BETA | CANADA FOCUS
“Tax incentives are only part of the
success story. Vancouver has always had a strong talent base, with a thriving film/VFX/animation sector, but quality of life and a city full of talented developers also helps the game industry thrive.” Longtail Studios GM Estelle Jacquemard
says that the schools and provincial governments have helped in developing the industry in Canada which now offers a large talent pool creating huge ip’s. She says: “Because of all these huge IPs, we can still attract foreigners to work in our country.”
TAX PROBLEMS? Despite the obvious benefits, there are some criticisms of the competition between the various provinces on offering such generous tax breaks. Brian Provinciano, founder of Vancouver
based Vblank Entertainment, believes that other provinces in the east offering better tax breaks in recent years has caused larger studios to expand there and scale down or even completely close BC operations. “The problem with this is that it scatters
Top to bottom: Kirsten Tomilson, Fourth Monkey; Laurent Abecassis, Di-o- matic; Matt Tanner, SnowedIn; Yan Cyr, Enzyme
talent. When talent is concentrated, more innovation and breakthroughs can happen. Many friends of mine have had to relocate to other parts of Canada in recent years, which is very unfortunate.” Jacquemard agrees that it is hard for BC studios to compete, saying: “Toronto, Montreal and Vancouver are the main
STATES OF PLAY: ONTARIO
Home to Toronto and the nation’s capital Ottawa, the most populous cities in Canada, Ontario provides the perfect infrastructure and talent base for studios. The large metropolitan area is recognised as a thriving hub for independent game development and is an important part of the successful Canadian industry. Interactive Ontario president Ian Kelso
competitors, in terms of recruitment. We are a small province, with very few games studios. It’s not easy to attract people over here.” The tables seem to have turned on
Canada after its tax breaks initially offered it a distinct attraction. If they were taken away or not enhanced, would the studios still stay just because of the large talent pool it has created and the money if offers for large publishers to set up there? Koolhaus Games president
Wolfgang Hamann admits: “We have and are investigating other provinces and also south of the border in the US where about 22 states provide tax incentives, most of which are greater than what British Columbia has to offer. We will probably never close our Vancouver operation, but we can’t ignore what is happening elsewhere.” Some who criticise Canada also
believe that, given the global nature of the industry, it is unfair that it offers such generous tax polices when other countries can’t compete. But Canada’s international trade spokesperson Belanger insists that Canada’s programs for the industry are fully compliant with the country’s World Trade Organisation commitments. Despite no plans to take
incentives away, many believe that even if they were, the infrastructure and abundance of talent now available means the Canadian games industry is here to stay. It is clear that Canada and its
provinces need to constantly compete to keep attracting the top studios and publishers, and most importantly, keep them. But this must not risk turning into a ‘race to the bottom’ for taxes, losing the balance between a successful industry and one that helps benefit Canada itself.
30 | NOVEMBER 2011
says the association has grown by 30 per cent annually and now has over 320 companies in its membership, with a third of these game studios. Ubisoft Toronto, founded in 2009, has
grown dramatically over the past two years to house over 190 employees and claims it is on track to grow to 800 creators over the next ten years as it actively recruits talent. Managing director Jade Raymond says:
“The untapped talent in the province is second to none and Ubisoft is excited to
support the growing game development industry in Ontario. The region combines world-class technical schools and training with strong film industry expertise, providing Ubisoft Toronto with access to a unique pool of talent.” But far from Ontario having intense
competition with neighbours such as Montreal as it expands its industry, Kelso refers to it as ‘co-opetition’. “Each region wants the economic benefits of a thriving games industry, and the governments compete to create the best value propositions to attract the best companies,” he says. “Yet we are united as an industry
through the Canadian Interactive Alliance, and we work together to promote Canadian companies on the world stage.” With such rapid expansion occurring in Ontario and its large untapped talent base, you can expect the region to be one of the world’s biggest gaming hubs in years to come, but only if the province and its local studios can work together and match its vast potential with big ambition and results.
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