A VISION FOR THE INDUSTRY IN 2020

tiga.org 20/20 VISION TIGA’S MANIFESTO FOR THE UK VIDEO GAMES DEVELOPMENT INDUSTRY 03

‘Total War: SHOGUN 2’, developed by Realtime UK

P.4 Forewords

P.10 Introduction

P.12 TIGA and the games industry

P.16 Summary of proposals

P.20 Power up small firms

P.23 Build world winning games businesses

P.32 Promote games clusters to boost regional growth

P.36 Enhance skills and education, promote measured migration

P.42 Footnotes

‘Split Second’, developed by Realtime UK 20/20 VISION TIGA’S MANIFESTO FOR THE UK VIDEO GAMES DEVELOPMENT INDUSTRY 05

FOREWORDs THE UK VIDEO GAME INDUSTRY DAMIAN COLLINS MP “In my role as an MP I come across many “Representing numerous small businesses trade associations. TIGA is distinctive in its and comprising an industry of the future, focus, professionalism, and tenacity. TIGA TIGA’s is a voice which deserves to be IS IMPORTANT has campaigned relentlessly for Games heard. I welcome the publication of this Tax Relief over many years and played manifesto as one which I believe will shape a critical role in convincing first the UK the debate about how to sustain growth in ECONOMICALLY, Government to adopt this measure and the video games and creative industries in then enabling the Government to make the years to come.” CULTURALLY AND a successful case for Games Tax Relief to the EU Commission. TIGA’s successful campaign for Games Tax Relief will benefit INCREASINGLY both the games industry and the wider economy and I am glad to have been able EDUCATIONALLY. to advance this important measure.

JUSTIN TOMLINSON MP This manifesto contains many sound The ideas in this manifesto should be taken “Representing numerous small ideas that I have discussed while working seriously as an important contribution to closely with TIGA in my capacity as Chair of public policy debate. The United Kingdom businesses and comprising an the Video Games All Party Parliamentary is a world centre of excellence in video Group. In that time, TIGA has done game innovation and we need to make sure a consistently good job of spreading that we continue to attract investment to industry of the future, TIGA’s is a awareness of this vital industry at these shores so that Britain remains in Westminster and elevating the industry’s the lead. I congratulate TIGA on devising voice which deserves to be heard. standing in Whitehall. a comprehensive, credible and coherent policy agenda for the UK games industry. I welcome the publication of this manifesto as one which I believe RT HON STEPHEN TIMMS MP I know from my time as a Minister in The video games industry is at the the Treasury what a good track record forefront of the digital economy. Its will shape the debate about how TIGA has in making well considered success, reflecting the creativity of the submissions to Government and just how country, is making a very important to sustain growth in the video persuasive TIGA’s arguments can be. That contribution to our economic recovery. is why the proposals in this manifesto The proposals in this manifesto will need deserve serious consideration by all those to be weighed carefully by the Government games and creative industries in the formulating policy proposals in advance of which takes over in 2015. the 2015 General Election. years to come.” 20/20 VISION TIGA’S MANIFESTO FOR THE UK VIDEO GAMES DEVELOPMENT INDUSTRY 07

JASON KINGSLEY OBE TIGA represents developers, digital inspiring film, television and music. No “Games Tax Relief would not have CEO and Creative Director publishers and the service companies wonder that 86 per cent of British at Rebellion and TIGA Chairman in our industry. Our core purpose is to people believe that video games can strengthen the game development and be cultural products.4 happened without TIGA’s effective, digital publishing sector. We achieve this by fighting for the industry in the Video games are educational. All video passionate and vigorous 7 year corridors of power, championing the games have a rule set that has to be industry in the media and helping our learned before they can be played and members commercially. when a player starts a new game they campaign.” have to be taught how to play it. Many UK The UK video game industry is games businesses have made educational important economically, culturally and or serious games.5 A number of studies increasingly educationally. suggest that video games may help to promote skills such as visual and motor The UK video game sector makes a valuable skills, strategic thinking, relationship contribution to the UK economy. In 2014 JIM MCGOVERN MP “I have worked with TIGA for many TIGA’s manifesto contains a series of well building, computer literacy, collaboration, years to help introduce Games Tax thought out proposals which will receive the video games sector contributed £1.02 competition, multi-tasking and experiential Relief in 2014. This measure will help serious consideration by many politicians billion to the UK’s GDP and generated £419 learning.6 Video games have the potential 1 to create jobs, boost investment and and policy makers and it will help to million for HM Treasury in tax revenues. to play a valuable role in mainstream grow businesses. Yet we need to do influence the policy debate concerning 28,000 people work in the games industry, education,7 in training and in workforce more to ensure that the video games the creative industries. I look forward to including 9,896 in games development. development.8 industry continues to grow. So I am working with TIGA in the future to help Game development sustains knowledge delighted that TIGA has prepared this advance this important industry.” based, graduate employment. A typical The games development and digital well considered manifesto. game development studio will have 80 per publishing sector is a success story. The cent of staff qualified to degree level or introduction of Games Tax Relief in 2014 above. The industry is export focused: 95 – a measure which TIGA successfully per cent of UK games development studios campaigned for over the last seven years export at least some of their games.2 – will have a significant positive impact. Yet if the games industry is to achieve Video games are increasingly embedded its full potential and make a significant LUCIANA BERGER Games Tax Relief would not have I am confident that this important measure in UK culture and society. 73 per cent of contribution to UK employment and growth, Labour and Co-operative MP happened without TIGA’s effective, will have a major positive impact on jobs, the population regularly play video games, for Liverpool Wavertree passionate and vigorous 7 year investment and projects in the UK games then we need to do more. In particular, including two-fifths of people aged over campaign. During this campaign TIGA industry including in Liverpool and across we need policy makers to build an 50.3 Video games are cultural, audiovisual has successfully convinced four political the North West. I am pleased that TIGA environment that is favourable to start-ups products on a par with film, television and parties, three governments and played has now developed this comprehensive set and the growth of sustainable studios, the animation. They draw on artistic disciplines a critical role in persuading the EU of policy proposals to help the UK games promotion of regional development clusters such as music and art, and sometimes Commission to authorise the introduction industry to build on the success of Games and further improvements in education and involve narrative. Video games also interact of Games Tax Relief. I am delighted to have Tax Relief. This is an important contribution skills. This manifesto shows how we can with other forms of media, for example, been able to work with Richard Wilson, as all political parties consider their achieve these goals. TIGA CEO, in successfully lobbying for manifestos for the general election to be Games Tax Relief. weighed carefully by the Government which takes over in 2015. 20/20 VISION TIGA’S MANIFESTO FOR THE UK VIDEO GAMES DEVELOPMENT INDUSTRY 09

tiga.org ‘Total War: SHOGUN 2’, developed by Realtime UK 20/20 VISION TIGA’S MANIFESTO FOR THE UK VIDEO GAMES DEVELOPMENT INDUSTRY 11

INTRODUCTION THE UK NEEDS A STRATEGY FOR SUSTAINABLE ECONOMIC GROWTH. HIGHER GROWTH AND HIGHER PRODUCTIVITY IMPROVES LIVING STANDARDS AND WILL IMPROVE THE GOVERNMENT’S FISCAL SITUATION.

The central economic theme of the current Broadly speaking the UK needs to promote Parliament (2010 – 2015) has been to reduce a more balanced economic recovery which the Government’s fiscal deficit which arose is less dependent on financial services, because of the financial crisis, damaging consumer expenditure and an expansion of recession and sluggish recovery. The private borrowing to buy houses, and more economic crisis caused significant economic, reliant on investment and exports. This social and political damage and undermined will be a significant challenge. UK gross the UK’s standing in the world. Although the investment as a percentage of GDP was economy has returned to growth there is 14.2 per cent in 2012.11 Capital expenditure still a long way to go.9 remains 20 per cent below its 2008 peak.12 The UK’s trade performance continues to The Parliament and Government which is disappoint. Despite a 25 per cent depreciation elected in 2015 need a different emphasis. of sterling between 2007 and 2009, there The UK needs a strategy for sustainable was minimal impact on the UK’s trade in economic growth. Higher growth and higher goods and services.13 The total trade gap in productivity improves living standards 2013 remained virtually unchanged on 2012 and will improve the Government’s fiscal at £108 billion and exports grew just 1.4 per situation. Economic growth relies on: the cent in the same year.14 The UK’s productivity supply of the factors of production - land, performance is also a matter of concern. The labour and capital; and productivity growth, Bank of England has estimated that output which is dependent upon innovation and per hour in 2013 was 16 per cent below the invention. Government policy affects these level that could have been expected had the variables. On land, planning controls are pre-recession trends continued.15 generally regarded as restrictive. The UK’s infrastructure is not as good as it should be: The next Parliament and Government the World Economic Forum judges Britain’s need to strengthen (and certainly avoid 10 infrastructure to be just 28th in the world. harming) those sectors where the UK has On labour, improvements are needed in a comparative competitive advantage: for education and training and the UK should example, aerospace, business services, remain open to highly skilled workers. On defence, high-value manufacturing and capital, the Government needs to encourage engineering, high technology industries, investment and enhance access to finance. higher education, low carbon technology and On innovation, the Government can play the creative industries, including the video a role through its investment in higher games sector. education, the research and science base and maintaining a society that it open to new ideas and to new highly talented people. ‘Split Second’, developed by Realtime UK tiga.org 20/20 VISION TIGA’S MANIFESTO FOR THE UK VIDEO GAMES DEVELOPMENT INDUSTRY 13

NUMBER OF UK GAMES NOW AT INDUSTRY STUDIOS TIGA OUR 2010 2013 MISSION IS TO 278 620 STRENGTHEN THE GAMES PROPORTION OF UK GAMES INDUSTRY DEVELOPMENT STUDIOS WITH MORE THAN FIVE PERSONNEL AND DIGITAL 2010 2013 PUBLISHING SECTOR. 58% 41%

