After years of decline the UK video games industry grew by 4% in 2012 according to a trade body report.
The number of creative staff working in games studios grew from 8,888 to 9,224 in a year, while jobs indirectly supported by games rose by more than 600 posts.
According to the report by TIGA, a UK-based games industry body, overall investment by studios rose from £411 million to £427 million and the number of studios rose from 329 to 448.
That points to an increased number of smaller, more focused studios producing games for mobile and online platforms.
Meanwhile the games sector contributed £947 million to UK GDP - up from £912 million.
The good figures follow three years of declining employment numbers in games.
TIGA CEO Dr Richard Wilson said that the rise of mobile games combined with tax relief for the industry had stimulated growth, even though it won't go into operation until April.
In a statement he 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."