Yesterday
the emergency budget was brought down in
the UK and video game tax relief for video
game developers was axed. This could spell
a boon for Canada’s Ontario and Quebec
video game development operations and improve
Canada’s standing as the world’s
third largest destination for video game
publishers and developers.
In a move
worse than the British goal-keeper letting
in a soft goal at the hands of the
Americans in the World Cup, video game developers
in the UK are crying foul. The absence of
tax relief could spell doom for the UK game
development community. The tax relief has
been replaced by “generic measure to
stimulate growth in all areas of the business
sector including cuts to corporate taxes
and other national insurance tax relief measures.”
Yesterday’s
move is a direct contradiction to a government
election promise by both
the Conservatives and the Liberals to keep
tax cuts for video game companies in place.
Canada could benefit from the move as Quebec
and Ontario offer significant tax advantages
for video game companies. Quebec pays a third
of the salaries for development staff and
offers tax exemptions to foreign investors.
As a result Ubisoft, Electronic Arts, Square
Enix, Tecmo Koei, and Warner Bros have all
set up studios in Montreal. Recently Electronic
Arts and Ubisoft opened up operations in
London and Toronto Ontario respectively.
The move will still keep UK in the running
and a force in the game development community,
but could drop it down from its fourth spot
as the largest game development country.
Last year over £1billion pounds was
pumped into the British economy as a result
of game development.