TIGA is intent on building an enduring is changing. In Alice in Wonderland understand the needs of indie-developers should diminish as a problem. TIGA wants activity and with the right support the organisation which continually improves; fashion, the UK games development and and digital publishers: TIGA is itself a small to see the UK become a globally recognised industry could contribute to the growth a business that will make a significant digital publishing sector has achieved the business and is run by UK developers and centre for games education and a of a more diverse and sustainable UK impact on the games industry and so apparently impossible feat of expanding digital publishers for UK developers and continuous professional development in the economy. The UK is a world leader in video benefit our membership and the wider and shrinking at the same time. On the digital publishers. sector’s workforce. TIGA’s ambition is for games development and with the right economy. Since 2010, TIGA has won 20 one hand, the number of studios expanded an increase in the production of culturally policy environment it has an opportunity to business awards, an achievement which from 278 in 2010 to 620 in 2013/Q1 2014. TIGA has a vision for the future of how the British video games. This manifesto will win a significant share of global market for TIGA and the reflects TIGA’s drive for improvement and On the other hand, the proportion of industry should progress by 2020. Over the realise this vision. video games.18 The global market for video to meet best practice. studios with five or more personnel shrunk next five years we want to see a flourishing games could be worth $82 billion by 2017, from 58 per cent in 2010 to 41 per cent in developer and digital publisher sector, TIGA’s manifesto sets out a range of up from $67 billion in 2012 (www.forbes. At TIGA we know what we stand for – 2013. This is a direct consequence of the with strong numbers of start-ups, growing policies for the UK’s political parties to com/sites/johngaudiosi/2012/07/18/new- GAMES developers, digital publishers and service UK games industry’s increasing focus on sustainable studios, a decline in the current consider in the run up to the General reports-forecasts-global-video-game- providers . We know what we want to mobile as the primary games platform.16 30 per cent business mortality rate and an Election. Some of the proposals described industry-will-reach-82-billion-by-2017). INDUSTRY achieve – to make the UK the best place in increase in the overall studio population in this paper identify how to build on the the world to do games business; and we There has been a big rise in start-ups from the current 620 businesses that success and inherent potential of the UK Dr Richard Wilson know how to accomplish this – by enabling – and closures: 64 per cent of the UK’s existed in 2013/Q1 2014. TIGA’s vision is for video game industry, thereby benefiting the TIGA CEO. developers, digital publishers and service games companies started up between consistent increases in employment and wider UK economy and society. However, providers to set up and grow strong, 2008 and 2013, but 30 per cent of games investment - driven by Games Tax Relief some of the proposals in our manifesto are sustainable, independent businesses. businesses closed down over the same - with over 2,000 new studio jobs, a £220 unashamedly cross-sectoral in nature. TIGA period.17 With the rise in both studio million increase in investment from games makes no apology for this: we want to see The UK games industry is changing. Many start-ups and failures over recent years, development companies and regional the advancement of policies that benefit publisher-owned studios have closed the key strategic question facing the UK clusters contributing to the industry’s the UK economy and society generally. We down, down-sized or invested overseas games industry in 2015 is clear: how do growth. TIGA’s vision is for an increase in hope that political parties will support the in recent years. Traditional work for hire we support the growth and viability of the number of studios with 15 or more staff agenda outlined in this manifesto and that practice is giving way to new business more independent content creators and so that there are more businesses in the the next Government will implement it. models. Digital distribution is in the digital publishers? UK capable of handling larger projects and ascent. Retail is in decline. Developers investments from global publishers. Access TIGA recognises the macro-economic have access to more options in terms Now at TIGA our mission is to strengthen to finance should be less of a challenge and constraints facing the UK at this time. Yet of platforms, genres and distribution the games development and digital the brain drain of talented staff overseas the UK video games industry represents a tiga.org than ever before. The studio population publishing sector. We instinctively significant driver in innovative economic 20/20 VISION TIGA’S MANIFESTO FOR THE UK VIDEO GAMES DEVELOPMENT INDUSTRY 15

tiga.org ‘Operation Flashpoint: Red River’, developed by Realtime UK 20/20 VISION TIGA’S MANIFESTO FOR THE UK VIDEO GAMES DEVELOPMENT INDUSTRY 17

Summary of Proposals

TIGA MANIFESTO FOR (£220,100) of total UKTI Trade Assistance 12. ENHANCE SKILLS AND EDUCATION, Programme funding was allocated to the The EU funding regime for video games PROMOTE MEASURED MIGRATION 1. THE GAMES INDUSTRY video games sector. Additionally, just 0.18 should be reformed. Games should not be POWER UP SMALL FIRMS per cent (£25,000) of total UKTI Events and POWER UP SMALL FIRMS Missions spending was assigned to the required to have a narrative component 17. or game genre in order to be eligible A pilot SME Training Tax Relief (TTR) video games sector. 2. 1. for EU funding via the Creative Europe should be introduced. TTR would operate programme. ‘Serious’ games should not in a similar way to the existing R&D tax Prototype funding should be made available 6. BUILD WORLD WINNING receive preferential treatment under the credits and would enable SMEs to offset to enable start-up studios to access finance The UK should be aggressively marketed as EU’s Horizon 2020 programme. expenditure on training, Continuous GAMES BUSINESSES and develop new IP. an attractive location for inward investment Professional Development (CPD) for staff for the games industry. and education outreach activities against 2. 13. 3. Policy makers should pursue a common corporation tax. A Creative Content Fund (CCF) should be 7. PROMOTE GAMES established in order to encourage new Video Games Tax Relief should be retained. global regulatory approach towards ‘free studio formation, stimulate creativity and During the course of the next Parliament to play’ (F2P) games and in-app purchases 18. CLUSTERS TO BOOST co-fund new content development and IP the Government should carry out a cost (IAPs) based on the Office of Fair Trading’s Specialist roles should be added to the REGIONAL GROWTH generation. benefit analysis of the merits of increasing Principles for Online and App-based Shortage Occupation List (including, the level of the Relief from 25 per cent to 30 Games. This will enable UK games but not limited to, Game Analyst, Senior per cent to stimulate further investment. businesses to compete on a level playing Game Artist, Brand Manager, Senior 3. 4. field and ensure the effective protection of Game Designer, Localisation Manager, National Lottery funding could be made UK consumers. Community Manager, Senior Producer, ENHANCE SKILLS AND available to provide funds for games 8. The amount of money that a company and Engine Programmer). This will development, including prototype funding EDUCATION, PROMOTE can raise via SEIS investment should be enable games businesses to address skill and the CCF. MEASURED MIGRATION increased from £150,000 to £200,000 per PROMOTE GAMES CLUSTERS TO shortages in highly specialised roles. annum to reflect the rise in development BOOST REGIONAL GROWTH budgets required to make internationally 19. BUILD WORLD WINNING GAMES competitive games The Post-Study Work Visa should be 14. BUSINESSES reinstated, initially for STEM and other Regional/National Games Development 9. priority area students, to enable UK Incubators should be established at a 4. The UK should encourage the development businesses to hire the best available talent university or a consortia of universities in An ‘Export Tax Relief’ should be introduced and provision of superfast broadband trained at UK higher education institutions. each of the English regions and in each of to incentivise more firms to export, thereby speeds that rival the best in the world. The Post-Study Work Visa should promoting export-led economic growth. the nations within the UK to enable more allow non-EU students studying at UK successful start-ups (the incubators would universities to work at a UK business after An Export Tax Relief is currently prohibited 10. support both student and non-student under EU law. However, the primacy of Greater competition should be promoted graduation for a maximum of two years, enterprises). UK domestic fiscal policy can be seen in in the business banking sector and new and then apply for a more permanent work the UK’s ability to introduce the Patent entrants encouraged to enter the market permit. Box, and retain the Patent Box even when 15. as the UK banking sector remains heavily some other EU member states sought to High technology video games clusters concentrated. have it abolished because they deemed should be promoted around the UK through 20. Policy makers should examine the case for it to be unfair. Interestingly, Germany the provision of more business incubators provides drawbacks on local VAT tax paid increasing expenditure on higher education 11. at designated regional universities (see on exported products. The UK Government PEGI, the European game content rating to ensure that UK tertiary education point 14), strengthening local industry and could therefore explore the case for system, should end its punitive pricing remains world leading. negotiating and securing an Export Tax university links, building connections with policy. PEGI’s current policy is to charge Relief. finance providers and through the provision a developer a fee for content rating every of business mentoring. 21. time it launches a game on a different Policy makers should examine the 5. console platform, even if the content is case for reducing tuition fees in priority 16. Awareness of UKTI’s offering should be exactly the same. Charging fees for the undergraduate subject areas such as increased to ensure that more SMEs access The Growth Accelerator service should be same content should be stopped to save Mathematics. its export services. tailored to the needs of games developers developers’ money. and digital publishers to ensure that more UKTI should enable more UK video games 22. studios benefit from the service over the life businesses to maximise their export The Skills Investment Fund should be tiga.org potential: In 2013/14 just 1.4 per cent of the next Parliament. maintained to enable UK games businesses ‘Juiced 2’, developed by Realtime UK to enhance skills in the games industry. 20/20 VISION TIGA’S MANIFESTO FOR THE UK VIDEO GAMES DEVELOPMENT INDUSTRY 19

tiga.org ‘Lifelike Head Meshes’, developed by Realtime UK 20/20 VISION TIGA’S MANIFESTO FOR THE UK VIDEO GAMES DEVELOPMENT INDUSTRY 21

