Dr Richard Wilson, Chief Executive of TIGA, told GameKudos, “Currently, seventy-six percent of investment comes from overseas.

 

“Unless the industry is granted tax relief, international publishing companies will be attracted to those countries that do. Developers in the UK are at a competitive disadvantage”.

 

This week, TIGA, Osborne Clarke and Games Investor Consulting published a joint report claiming that game development jobs have fallen almost ten percent in the last two years and will continue to plunge another twenty-four percent by 2015.

 

The report also highlighted that the UK games industry is competing on a highly uneven international playing field. Over twenty states in USA alone provide incentives for the video games industry. The report estimates that Games Tax Relief could create and safeguard 3,336 development jobs and £431 million investment.

 

Speaking at the launch of the 85 page report, Jason Kingsley, Creative Director of Rebellion said, “Other governments around the world are now backing their video games industries. The UK Coalition Government is not”.

 

The call comes a week after Activision Publishing announced that it has no option but to close its Liverpool based studio,  Bizarre Creations, which employs around two hundred people.

 

Last June Activision CEO, Bobby Kotick, hinted to the Financial Times that the lack of tax incentives may prompt the publisher to move elsewhere, "The talent pool in the UK is among the best in the world for what we do. But we really need to see some more incentives. We are seeing great incentives in Canada, Singapore and eastern bloc countries."

The studio was put on sale in November after the commercial failure of its racing game Blur. In a statement, Activision said that they have “explored all possible leads; unfortunately we have not been able to find an interested party within the timeframe”.

  

Smaller developers also say more support is needed. Liam McGarry from WeeMan Studios, a three-man set up who specialise in games for mobile phones, explained to GameKudos, “As we look to expand and develop more games, highly skilled staff will be our biggest cost. We are increasingly competing in a global market for staff and customers.

 

“Being based in Northern Ireland, we are already aware of the tax advantages of the Republic of Ireland. Decisions to renege on UK Tax Relief make it not only more enticing for staff to consider migrating but also companies too."

 

Aaron Donaghey from Darkwater, developers of the combat flight game Dogfighter, echoed these concerns, “More and more we see articles about India and Canada being huge for game development - and are heavily supported by their governments.

 

“It seems unfortunate that we are not to share in their good fortune”.