Canada is luring talented games developers from the UK, according to a new report which campaigners say strengthens the case for better support for the sector in this country.
TIGA, the trade association representing the UK games industry, said the UK economy was losing out to countries which had support such as tax credits in place for their games industry.
The organisation pointed to a report for the Entertainment Software Association of Canada, which revealed that Canada was successfully attracting investment and jobs away from the UK and that the Canadian games industry was enjoying significant growth fuelled in part by tax credits.
The report, entitled Canada’s Entertainment Software Industry in 2011, notes that: “Canada itself has been notably successful in attracting investment and skilled personnel from jurisdictions like the United Kingdom.”
It also found that the Canadian games industry is expected to grow by 17 per cent over the next two years, assisted in part from tax credits on labour ranging from 17.5 per cent to 37.5 per cent of expenses in Ontario, Quebec and British Columbia
And 42 per cent of respondents to the report’s survey were concerned about the lack of talented personnel available to work in the Canadian video games sector.
Dr Richard Wilson, chief executive of TIGA, has long campaigned for tax incentives and better support of the UK games industry which has a strong base in the West Midlands.
He said: “This report confirms that Canada is successfully draining investment and highly skilled developers away from the UK.
“Canada’s tax credits play a key part in this process.
“The loser is not simply the UK video games industry, but the entire UK economy.
“Interestingly, the Canadian games industry is concerned about an insufficient supply of skilled personnel, with more than two-fifths of respondents worried about a talent gap.
“This is not unusual.
“A recent report on the Australian video games sector revealed that 83 per cent of respondents believe that the sector suffers from skill shortages.
“Video game development requires highly skilled personnel, for whom there is naturally competition for employment.
“The UK game development sector employs a highly skilled and creative workforce.
“While we must continue to enhance the provision of games education and training, the critical factors that the UK needs to get right are the tax environment and access to finance.
“The introduction of games tax relief and a creative content fund, together with improvements to R&D tax credits, will power the UK games industry ahead.”
