Big Mother Truckers was developed by Eutechnyx in Gateshead, not Empire (and I did mention they were the publishers)

They may have been but tax breaks would encourage those with the skills to go into game development or stay there instead of moving into other areas of software development. My previous test manager was a senior developer on the Starsky & Hutch game (among others) and I know those that moved into the banking industry or even bog standard software development because they industry is in decline. I know of 2 other large companies that are likely to soon be laying off staff in the UK to increase numbers overseas.

The recession isn't a reason either as the video game industry was one of the few areas that continued to grow.

A large number of the companies that were bought were by the larger studios went on to do very little. The companies may have run numbers of sequels into the ground but it was at the publishers will, if a publisher wouldn't fund it they wouldn't make them.

There are VERY few good original IPs that sell well in modern games, sequels for games that sell well are almost guaranteed (Fifa, pro evo, call of duty, tomb raider, doom, quake, age of empires, gran turismo, forza, grand theft auto, medal of honour, Mario, sonic, final fantasy, zelda and so on) where not many games that are new IPs sell in those numbers because people buy what they know.

(Edited as the first reply seemed quite dickish)

Well that's two separate issues there. Offshoring is a factor in many techy industries, games development has no monopoly on that. Offshoring is only a good deal because the cost of living in general in the UK is higher than the place you're offshoring to and tax is a factor in that, correct. But that makes the relationship indirect at best. The problem with pay is something I agree on - for pretty much any job in the games industry you can get more money and better conditions by moving to do virtually the same 'task' in a 'proper' industry. I moved from games to education (i.e public sector) and got a pay rise, which shows you just how bad things are (admittedly quite a few years ago now...). The games industry in general objectively isn't a great industry to work in - long hours, poor pay, bad conditions - just look at 'EA Spouse' or the later variants thereof for example.


That's probably not something the industry should mention when asking for tax breaks though...


Oh yeah. The only new IP I can think of in the last couple of years that sold in serious numbers is Assassin's Creed and that seemed to have a humungous marketing budget behind it. A lot of the others (say Mirror's Edge or Dead Space) ended up selling on word of mouth and, as the industry is obsessed with first week sales as a marketing device, they were pretty much considered to be failures despite selling decently over a longer period. And then you have an awful lot which failed but, to be honest, they failed mostly because they weren't actually that good.

The problem is most of the arguments the games industry uses aren't specific, they're just examples of how a low-tax economy would be better generally for company profit. You're never going to get that argument through to a government facing a massive spending shortfall, it's just not going to happen. I haven't yet really heard an argument that the games industry uses that is particular to it as an industry (if you think the games industry is unique in having both a brain drain and a push to off-shoring, think again) which is strong enough to actually get them any kind of genuine concession.

Jon

Oh I agree, I am on more as a junior web developer than someone I know who works for a smaller games company as a senior programmer


Borderlands, Left 4 Dead, Assassins Creed (as you say) and a few others spring to mind



Again I agree which is why I think it should be for the software industry in the UK in general

I think that the standards of living are better elsewhere. In Canada and eastern europe the proportion spent on housing is much lower. Therefore peoples personal disposable income is higher, even before tax breaks. Wages might be lower as well but with the lower costs of everything else it can still be better for people to move. You can actually have an increase in your standard of living even on lower wages.

I can understand easier write-offs of equipment which would definitely benefit the industry without actually giving them any money. If they can write off all equipment each year that would help rather than having to spread the cost over a number of years. The fact that companies have gone bust is not down to tax, as it is an end tax. Make no profits and you pay no tax. High council taxes and other running costs are a factor, and tax on those could be significant.

The problem is that property costs have become bloated for all businesses. That is one reason why there are so many pubs closing. The brewers were more valuable as property companies with a brewery sideline than as brewers with a steady business. As the pub chains were bought as property investments they demanded stupid rents and so pubs cannot cope. That has been replicated through many industries, I am sure that rents for software companies are excessive as well. That has an immediate effect on a business.

What is needed is much higher capital gains taxes on property including commercial, so that rents get back to lower levels. That will help all businesses.


Actually I think a better way is for free education even at university level (even if it is for far fewer students), otherwise employees have to add the costs of their degrees into their wage negotiations, along with high property costs and pension costs.

Also Bletchley Park should be supported out of the lottery good causes.


Well I am considering moving. Where I am thinking of has its benefits. The costs of housing is such I would rent a 5 or 6 bed house for the cost of a two bed flat here.