A new report by video games industry trade association Tiga has found that both employment and investment in the UK sector increased in 2012.
By the end of the year there were 118 more studios and 336 more creative staff than there had been in 2011. Studios also invested £427m in games.
The rise in employment figures followed a three-year period of decline in staff numbers, said the report.
Tiga said the rise of mobiles and tablets had provided a boost.
"The sector's return to growth has been driven by three factors," said Tiga chief executive Richard Wilson.