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Scotland fighting to keep Realtime Worlds, other native game developers
It seems Scottish government officials aren't going to let the nation's game developers get stolen away without a fight. Last week, we reported on Ireland's attempts to court Scotland's biggest game developers, starting with APB creators Realtime Worlds. Scottish Secretary of State Jim Murphy recently met with Realtime Worlds owner Dave Jones to talk about how Scotland can convince the company to stick around -- specifically discussing the option of tax breaks and other modes of government support. If you found that last paragraph boring, here are the CliffsNotes: Ireland and Scotland are fighting over Scotland's game developers. As their incentives continue to escalate, we completely expect to see a "free ponies" offer on the table within the next few weeks.
Report notes decline in original game IP in UK
Times are tough, which might explain why the industry is "risk-averse" and hesitant to pump out brand new properties this year. A report by the UK's NESTA (National Endowment for Science, Technology and the Arts) found that 60 percent of the publishers surveyed had either slowed, or stopped, original IP (intellectual property) work. The report specifically deals with the UK and seems to convey a sentiment that developers would do more original IP if tax credits backed them up -- an increasingly prevalent issue in the British development scene. One publisher that goes unmentioned in the report is EA, which has certainly gambled on original IP in recent years -- to critical praise and retail shrugging. Although the big boys may not be comfortable with new franchises, the size of the industry seems to offer support for fresh content from more independent channels. Source -- Industry admits to decline in IP [Develop] Source -- NESTA's tax break in full [Develop]
Group seeks to turn Illadelph into 'the Hollywood for video games'
Like the smattering of American states and, umm, international unions that have already begun financially incentivizing game development, a few Philadelphians hope to convince the city's legislature to do the same. Philadelphia's City Paper reports that the Video game Growth Initiative recently presented its case for economic growth through game development to "representatives from state government and city economic groups."Though the representatives suggested the re-packaging of "already existing business incentives," the group has bigger plans for its ideas, saying, "That's still not enough, it's not like other cities don't have these kinds of incentives." For now, the VGI is preparing a website that will enlighten tentative game studios to the "already existing" financial reasons why they should move to the City of Brotherly Love. Personally, this writer thinks the incredible food, amazing selection of beer, and Joystiq's own Chris Grant would be incentive enough. [Image credit] [Via GamePolitics]
UK government requests evidence to support game developer tax break
Two weeks ago, British politician Lord Stephen Carter published a document titled the "Digital Britain" report, which could ostensibly change the technological face of the UK should his fellow politicians adopt its bold demands. The nation's leaders were intrigued by at least one section of the report -- a section that suggests video game development studios should receive tax breaks in an effort to protect and strengthen the nation's gaming business.The UK's Department of Media, Culture and Sport responded to the request by mailing TIGA and the ELSPA, asking for evidence to support why such a tax break is needed, and how it would culturally enrich the country. We're pretty sure that if such a tax break inspired the creation of a few more Media Molecules or Lionheads, we'd end up feeling pretty enriched.
UK government plans tax breaks for 'culturally British' games
The long battle for UK tax breaks for games industry pros may finally be over, with the government stating in its recent Digital Britain report that it "has committed to work with the industry to collect and review the evidence for a tax relief." Here's the kicker, though. In order to be worthy of these potential tax breaks, the games must be "culturally British."What this means is unclear, but games would need to be put through a test to determine whether they can be deemed "culturally British," in a way similar to the UK film industry. Certain British games, such as LittleBigPlanet -- whose narrator is a British national treasure -- and Fable 2 -- with its cockney characters and very English humor -- would be shoo-ins. Other games, such as Burnout Paradise, might need to make a few changes. Perhaps we'll see London landmarks like Big Ben or the London Eye introduced in a future DLC pack.
Apple building server farm, secret lair in North Carolina
As Mike mentioned in the news roundup yesterday, word is going around that the corporate overlords at Apple are planning to build a massive server farm in the state of North Carolina within the next decade or so. How do we know? Because the company is working on getting a few nice tax breaks to go along with the deal, eventually worth about $46 million if Apple fulfills their end of the agreement. Their end of the agreement being a huge investment of a whopping $1 billion (that's over 333,000 Xserves, if that is indeed what they're installing -- and we bet not) into an economy that could probably use it. What exactly will go in there? We aren't sure -- lawmakers say the investment is worth it, and obviously Apple isn't showing their cards. [Note: the $1B investment figure is not an upfront number, but rather a total investment over the first 9 years of operation. –Ed.] But the facility, once up and running, will start by employing at least 100 people, so that's a nice start. Google has apparently gone through the same deal with North Carolina recently, though their deal was a little smaller: $600 million investment for a server farm that opened last year. More backend for Mobile Me? More power for the App Store or a project like it? A giant building full of Cubes running 24 hours a day? Or something we haven't even dreamt of yet?
