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More than half of UK studios employ four people or fewer
Small game development studios are on the rise in the UK, as trade body TIGA revealed that 59 percent of all UK studios employ a permanent staff of four employees or fewer. The number is a significant jump from TIGA's report last year, which found that 50 percent of UK studios had similarly petite staffs in 2012. While studios in the region have gotten smaller, they've also grown in number; TIGA surveyed 448 active UK studios in 2012, compared to 620 in 2013. "This is a direct consequence of the UK games' industry increasing focus on mobile as the primary games platform," TIGA CEO Richard Wilson stated. "The surge in start-up studios is encouraging, but many of these will be vulnerable because of their size. TIGA's focus now is to help developers grow their businesses by ensuring that governments create a favorable environment for the industry and by providing quality networking events, professional business advice and access to partners, publishers and investors." [Image: TIGA]
UK games industry still waiting on promised tax breaks
UK games industry trade association TIGA has urged the European Commission to deliver promised tax relief for local game developers after failing to meet a proposed implementation date. The UK government planned to issue a total of £50 million in tax breaks for UK developers, starting in April of this year and extending through 2015. The proposed Games Tax Relief (GTR) plan offered 25 percent tax relief on 80 percent of a qualifying game's budget, and required passing a "cultural test" for consideration. In April, the European Commission launched an investigation regarding the plan's necessity, delaying its implementation.
UK games industry showing slight signs of recovery
UK trade association TIGA published a report this week, claiming that employment in UK games development grew by four percent in 2012.Looking deeper at the numbers shows us UK studios aren't making the huge games they used to, however, and are evolving into smaller studios supporting more mobile and tablet development.According to TIGA, from 2011 to 2012, creative staff across the UK grew from 8,888 to 9,224, which is where the modest four percent increase cited earlier comes from. The number of studios in the UK increased from 329 to 448 – that's 119 new studios and only 336 new jobs. The UK has shifted to smaller studios after years of layoffs and closures."Mobile and internet based gaming provide opportunities for growth; we have access to a highly skilled and creative workforce; and TIGA's Games Tax Relief will give a further boost to employment and investment from April 2013," said TIGA Chairman and Rebellion CEO Jason Kingsley.TIGA estimates the sector's contribution to UK gross domestic product increased from £912 million to £947 million in 2012. The UK finally passed tax relief for the ailing sector last year, having proven it passed the cultural test. [Image: Christos G. via Shutterstock]
UK video game tax relief hinges on passing this 'cultural test'
The UK government outlined a "cultural test" that video games developed in the region must meet for the studio to qualify for tax relief, as part of the industry overhaul begun earlier this year. A game must earn 16 points to receive the tax break, with points awarded for such criteria as being "set in the United Kingdom or another EEA state," which includes all countries of the European Union, plus Iceland, Liechtenstein and Norway. The studio gets four points if the game stars two of three lead characters "from the United Kingdom or another EEA state or from an undetermined location," or it depicts "a British story."If at least half of the game's development is completed in the UK, studios can earn three points, while a "qualifying" project leader, script writer, composer, artist, programmer, designer and department head earn one point each. If at least half of the entire team qualifies as a legitimate UK operation, the studio gets another point. The tax code is like a game in itself.For example, if a studio in the UK (3 points) with all local staff (8 points) creates a game about a time-traveling doctor in a bowtie (4 points) as he journeys around Liverpool (4 points), Hufflepuff wins the House Cup. See? Easy.Peruse the entire cultural test below.
UKIE wants 30% games industry tax break, UK begins tax plan scrutiny
UKIE, a trade group for the entertainment industry in the UK, joined UK gaming trade association TIGA in calling for a tax relief flat rate of 30 percent across the industry, in the hopes of stimulating the UK's game development business. In March, UK chancellor George Osborne pledged to "turn Britain into Europe's technology centre, starting with digital content," by extending the country's film tax breaks to the TV, animation and gaming industries.Yesterday was the deadline for suggestions to the UK government on how the gaming tax breaks should be handled. TIGA previously suggested the 30 percent flat rate, or an alternative tiered rebate giving 25 percent relief to projects costing £250,000 ($400,000) or more.After consulting with more than 200 UK companies, UKIE proposed relief should extend to the entire industry, covering indies, large studios and new companies established by parties overseas -- all with a 30 percent relief rate, regardless of budget. UKIE included relief for DLC and post-launch support in its proposal.The tax relief is poised to begin in April, pending parliamentary approval and a round of summaries, scrutiny by tax professionals and consultation. Edge has a round-up of the whole process here.
