Probable Closure of Digital Warrington Confirms Need to Enhance UK as Centre for Game Development

By June 14, 2011 Press Releases

TIGA, the trade association representing theUK games industry, said today that THQ’s decision to put THQ Digital Warrington
studio into a closing down process confirmed both the impact of tax incentives
on investment in the video games industry and the need for the UK Coalition
Government to work with TIGA to enhance the appeal of the UK as a place to do
games business.

While THQ has confirmed that its Kaos studio
in New York and THQ Digital Warrington will be closed down, the publisher is
building up its new Montreal office in Canada. Employees from the closed
studios have been invited for job interviews at THQ’s offices in Montreal, Vancouver
and Austin, according to gamesindustry.biz
(http://www.gamesindustry.biz/articles/2011-06-13-homefront-developer-kaos-reportedly-closing-down).
THQ will now be engaging in a 30 day consultation process to determine Digital
Warrington’s fate. British Columbia and Texas also provide tax credits and incentives
for games development respectively.

Last year, Danny Bilson, THQ executive Vice
President for Core Game Brands, said in an interview with gamesindustry.biz that THQ was investing in Quebec because of the
provision of 37.5 per cent tax breaks and that his company would be investing
in Manchester if the UK Government also provided tax breaks.

Danny Bilson, THQ executive Vice President
for Core Game Brands, said:

“I wish that Los
Angeles or California would give us 37.5 per cent [tax break] on the labour;
then we’d be building out here. If it was in Manchester we’d be building out
there.””

In response to a question about whether a
global publisher would invest in the UK, Danny Bilson said:

“Well, it’s all about
money. The talent in the UK is extraordinary… I got to know a lot of teams in
the UK – it’s one of the greatest talent centres in the world… So there’s no
issue with talent; it’s just economics – and if the government finds subsidies
there, absolutely we would build out. We have a studio up in Warrington that’s
an excellent studio, working on our Xbox Live/PSN digital games, so we do have
a studio in the UK… but I’m sorry, it’s all about money at the end of the
day.””

Dr Richard Wilson, CEO of TIGA, said:

“The whole UK video
games industry will wish the Digital Warrington team every good fortune during
the coming weeks as they discuss their future employment options. Digital
Warrington, formerly Juice Games, has an excellent history of game development,
having developed Juiced and its recent XBLA
PSN game Warhammer 40,000: Kill Team.
TIGA hopes that the tradition of game development in Warrington will continue.

“THQ’s decision
confirms once again that Canada’s tax breaks are draining investment and
employment away from the UK. THQ has made it clear that the UK development
workforce is second to none. The problem is the lack of Games Tax Relief or a
similar fiscal measure.

“TIGA was pleased
that the UK Coalition Government improved the UK R&D Tax Credit system in
the March Budget. Yet there is still more to do. The R&D Tax Credit system
can be enhanced still further; a tax break for games production can be
introduced; and a Creative Content Fund could be established. TIGA will continue
to engage with the UK Coalition Government, the Scottish Government and other
policy makers to make the UK the best place in the world to do games business.””

-Ends-

Notes
to Editor:

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. TIGA has also been
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
organisation.

TIGA’s
vision is to make the UK the best place in the world to do games
business. We focus on three sets of activities: political representation,
generating media coverage and developing services that enhance the
competitiveness of our members. 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 07875939643:
or email
richard.wilson@tiga.org; or contact David Hodges on 02070911653

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