1. 2. the CCF could distribute funding in the form business advisory service should be PROTOTYPE FUNDING of a convertible loan on commercial terms provided for companies benefiting from TIGA proposes that DEVELOP A CREATIVE (thus acting within EU rules about State CCF disbursements. This is necessary to resources should be CONTENT FUND Aid).28 Recipient companies would be able safeguard investments and provide guidance made available to finance to repay the loan or convert its value into to new companies.31 PROPOSAL PROPOSAL equity after a set period. The CCF would aim early stage development to recoup the money from recipients out of As noted, the CCF could disburse 20 The UK Government should facilitate the Power up The Government should make prototype successful sales once they had generated convertible loans of £150,000 per annum (£3 work in order to create development of a Creative Content Fund funding available for independent games a certain amount of revenue (in proportion million in total). The Fund’s running costs small firms playable prototypes, (CCF) in order to encourage new studio developers. This could be financed via the to the convertible loan) and over an agreed are dependent on the level of administration formation, stimulate creativity and co- National Lottery (or via Innovate UK). early stage development time period (likely to be 3 years). The and due diligence but the suggested fund new content development and IP structure may cost up to £450,000 per 23 advantage of the convertible loan approach work or even to support generation. 32 for the game development studio is that if annum. Assuming the CCF is established to full game development run over a 5 year term, the CCF is expected REASON its game did not sell as well as expected it projects. could transform the CCF’s loan into equity or to cost £17,250,000 (excluding any return on Games companies face a significant REASON a share in the business, and so remove the investment). TIGA notes that these estimates funding gap that is restricting growth. Low debt from its balance sheet. will need detailed feasibility analysis to cost availability of private and public finance The UK has made some funding available UK games development has traditionally more accurately. The CCF could be financed restricts the growth potential of games to support prototype development in recent been heavily reliant upon global games Eligible companies and projects would need via the National Lottery or via Innovate UK companies, particularly the many new years. Abertay University delivered a companies for finance. 76 per cent of to demonstrate the following criteria: (see Section 4 below). prototype fund which enabled developers to games companies starting up in recent investment in UK games development apply for grants of up to £25,000 to create 24 • The company is based in the UK. Schemes analogous to the Creative years. Video games can be a very successful is derived from global companies. The prototype games. The Abertay Prototype Content Fund have previously been created. business. However, the revenue generation remaining 24 per cent is self-funded by Fund helped over 70 companies, supporting • The company expends a minimum of 80 For example, the 2013 Budget saw the is spread very unequally in the value chain. British games companies, who largely rely nearly 500 new or continuing jobs and per cent of the development costs of this announcement of a new £15m competition While sales and marketing of video games upon existing cash resources, including enabled start-ups to overcome some critical project in the UK. managed by the Technology Strategy Board is a highly scalable international business, business constraints 19. However, the Abertay retained profits, and, to a much smaller for digital content production.33 However, the actual making of games is not easy Prototype Fund has now been fully invested. degree, private investment to fund • The company proposes to develop original 25 this does not focus on content creation per to finance. Game development is a risky Creative England introduced a Development development. As noted earlier, access to new games IP which is innovative in se but has a more technical thrust.34 venture involving high technological, artistic Fund in 2013, whereby small and medium- debt and equity finance is comparatively terms of content, gameplay and, where and business risks. It is consequently sized enterprises (SMEs) have been able difficult. Additionally, those creative appropriate, business models. to apply for grants of between £10,000 A recent example of the efficacy of direct relatively difficult to raise external finance. businesses (including video games and £50,000 to develop a new game IP for government funding of games production This can be a serious problem as the development studios) that are fortunate • The company retains majority ownership commercial release, but this has now closed. can be found in Finland. Finland’s Tekes development of technology and content can enough to secure finance typically have to of the IP during the term of the loan. Creative England introduced a Prototype 26 government-backed funding agency has be expensive. trade away their IP for project capital. Fund for start-ups to apply for £10,000 to • The company should have to demonstrate provided nearly $70m in funding to Finnish develop a prototype game. These are positive New IP is the engine of the games a robust business plan about how it games developers since the late 1990s schemes but they are small scale in nature TIGA proposes that resources should industry that opens new markets, triggers intends to use the match funding to providing financial assistance to many of be made available to finance early and are restricted to assist companies in the country’s studios at the crucial high risk certain parts of England.20 employment, raises tax revenues and enhance its prospects for commercial stage development work in order to delivers new growth to studios that own success. early stages of their existence. This includes create playable prototypes, early stage The Prototype Fund should also include the IP. Retaining ownership of successful providing early stage finance to Supercell development work or even to support full business, creative and technical guidance IP enables game developers to generate • The CCF should invest in projects that and Rovio, two companies that have gone game development projects. Resources for funded projects to maximise their cash flow and support more sustainable have the potential for commercial on to become global gaming giants. The could also be deployed for marketing and prospects for commercial success. Prototype businesses.27 While new IP financing and success, not prop up businesses that success of this programme and the knock- distribution of games; for training; and to funding should not be a stand-alone policy. distribution declined in the years preceding are in difficulties.29 This should be on effect of an increase in inward investment Developers need to be given the tools and support businesses to attend international the launch of the new consoles in 2013, new demonstrated by credit checks and and value realisation from subsequent fund knowledge for commercial success. In events. Prototype funding could be financed routes to market (such as mobile, online professional assessment of the company’s raising and M&A activity has prompted the particular, developers need business and by re-deploying National Lottery money (see financial statements. Finnish government to dramatically increase commercial advice about how to get their and social gaming) have opened up, thereby Section 4 below). its direct games funding via the launch of prototype fully funded and released into reducing or even obviating the need for The Creative Content Fund (CCF) could be Skene, a 70m dedicated games fund.35 the market. In the absence of this advice, publisher assistance on those platforms. € designated as an National Lottery allocation The main recipients of prototype funding the prototype funding could be wasted.21 There is a strong opportunity for a new body, together with arts councils and other should be the UK’s independent developers The AppCampus Award Scheme provides generation of British games companies, distribution bodies, and given the right to because they typically find it difficult to an interesting model of prototype funding. which are starting up in record numbers but EFFECT decide which games projects and initiatives raise finance in comparison to publisher In addition to strict milestone funding, usually at small scale, to become developer/ recipients benefit from teaching, formal should be awarded with development owned studios. The funding should also be publishers, to create and distribute new IP. A CCF carefully structured by industry classes and introductions to key industry funding. The CCF then, along with its other concentrated on areas where commercial and the UK Government would improve figures including investors.22 functions, would establish an application funding either does not exist or only exists The establishment of a Creative Content developers’ access to finance, stimulate procedure for games developers to apply in return for un-commercial terms, such Fund could help overcome these challenges original IP generation and promote studio for this funding, evaluate applications as the transfer of all the IP to the funder. and exploit new commercial opportunities. growth. It would enhance the independence received, and award funding to projects Funding of innovative prototypes (like the EFFECT The CCF could provide funding of between and commercial viability of game developers that fulfil a predetermined set of criteria. game Limbo) would be particularly useful £50,000 and £150,000 to game developers. and strengthen the prospects for the The CCF should be entirely impartial and because these kinds of innovative games Making prototype funding available will help Funding could be made available in two expansion of the UK video games industry. independent of trade associations and rarely see the light of day as few publishers start-ups and small development studios forms. Firstly, loans could be made on a The matched funding criteria would help to businesses. However, the CCF could have are prepared to take the risk of funding surmount barriers to accessing finance pound for pound matched funding basis, drive investment and job growth. an advisory board which potentially might them. and enable more promising studios to fund whereby eligible companies would need prototype development and IP generation. to demonstrate that they can match the include representatives from private sector tiga.org funding from other sources. Alternatively investors. 30 A commercial mentoring 20/20 VISION TIGA’S MANIFESTO FOR THE UK VIDEO GAMES DEVELOPMENT INDUSTRY 23