TIGA outlines UK's Games Tax Relief, calls for 30% flat rate
TIGA, the UK games industry's trade association, outlined its recommendations for Games Tax Relief to the British government today. Following the government's backing earlier this year for tax relief support (as provided in Canada, France, and the US) TIGA called for a 30% flat rate to save the nation's struggling games industry.TIGA also suggested an alternative of tiered rebate, with 30% for projects costing less than £250,000 (just under $400,000), and 25% for those costing more. TIGA's proposal includes recommendations of post-release costs being covered, eligibility for educational games, and support for free-to-play games and those based on in-game advertising.TIGA believes the proposed model can bring more than 4,500 jobs to the UK games industry over the next five years, and increase its returns by nearly $0.5 billion.The news follows the recent demise of Sony Liverpool, one of the UK's longest serving game studios. The government will now consider TIGA's proposal, with the aim of introducing GTR from April 2013, subject to European Commission approval.
UK finally implementing game tax relief
The UK government announced today it would finally provide tax relief for game developers, which comes as welcome news to the region's struggling scene. The relief will take the form of £15 million in 2013-14, with £35 million in 2014-15."Our research shows that Games Tax Relief should generate and safeguard: 4,661 direct and indirect jobs; £188 million in investment expenditure by studios; increase the games development sector's contribution to UK gross domestic product by £283 million; generate £172 million in new and protected tax receipts to Her Majesty's Treasury, and could cost just £96 million over five years," TIGA CEO Dr. Richard Wilson stated today.With some luck, the relief will help slow the "brain drain" occurring in the UK games industry following numerous studio closures.Wilson also said, "Tax breaks for games production will ensure that the UK remains at the forefront of video game development."That's a nice dream, but current tax break champion Canada and many others are ahead of the UK by a mile ... er, kilometer. [Pixelbliss via Shutterstock]
TIGA: 71% of UK startups focused on digital distribution
Digital distribution is the future in the UK -- for the sake of a lot of jobs, it had better be. UK game industry trade organization TIGA issued a new census report today, revealing a heavy focus on downloadable or social games.71% of UK game company startups between 2008 and 2011 are "focused exclusively on network gaming," the report indicates. Taking all of the UK industry in consideration (not just new companies), 67% work on digitally distributed games."For too long developers have laboured under the traditional 'give your IP away, never see royalties' model," said TIGA Self-Publishing Committee Patrick O'Luanaigh. "So TIGA strongly supports the trend towards online gaming and self-publishing. Online gaming can deliver greater company stability and revenue sustainability for studios. This is because studios can circumvent traditional publisher business models and build relationships directly with customers. Network gaming businesses can create original games, retain their IP and attain greater financial stability."We suspect this boost in digital gaming involves two major factors: the rise of iOS and Android games, and the end of large UK game companies like Bizarre Creations.
TIGA: UK 'brain drain' sees nearly half of laid-off devs leaving country
Britain's developer workforce has fallen 10 percent since 2008, and 41 percent of studio employees laid off between 2009 and 2011 have relocated out of the country, UK-games trade association TIGA reports. TIGA is publishing a survey from Games Investor Consulting that covers three-fourths of the UK games industry and warns of a brain drain in the UK.Bizarre Creations, a Liverpool studio that closed in 2010, saw one-third of its former employees leave the UK for new jobs in the games industry, according to the report. It also claims that countries such as Canada can entice UK talent because they benefit from tax breaks that reduce the cost of game development. The UK currently doesn't have comparable tax breaks, but "the video games industry is exactly the kind of sector that the Government should be supporting to help rebalance the UK economy," TIGA CEO Richard Wilson says.
