ALPHA | NEWS // INVESTMENT
Games industry investment swings back to the UK
Australia and Quebec developers hit by significant funding and subsidy cuts as Nordic Game Program also ends by Craig Chapple
GAMES INDUSTRY INVESTMENT is swinging back to the UK following the introduction of games tax relief and budget cuts in other regions around the world. According to a recent TIGA survey, the number of studios in the UK rose from 448 to 620 in 2013, up 38 per cent. And the trade body believes the newly introduced tax breaks will generate and safeguard £450m worth of investment expenditure by UK studios. “The UK is a highly attractive place to do games business: we have skilled developers, creative studios and a stable investment environment,” TIGA CEO Richard Wilson told Develop. “This is a great time for the UK games industry.” In contrast, in May, the
Australian government cancelled its $20m Interactive Games Fund. It’s been unwelcome news for local developers, including Sanatana Mishra, designer at Assault Android Cactus studio Witch Beam. “It means we’ll see a lot less projects being started and owned by Australians and a lot more talented developers seeking overseas opportunities,” said Mishra. “The industry collapse from a few years back was only possible because we had very few Australian-owned studios and even fewer projects, I think the AIGF was doing a great job of helping us build a far more stable industry.” He added: “I would describe
Australia as having a very small and very indie focused industry. It’s not a bad direction, but I do worry about the extremely limited opportunities we have and how that will slow our growth.” Quebec meanwhile has had its generous tax relief scheme slashed to 24 per cent for games not produced in French, and 30 per cent for those that are.
04 | JULY 2014
Top to bottom: Witch Beam game designer Sanatana Mishra, TIGA CEO Richard Wilson and UKIE CEO Jo Twist
However, a spokesperson for the ministry of Economy, Innovation and Exports has told Develop that publishers Ubisoft and WB Games Montreal will continue to enjoy tax relief of up to 37.5 per cent until at least 2019, thanks to special agreements they have signed with the Quebec government. A review board on Quebec taxation will be set up during Autumn to “recommend adjustments to tax credits” for the upcoming budget. It has not yet been decided if this could result in a rise in incentives or further cuts for all games studios in the region. UKIE CEO Jo Twist said that the reduction in some regions of funding and loss of tax schemes, including that of the Nordic Game Program which
After much talk of a UK ‘brain drain’, the country’s industry is once again hitting growth, with over new 150 studios in 2013
The UK has a fantastic
opportunity as we roll out the new tax credit scheme.
Jo Twist,UKIE
appears to have ended for now, has shifted the balance further towards the UK. “Once we envied Canada’s level of financial support but now I can see the rest of the world looking at our growing ecosystem with great interest and the UK’s games and interactive industry now has a fantastic opportunity as we roll out the new and highly
innovative games production tax credit scheme,” she said. “We worked very closely with government to shape it to the needs of games companies in this country both big, small and micro.
“We made sure it was inclusive, accessible and competitive to encourage more studios to set up in the UK instead of elsewhere.”
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60