TIGA Proposes
Creative Content Fund to Grow the Scottish Video Games Industry
TIGA, the trade
association representing the UK games industry, has proposed that the Scottish
Government should examine the establishment of a Creative Content Fund to encourage new studio
formation, stimulate the generation of new IP and co-fund new content
development.
TIGA made the proposal in the face of the UK Coalition’s
Government on-going failure to introduce Games Tax Relief, a sector specific
tax break for games development.
In 2010, the UK Coalition Government reneged
on pre-election promises and failed to introduce a tax break for games
production – leaving developers in Scotland and throughout the UK at a
disadvantage to their international competitors, many of whom benefit from tax
breaks, which effectively reduces the cost of employment and games production.
58 per cent of
Scottish game developers in a TIGA survey said that a lack of finance was
holding back their businesses. The UK Coalition Government failed to introduce Games
Tax Relief, with
the result that investment and jobs are going overseas to countries such as Canada which have tax relief.
Although the Scottish Government supports
Games Tax Relief, it does not yet have the power to introduce such a relief. TIGA
has therefore proposed that the Scottish Government could consider the
establishment of a Creative Content Fund to provide match funding to Scottish
game developers on a commercial basis.
Dr
Richard Wilson, TIGA CEO, said:
“The Westminster Coalition Government is failing to
invest in the Scottish and UK game development sector. The Scottish Government
now has the chance to show decisive leadership in support of the video games
industry by adopting TIGA’s proposal for a Creative Content Fund.
“TIGA’s proposed CCF would improve developers’
access to finance, stimulate original IP generation and promote studio growth.
It would enhance the independence of developers and strengthen the prospects
for the expansion of the Scottish video games industry.”
Key
features of the CCF:
The CCF could
provide funding of up to £100,000 to game developers. The CCF should make investment available in the form of
matched funding (i.e. pound for pound) repayable contribution in approved
game production projects. The CCF would operate on
a commercial basis and so would be entitled to recoup the money from
recipients out of successful sales of those games once they had generated
a certain amount of revenue and over an agreed time period, together with
a defined share of the additional profits. These
profits could then be used to augment the CCF and applied to future
projects.
The CCF would be entitled to invest in a broad
range of game development projects in order to cover both the breath of
interactive entertainment content, as well as the wide range of platforms
on which such content is distributed.
The CCF should
only invest in projects where the developer owns the IP.
The CCF should
additionally aim to invest in games that are innovative in terms of
content, gameplay and business models.
The proposal is supported by a range of
Scottish game development studios and universities.
Colin Anderson, MD of Denki, said:
“TIGA’s Creative Content Fund is a well-considered, practical proposal
that addresses the types of funding challenges currently faced by the majority
of Scottish games companies. By adopting this policy the Scottish
Government would ensure Scotland’s exceptional creative talent develops in a
sustainable way for the long-term benefit of the Scottish economy.”
Brian McNicoll, MD Dynamo
Games Ltd, said:
“A Creative Content Fund
would be extremely useful to Scottish developers who are looking to get
innovative gaming ideas off the ground. At the moment there is definitely a
funding gap for a new own-IP projects and this would help provide a solution to
this problem.”
Paul Farley, CEO of TAG Games:
“
This is a good proposal which addresses the finance issue facing games
developers beyond the initial start-up and prototype phase.”
Frank Arnot, Studio Director, 4J Studios Ltd:
“Scotland’s game developers have previously demonstrated their
creativity and expertise by developing some the world’s most successful video
games IP. A Creative Content Fund as proposed by TIGA would provide Scotland’s
talented games developers with the opportunity to develop the digital success
stories of the future.”
Professor Jessie Kennedy, Director of the Institute
of Informatics and Digital Innovation, Edinburgh Napier University:
“Schemes such as the Creative Content Fund are ideal to encourage young
entrepreneurs and existing companies to remain in Scotland. Funds like
this enable companies to grow, and allow further development and research to
occur within Scotland. The Scottish Government has a history of providing
support via entities such as Scottish Enterprise, and I hope to see the
Creative Content Fund create new talent and jobs within Scotland.”
Paul Durrant,
Director of Business Development, Abertay University:
“We are strong supporters of the idea of a Creative Content Fund
with a focus on games development in Scotland.”
Ends
About TIGA:
TIGA is the trade association representing the UK’s games industry. The
majority of our members are either independent games developers or in-house
publisher owned developers. We also have games publishers, outsourcing
companies, technology businesses and universities amongst our membership. TIGA
was awarded ‘Trade Association of the Year’ and the ‘Member Recruitment Award’
at the Trade Association Forum Best Practice Awards 2010.
In 2011, TIGA won a further four awards at
the Trade Association Forum Best Practice Awards, including ‘Trade Association
of the Year’ for the second consecutive year.
TIGA has been voted a finalist in the CMI Management and Leadership
Awards 2011 in the ‘Outstanding Organisation (SME)’ category. Dr Richard
Wilson, TIGA CEO, has been voted a finalist in the ‘Outstanding Leader’
category. TIGA was also named as a
finalist in the 2010 Chartered Management Institute (CMI) National Management
and Leadership Awards in the category of ‘The Outstanding Organisation of the
Year Award (SME)’.
TIGA is an ‘Investors in People’ accredited organisation.
TIGA is the trade association representing the UK’s
games industry. Our vision is to make
the UK the best place in the world to do games business. Our mission is to
fight for the interests of game developers. To achieve our vision and mission
we focus on the delivery of three strategic objectives: effective political
representation, profile raising and helping our members commercially. This
means that TIGA members are effectively represented in the corridors of power,
their voice is heard in the media and they receive benefits that make a
material difference to their businesses, including a reduction in costs and
improved commercial opportunities.
For further
information, please contact Dr Richard Wilson, TIGA CEO on: 07875 939 643, or
email richard.wilson@tiga.org.