I recently sat down and, grabbing a hot cup of marshmallow-filled hot chocolate, began reading the response of The Association of UK Interactive Entertainment, or Ukie, in regards to the government’s proposition of tax breaks for video game companies.
Now, being the avid gamer myself, I was thrilled at this victory for the industry, but before I popped out the champagne and caviar, I had to make sure it was something that was truly worth commenting on. Thus, I prepared myself for a long night of study.
For those of you who are unfamiliar, there have been many lobbyists who have dedicated an immense amount of effort into providing video game companies with some form of tax break. It nearly happened in 2010, before the government switched powers and was cancelled. However, after hard work, dedication, and a severe amount of patience, the United Kingdom’s game industry finally got what it was waiting for: A promise from the chancellor himself stating that the tax breaks would take place, “subject to state aid approval and following consultation.” With the amount of time that has been spent to get such a promise, the game industry certainly has enough patience to wait a few more months.
The response of Ukie was almost instantaneous. They gathered several points of information from almost 221 different game companies, including several non-Ukie members, and ranging from multinational publishers to one-man indie designers, and everyone in between. They wanted to be sure that their response was the consensual viewpoint of all whom they represented. And as to be expected, the response was overwhelmingly unanimous in welcoming the relief. For the government to recognize the video game industry as being an important cultural stamp of life is an awesome achievement.
While the response was one of positivity, there were several points that were brought up by Ukie for the government to consider. First, and most importantly, Ukie urges the government to make these breaks support all parts of the industry. This encourages growth from small independent studios as well as existing bigger studios, and attracts inward investment from multi-national companies. Also, they propose that there should be a relief of at least 30% for all UK games development. Ukie CEO Dr. Jo Twist also stated, “We also want to urge government to effectively measure the true size of the games industry. As the recent report from Creative Scotland highlighted, it is crucial that we have accurate data so that we can judge the success of this scheme and other government policies.” Many of these ideas have the merit they deserve, and hopefully are taken into deep consideration.
With all this being said, the biggest question is, what effect will this have on the video game world? Well, for one, it will increase the investment, both outside and in, into the UK. As the life president of Square Enix, Ian Livingstone, so eloquently states, “Tax credits send out a strong message that the UK is the best place in the world to develop games.” It will provide the necessary fuel to the fire of developers, who will in turn produce more high-quality and innovative games, without the restraint of money. Dr. Twist states, “Having a system that recognises the new innovative business models and production processes in our industry, allowing developers to claim for DLC and continued development, post going-live to the public – gives the UK a real advantage over other countries.”
I’m hoping that the promise is kept this time by the UK government, and I look forwards to see what material will arrive from that region once the tax breaks take effect. Only time and patience will tell. And we have plenty.
