Manchester-based development arm.   

“The recession we’re gong through clearly has an impact on publishers and developers, and both forms of businesses obviously have to conserve cash in a downturn, it’s the rational thing to do,” adds Wilson. “But while this year is going to be tough, the games industry has some important advantages.”

Here, Wilson refers to two factors. The first is the weak pound, which has dropped to 24-year low against the dollar. At the time of writing, one pound represents $1.364; certainly a gloomy figure, but one which can help UK exporters trade internationally.

Secondly, Wilson believes that – as this is a global recession – the UK has the advantage of being a well-trained workforce in the gaming sector. “I know there’s lots of talk about a skills gap, but Tiga know of many studios that have between eighty to one hundred percent of their staff qualified to degree level, which is fantastic.”

“It means we must have one of the most qualified sectors of the British economy, and that’s going to stand us in very good stead when we’re competing for international orders with publishers overseas.”

A recession typically lasts between 3-5 quarters, though Wilson and many analysts believe that the nature in which this one was established means it may last longer. Earlier this week the Labour Government announced a series of measures which it hopes will boost bank lending to UK businesses.