Charitable causes, 20 per cent to Sports, 20 funding for the CCF would enable more 3. by Euler Hermes went to the Mittelstand, or per cent to Arts and 20 per cent to Heritage. 4. NATIONAL LOTTERY developers to raise finance, develop talent, medium-sized businesses, according to the The distribution formula is set yearly by the stimulate original Intellectual Property (IP) TAX RELIEF FOR British Exporters Association.46 Moreover, Department for Culture, Media and Sport. generation and promote studio growth. EXPORTERS while exporting has great potential for UK The time has come to review the case for National Lottery funding for prototypes businesses, access to finance is relatively investing some National Lottery money in PROPOSAL and the CCF would also indirectly promote difficult especially for creative businesses. Also, the video games sector.39 Build world the cost of exporting in terms of increasing skills development in firms. Finally, it would PROPOSAL National Lottery money could be made production, paying for insurance against late result in a wider breadth of innovative video winning games available to finance innovative video game The Creative Content Fund (CCF) could be An ‘Export Tax Relief’ should be introduced payment, and researching new markets can be prototypes and the Creative Content Fund designated as an allocation body, together games in the marketplace, which could in businesses to incentivise more firms to export, thereby a barrier to exporting.47 (see the sections above). with arts councils and other distribution turn increase the reach of video games into promoting export-led economic growth. Introducing an ‘Export Box’ or Export Tax Relief bodies, and given the right to decide which wider culture. games projects and initiatives should be An Export Tax Relief is currently prohibited for UK exporting companies would help a range under EU law. However, the primacy of UK of business across many sectors, including awarded with development funding. The REASON domestic fiscal policy can be seen in the many games development studios. 95 per cent CCF then, along with its other functions, UK’s ability to introduce the Patent Box, of UK games development studios export at would establish an application procedure As noted previously, many game developers and retain the Patent Box even when some least some of their games. Many UK games for games developers to apply for this find it comparatively difficult to raise debt other EU member states sought to have development studios are export focused. For funding, evaluate applications received, it abolished because they deemed it to be and equity finance. Additionally, many of example, the proportion of turnover from unfair. Interestingly, Germany provides those video games development studios and award funding to projects that fulfil exports is 100 per cent for Firebrand, 90 per drawbacks on local VAT tax paid on exported that manage to secure finance typically a predetermined set of criteria. The products. The UK Government could cent for Jagex, 80 per cent for Lockwood CCF should be entirely impartial and have to trade away their IP for project therefore explore the case for negotiating Publishing, 80 per cent for nDreams, 85 capital. There is little available funding for independent of trade associations and and securing an Export Tax Relief. per cent for Neon Play, and 90 per cent for the development of innovative or different businesses. However, the CCF could have Rebellion. prototypes or small games, as many do not an advisory board which potentially might The next Government should consider have an immediately commercial value or include representatives from private sector introducing an ‘Export Box’ with a competitive investors. Alternatively, the BFI could REASON route to market. tax rate (e.g. 15 or 10 per cent) on the profits be designated an allocation body with The UK needs to rebalance its economy generated from their exports. This could be Small, independent films, arts installations responsibility for video games. Another towards exports and investment. For the UK, achieved by applying an additional deduction and projects, sports events, and other alternative would be to designate Creative trade continues to disappoint. The UK has a to taxable profits, in the same manner as cultural activities are often financially England as a funding body, which could persistent current account deficit, exporting the existing Patent Box scheme to ensure constrained and at least partly dependent distribute National Lottery Funds to the fewer goods and services than it imports. commonality within the tax system. This on funding from the Government due to the video games sector. The crucial point is According to the House of Commons Public method of tax relief would benefit from considerable financial risks that they take. that the designated funding body, whether Accounts Committee, from 2000 to 2012, the the fact that revenues from exports are Independent games developers take similar it be the CCF, Creative England, or the BFI, annual value of UK exports nearly doubled, but easily identifiable, giving companies the risks but the video gaming industry does not should be competent and independent of during the same period, the annual value of option of identifying relevant export profits enjoy the same support enjoyed by the other trade associations and businesses.40 exports globally nearly trebled. Additionally, the via apportionment or ‘streaming’ methods sectors. Small, experimental games that annual value of UK global exports has been flat (depending on whether the export costs are often take the games industry forward are Some National Lottery funding could also NATIONAL LOTTERY for the last two years.41 Small and medium- easily separable), in a similar manner to that not always considered ‘commercial’ enough be made available to support the large GOODS CAUSES 2013 sized enterprises (SMEs) play a crucial role in set out in the Patent Box legislation. by large games publishers, inhibiting the number of important, but often overlooked, the UK economy, accounting for almost 60 per cent of employment at the beginning of 2012. Once relevant export profits are identified, development of the sector as an art form. outsourcing firms that specialise in areas However, the UK has a slightly lower share of a calculation can be carried out in order to It is time to recognise the games industry such as audio, animation, localisation, exporting SMEs than the EU average and the establish the deduction required to obtain an as an equivalent arts form to TV and film. music, quality assurance, sound, etc. These 20% equivalent tax rate of 15 per cent for these Indeed, some studies suggest that the more share of UK SME’s revenues generated via businesses are critical to the health of the exports is also lower than the EU average.42 profits. Any “export losses” created by this people play games, the more they consume UK video games industry. They should be 40% One in five UK SMEs export compared to an process would need to be carried forward for other culture, and vice versa.36 use against the next available export profits of eligible for funding in respect of activities EU average of one in four.43 Lord Livingston, 20% the trade.48 Currently, National Lottery funding through such as training and attendance at the former BT chief executive who became UK trade minister in December 2013, has noted the National Lottery Good Causes is only international events. Key conditions should be that: that for 60 per cent of companies, exports available to industries and organisations 20% account for less than a tenth of their sales, • The company has undertaken qualifying that fall under the remit of the 12 National and a third do not have exports at all.44 If the exports (see also below) for goods and/or Lottery distribution bodies that are tasked EFFECT Chancellor’s target of the UK achieving £1 services actually produced in the UK. with allocating the funding.37 Approximately SPORTS trillion annual exports by 2020 (i.e. doubling • Relevant Export Income and profits from 28 per cent of National Lottery revenue was Making National Lottery finance available to the current figure), more needs to be done to exports will need to be prescribed in detail returned to Good Causes in the year ending fund prototypes through the CCF could have ARTS encourage and assist exporters. as with the patent box system. 31 March 2013, or approximately £35 million a significant impact. More studios would each week.38 In total, the National Lottery UKTI helps exporting firms through a variety be able to develop prototypes and once • The interaction with other reliefs will need has funded projects through the National HERITAGE of useful schemes (Passport to Export, to be considered, including video Games Tax a prototype is complete and operational, Lottery Distribution Fund by over £31 billion Trade Assistance Programme, OMIS, etc), Relief, R&D tax credits, and the Patent Box a route to market might become more 45 since its inception. In 2013, 40 per cent HEALTH, EDUCATION, ENVIRONMENT, but awareness of UKTI is relatively low. itself. In general, there should be no double- Additionally, the majority of Government of the Good Causes funding was awarded apparent, allowing the game to be funded AND CHARITABLE CAUSES dipping (i.e. claims for more than one relief support for exporters is focused on large to Health, Education, Environment, and through to completion. National Lottery on the same income or costs). businesses. Just £70 million – 2 per cent – of total government support for There are three distinctive groups in the exporters provided by UKEF went to SMEs exporting process. tiga.org in 2012. In Germany, 46 per cent provided a) Direct: where an exporter operates 20/20 VISION TIGA’S MANIFESTO FOR THE UK VIDEO GAMES DEVELOPMENT INDUSTRY 25 directly from the UK with its overseas customer. An Export Tax Relief is currently prohibited multiplying the applicable rate (25 per cent) by REASON of hard work to establish a new market or find investment to the UK but this alone is not Export orders are taken in the UK; manufacture under EU law. However, the primacy of UK the lower of: the right partner that will allow a company to enough. Many countries now have tax relief 55 and supply of goods are organised from the UK; domestic fiscal policy can be seen in the UK Trade and Investment (UKTI) operate a move into a lucrative new area so UKTI can only programmes in place and the Government • 100 per cent of UK core expenditure; billing and revenues are managed direct from UK’s ability to introduce the Patent Box, and number of useful schemes to help exporters be as effective as the company’s engagement should be promoting the UK games industry as an attractive place to do business. the UK. Export profits are taxed in the UK. to retain the Patent Box even when some • 80 per cent of total core expenditure. (although its funding has recently been with the process. Additionally, awareness of 56 57 other EU Member States sought to have it diverted) : UKTI is limited. Overseas governments and agencies are b) Branches: where an exporter retains a UK abolished because they deemed it to be unfair. Therefore if you only have UK expenditure, Passport to Export (P2E): Passport to Working with trade associations like TIGA is marketing their territories aggressively both to base and establishes an overseas branch office, Interestingly, Germany provides drawbacks the 80 per cent of total core expenditure will Export takes about 12 months to complete essential for UKTI to get the message out to the potential investors in the video games industry funded directly by the UK. The overseas branch on local VAT tax paid on exported products always be a limiting factor. Consequently, the games development community. Government and to potential workers. For example, over is a separate legal entity in the host country (see Germany. Country Commerce 2014, The maximum relief = 80 per cent x 25 per cent = during which time a company attends