Teesside game studio levels up overseas

A Teesside gaming company is expanding its international reach after securing support to build relationships with some of the biggest names in the global video games industry.

Middlesbrough-based Observer Interactive has strengthened its presence in overseas markets through the Tees Valley Export Programme, helping the fast-growing business pursue new commercial opportunities in the United States.

Founded in 2023, the company has grown from two employees to 20 in just three years and has already secured high-profile projects, including work with virtual band Gorillaz.

Operating from Boho One in Middlesbrough, Observer Interactive travelled to the DICE Summit in Las Vegas and the Games Developers Conference in San Francisco, where its team met representatives from major industry players including Sony, Microsoft and Nintendo.

Matty McGrory, design director and chief operating officer of Observer Interactive, explained how the company pitched to Sony, Microsoft and Nintendo while in the US – and attending both conferences had allowed the team to develop relationships with major players in the industry.

He said: “Since then, we've signed quite a lucrative contract which has meant that we've been able to bring on new staff.

“It was just an unbelievable opportunity.

“It gave us a centre of operations in San Francisco.

“And it meant we had a lot of pre-made meetings with Xbox and Valve and companies like that.”

Matty added: “The export fund has been unreal for us – it's been an absolute game changer.

“When you're a smaller or medium-sized business, especially now and with the way the current games industry is, you're very concerned about spending money.

“But unfortunately, you have to spend money to make money.

“The export fund just made this a lot more accessible for us.”

Kenan Wilsher, chief executive at Observer Interactive, added: “Teesside is so hugely important now in the global gaming scene. 

“The companies we have in the area are creating multi-billion dollar games and working on huge projects.

“That money is starting to come into Teesside and it's really making all the difference to the area.

“You're starting to see people both nationally and internationally, moving to Teesside who are experts in the field.”

The visits were supported through the Tees Valley Export Programme, which provides grants and assistance to businesses looking to start exporting or expand their international activity. 

The initiative is funded by the UK Government through the UK Shared Prosperity Fund and delivered by Tees Valley Combined Authority in partnership with the Department for Business and Trade.

Alongside export support, Observer Interactive has also benefited from the Tees Valley Labs Forge Accelerator programme.

Delivered by Middlesbrough innovation consultancy Alt Labs on behalf of the Tees Valley Combined Authority, the 12-week programme helps ambitious businesses scale and prepare for future investment.

The company used the support to strengthen its internal operations, including the development of its HR function and the recruitment of an operations manager.

Tees Valley mayor Ben Houchen added: “Observer Interactive is a brilliant example of the world-class digital talent we have here in Teesside, and it’s great to see the firm securing international opportunities, creating jobs and growing from right here in Middlesbrough.

“We’re backing our digital and creative sectors through major investment and support like this so even more businesses can follow in their footsteps and succeed.”

Middlesbrough mayor Chris Cooke, Tees Valley Combined Authority cabinet member for inward investment, finance and housing, added: “Observer Interactive’s growth shows the strength of our digital sector and the impact the right support can have at the right time.

“From Boho to the wider Investment Zone, we’re building an ecosystem where innovative businesses can start, grow and stay by creating high-quality jobs and driving forward our local economy.

“It’s fantastic to see a Middlesbrough-based company making waves around the world with huge firms while continuing to invest in people and opportunities here at home.”

Observer Interactive is currently developing its first original title, Rover’s Tale, while continuing to collaborate on external projects.

Its growth comes as the Tees Valley Investment Zone gathers momentum. Backed by £80 million, the initiative aims to accelerate development in high-potential sectors including digital and creative industries.

With an expanding workforce, growing international profile and ambitions for sustainable growth, Observer Interactive is aiming to build on its early success while maintaining the independent approach that has helped it establish a foothold in the highly competitive gaming sector.

Matty added: “I think we pride ourselves on punching above our weight.

“We're a small team, but when you play our games, or look at them, they look like they were made by a much bigger team.

“Over the next year or so, we're probably going to continue to grow as a studio for the right projects at the right time and make sure we bring in the right staff.

“Tees Valley's making some of the best video games in the world, and we just want to keep doing that.

“People should be moving here to make video games.”

To find out more about the Tees Valley Export Fund, click here.

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