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.

Posted in

Forgot your password?
Username :
Password :

Poll

How do you feel about microtransactions in $60 video games?:

Shout box

You're not permitted to post shouts.
RedMageOh hey, a news station is trying to scapegoat gaming. That takes me back. https://twitter.com/GamingAnarchist/status/63754361236507443208/29/2015 - 1:40pm
Big PermA link to TB twitter with Matt Lees in the replies - https://twitter.com/Totalbiscuit/status/52528604482949939208/29/2015 - 12:16pm
Brad GlasgowWhy would he say the company lies about getting abuse? Oh, because people don't abuse GG?08/29/2015 - 10:38am
Big PermBrad - Matt Lees was also quick to say the company "Gamers Gate" lies about getting abusive messages thinking they were an official GG channel08/29/2015 - 9:11am
Goth_SkunkMGSV: The Phantom Integrity - A Rant by RazörFist. (NSFW on account of language). RazörFist discusses the latest batch of unethical journalist conduct, with a caveat. - http://ow.ly/RwXYT08/29/2015 - 7:10am
Goth_Skunk@Brad: I can.08/29/2015 - 6:13am
Goth_SkunkI assume "Stacy" is a pseudonym. After reading what she went through, I would not be one bit surprised if it is.08/29/2015 - 6:13am
Goth_SkunkA Year of #GamerGate: From Neutral To Anti To Neutral To Pro by "Stacy" - http://ow.ly/RwVeT08/29/2015 - 6:12am
Brad GlasgowI can't believe Matt Lees deleted his positive review of Ethan Carter because Chmielarz is sympathetic to GG.08/29/2015 - 5:30am
Goth_SkunkA GameDev's Year With #GG: The Good, The Bad, and The Ugly by Adrian Chmielarz - http://ow.ly/RwSCd08/29/2015 - 5:18am
Goth_SkunkDespite not being a fan of fighting games I had to check out that R Mika trailer. Loved it. Still won't buy the game though, on account of Isuckatstreetfighteritis.08/29/2015 - 2:42am
MechaCrashI use a Dynex DX-840 headset, but it's discontinued. :( I wanted a mono headset so I could keep the other ear free for my speakers, but it has the bonus of being very light and comfortable, so you don't notice it.08/29/2015 - 12:41am
Big PermSora - I was just having a slow day at work earlier. Now I'm home with vidya!08/28/2015 - 7:54pm
ZippyDSMleeSora-Chan: Blender is easy compared to 3Dmax :P08/28/2015 - 6:51pm
Sora-Chantime to take up a hobby? maybe messing around in GIMP to make wallpapers? use qCAD to design somethin? open Blender and stare at it for a couple hours trying to figure what does what?08/28/2015 - 6:41pm
Big PermAlso, yes. I've been spamming the shoutbox. I don't have much going on today, don't judge me08/28/2015 - 3:25pm
Big PermThanks, but yeah. Not sure I wanna drop that kind of cash :P I don't even mind the sound quality of my krakens, it just hurts to wear em after a couple hours.08/28/2015 - 3:25pm
Sora-Chan@Big Perm: I'm a bit of a fan of the Omega Recon3D headset from SoundBlaster. Though it is a bit expensive.08/28/2015 - 2:36pm
Big PermI actually need to look into a new headset. I have those green razer krakens and I would not suggest them. Though maybe they're better for people without glasses08/28/2015 - 11:32am
Big PermI've never heard if Apple was dominant in Japan.08/28/2015 - 11:25am

Be Heard - Contact Your Politician