a 1 and Parliament should also support the work recent years: and is directly linked to the UK. Billing is done Economist Intelligence Unit, 2014, p. 44). The 20 per cent. day workshop to spend time assessing its from the UK, all revenues go direct to the UK, objectives and approach towards overseas of UTKI and work to raise awareness of the - South Korea, a rapidly growing video games UK Government could therefore explore the As you are testing total core expenditure the branch office is essentially a cost centre, case for negotiating and securing an Export trade. Participating companies work with an organisation. market, has committed $144 million to the any expenditure which is not “qualifying and all costs/revenues are brought directly back Tax Relief. International Trade Adviser (ITA) to devise a creation of an agency designed specifically to core” expenditure will further reduce this As well raising awareness, UKTI should aim into the UK. Export profits are taxed in the UK, series of action points that form part of plan promote their video games and other creative percentage, for example financing costs and to enable more UK video games businesses to however relief is usually given for foreign taxes to improving their overseas trade prospects by 59 maximise their export potential, particularly industries. suffered to prevent double taxation. advertising. Therefore in practice Games Tax using the support that UKTI can offer. through the Trade Assistance Programme and 5. Relief is likely to provide an effective rate of - Japan has carried out a stimulus package c) Subsidiary: where an exporter establishes a only around 16 – 18 per cent. Gateway to Global Growth (G3): This is focused through Events and Missions. Yet in 2013-14, that focuses on the promotion of video games permanent and separate legal entity overseas. RETAINING AND more towards established exporters with just 1.4 per cent (£220,100) of total UKT&I Trade exports.60 TIGA suggests that the next Government All billing and revenues are managed in the ENHANCING GAMES slightly more developed resources who need Assistance Programme funding was allocated overseas entity. Profits are taxed overseas, should carry out a cost benefit analisis of a lighter touch and the programme has a less to the video games sector. Additionally, just Canada in particular has been active in and brought back into the UK via dividend TAX RELIEF the case for increasing the existing level of formal approach. 0.18 per cent (£25,000) of total UKT&I Events marketing itself as a leader in the video games distributions. These can be subject to relief from 25 per cent to 30 per cent. TIGA and Missions spending was assigned to the industry and high profile examples include: recognises that specific tax rates and tax OMIS: UKTI, through its overseas Consulates withholding tax at source, depending on the PROPOSAL video games sector. UKT&I should examine - British Columbia, a province with a thriving reliefs are not the only factors influencing and Embassies (Posts) and in some cases nature of any double tax treaties in place the case for increasing support for games video games sector, outlining specific policy investment decisions. The overall business British Chambers of Commerce offers a between the two countries. Video Games Tax Relief should be retained. development, digital publishing businesses objectives of “Investment attraction and trade environment, including the general network of sources of specific localised During the course of the next Parliament the and other games businesses. The sector has promotion support by trade missions to key Firms that are direct exporters (a) and firms Government should carry out a cost benefit infrastructure, the skills base and property information and knowledge that are made a very high tendency to export: 95 per cent of Asian markets, marketing materials and in- with overseas branches (b) should be eligible analysis of the merits of increasing the level available to exporters. Once a company has rights are also important. However, the UK’s games businesses export at least some of their 61 decided it wishes to investigate a market with market trade representatives.” for the Export Box/Export Tax Relief. In both of the relief from 25 per cent to 30 per cent key competitors in the games industry include products and services. Enabling more games to stimulate further investment. a view to trade, the local Post can be contacted cases the export business is undertaken states and provinces in countries such as the businesses to attend trade shows and to have - A recent trade mission to Japan by the 49 and asked to produce a specific and unique directly from the UK. Subsidiaries (c) should USA and Canada provide not only a broadly their travel, accommodation and exhibition Canadian Minister for International Trade report on any subject matter the company not benefit from the Export Box/Export Tax favourable business environment but also expenses should enhance their potential to which resulted in a significant investment from wishes (known as OMIS reports (Overseas Relief. Similarly, indirect exporting firms (i.e., generous tax reliefs for games production. export. This benefits both the games industry Japanese video games manufacturer NAMCO companies that contribute to the supply chain of REASON Therefore, it is vital that the rate or rates of Market Introduction Service). BANDAI in Vancouver. 62 and the UK economy.58 another company that directly exports) should relief to be adopted for the UK’s Games Tax Outward Trade Missions: UKTI organises This has resulted in a recent study showing that not be eligible from the Export Box/Export Tax TIGA’s seven year campaign for Games Tax Relief are highly competitive vis-à-vis these regular high profile visits to strategically Canadian video games manufacturers were Relief. Relief (GTR) came to a successful conclusion other countries. in March 2014, when the EU Commission important markets to champion UK trade and EFFECT ‘satisfied’ by the Government’s marketing of the It is difficult to estimate the profits and finally approved the measure. No significant promote British companies. Missions enable industry. 63 thereby the initially lost revenues generated by participating companies to meet with foreign Increasing awareness of UKTI and its schemes changes are likely to be made to GTR for The UK should be marketed aggressively as an exports (although over time the lower rate of EFFECT parties who can add value to their efforts in amongst SMEs should lead to more businesses four years. In 2017 the UK Government attractive place for inward investment and to corporation tax on exports should encourage those markets. availing themselves of its support. This in should notify the EU Commission of its do games business. UKTI, Creative Scotland, more exports and revenues to the Treasury). It Increasing the level of GTR to 30 per cent will turn should lead to more SMEs being able to plan to continue with the Relief and the EU Inward Trade Missions: These bring groups Scottish Enterprise and Scottish Development would therefore be prudent for HM Treasury to increase the attractiveness of the UK as a develop sustainable and realistic plans for Commission will decide whether the Relief can of influential buyers to the UK to meet specific International can work with TIGA to develop initially limit the Export Tax Relief to SMEs or place to do business and will enable the UK international trade expansion. Additionally, be maintained for another four years in 2018. clients selected for their relevancy to the a convincing proposition to investors in order even to just small businesses.50 games industry to compete on a more level other things being equal, enabling more games During this period TIGA will be examining Mission’s character. Often these are high level to increase investment in the UK and Scottish playing field. businesses to benefit from the Trade Assistance whether GTR can be improved in any way. One meetings and events featuring key players in games industries. area that UK policy makers should examine the overseas territory. Programme and from Events and Missions should enhance the sector’s export potential. EFFECT in advance of notifying the EU Commission is in relation to the rate of Relief.51 The rate The Trade Show Access Programme (TAP): TAP supports UK businesses looking to exhibit The UK has a persistent current account of Relief could be increased to ensure that EFFECT 6. at overseas trade shows by providing eligible deficit, exporting fewer goods and services the UK’s games industry competes on a 52 firms with grants. Eligible companies can apply than it imports. If the UK is to achieve export more level playing field. The levels of tax SUPPORTING 7. As a result of strong marketing, Canada is now led growth in the future then we need to relief available for video games around the EXPORTERS VIA UKTI for up to 3 grants in any one year to subsidise MARKETING THE UK “known internationally for its very strong base assist and encourage more firms to export. world vary, with the most generous including the cost of participating in an exhibition. As of creative and technological talent” 64 and “has part of an Accredited Trade Organisation led GAMES INDUSTRY been notably successful in attracting investment Currently, just one in five UK SMEs export Singapore; Georgia, Florida, and Louisiana in PROPOSAL compared to an EU average of one in four. If the USA; and Manitoba, Ontario and, Prince presence, companies can receive between and skilled personnel from jurisdictions like the 53 £1400 and £1800 per exhibition. 65 the UK introduced an Export Tax Relief for Edward Island in Canada. Significantly, Awareness of UKTI’s offering should be PROPOSAL United Kingdom.” studios in receipt of public support in Canada SMEs, whereby eligible UK companies would increased to ensure that more SMEs access its Export Marketing Research Scheme( EMRS) In contrast, a lack of strong marketing of the are receiving support equivalent to 23 per cent Market the UK games industry aggressively as pay a competitive tax rate on the profits export services. and Published Research: UKTI can fund UK’s expertise in this sector has cost investment generated from exports, then more businesses of their turnover, giving them a significant an attractive place for inward investment and between 33% - 50% of desk research as well as in the past. For example, Dundee lost out to would have an incentive to export. This in 54 look at the different ways that the Government benefit. UKTI should enable more UK video games 50% of the costs of field research in the target Galway as the location for the European HQ or turn could drive export led growth and help to businesses to maximise their export potential: can fully promote the UK’s video games sector. The effective rate of relief for the UK’s new market. US games maker ‘Big Fish Games’.66 rebalance the UK economy. In 2013/14 just 1.4 per cent (£220,100) of total Games Tax Relief will be less than 20 per cent. UKTI Trade Assistance Programme funding These schemes are helpful and UKTI does Effective marketing of the UK as a good place This is because Games Tax Relief is calculated was allocated to the video games sector. useful work with the companies that it supports to do games businesses should serve to attract by working out the level of additional deduction REASON Additionally, just 0.18 per cent (£25,000) of but is reliant on the company committing a larger share of inward investment and to that is permitted for qualifying costs. The time and financial resources to a sustained support the growth of more employment and total UKTI Events and Missions spending was The introduction of tax relief for the UK games enhanceable expenditure is calculated by campaign to develop overseas. It can take years businesses in the games industry. tiga.org assigned to the video games sector. industry has been a positive step in attracting 20/20 VISION TIGA’S MANIFESTO FOR THE UK VIDEO GAMES DEVELOPMENT INDUSTRY 27

