industry news
EU Approves France's Game Tax Credit
Posted by Mike Fahey at 12:20 AM on December 13, 2007
Way back in February of this year the French Parliament approved a plan to allow companies creating video games with a "cultural dimension" a 20% tax credit on development costs, a credit long enjoyed by the film industry in that country. Now the European Commission has approved the plan for a period of four years for games that meet the "criteria of quality, originality and contribute to cultural diversity". While the plan had initially excluded subcontracting costs, France has accepted the commission's request to include such costs as a way of making sure the rest of the European Union can benefit from the new policy. The EU will more than likely be closely monitoring what games benefit from the credit. EU competition commissioner Neelie Kroes is watching.
"We must be sure that the measure will promote only genuine cultural projects and that it will not have the effect of an industrial policy instrument in favour of the videogames sector."
EU approves tax breaks for games [GamesIndustry.biz]

Comments (AU Comments · US Comments)
There are currently no AU comments for this post.
typeofbreastcancer.info
Posted 1:25 PM 12/12/07
By now, everybody knows that cancer is dangerous. What each one of you may not understand is that they come in different forms. For example, there are different types of breast cancer. Their effects can range from simply being benign to severe, which can lead to different kinds of complications, even death.
typeofbreastcancer.info
mgslegrand
Posted 11:04 AM 12/12/07
20% is huge. Especially considering the costs of making games these days
This is good news in two major respects:
1. An increase in French developper's budget means better games and a higher chance for new material ( more money means more legroom for taking chances).
2. Recognizing games as being equally important as movies paves the way for their recognition as a genuin e form of art. France is notorious for its snobbery when it comes to high culture ( I would know, i'm french) its recognition of games as art can only have positive effects on the industry in general.
mgslegrand
lalahsghost
Posted 10:10 AM 12/12/07
@lalahsghost: Er... *Classic.
lalahsghost
lalahsghost
Posted 10:10 AM 12/12/07
@kman2686: LOL Clasic!
lalahsghost
ianovich
Posted 9:56 AM 12/12/07
This is excellent, excellent news for gamers. It's about time that video games received their due credit as an art form, and France and the EU have just taken us one step closer.
ianovich
quen
Posted 9:55 AM 12/12/07
@peacefuloutrage: The US-led world view (to which Europe subscribes) places restrictions on protectionism and subsidies. As this is a subsidy, it makes for unfair competition - so it's appropriate to restrict those subsidies to cases where they really achieve some goal (French culture) rather than only being protectionist. Or so the opinion goes.
Personally I think this subsidy is a good thing but I hope they do manage to use it to support games with a genuinely French feel, rather than games designed for American tastes that happened to be developed mainly in France. I doubt that restriction will really work - they would have needed to get something more concrete in there for that, for example an agreement that all games would be in French language dialogue (with optional subtitles in other languages) rather than being produced in English as well...
quen
AbyssUK
Posted 9:26 AM 12/12/07
@FanDam:
"criteria of quality, originality and contribute to cultural diversity"
Nah, Ubisoft won't get a cent:)
AbyssUK
gaint_superlogical_crabs
Posted 9:20 AM 12/12/07
awesome news...
french hookers are the world's best, and the sexy french language/accent only exacerbates the problem.
problem? yes, problem. everyone is jealous....
gaint_superlogical_crabs
peacefuloutrage
Posted 9:11 AM 12/12/07
This is good for the French, but it's stupid a nation has to ask permission to help its citizens out.
*France raises hand* "May I go to the bathroom?"
*EU* "Yes, you may, but only for 2 minutes."
peacefuloutrage
FanDam
Posted 8:59 AM 12/12/07
Well, this really helps Ubisoft.
FanDam
NunianVonFuch
Posted 8:52 AM 12/12/07
Thats great news! The French always strike me as having their heads screwed on and have such delicious crepes. MMmmm nutella crepes... (drools) :-)
NunianVonFuch
DiskoDanyo
Posted 8:50 AM 12/12/07
Very good news.
DiskoDanyo
Pixelantes Anonymous
Posted 8:47 AM 12/12/07
Awesome. So now we'll not only get WW II games from US developers, but every freakin' European one as well.
Although I would REALLY like to see a boobies game from a Swedish game developer. Blondes FTW!
Pixelantes Anonymous
kman2686
Posted 8:44 AM 12/12/07
@lalahsghost: On the Case with Inspector Clouseau (Hotel Dusk but funny)
Vinyard Tycoon
CoD3: The White Flag Missions
Quel Fromage
kman2686
ProjectThanatos
Posted 8:35 AM 12/12/07
@Vidril: It's a tax CREDIT.. meaning that much like films in France.. they will receive a significant amount of tax money BACK. The article points to this possibly being selective though... for enrichment of "culture".
A step in the right direction regardless. Numerous artistic/entertainment mediums benefit from such cuts. Glad to see electronic gaming joining that front.
ProjectThanatos
lalahsghost
Posted 8:32 AM 12/12/07
Cultural Dimensions of France...
"Raving Rabbids make Croissants and baguettes"
Franco-Prussian War FPS's
"Cooking Mama Crepe Edition"
Tour de France games out the yin-yang
^ Same thing with Fencing and Gran Prix Racing
French Fashion Show Barbie - Made with Unreal 3 Engine ... you know to give bumpmapping on those frilly lace dresses :)
Can you tell I read kotaku?
lalahsghost
Garo
Posted 8:28 AM 12/12/07
Yep great news.
In the last years France experienced a real Exodus of Gamedevs so no wonder.
Hopefully the other EU countries will show some support too.
Garo
Shiryu
Posted 8:28 AM 12/12/07
A step in the right direction. Hopefully, this will extend to the entire EU.
Shiryu
Vidril
Posted 8:25 AM 12/12/07
So... the french are back to over taxing everything again? XP
Vidril
Honus_W_Scruggs
Posted 2:43 PM 12/12/07
Am I the only one who sees this as a negative? The French government will hold the purse strings for subsidization of approved forms of communication and expression. Now, I don't consider this the first step on a slippery slope to communism or anything (France took that first step a long, long time ago), but it just seems odd to get excited about what essentially amounts to propagandizing games.
Honus_W_Scruggs
Nexus6
Posted 4:53 PM 12/12/07
@Honus_W_Scruggs: It just means that certain games coming from France will receive a benefit from becoming more "French" rather than having another Tom Clancy title.
Nexus6
Sabre_Justice
Posted 8:17 PM 12/12/07
Hell, I'd pay money for a Pink Panther point-and-poke adventure game.
Sabre_Justice
Zentac
Posted 2:32 AM 13/12/07
This is pretty cool, and will be abused thoroughly, all for the better.
Funky cultural game gets amazing budget for tool and engine development, gets a 20% tax credit and developer has amazing tools and engine for the next badge of generic titles.
Excellent stuff!
Zentac