Games Tax Relief will Promote Culturally British Games on New Platforms
TIGA, the organisation which represents the videogame industry, said today that recent major announcements about platforms and operating systems in the games industry heralded new opportunities for games developers which could be fully realised once Games Tax Relief comes into effect. TIGA made the comments following Microsoft and Sony unveiling fresh details about their hardware at E3, the games industry show, and a separate event by Apple where the new operating system iOS 7 was showcased. TIGA convinced the UK Government to adopt Games Tax Relief, a measure which reduces the cost of games development, in the March 2012 Budget but the EU Commission first has to authorise the measure in order for it to be implemented.
TIGA believes that Microsoft’s Xbox One and Sony’s PS4 could give a shot in the arm to the games development sector, as the platform holders will look to commission fresh content from game developers for their new consoles. The iPhone and iPad continue to be a major force in gaming with Apple’s recent Top 25 best-seller lists showing games making up two-thirds of downloads. Apple says developers will be able to make game controllers for iOS 7. iOS is a popular operating system for many UK games developers.
Research group DFC Intelligence believes the videogame market will benefit hugely from these announcements and the market is set to be worth $78bn by 2017, up from the current $63bn.
Dr Richard Wilson, CEO of TIGA, says:
“It is exciting to see more details about Xbox One and PS4. The games revealed so far not only look impressive but promise to move their genres on in leaps and bounds. We also welcome Apple’s new operating system since it will put the spotlight once again on a platform that is very important to developers, particularly smaller, independent companies and individuals.
“However, it is vital that the EU Commission authorises Games Tax Relief at the earliest opportunity. Investment in the UK games industry has fallen, employment has shrunk by 7 per cent and there is an under-production of culturally British games because our key competitors in North America benefit from tax relief while we currently lack an equivalent measure. If Games Tax Relief is introduced more UK games developers will be able to create games with a British theme on the new consoles and operating system.”
Jason Kingsley OBE, TIGA Chairman and CEO and Creative Director at Rebellion, said:
“E3 and the Apple event showed once again the significance of the video games, economically and culturally. We hope that Games Tax Relief, a measure which TIGA successfully persuaded the UK Government to adopt, will be approved by the EU Commission later this year. This will give British games developers the opportunity to demonstrate their creativity on these new platforms and operating system and develop new and exciting culturally British games.”