8. 9. SUPERFAST would in effect provide a safety net: for 10. Given the relatively high risk nature of game 11. SEED ENTERPRISE BROADBAND example, this level of broadband allows development, bank lending is unlikely to access to standard definition video on the BANK FINANCE become the principal source of finance for EU FUNDING FOR INVESTMENT SCHEME BBC iPlayer. While that might work for the industry. Bank loans and bank overdrafts VIDEO GAMES single person households, if there is to be PROPOSAL are not crucial sources of finance for most SHOULD BE REFORMED a true digital opportunity for everyone then PROPOSAL UK games developers. In 2009, just 10 PROPOSAL faster connections will be needed. This is per cent of game developers had a bank The UK should encourage the development Greater competition should be because the connected TV in the living room loan and only 33 per cent operated a bank Increase the amount of money that a company and provision of superfast broadband speeds promoted in the business banking PROPOSAL will be sharing that bandwidth with games overdraft to fund their business. In 2014 just can raise via SEIS investment from £150,000 to that rival the best in the world. sector and new entrants encouraged consoles, laptops and smart phones. If 13 per cent of developers in a TIGA survey £200,000 per annum. to enter the market as the UK banking Gameplay (which involves art, audio, everyone in a household is to benefit then accessed debt from a finanicial institution sector remains heavily concentrated. design, music and technical creativity), not something more ambitious than a safety net (e.g. a business bank loan). Nevertheless, REASON will be needed. a narrative component or a game genre greater competition in the market for should determine if a game is eligible for EU REASON business current accounts and in the market The business operations of UK SMEs suffer Broadband does not simply help consumers. funding via the Creative Europe programme. REASON for lending to SMEs should improve the as a result of the UK’s current broadband It also supports SMEs. 60 per cent of all Additionally, ‘serious’ games should not Creative businesses, including games banks’ quality of service and have a positive speeds.70 The Federation of Small Business new businesses are started from home.80 receive preferential treatment under the developers, find it relatively difficult to access The market for business current accounts impact on SMEs’ access to bank finance.85 67 argues that lack of access to superfast Very small businesses sometimes purchase EU’s Horizon 2020 programme. Instead, debt, bonds and equity finance. This is and for lending to small and medium-sized Additionally, policy makers must ensure that because of the high levels of uncertainty about broadband “reduces productivity, stifles residential packages because it is cheaper. ‘serious’ and ‘entertainment’ games should enterprises (SMEs) is heavily concentrated the British Bank, which provides expertise consumer demand, the intangible nature innovation and restricts the ability of Giving them more bandwidth allows for be treated equally under the scheme. in the UK. The four largest providers of and Government money to the smaller of IP and in some cases the vagaries of the British firms to grow and compete in global small businesses to take advantage of a business current accounts to small and business finance markets, benefits creative work for hire business model which results in 71 much wider range of services online. markets” . Small businesses themselves medium-sized enterprises (SMEs) account industries like the video games industry. development studios sometimes operating for are also aware of the problems that lack for over 80 per cent of SMEs’ main banking REASON months before receiving revenue. Additionally, of access to superfast broadband bring, relationships in Great Britain and around games developers typically have relatively few with 14% of all SMEs in the UK citing lack 90 per cent in Northern Ireland. The Office Games developers in the EU can assets and are comparatively young with little EFFECT of reliable and fast broadband as the main of Fair Trading notes that, “The supply of EFFECT access two main funding streams: the evidence of a financial track record. While barrier to growth72 and over a third of The provision of and access to high speed lending to SMEs is also concentrated and Creative Europe programme and the developers know about their business, venture Greater choice and competition in the Scottish SMEs feeling constrained by the broadband could help grow the UK economy the tendency of SMEs to approach their Horizon 2020 programme. capitalists’ and business angels’ knowledge banking sector might improve bank broadband speed currently available to as the International Telecoms Union main BCA provider when seeking lending is more imperfect. This results in a finance lending to small and medium-sized them.73 (ITU) suggest that a 10% increase in fast appears to limit the degree of competition gap affecting businesses that lack collateral. businesses, including those in the broadband penetration can result in as for lending.”84 Moreover, private investors are disinclined to games development sector. CREATIVE EUROPE invest in small and medium-sized enterprises Some of our competitors offer consumers much as a 1.38% increase in a country’s and businesses much faster broadband 81 like many games development studios because GDP. The Creative Europe stream makes money speeds. Most recent findings by Akamai’s the largely fixed costs of due diligence are too available to games businesses via the high relative to the amount of equity sought.68 State of the Internet show that the UK Indeed, quick take-up of superfast MEDIA sub-programme. The MEDIA sub- is 14th in the world in terms of average broadband is likely to wield even greater programme has an annual budget of 2.5 The Seed Enterprise Investment Scheme broadband speeds with 9.1mbps.74 The growth in the video games sector. It is can help SMEs access capital because it UK is also far behind direct competitors argued that a key factor in the rapid million euro. The programme provides provides tax efficient benefits to individuals in the video games market like South increase of the South Korean video games two support measures: contributions from and encourages investment in small and early Korea and Japan who are number 1 and 2 market from $1.3 billion to $4 billion82 in the 10,000 euros to 50,000 euros are available stage start-up businesses in the UK.69 Over respectively.75 2000s was the rise in online gaming, made for concept development and contributions the last couple of years, the SEIS scheme has possible by Government’s rapid uptake of from 10,000 euros to 150,000 euros are successfully supported the funding of many It is not just in terms of current speeds that superfast broadband capacity.83 available for developing a playable prototype new start-up games studios and entrepreneurs the UK is behind but also in terms of future across a range of games platforms. But the (details correct at time of writing but trajectory. The coalition government is still The provision of and access to high speed development and marketing budgets required changes are imminent).86 About 20 projects committed to achieving 2mpbs universal broadband should facilitate innovation, to make internationally competitive games are will be funded per annum. Developers have access and 95% 24mbps access by 2017.76 access to new markets and improved on the rise as game devices such as mobile to provide match funding to access these This is in stark contrast to other countries consumer choice. It opens up new content phones and tablet PCs become increasingly support measures. Unfortunately, unless technically advanced, rivalling game console such as: for consumers, but also underpins the developers have published a commercial quality, and consumer expectations of a mobile growth of businesses small and large by 77 78 game with a narrative component during game experience get higher. - Finland and Denmark who are giving them access to every consumer committed to achieving 100mbps by 2015 online. Better broadband should result in last two years then they cannot apply for and 2020, and; the development of new content. funding under the MEDIA programme. Furthermore certain genres are considered EFFECT - South Korea, committed to achieving ‘non cultural’ even if they include a narrative 1,000mbps(1gbps) for 90% of the population component. However, it is too restrictive to Increasing the SEIS cap from £150,000 to by 2017.79 £200,000 would help ensure that new studios assume that a genre or narrative element can continue to gain from the SEIS scheme (and More Mbps available should make possible alone determines whether games are get access to early funding which simply is not the provision of more services over the ‘cultural’. Gameplay is also an important ‘Kinectimals: Now With Bears’, developed by Realtime UK readily available elsewhere), whilst ensuring internet and could help to sustain new and feature of gaming. the projects they create are good enough to different business models. The provision of compete in a challenging marketplace. universal broadband at speeds of 2 mbps Additionally, the regulations covering the Creative Europe programme need to be tiga.org improved. At present, the scheme will only 20/20 VISION TIGA’S MANIFESTO FOR THE UK VIDEO GAMES DEVELOPMENT INDUSTRY 29 provide funding for bids with a proven track TIGA further suggests that PEGI examines 13. record. It is completely understandable that the potential for delivering its rating system the EU wants to direct its funding to projects more efficiently. At present, PEGI carries out FREEMIUM GAMES AND The majority of UK and European the rating process repeatedly for games on that have the best track record and thus IN-APP PURCHASES the best chances to become commercial multiple platforms. TIGA suggests that instead successes. However, the current guidelines games developers operate small developers could be offered the opportunity to sign a legally binding document stating the are too narrow to reach this goal. Some of PROPOSAL game content is identical. This would allow the most successful game development studios where financial resources PEGI to provide a single multi-platform age studios in Europe are second or even There should be a common global rating, which in turn would save PEGI’s time regulatory approach towards ‘free to third round start-ups, composed in many are limited and costs need to be and indie developers’ money. TIGA would play’ (F2P) games and in-app purchases instances by highly experienced individuals. be happy to work with one of its members, (IAPs) based on the Office of Fair Trading’s These are the companies that have the kept to a minimum. TIGA’s policy is to Stevens & Bolton LLP to draft this legally Principles for Online and App-based highest changes to succeed. TIGA contends binding agreement and make it available for Games. that if the key team members in a bid have strengthen the game development free to indie developers. experience in producing games, this should The majority of UK and European games be considered as eligible evidence of a and digital publishing sector developers operate small studios where REASON proven track record. financial resources are limited and costs need to be kept to a minimum. TIGA’s policy is to F2P games can be of great value to Moreover, the funding rates should in particular by saving games consumers and developers alike. This is strengthen the game development and digital be updated. For example, 150 000 € is publishing sector, in particular by saving because the F2P business model allows insufficient funding for a cutting edge AAA businesses money and improving their games businesses money and improving their consumers to play extremely high quality console game prototype. Game prototypes, access to finance (hence TIGA’s long campaign games entirely free before actually especially on the console game side, are access to finance (hence TIGA’s long for Games Tax Relief). PEGI’s pricing policy spending any money. A report published by getting more and more expensive. Project imposes damaging and unreasonably high TIGA in 2013 showed that typically 95 per budgets financed by publishers commonly fees, which have a disproportionate impact on cent of consumers playing a F2P game do campaign for Games Tax Relief) not spend any money at all. reach 20 million, and can be as high as 40 small games businesses. It cannot be right million euros, and prototypes cost at least to charge a developer a fee for content rating However, it is important that the video every time it launches a game on a different 1 per cent of the final budget to make. games industry adheres to high standards. console platform even if the content is exactly Consequently, the maximum EU contribution The OFT has developed a set of Principles certification and €1,050 for each the same. to prototype funding should be increased to 12. for Online and App-based Games with additional platform, again even if the at least 200 000€. which all games businesses selling games PEGI SHOULD content is unchanged. If the UK and European development sector END ITS PUNITIVE is to thrive then we need a pricing policy from to UK consumers will have to comply by April 1st 2014. The OFT’s eight principles PRICING POLICY • The highest tier is for games with a budget PEGI which is helpful, not a hindrance; is HORIZON 2020 larger than €200,000 and charges €2,100 for proportionate, not punitive; and is equitable, have been developed after extensive consultation with TIGA, games businesses certification and €1,050 for each additional not exorbitant. The Horizon 2020 programme is not a platform, even if the content is exactly the and other interested parties. They ensure To summarise, it is disproportionate and that consumers, particularly children, games specific funding programme, but PROPOSAL same. unreasonable to charge a developer a fee are protected from commercially dubious games companies may propose bids UK policy makers should put pressure on To give one example, from the beginning for content rating every time it launches a practices.88 requesting 100,000 – 1 million euros under PEGI, the European game content rating of July 2014, the ratings fee for a ‘Lower game on a different console platform, even the scheme. The major drawback with this system, to end its punitive pricing policy. At Development Cost Product’ (where the game’s if the content is completely the same. TIGA UK policy makers should aim to ensure programme is the requirement that funding a common global regulatory approach present, PEGI’s policy is to charge a developer budget is less that €200,000 euro) is €1,155 proposes that the fee for age rating the for video games is restricted mainly to a fee for content rating every time it launches same game content for different platforms towards F2P games and IAPs. This is in the first instance and €1,050 for each 87 necessary in order to protect both UK ‘serious’ games. a game on a different console platform, even additional platform thereafter. So if an indie should be scrapped entirely. PEGI’s current consumers and export-focused UK games if the content is exactly the same. This is developer was to launch the same game with approach risks harming start-ups and small businesses from unscrupulous practices by excessive, unreasonable and should stop. exactly the same content on PlayStation 3, independent developers. competitors from abroad. EFFECT Xbox 360 and PS Vita, they would be looking at a ratings bill of €3,255. PEGI’s pricing If the requirement for a game to be REASON policy imposes disproportionate costs on EFFECT ’serious’ was dropped and the need to indie developers pursuing a multi-platform EFFECT incorporate a narrative nature was As of 1st of July 2014, PEGI will effectively strategy. If PEGI scrapped its iniquitous and punitive A common global regulatory approach based replaced with the objective of providing have three pricing tiers: pricing policy, game developers and digital The PEGI content ratings system should on the OFT’s eight principles will provide an ambitious and innovative gameplay, then publishers would be able to save precious • The lowest, for online or downloadable be focused on providing information to resources. In particular, small indie effective system of consumer protection. It European funding would focus its efforts more games only which must be under 250mb, consumers and protecting vulnerable developers and start-ups would find it efficient will also enable UK games businesses to directly on content innovation. This could help charges €260 for certification, and the same consumers from accessing inappropriate and effective to pursue a multi-platform compete on a level playing field. to push the European games industry ahead again for each additional platform even if content. It should not be burdening small strategy. of its global competitors. The EU could then the content is the same. games businesses with excessive costs. Many provide more effective support to the European small development businesses operate on a games development sector. • The middle tier is for games larger than knife-edge and struggle to conserve every pound 250mb, with a production budget of less or euro they can in order to stay in business. than €200,000 and charges €1,155 for tiga.org 20/20 VISION TIGA’S MANIFESTO FOR THE UK VIDEO GAMES DEVELOPMENT INDUSTRY 31