ESA prez asks Texas to extend tax incentives for game developers
In an op-ed piece fort the Austin American-Stateman, Entertainment Software Association president Michael Gallagher asks the Texas legislature to extend the state's economic incentive programs for the game industry -- such incentives were signed into law in 2007 by Governor Rick Perry. The bills that would extend the incentives are currently under consideration. Gallagher states that the game industry accounts for more than one third of the $345 million invested in the state by the entertainment industry in 2007. He says further that video games are an extension of Texas' "rich cultural past" as represented by SXSW, which begins its 2009 show this week. Gallagher points out the benefits that games have brought, such as dexterity improvement for senior citizens, job training and teaching tools. He neglects, strangely, to mention that they are also awesome.As Gallagher notes, several states are considering similar measures or extending the ones already in place and concludes, "While economic incentives for the video game industry are a sound investment for Texas' cultural legacy, they are an even better investment for the people of Texas." Let's hope the bills pass, if only to finally find out what Warren Spector has been up to.
Tiga: 85% of UK developers want tax breaks, programmers not easy to find
This made us laugh: A report by UK trade organization Tiga found that 85% of developers in the UK supported tax breaks for game production. Only 85 percent, really?! Did the remaining 15% not understand the question? Anyway, the report also covered the UK game industry's slipping size and skill shortage.Of the 100 UK-based CEOs and managing directors surveyed, 63% had faced skill shortages in the last year, with programmer vacancies as the most challenging to fill by 74% of those respondents. Tax burdens and foreign competition were listed as the top two barriers to expansion. Tiga CEO Richard Wilson hopes that the government will introduce a 20% tax break for local developers so the region can compete against Canada and a growing number of US States with tax incentives. [Image]
Tiga re-requests UK tax breaks in wake of Wisconsin incentives
Tiga, the trade association for game developers in the UK and Europe, points to Wisconsin's recently passed incentives for game developers as a sign for the UK government to get on the tax break ball. GI.biz reports that Tiga's CEO, Richard Wilson, is asking the UK government to "play its part" and "establish a more favourable tax environment, increase the supply of skilled graduates without sacrificing quality and keep the regulatory costs on business relatively low."Tiga recently made similar statements after the US state of Georgia gave some tax relief to the games industry. Wilson's comments about "skilled graduates" is probably the result of a recent report in the UK, which found that the country was experiencing a skilled labor shortage. The UK and Australia are currently competing in a tax break whine-off as other nations and states offer various forms of attractive tax relief to game developers.
GDAA mate, Aussie developer group chief quitting
Greg Bondar, CEO of the Game Developers' Association of Australia (GDAA), will quit his post on July 12. Bondar tells Gamespot AU that he's moving on to "pursue other opportunities" after being with the organization for 18 months.The GDAA has been the group pushing for Aussie game developers to receive the 40% tax break currently bestowed upon their film-making brethren. The group is trying to prevent the continent from being left behind as various nations and states lure game developers with yummy tax breaks. Mmmmmm, tax breaks.
Georgia offers tax breaks to game industry
Apparently game developers can hitch a ride with the devil if they're looking for some tax breaks. According to the Duluth Weekly, Georgia Governor Sonny Perdue signed into law the 2008 Entertainment Industry Investment Act, which gives financial incentives to film, TV and game development. Bill Thompson, deputy commissioner of the Film, Music and Digital Entertainment Office, points out the law makes Georgia one of the few states with incentives for the video game industry.The signing took place at the studios of Turner Broadcasting, which not only runs several television stations, but also GameTap. The new incentives offer a 20% tax credit, with an additional 10% if it includes an animated Georgia promotional logo in the finished product. So, go on down to Georgia, developers. If you can survive the summers, they're giving away free money.[Via GamePolitics]
France passes tax break for game makers
When you think of hubs of international game development, France probably doesn't leap to the front of the list. But the country hosts major game makers like Ubisoft and Atari and famous creators like Beyond Good and Evil's Michel Ancel and Alone in the Dark's Frédérick Raynal.The country's game making reputation might just grow if the French government has anything to say about it. Wired reports on a recently passed French law granting special tax breaks to French game makers through the "exception Francaise."The exemption still has to be approved by the European Union, but even if it is, don't expect to see a flood of mindless shoot-'em-ups to come out of the country. French Culture Ministry Adviser Marc Herubel told Wired that tax-exempt games must be "culturally relevant," meaning they have "a narration of some kind and a scenario written in French with elements of adventure or simulation games." So, apparently, some of the most important games of all time wouldn't be culturally relevant enough for the ministry just because they didn't have French narration? Way to fight that elitist French stereotype, there.Previously: France vies to give artful tax break for game industry
