UK Games Industry: Give Us A (Tax) Break!
Should the government be doing more?
Posted 13 Apr 2007
SCi's Jane Cavanagh: "Give us a break"...
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The problem, of course, is that with government help inevitably comes tighter regulation. The UK games industry might be growing up, but is it ready for the likes of Keith Vaz to have more than vague 'moral' arguments to call on when assessing the content and form of video games.
Cavanagh, who's company recently announced a new studio in Montreal, said, “The UK still has a good talent base, but other places are making a concerted effort to draw talent.”
She should know. Eidos is (according to the FT) currently the UK's biggest games publisher, but as well as starting up its 210-developer-strong Montreal studio it's looking towards locations such as China for further expansion.
According to the FT:
"Montreal is offering to pay about 40 per cent of the salaries of the SCi developers and to give them a tax holiday for three years. Such grants have also enticed global publishers, such as Electronic Arts of the US and Ubisoft of France, to set up in the city.
"In Australia, the state government of Victoria is setting up incentives, such as providing A$375,000 (£156,000) over two years to help fund local games development, attracting Atari of France and THQ of the US to the region."
"In Australia, the state government of Victoria is setting up incentives, such as providing A$375,000 (£156,000) over two years to help fund local games development, attracting Atari of France and THQ of the US to the region."
Over the last six years the UK games industry has more than halved in size, dropping from 400 independent studios to 150.
It's not that the government doesn't appreciate the games industry, though. Prime Minister, Tony Blair, heaped praise on it last month at a speech for representatives of the creative industries. It's “contributed to the renaissance of British culture,” apparently.
Eidos' creative director, Ian Livingstone, received the praise coolly, however, saying, “We make original and innovative games that sell around the world and whilst we have achieved most of this without significant contribution from government.”
Sources:
The Financial Times
MCV
Comments
1/7
That picture of cavanagh looks like shes about 2 strokes from a facial :))))
2/7
Thats why I want to move to Canada! I'm getting sick of this country!
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3/7
She is quite a milf. Good call.
4/7
I would.
5/7
milf
hey, maybe if the UK industry starts getting tax cuts, we'll see cheaper produce? wishful thinking :o
hey, maybe if the UK industry starts getting tax cuts, we'll see cheaper produce? wishful thinking :o
6/7
RiseFromYourGrave wrote:
if the UK industry starts getting tax cuts, we'll see cheaper produce? wishful thinking :o
Not wishful thunking, but a basic misunderstanding of what corporate tax breaks are for.
Many people think that corporate tax breaks are to enable industries which face difficult circumstances to better meet and match those circumstances. But ask yourself this... if the film industry needs tax breaks so badly, why do they pay actors millions of pounds to basically stand around and chat? There are girls in Walmart who would do it for less.
No, tax beaks exist because corporate bosses cannot outsource all processes to India. It's fine if you can't understand a word that the person who is pretending to give a damn about your salary being paid into the wrong account is saying. You are weak and powerless, and it's cheaper to employ someone who barely speaks English than it is to employ somone who does.
But certain jobs can't be sold to brown people. Imagine if the panel on X Factor was run from Pune. No one would be able to tell if they were mercilessly humiliating the contestents of complimenting them on their hair. This would not fly.
If corporations can't export jobs to somewhere where we can pay people in coat buttons, then the government is going to have to pay them to keep them here.
SCi can develop games in Mumbai as easily as in Toronto. So if Cananda wants the jobs, Canada has to suck corporate cock. And let's face it, Tomb Raider will make money wherever it's developed, because developer salaries constitute about 5% of the budget. The marketing and rights to Angeline Jolie's picure for the box that constitute the other 95% of the budget can't be bought cheap in India.
The tax breaks are so that corporate bosses can earn even more insanely ridiculous amounts. Do you think that it is acceptable for a Republican CEO (or borderline Fox like Ms Kavaghnarrgh) to earn only 500 times as much as their average employee? No, clearly. Corporate bosses have cocaine to buy, whores to pay, and mistresses to keep in expensive Parisian apartments. These things do not come cheap. So why should corporations have to pay taxes? They would only be wasted on fripperies like public education and free healthcare for the masses. Masses who only have any money because we deign to pay them a little, and they should be spending that little on private healthcare and private education that we will gladly sell to them.
7/7
I've been enlightened by the Pres, lol. Good stuff.
I agree, she's a foxy milf though.
I agree, she's a foxy milf though.
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