tiga.org ‘DiRT Showdown’, developed by Realtime UK 20/20 VISION TIGA’S MANIFESTO FOR THE UK VIDEO GAMES DEVELOPMENT INDUSTRY 33

14. providing participants with access to their potential. Twelve universities (i.e. one The 12 Regional/National Games There is potential to encourage the additional advice. Mentors from the games university in each of the nine English regions Development Incubators could liaise development of high technology clusters in ACCELERATING GROWTH industry with experience of business and one in each of the nations in the UK) with Local Enterprise Partnerships, the the different regions and nations within the IN THE GAMES INDUSTRY and commercial expertise could advise could be designated to provide a Regional/ Technology Strategy Board, the EU – and UK. Universities can provide access to highly National Games Development Incubator for where appropriate, the Scottish and Welsh skilled graduates and share cutting edge participants about the market opportunities start-ups, enabling them to benefit from Governments and the NI Executive - to research. Local business angel networks can (e.g. the suitability of the project to the accumulated expertise in both research access funding to commercialise start-up be nurtured.96 target platform, audience demographics), PROPOSAL and enterprise and access to skilled projects. Additionally, TIGA’s prototype fund, competitive challenges (e.g. the project’s graduates. The UK Government, the Scottish the Creative Content Fund and the National Creative clusters of games studios have Promote games USP), commercial models (e.g. pricing, Tailor the Growth Accelerator service to Government, the Welsh Government and Lottery (see sections 1, 2 and 3 above) could spontaneously emerged across the United integration into gameplay), routes to market clusters to the needs of games developers and digital the Northern Ireland Executive could select provide further source of funding. Kingdom including Birmingham, Brighton, publishers and ensure that more studios (e.g. funding, publishing and distribution) and designate the relevant and appropriate Cambridge, Dundee, Edinburgh, Glasgow, benefit from the service over the life of the and overall viability of their game project. regional and national universities via a Guildford, Leamington Spa, Leeds, Liverpool, boost regional next Parliament. competitive process. Universities would only London, Manchester, Newcastle, Oxford, and growth be designated as Regional/National Game EFFECT Sheffield. Development Incubators if they met key EFFECT The 12 Regional/National Games criteria relating to infrastructure, industry We should strengthen these clusters and Development Incubators should REASON links and if there was sufficient regional/ support start-ups. The provision of 12 Regional/ Businesses that seek external advice and produce new and more sustainable national demand. National Games Development Incubators The principal challenge facing the UK games information are 14 per cent more ambitious companies. Additionally, the reputation of at designated universities (see section 17), and 50 per cent more successful than industry is that too many studios fail: 216 An example of a more concentrated effort for UK higher education would be enhanced. strengthening local industry and university those that do not.91 A Growth Accelerator new games companies entered the UK start-ups abroad is that of the Dutch Game The participating universities would links, building connections with finance games industry but there were also 197 Service that is tailored to the needs of the Garden,92 an initiative in the Netherlands demonstrate strong support with the games providers and through the provision of business closures (2008 – 2011). In 2013, while there games industry will help to reduce the high which is funded by City of Utrecht, the industry and with the wider economy. This mentoring. Encouraging networks and were 224 start-ups, there were also 107 studio mortality and give more studios the Province of Utrecht and the European could serve to strengthen the appeal of the partnerships, a strong innovation base and a closures. The five year mortality rate for UK opportunity to grow. Regional Development Fund (ERDF) of the universities involved to overseas students. strong skills base can also support the growth 97 game companies is 29 per cent.89 The high European Commission. Set up in 2008, this The reputation of the UK as a centre for of clusters. game development would be given an mortality rate is primarily a consequence is currently the physical location for more important boost. of inadequate commercial skills (pricing/ than 45 start-up game development studios, payment, distribution and marketing, and 15. showing the considerable - and continued EFFECT - level of investment provided to this customer relationship management) and ESTABLISH DEDICATED limited access to finance. initiative. The Dutch Game Garden, although Adopting this approach could help to GAMES DEVELOPMENT not located within a University, has strong 16. increase more start-ups and help to build links with a variety of higher education In the last five years, the global industry INCUBATORS IN THE PROMOTE REGIONAL more sustainable high technology and has experienced tremendous change institutions in the Netherlands (including creative businesses, including games with the advent of new technologies (e.g. REGIONS AND NATIONS the nearby Utrecht School of Arts). Another GAMES CLUSTERS businesses. A critical mass of games smartphones and tablets), commercial example is the AppCampus, a mobile businesses in regional clusters should in application accelerator program managed models (e.g. micro-transactions and turn encourage inward investment. This is by Aalto University in Espoo, Finland. The freemium), distribution channels (i.e. retails PROPOSAL because businesses are likely to be attracted AppCampus is an 18 million euro joint PROPOSAL vs network) and business practices (e.g. to areas that have an infrastructure that investment between Microsoft and Nokia moving from games as a product to games Regional/National Games Development The UK Government should promote supports their needs: access to talented to foster mobile application development as a service). These changes have created Incubators should be established at a high technology video games clusters staff; affordable premises; education on Windows Phone and any other Nokia university or a consortia of universities in around the UK. providers; and good transport links. significant challenges for some managers platform. The AppCampus provides funding, each of the English regions and in each of and leaders in the games industry intent on coaching and go-to-market support.93 building viable gaming studios. the nations within the UK to enable more The UK video games development sector successful start-ups (the incubators would operates in a dynamic global environment REASON Tailoring the Growth Accelerator service support both student and non-student where new, fast-moving business models Policy makers to meet the needs of games developers enterprises). demand both flexibility but also the passing London is an economic success story. Yet should aim to and digital publishers could reduce the on of experience and expertise from existing relatively few developed countries are quite mortality rate and enable more studios to businesses and establishments to fledgling so dependent on their capital. London’s maximise economic successfully grow. The Growth Accelerator indie games studios. predominance within the UK is not abating and REASON and employment service is a partnership between leading is probably growing.94 Policy makers should private sector business growth experts, Universities are well placed to provide opportunities The UK video games development sector aim to maximise economic and employment Grant Thornton, Pera, Oxford Innovation and incubators to start-up teams of students: is increasingly moving towards a self- opportunities throughout the UK. Promoting throughout the they typically have the physical space, Winning Pitch and backed by the current publishing model which favours smaller, the development of high technology clusters UK. Promoting the some development equipment and the IT Government. Growth Accelerator focuses more agile teams rather than larger and could be part of a process of ensuring that support needed to support start-ups. The development of high on businesses that are aiming for high less flexible studios which can often be economic growth benefits all parts of the UK. 12 Regional/National Games Development growth (defined as increasing turnover by tied to restrictive publishing deals and Clusters of geographically concentrated firms technology clusters Incubators should be open to both students 20 per cent per annum). Participants in deadlines. This is for a variety of reasons from the same sector or similar sectors that and to non-student start-ups. could be part of a the scheme can access up to £2,000 match (the advent of easily accessible online retail collaborate and compete with one another The Incubators should encourage and funding for senior managers to hone their in software, platforms such as Apple’s iOS are good for the economy. This is because process of ensuring support their start-ups to approach leadership and management skills, network and Google’s Android, lower risk etc.). While they typically encourage knowledge transfer, external funders in order to make their that economic growth with like-minded businesses and benefit the AAA model of game development will promote business efficiencies including higher ideas and business financially sustainable. productivity and improved skills development, benefits all parts of from the support of a Growth Manager and remain clearly the industry ecosystem is Universities could carry out a competition encourage innovation and new firm formation Growth Coach.90 The Growth Accelerator rapidly evolving. the UK. in order to ensure that only the teams with and enhance profitability. Clusters can also Service could be tailored to support games The new wave of small start-up studios the greatest potential can benefit from the attract multinational investment.95 development and digital publishers by tiga.org needs support if they are to maximise Dedicated Incubators. 20/20 VISION TIGA’S MANIFESTO FOR THE UK VIDEO GAMES DEVELOPMENT INDUSTRY 35

tiga.org ‘Squeeballs’, developed by Realtime UK 20/20 VISION TIGA’S MANIFESTO FOR THE UK VIDEO GAMES DEVELOPMENT INDUSTRY 37