TIGA and ELSPA form Steering Committee for UK tax relief
Looks like the UK's video game industry organizations aren't going to take the recent removal of their hard-fought game development tax relief plan from the nation's Emergency Budget lying down. Earlier today, TIGA and the ELSPA announced their partnership on a "Steering Committee" to investigate why the tax plan was put on ice. The duo plans to review the original submission to make a more compelling argument for gaming industry tax breaks. Hopefully the group will find an effective solution for getting its plan approved. You know, a solution better than "let's throw our full support behind candidates in the upcoming election who promise to endorse our tax plan, only to have them forget about us mere moments after taking office." The press release is posted after the break. [Image credit: Bashed]
UK govt cancels plans for video game tax relief
TIGA's years-long campaign to bring tax relief to the UK video game industry has come to a rather disappointing conclusion. Chancellor George Osbourne (pictured above) revealed the nation's budget plans earlier today during a speech at Westminster, announcing that "planned tax relief for the video games industry will be canceled." According to TIGA CEO Richard Wilson, this surprising omission flies in the face of "pre-election pledges made by the Conservative Party and by the Liberal Democrats to support and introduce Games Tax Relief." GamesIndustry.biz points out that Osbourne's proposed budget still benefits smaller, start-up developers in select parts of England, who will receive exemptions for £5,000 (about $7,400) of National Insurance contributions for each of their first 10 new hires; though this doesn't come close to the sweeping tax reform promised to the UK games industry just a little over a month ago. [Image credit: Auto Express]
UK moves forward with game tax relief
[Flickr: Bashed] Following exhaustive lobbying by TIGA, the UK will implement tax relief for video game developers. The change will allow game companies to keep more profits from successful products and receive tax credits to reduce losses when their games don't perform well. TIGA CEO Richard Wilson believes that the relief will "protect 3,550 graduate level jobs, increase or safeguard £457 million in development expenditure and encourage developers to adopt new business models and create new intellectual property." He continued that it was a "decision at the right time for the right industry." The UK games industry has been hit particularly hard by the current economic climate and further affected by a lack of recognition for the sector. In stark contrast is Canada, with its favorable tax breaks, as proven once again this past week as Warner Bros. announced it was opening a major studio in Montreal.
Prime Minister Gordon Brown commends U.K. game industry
[Flickr user Cory M. Grenier] U.K. Prime Minister Gordon Brown recently recorded a podcast -- yes, a podcast (mp3) -- which aired right before the kickoff ceremonies for the Global Investment Conference held in London on Monday. During the podcast, Brown commended the efforts of the U.K.'s game developers and publishers, stating, "we're leading the way in creative industries, by far the biggest producer of computer games in Europe." TIGA, the U.K. game industry trade organization, is hoping Brown's address is a sign of support for the game developer tax relief plan the group has been trying to push through parliament for more than two years now. Had they listened to Brown's other podcast, "The Uber1337 Video Game Talk Show," they would have heard a much stronger sentiment much earlier. [Via Edge Online]
TIGA won't stop UK tax relief campaign
[Image credit: Bashed] TIGA, the UK's trade association for the video game industry, said it would continue its campaign to achieve tax relief for UK developers. The organization will push the issue of fiscal reforms leading to the next general election and take the "opportunity to raise the industry's profile amongst parliamentary candidates of all major political parties" -- including the Shadow Lords. Jason Kingsley, Chairman of the TIGA board and CEO of Rebellion Studios, notes a recent study by M2 Research about industry job losses. It found that of 11,488 positions were lost in the industry last year, with the US making up 71 percent, with Europe accounting for 13 percent. However, the UK made up 81 percent of that European total, which by our calculations is about 1,210 lost jobs. In comparison, Canada lost only 2 percent, or about 230 jobs. Kingsley believes Canada's favorable tax environment helped them weather the recent economic issues. [Via Edge]
Report: UK government rejects gaming tax break proposal
[Image credit: Bashed] The Guardian reports that the British government will likely reject the Games Tax Relief proposal. According to the paper, the video game industry "contributes more to the UK economy than the film industry," yet doesn't receive the same assistance from the government. All of this is leading up to Tiga, the UK's trade association for the video game industry, either owning the role of "The Boy Who Cried Wolf" or Cassandra of Greek mythology. The organization claims that 1,700 jobs will be lost without tax breaks and that competition from other countries, like the US, France, and especially Canada, is too strong. Dundee and Manchester are to receive a £10 million cash injection from the government, but that probably pales in comparison to government tax relief. It appears that Tiga is going to have to take a gamble on the Shadow Lords soon. [Via Edge]
TIGA delivers petition for tax relief to UK government
[Image credit: Bashed] UK video game industry trade association TIGA delivered a petition today to 10 Downing Street (that's where Her Majesty ... oh, it's just the British Prime Minister's residence), seeking the introduction of Games Tax Relief. The petition was signed by 55 "senior industry figures," which gives the proposition a bit more weight than the standard internet plea. The argument set forth by Richard Wilson, CEO of TIGA, is that "if it is right to provide tax relief for the UK film industry then it is also right to provide tax relief for the UK video games sector." TIGA's push on the UK government is being framed as a matter of survival for the British games industry. The organization previously stated that 1,700 jobs will be lost without tax breaks and that the current government funding structure for the games industry is "incoherent." If TIGA doesn't receive assistance soon, the group can always accept the outstretched hand of assistance from the ominous-sounding "Shadow Cabinet."
