Ubisoft Montreal Evaluating Ramifications of Quebec Tax Relief Cuts

Ubisoft Montreal tells IGN that it is currently assessing the ramifications of the government of Quebec's recent decision to cut tax relief for game developers to as little as 24 percent by 2016. Speaking to IGN, Ubisoft Montreal CEO Yannis Mallat said that it is not going be making any decisions until his company fully evaluates how the loss of government tax relief will affect the studio.

"I think we need to analyze what this means for us. Then once the analysis is done, we'll be able to decide what the next stage is for us," he told IGN. "I think what Quebec has become over the years in terms of video game development, it's not a hotbed so obviously this tax program was here to help build that environment. So we see this program as an important reason for the growth of the sector in Quebec."

Trade association The Canadian Interactive Alliance revealed the cuts earlier this month, which were officially introduced on June 5. Games created in French can still claim 30 percent tax relief, but English language game relief has been cut to 24 percent. A report in the French-Canadian publication La Presse suggested Ubisoft could stand to lose as much as 20 percent of its benefits.

"We value the knowledge-building of our developers, and we're still embarked to reach the numbers, but that's not our principal goal," Mallat said of Ubisoft Montreal's growth. "The point is to make sure that we make the best games. So this environment is the one thing that keeps me awake at night, in terms of making sure that we stay creative and that we stay close to our people. I think we have a pretty good structure that is delivering year after year. I think we're good."

Ubisoft Montreal is the home of such hits franchises as the Far Cry, Assassin's Creed, and Tom Clancy series of games, as well as the recently released Watch Dogs.

Source: GII

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