UK vs. Canada: Why Tax Breaks Matter to the videogame Industry

September 7, 2010 -

In an article called "UK vs. Canada: Do Tax Breaks Build An Industry?" at Gamasutra Rebellion CEO Jason Kingsley says that the UK government’s decision not to give tax breaks to the videogame industry is one of the reasons why so many UK studios are slowly setting up shop in Canada.

Though Kingsley said that tax breaks would have been nice to have, his company is coping with the reality that - for now - they are not available.

Richard Wilson, CEO of UK video game trade organization TIGA, is a bit more concerned as he watches companies make a slow exodus to regions in Canada such as Quebec and Ontario, who offer generous tax breaks on labor costs that UK developers can't ignore.

"We are competing with the rest of the world on an uneven playing field," says Wilson. "In 2006, the UK games industry was the third largest in the world in terms of revenue generation; we have since fallen to fifth place."

But TIGA doesn't plan on giving up the fight anytime soon:

"All we can do is continue to make our arguments... and to point out to our government that all of these wonderful investments, all this wonderful creativity that's taking place in other countries, that we're not getting as much of a share as we could be. That's the real tragedy. But I want to emphasize that I do believe we will get games tax relief eventually. It will take a battle but that's a battle we intend to win."

Of course, the longer the UK government waits the more likely we’ll see more UK game companies cross the pond. As one commenter pointed out in the article, gaming is global and it doesn’t really matter where you live – if you can afford to get there. Read the rest of the article at Gamasutra.

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MaskedPixelantehttps://twitter.com/DanSlott/status/527814374459977728 One More Shot at Marriage.10/30/2014 - 8:44am
E. Zachary KnightApparently, it is ok to review a games art on whether or not you like the style, but not ok to review a game's story or theme based on whether or not you like or agree with it.10/30/2014 - 8:40am
MechaCrashComics never change because the people in charge now read comics when they were kids, and keep reverting comics to what they remember. As long as that cycle holds, change will be slow at best.10/30/2014 - 8:18am
Neeneko@ MechaTama31 - That is the big reason fansubs were tollerated for so long in the US, japanese studios kept watch to see which ones became popular via those networks.10/30/2014 - 8:11am
quiknkoldJournalists shouldnt be bigger than the stories they report or products they review.10/30/2014 - 7:48am
E. Zachary KnightHere is some food for thought for gamergaters who want politics out of games journalism. https://www.techdirt.com/articles/20141026/06425828942/journalists-need-point-view-if-they-want-to-stay-relevant.shtml10/30/2014 - 7:18am
quiknkoldI didnt say all games are like that, Conster. Princess Peach was....different. though I had fun with it.10/30/2014 - 7:00am
james_fudgehttp://www.somethingawful.com/news/gamergate-with-cats/10/30/2014 - 5:20am
MechaTama31AE: Japan's doujin scene illustrates an interesting potential solution to that problem. Let people play around with the characters, and keep an eye on things to see what people are buying.10/30/2014 - 12:07am
ConsterI bought, played and liked the game (unlike Smash Basketball *shakes fist*), but that felt iffy to me.10/29/2014 - 10:52pm
Consterquiknkold: if Super Princess Peach had been Super Prince Peach instead, do you think emotions would've been a mechanic?10/29/2014 - 10:51pm
quiknkoldcore meaning Colossus, Storm, Wolverine, and Nightcrawler10/29/2014 - 8:51pm
quiknkoldMatthew, those core x-men were together for almost 2 decades, until one would always be dead so they couldnt have them all together.10/29/2014 - 8:51pm
quiknkoldmore of an unknown. background characters mostly, who had a book but it was mostly a waste. they bring in this powderkeg of diversity and boom. now they could do the same thing and with the right artist and writer and mystique to it...10/29/2014 - 8:50pm
Matthew Wilsondoes it though? they always seem to return to the original cast in a year or two.10/29/2014 - 8:49pm
quiknkoldWhen I think of the perfect catalyst of a melting pot hero team, I think of the All New All Different X-Men. A Russian, A African goddess, A Canadian Berzerker, a German elf, and Cyclops. and all have withstood the test of time mostly cause the x-men were10/29/2014 - 8:49pm
Andrew EisenOne reason is because the money people are often afraid it won't sell. "A new IP AND the protagonist is gay?! That'll never work!" Showing that diverse characters can work in popular IP is simply a place to start. The indie scene is another.10/29/2014 - 8:47pm
Matthew Wilsonisnt that the point? why not just make new heroes that are different races, sexual orientations, and genders to start with?10/29/2014 - 8:46pm
Andrew EisenYep, progress is a lot slower than it should be (especially for something that shouldn't have been a problem in the first place).10/29/2014 - 8:45pm
quiknkoldrelevent. Hazmat and X-23. while Reptile, Mettle, Rockslide, Anole, Hellion, Dust, Mercury are all relegated to background characters with zero character enhancement. or they are dead10/29/2014 - 8:45pm
 

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