Developers deem piracy a problem, not a threat in survey
Troubling news for pirates worried about their fearsome image today: In a recent survey of TIGA members, a majority of developers say that while piracy is a problem, it's not necessarily a fatal one to their business. While 90 percent of those polled think the issue is getting worse, only 60 percent call it a low threat with a mere 10 percent saying it represents a significant danger to their survival. What are the other 90 percent worried about? Well, getting caught between Mega Shark and Giant Octopus, naturally.
Shadow Culture Minister upset over lack of UK support for video game industry
UK Shadow Culture Minister Ed Vaizey stated today that the Labour party is failing the video game industry and the Conservatives are ready to take up the mantle and show the industry the power of its armed and fully operational support agenda. Vaizey announced that the Conservatives will extend Film Council credits to the industry, recognize that game companies "face specific challenges" in raising capital, support its needs to "succeed and expand in the global economy" and stimulate investment in broadband. Vaizey quotes research that finds the UK video game sector could shrink 16.5 percent over the next five years, resulting in a potential loss of "£180 million in external investment and nearly 1,700 jobs" – the same words of warning that UK trade association Tiga has been going on about. Vaizey concluded his speech at the London Games Conference saying, "Politicians need to take this industry seriously and promote [it] consistently. ... The industry needs a voice at the national level, and we will explore how best to effect this. There needs to be a renewed focus on the skills you need to continue to grow." Then he warned the audience that the ability to destroy a planet was insignificant next to the power of the Shadow Lords -- kidding. Ah, good fun, but here's an explanation of the "Shadow Cabinet."
Tiga calls UK tax support 'incoherent,' seeks national solution
We're starting to notice that Tiga, the UK's trade association for the video game industry, is sort of like the tragic figure of Cassandra of Greek mythology (and ABBA's 1981 song) -- no matter how dire the prophecy, the powers that be won't listen. The latest warning from Tiga urges the English government to stop its "incoherent" funding system, which the organization deems a "post code lottery," for game companies in the region. It's a fancy way of saying that Tiga wants tax incentives and support through a national "Games Tax Relief" program, rather than the current system, which favors certain locales over others. Tiga believes the national relief tax will create 1,400 jobs over five years and increase investment in a sector that'll likely continue its downward slide if nothing is done to support British game companies. [Image Credit]
EU Commission proposal wants two-year guarantee for games
European game developers are up in arms about a recent EU Commission proposal that, if approved, would require devs to abide by the EU Sales and Guarantees Directive, a rule that mandates "a minimum 2-year guarantee on tangible movable consumer goods." While this guarantee sounds great for consumers, Dr. Richard Wilson, head of game developer advocacy group Tiga, is worried it may "stifle new ideas as [developers] could end up just playing it safe."Developers' qualms go deeper than that, however -- they're worried that consumers might abuse a two-year guarantee on video games by returning the game with a complaint about a bug or glitch that doesn't actually exist. Furthermore, Business Software Alliance director Francisco Mingorance argues digital content isn't tangible, and shouldn't follow the "same liability rules as toasters." He also pointed out digital content isn't technically sold to consumers -- it is licensed for private use.Joystiq's Law of the Game writer (and radical lawyer) Mark Methenitis threw in his two cents, explaining that patches and updates have ended the age of game-ruining glitches, and that a potentially exploitable two-year guarantee on games is unnecessary. He adds, "if you're unsatisfied with an ongoing pattern of bugs you encounter from a developer's product, you should probably consider whether you want to continue purchasing that developer's products, thereby letting the market correct the problem." [Image]
