Pushing Through: Tax Break for Game Developers
At a time when the UK and most of the global community is in an economic downturn, would it truly be prudent to offer the video games industry a “tax break”?
Ironically, despite being an industry that produces electronic luxury goods, there remains a solid and consistent market for video games. In fact the game industry contributes around 1 billion GBP to the country’s GDP each year. The reason is simple, while games are not necessary for people to live it is a primary part of many lifestyles. Just like movies, television and other entertainment arts, the demand for video games is growing consistently.
Originally, the UK was one of the top three producers of video games, next to Japan and the United States. However, with many other countries offering subsidies, incentives and other benefits to game developers, most of the UK’s homegrown talent find themselves in search of better pickings outside of the country.
Not that the UK is low on talent, developers such as Media Molecule are still around. But if we want to keep having these industries in the UK, then the tax break should push through –among other forms of support.
The reverse of the situation also applies here, with the UK offering tax breaks to game developers it will attract companies from other countries to open up development studios here. This will in turn not only generate income for the country, but it will also generate plenty of job opportunities. At the same time, having plenty of game developers would foster a good degree of competition, pushing the quality of products even more.
Of course, justifying the need to recognize the gaming industry is simple. Even BAFTA (the British Academy of Film and Television Arts), recognizes the many creative talents behind video games.
Learn more about the effects of the tax break at the Telegraph UK.
Tags: BAFTA, video-games
