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DanJW

Tax Breaks for UK Games Industry

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Probably sold a lot just because of the license, even if it was shit.

But this is good news. I wonder if Finland has anything like this in place yet.

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I have never understood why governments (mine in Australia included) offer tax breaks to game developers. Why is this one industry more worthy of special treatment than any other?

And as for the Australian game industry, half the companies would probably fold within two days if the tax breaks were rescinded. Surely if an industry can only survive because it receives what is effectively a government subsidy, that's a sign that perhaps it shouldn't exist at all?

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Congratulations Britain. Hopefully this will ensure the continuation of the Rogue Warrior franchise!

Its my impression that the UK games industry has been pretty strong, just off the top of my head you've got

  • Lionhead
  • Rare
  • Codemasters
  • Rockstar
  • Bizarre Creations
  • Psychognosis
  • Firebird
  • Acornsoft
  • Bug Byte
  • Ultimate Play The Game
  • Ocean
  • Gremlin Graphics
    To name but a few.

I think this is intended more as a catalyst than a support.

28tjgue.jpg

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Don't know about elsewhere, but the UK government offers tax relief and other forms of support to a number of creative industries, such as film and the arts.

So this is quite a development, as it shows that they're considering the games industry to be as important as those other sectors to the economy/national culture.

Plus, moneymoneymoney.

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Thorn, the problem has been that video games, being vile and obscene, haven't been getting subsidies while the film industry and such have. So it's not that we want special treatment, it's that we want... treatment.

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I have never understood why governments (mine in Australia included) offer tax breaks to game developers. Why is this one industry more worthy of special treatment than any other?

And as for the Australian game industry, half the companies would probably fold within two days if the tax breaks were rescinded. Surely if an industry can only survive because it receives what is effectively a government subsidy, that's a sign that perhaps it shouldn't exist at all?

It's not only gaming, at least here in Ontario it's not.

Does the new tax break system not have some serious stipulations attached to it? I read a bit on it earlier, and it sounds like there may be some hurdles (a points system) to overcome to actually get the breaks. Going to see a lot more games set in Britain with British voice casts me thinks. Not that I mind, would be a nice change of pace.

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Its my impression that the UK games industry has been pretty strong

Traditionally always been strong, but declining in recent years. Whereas Canada is growing like a mofo due to super extreme tax breaks there. Lots of talent getting drained out of the UK (as well as France).

If any tax breaks do end up being implemented there will be a 'cultural test', which is required under EU law (or else it's 'state support' which would disrupt the internal EU markets blah blah). If it's similar to the cultural test for movie industry tax breaks it won't really mean that suddenly we'll see loads of games with people wearing top hats saying cheerio etc. -- some details here:

http://www.gamesindustry.biz/articles/the-culture-question

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it won't really mean that suddenly we'll see loads of games with people wearing top hats saying cheerio etc.

Dangit. ;(

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Thorn, the problem has been that video games, being vile and obscene, haven't been getting subsidies while the film industry and such have. So it's not that we want special treatment, it's that we want... treatment.
Okay then, the same question asked in my last post, but applied to all such industries.

It's not like we're dealing with the fine arts, where artists really do need support and patronage, because so few of them can sell their work at a profit. The gaming and film industries are (overall) profitable, and when games lose money, it's generally with good reason (i.e. they're crap and/or just weren't marketed well enough).

So, going back to my point, why do these industries need sponsorship, when fashion design, electrical generation and your local locksmith do not?

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Because your local locksmith isn't in competition with a Canadian locksmith who gets tax breaks.

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So, going back to my point, why do these industries need sponsorship, when fashion design, electrical generation and your local locksmith do not?

Interesting suggestion, I am sure there is public money for fashion design - but that is just it, as arts go electrical generation will get sciency-money and local locksmiths are a trade (like any building) not something that really pushes forwards cultural boundaries.

I think if there is money for films (which produce some really good local flavour films - I like Shane Meadows (I'm a Nottingham lad) who uses some of that kind of stuff, but there are tons of other examples of great art funding), there should be some for video games or other interactive art. :)

It's pretty silly to have it not apply equally when it comes to arts. I might be cynical and say tax breaks are a possibly the "big business" way of getting a bit part of the pie but the "big business" of film and TV get similar things.

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It's not like we're dealing with the fine arts, where artists really do need support and patronage, because so few of them can sell their work at a profit. The gaming and film industries are (overall) profitable, and when games lose money, it's generally with good reason (i.e. they're crap and/or just weren't marketed well enough).

I wouldn't put so much into that belief. Overall profitability means fuck all, that's like saying "Oh Toyota are making profits enough to cover the entire car manufacturing business", whilst other equally valid manufacturers are struggling and even going under. Just because an industry has their Call of duties, Avatars etc it doesn't mean other people in the same medium won't need tax breaks.

So, going back to my point, why do these industries need sponsorship, when fashion design, electrical generation and your local locksmith do not?

None of those business models continue to expand as much as games development. In the case of the local locksmith, I believe they follow a small businesses tax opposed to that of a larger business.

My view is that with the current state of employment this is a slight step forward, it may not help those unqualified to make games, though it will help those finishing University this coming June.

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Seriously patter, video games molest children. Did you want to give tax breaks to child molesters? Alan Titchmarch doesn't think so, and neither do I.

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Being the BBC Parliament watching mutant that I am I had been wondering if he'd bring it up whilst watching it and wasn't surprised when he did. In the context it was laughably hypocritical, that's the kind of thing the Tory bastard should have been right behind and he basically said as much in the speech.

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Get ready for every last UK-based online industry trade publication to run stories calling for tax breaks EVERY SINGLE DAY again

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Get ready for every last UK-based online industry trade publication to run stories calling for tax breaks EVERY SINGLE DAY again

Boo hoo!

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I do wish I had an RSS reader that could automatically filter out non-jubilant stories on tax breaks, as well as detect and filter out stories about platform holders slinging mud at each others launches/products. Also, Michael Pachter.

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