I've played some early to mid 90's British games over the last year, and they're all bad. Even well regarded stuff like Lemmings was never actually good. The trend of garbage British games would have begun in the 80's, and likely were due to a strange confluence of early PC adoption, ease of importing small numbers of American games, lack of a strong arcade culture, diverging computing standards with America, small internal market, and late adoption of console gaming. It seems like the early concepts of computer games got across the pond, but the big developments in action gameplay didn't, so a parallel culture of PC game design sprang up that was largely disconnected from the rest of the world.
The connections that were established across the Pacific by console and arcade manufacturers provided enough back and forth for correct game design standards to begin forming. Since the Brits wouldn't get involved in that until the Mega Drive showed up, they developed a lot of bad design habits which took the entirety of the 90's to get beat out of them. Even then, there was an enormous bloodletting in the 15 year period from roughly 1992 to 2007. The large majority of British development teams didn't survive integration with the global market, and the rest consolidated or were sold off. I mean, look at the fate of Psygnosis. These days, you only have Rockstar, Rare, Media Molecule, and some random indies left on that island.
Like, if you look at something like German game development from the previous 10 or 15 years, there's some wacky shit coming out of there. Small time German developers got started in German speaking markets, which is small compared to the international scale of the video game business. By the time a German studio is able to localize their games to English and get it over to the States, the damn things are wacky and busted. There's more nuance to the dynamics within insular game markets that I can't get into, but that's probably the culprit for old British games being hot garbage.
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