Tiga, the trade association for game developers in the UK, has urged its government to take action in the wake of recently-announced tax breaks for game developers in the state of Georgia. Tiga has for quite some time advocated publicly for similar tax relief to support the game industry in the UK, expressing concern that lack of government support means the UK will lose out in the competitive environment.

"Georgia's introduction of games development tax breaks illustrates once again that other state and national governments are competing to create the most hospitable environment for games production. If the UK Government wants to see a thriving video games industry in this country, then it must create a more favourable taxation system, keep the regulatory burden on business relatively light and work to increase the supply of suitably qualified graduates," said Tiga CEO Richard Wilson.

Read More »

With Eidos' decision to move their production headquarters to Canada, Tiga (a trade association representing European developer interests) is asking the British government to ensure that developers aren't bailing ship for lower-cost, subsidised locales:

"UK games developers can compete successfully against games developers all over the world where market conditions are fair," said Tiga CEO Richard Wilson.

"The UK is the fourth largest developer of games in the world in terms of revenue generation. Games developers contribute 30 per cent of the country's media exports.

"However, Canadian government subsidies for games developers mean that the playing field is increasingly tipped against UK based games developers."

Beyond the short-term fix of tax breaks, Tiga is agitating for a World Trade Organization investigation into whether Canadian incentives are breaking WTO rules on fair trade. Wilson said "If they do, as seems likely, the Government must take action via the World Trade Organisation against Canada at the earliest opportunity." Who's ready for a gaming industry redux of the Seven Years' War?

Tiga urges government to create competitive environment [GamesIndustry.biz]

Ubisoft boss, the exquisitely-named Yves Guillemot, is a happy man. Speaking with Gamasutra about a soon-to-be-approved French tax ruling that, in theory, will give French gaming studios a 20% credit on their taxes (capped at €3 million), he's rapt that the French government has seen fit to decide games can have a cultural impact, and thus entitled to similar tax breaks afforded to things like motion pictures. Other European developers may be just as rapt: thanks to EU laws, now that France has given developers tax breaks on cultural grounds, other EU nation's developers can apply for the same deal.
Video Games: Officially Art, In Europe [Gamasutra] [Image]

The latest proposal that would tax video games (and televisions) in an effort to fund other, seemingly unrelated programs has popped up in New Mexico, initiated by the Sierra Club. The environmental organization's executive director, Carl Pope, writes on the Huffington Post that tacking on a 1% tax on games and televisions would generate some $US 4 million toward pushing the "No Child Left Inside" agenda, getting chubby kids off their humps and out to national parks where they can receive an outdoor education.

We suppose that this sort of diversion of funds makes more sense than others. I just hope they don't limit the use of PSPs for these poor kids brought to tears by the prospect of experiencing "nature". And, please New Mexico, make sure these kids are well stocked on Happy Meals.

A Tax to Remember [The Huffington Post via GamePolitics]

Australian game developers want tax breaks. Nothing crazy, just an arrangement similar to what the film and television industry currently enjoys. And definitely not its sloppy seconds.

After the Government told the Game Developers' Association of Australia to talk to the hand, Labor responded with promises of a committee to discuss the issue, if it was elected.

Now, GDAA CEO Tom Crago and Australian Greens' Senator Christine Milne are urging gamers to give the Greens their vote in the upcoming election. In doing so, Milne will do her bit to make the rebate happen. She won't even screw around with a committee, apparently.

For the curious, you can read the Greens' official policy on the matter at GreensBlog, or hit the post from whence it came.

Good news? Look what tax breaks did for Montreal. Just don't mention the mammoth carbon footprint made by your 360, PS3, Wii and PC.

Greens get game [Screen Play, thanks Stephen!]

What would a tax rebate for game developers do for Australia? If that was the only question the government had, it could be easily answered by looking at Canada, specifically Montreal in the Province of Quebec.

Sound familiar? It's where Ubisoft Montreal is based, arguably one of the top development houses in the world. It's also the home of Assassin's Creed. Need I say more?

In 1996, Quebec established a special fiscal program for multimedia titles, whereby companies developing games could receive a tax credit on labour costs. Depending on the type of game being made, developers can currently receive a break of up to 30%, with an additional 7.5% for French-language titles.

How effective have these tax incentives been? I asked Ubisoft Montreal's creative director Patrice Desilets this very question while he was here promoting Assassin's Creed.

Read More »

Yes, Minister, we're still talking about this. And we're going to keep talking about it, even though it's quite clear the Government couldn't care less about the Australian games industry.

Good on you to those who wrote to the Minister regarding the issue, and I sincerely hope you get a productive reply. Alas, judging from the letter Oz Kotakuite Martin received in response to his plea, my hopes have been dashed across the stones of uselessness and ignorance like a pair of old trousers.

Need more proof of the Government's distain? From the letter (which was written by one of Minister Coonan's advisors):

The Government's Australian Screen Production Incentive, which was recently enacted, incorporates three components: Producer Offset; Location Offset; and Post, Digital and Visual (PDV) Offset. These ... are paid against a production's Qualifying Australian Production Expenditure (QAPE).

That's great, but what the heck does it have to do with games?

While games are not eligible genres for the new offsets, this does not exclude game developers from providing content to eligible genres. For example, an Australian games developer could be contracted to provide content as a component of a film or television program. Such expenditure could be claimed as QAPE.

So essentially developers are screwed unless they're creating a game for TV or film? The only situation I can imagine where this would actually happen is if a developer was willing to indulge in tax fraud. What if you're making a game based on an Aussie film or show? Doesn't look like that would cut it either.

All I can do is sigh... again. You can see the entire letter after the jump.

Read More »