This article examines the evolution of the video game industry in Britain from its start in 1978. The industry originated with passionate hobbyists and amateurs who benefited from the national broadcaster's campaign to expand computer literacy. Unlike the regional clustering of the industry in the United States and Japan, the British industry was dispersed geographically, consisting of mini-clusters with porous boundaries. During the 2000s, the fragmented British industry was largely acquired by U.S. and Japanese multinational companies and became part of global value chains, but the development of mobile gaming and digital distribution provided opportunities for a new generation of start-ups to emerge in Britain.