17. to 20,700 people p.a. Tier 2 is aligned with knowledge to them to enhance their allowed any graduate from a UK institution the Shortage Occupation List (SOL). The SOL skills. He/she may further guest lecture at to stay in the UK for a maximum of two years SME TRAINING It would also lead to stronger business- is a fast track recruitment process which universities and set projects for students, without a work permit. The Post-Study Work TAX RELIEF educational links. In the case of the games enables developers to look outside of the thereby increasing lecturer knowledge. In Visa was described as “a bridge to highly industry, more developers would have the UK/EU labour markets without having to short, migration can have a multiplying skilled or skilled work”.109 With the exception incentive and resources to provide guest advertise first. If a role is not on the SOL effect on employment and knowledge of a maximum of 1,000 visas for promising lecturers to universities, contribute to then employers have to advertise for 28 days transfer.108 Additionally, the employment of entrepreneurs, the Tier 1 Post-Study Work PROPOSAL course development, participate in school, within the UK first, including on the Job skilled migrant workers typically results in Visa was converted into a form of Tier 2 Enhance college and university career days and make Centre Plus website. Points are accumulated knowledge sharing with existing teams. This Visa requiring a job offer from an employer skills & education, A pilot SME Training Tax Relief (TTR) should work placements available. Knowledge on a number of set criteria. entails an enhancement in the skills and willing to sponsor the candidate and a salary be introduced. This tax measure would exchange between industry and universities knowledge of the indigenous workforce. over a set level.110 The current minimum operate in a similar way to the existing would be strengthened. Highly restrictive immigration policies, salary level is set at £20,300, although R&D tax credits. SMEs would be able to unless implemented very carefully High technology businesses, including candidates with PhDs are exempted from promote offset expenditure on training, Continuous and intelligently, could hamper the games development studios, are not typically this requirement. Prior to 2012, if a non- measured Professional Development (CPD) for staff growth of our small and medium-sized seeking to hire from overseas to save money. EU student who had graduated from a and education outreach activities against 18. enterprises (SMEs), including specialist Instead, they look outside the EU in order to UK university wanted to stay in the UK, corporation tax.98 technology businesses, and threaten their find rare and specialist staff who are capable migration EXPAND THE SHORTAGE businesses could hire them for two years, competitiveness in a global market. of doing the job that needs to be done and then apply for a work permit. Of the OCCUPATION LIST and who will ideally increase the overall total 273,581 work visas granted in the year The UK video games industry needs a highly expertise of the business over the longer- ending 2011, over 50,000 were Post-Study REASON educated and trainable workforce in order term by knowledge-sharing. Work Visas granted to non-EU graduates.111 to compete successfully. The industry relies Of the UK adult population, 21% possess This helped a great deal as it meant PROPOSAL on highly creative, technical people with Few people doubt that the UK needs some A-levels as their highest qualification, 21% businesses could hire talented graduates skills and qualifications in areas such as immigration controls. However, if the UK is have GCSEs as their highest qualification straight out of university with minimum The following roles should be added to the design, programming, artificial intelligence, to protect and enhance its high technology and 19% possess unrecognised or no bureaucracy. By abolishing the Post-Study Shortage Occupation List: animation, mathematics and physics. UK sectors then we need smart policy that qualifications at all.99 This is relatively low.100 Work Visa, the Government effectively made games businesses increasingly recruit responds to the complex realities of A large proportion of the UK workforce also • Analyst: Game Analyst; Data Analysts; the UK less attractive for international top graduates in a range of disciplines, although modern business. lacks good basic skills: one report even and Business Performance Managers (i.e. talent. Many competent and highly qualified employers typically place most emphasis suggests that 78.2% of the UK population analysts but with commercial focus); students who want to work in the UK have on portfolio work rather than qualifications. have poor numeracy skills and 43.4% have no choice but to leave if they cannot find a TIGA’s research shows that some studios poor literacy skills.101 The UK should strive • Artists: Senior Game Artists; User job before their graduation. UK universities have 80 per cent of their workforce qualified EFFECT for one of the best skilled and qualified Interface Artist; and Technical Artist; are effectively educating and training to degree level. Games businesses cannot workforces in the world. Enhanced skills Adding these roles to the Shortage overseas talent, and then exporting them • Brand Manager; always recruit the staff that they need can improve productivity which is good for Occupation List will enable more studios to other countries that compete with UK from within the UK because video games business.102 Equally, higher skills can raise to recruit the highly skilled personnel that businesses in attracting top talent. In short, • Designers: UX Designer; Senior Game development often requires people with the employability of individuals.103 they need in order to operate effectively UK universities are essentially strengthening Designer; Digital Design and Marketing highly specialised skills. If they are unable and efficiently. It will enhance the ability the competition for UK businesses.112 Manager; to recruit the talent required to produce Although many UK employers do provide of studios to grow their teams, turnover a game or part of a game, the work will training, the duration of this training is and exports. The abolition of the Post-Study Work Visa • Localisation Manager; usually be transferred elsewhere if part much shorter than the EU average.104 has also hindered the potential of UK higher of a global entity or the contract lost, if an education. According to UNESCO, the UK Employers face the hurdles of cost and • Social and Digital Media Specialists: independent business. is the second most popular market for lost time when training their staff. This Community Manager and Video 113 is particularly true for SMEs.105 Games overseas students after the USA. Higher Journalist, In specialised technological fields it is not 19. businesses invest in training. 85 per cent education is our eighth biggest export foreign nationals competing against UK 114 of UK games developers provide some • Producers: Technical Producer, Senior NON-EU STUDENTS industry, valued at £8bn. Yet this export citizens for jobs or driving down salaries; form of training to their employees. Producer, Associate Producer, Line success story is being undermined and it is UK enterprises competing against However, only 8 per cent provide training Producer;107 threatened by the current clampdown on businesses from around the world for the leading to a qualification.106 overseas students studying in the UK. It is best and brightest talent. It is already easier PROPOSAL • Programmers: Online Programmer; potentially significant that the popularity of for some of our competitors (for example, The SME Training Tax Relief could be piloted Engine Programmer; User Interface The Post-Study Work Visa should be the UK among graduate school applicants Canada) to recruit from outside their borders in the video games sector and potentially Programmer; Gameplay Programmer; reinstated, initially for STEM and other decreased by almost 9 per cent between than it is for UK businesses. other creative industries. Artificial Intelligence Programmer; priority area students, to enable UK 2008/9 and 2012/13.115 Audio Programmer; Unity Programmer; In the case of some specialist roles we are businesses to hire the best available talent Tools Programmer; Online Services Meanwhile, countries such as Canada, dependent on skilled migrants to help high trained at UK higher education institutions. Programmer; Mobile Game Developer one of the most important competitors technology SMEs to grow and to actually The Post-Study Work Visa should allow non- EFFECT Programmers including C++/Java to the UK gaming industry, welcome employ more British people. Migrants can EU students studying at UK universities to skills; Physics Programmer, Animation graduates, giving them work permits, This measure would serve to encourage also help to improve the skills of indigenous work at a UK business after graduation for a Programmer, Graphics Programmer. and encouraging permanent residence. workers. For example, a UK video games maximum of two years, and then apply for a more workforce development and training Under the Post-Graduation Work Permit studio might seek to recruit someone with more permanent work permit. by games businesses in particular and other programme, an international graduate online/multi-player programming skills SMEs in general. Other things being equal, from a Canadian institution can work in from outside of the EU because such skills staff productivity and employability would be REASON Canada for a maximum of the length of the are in short supply in the domestic labour improved. It would enable developers and REASON study programme.116 This work experience market. With this key individual, the studio other businesses to finance management Since 2008 the UK has operated a five tiered then helps them qualify for a permanent could then build a team around him/her. training, strategic skill development Points Based System for Migration to the It is becoming increasingly expensive, slow residency through the Canadian Experience His/her role would be to plan the online and promote investment in continuous UK from outside the EEA. Tier 2 is reserved and difficult to employ top non-UK tech Class, under which a maximum of 12,000 component and execute this plan via his/ professional development. It could for migrants qualified to NQF6+, is the most talent, once they have finished studying at applicants per year can become permanent her team, investing time in the quality of additionally lead to an increase in training commonly used tier for the employment of UK universities. In 2012, the Government residents. There is a further scheme to their work and transferring his/her technical tiga.org resulting in qualifications. migrants in the game sector, and is limited abolished the Post-Study Work Visa that encourage candidates with PhDs to stay 20/20 VISION TIGA’S MANIFESTO FOR THE UK VIDEO GAMES DEVELOPMENT INDUSTRY 39 in country. From 1 June 2014, eligible international students in higher education 21. Some STEM courses are relatively 22. Four key funding schemes relevant to international graduates will be authorised is estimated by the Government to be £10 expensive for universities to provide and the video games industry are available to work while waiting for a decision on the billion. This is estimated to rise to £17 billion REDUCE TUITION clearly need to be properly resourced.131 In MAINTAIN THE SKILLS via the Skills Investment Fund: a Trainee Post-Graduation Work Permit, making it by 2025.120 FEES IN PRIORITY 2012, Imperial College London explained to INVESTMENT FUND Network (to assist games companies easier for graduates to transfer seamlessly the House of Lords Science and Technology to take on new trainees with financial Many of the UK’s competitors spend UNDERGRADUATE to working life and for Canadian businesses 126 Committee that while educating a HEFCE support); a Short Course Programme (to substantially more on higher education. SUBJECT AREAS to hire the best talent. fundable taught student in some STEM PROPOSAL encourage companies to provide continuous Canada, South Korea and the USA spend subjects might cost up to £15,700 per professional development); Commissioned between 2.6 per cent and 2.8 per cent annum, educating a humanities student Maintain the Skills Investment Fund to Training; and a Challenge Fund. To date, of GDP on tertiary institutions. The UK PROPOSAL at Russell Group institutions is estimated enable UK games businesses to enhance £1,188,100 has been awarded to 88 different EFFECT spends just 1.4 per cent of Gross Domestic to cost approximately £7,100 per annum. skills in the games industry. games businesses via the Skills Investment Product (GDP) on tertiary education,121 of Reinstating the Post-Study Work Visa Policy makers should consider the case Money raised through higher tuition fees Fund.134 which approximately three quarters is from will enhance the export potential of UK for reducing tuition fees for students should be used to provide for bursaries private sources.122 Unless the UK increases higher education because universities will studying for priority undergraduate degree and lower fees generally for capable investment on tertiary education and spends courses, such as Mathematics. This could students from disadvantaged and minority REASON become more competitive in the market for EFFECT it effectively, the UK’s competitive advantage be achieved either by universities voluntarily backgrounds to study STEM subjects.132 overseas students. UK businesses will be The Creative Skillset Skills Investment Fund in higher education could be eroded. cutting tuition fees for specific disciplines Currently, individuals from these groups able to hire highly skilled non-EU students (SIF) channels industry and government Maintaining the Skills Investment Fund will or by Government action to achieve this are not well represented amongst students more easily, thereby easing skill shortages Higher education funding has not kept pace investment for training and skills enable more games businesses, particularly objective, either by regulation or by financial studying degree courses in games and and strengthening their ability to grow and with the expansion in student numbers that development into schemes to address skills smaller firms, to take on trainees and to intervention. STEM.133 Financial background should not to compete. has taken place. Funding per student has gaps and shortages in film, animation, invest in training. This should enhance be a barrier to study, hence the need for the halved in the UK over the past 20 years.123 high-end TV, games and VFX. Every pound the productivity and competitiveness of judicious use of bursaries and lower fees. Funding in the UK ($15,862) is considerably invested by industry into the SIF is matched participating firms. less than the US level of investment REASON by HM Treasury up to £8m each year for two 20. ($25,576) and substantially lower than years, making the total potential investment The video games industry needs high quality EXPENDITURE ON Canada ($22,475) and Sweden ($19,562).124 EFFECT in skills through the SIF £32m over two The UK video games industry competes to a graduates (or the vocational equivalent) years. HIGHER EDUCATION crucial extent on the quality of its workforce. in both STEM (Science, Technology, Reducing tuition fees for priority degree If tertiary education is not adequately Engineering and Mathematics) subjects courses such as Mathematics and keeping financed then the supply and quality of such as computer science and mathematics, them lower in comparison to other and also in art and animation. The games PROPOSAL graduates could be adversely affected. undergraduate subjects, would provide a industry has experienced skill shortages strong financial incentive to bright students Policy makers should examine the case for Policy makers should examine the case for particularly in computer programming. to study this discipline. Other things being increasing expenditure on higher education increasing expenditure on higher education Interestingly, whereas the total number of equal this should increase the supply of to ensure that UK tertiary education remains to ensure that UK tertiary education remains full-time undergraduate and postgraduate good quality graduates in this discipline, world leading. world leading. Increased expenditure on students increased by over 100,000 between easing skill shortages in the video games higher education could be funded in a 2008 and 2013 (from 1,540,035 in 2008/9 and other industries. number of ways: by maintaining in real to 1,682,145 in 2012/13), mathematical terms public expenditure on tertiary sciences gained less than 7,000 students REASON education at current levels125 and then (an increase from 27,760 in 2008/9 to 34,255 increasing it as the Government’s deficit is in 2012/13), and the number of students UK higher education is a success story brought under control; and/or by eliminating studying computer sciences decreased by and a source of competitive advantage. or raising the cap on tuition fees; and/or almost 500 (from 71,750 in 2008/9 to 71,265 According to the 2013 Shanghai University Reducing tuition by increasing private sector investment in in 2012/13).127 league table of universities, the UK has fees for priority higher education. two universities in the top 20, and nine in The Leitch Review of Skills suggested in degree courses such the top 100, second only to the USA, with 2006 that the UK needs to increase the 117 17 and 52, respectively. There is only one proportion of the workforce qualified to as Mathematics and other university in Europe in the top 20. EFFECT degree level or the vocational equivalent keeping them lower The UK has just one per cent of the world’s from 29 per cent in 2005 to 40 per cent Increasing the proportion of GDP allocated population yet scientific papers produced in 2020.128 By 2013, 38 per cent of the UK in comparison to to tertiary education will support the in the UK were cited at least 106,306 times workforce (women aged between 21 and UK’s ambition to be a leading knowledge other undergraduate in 2012, only behind the United States with 59, and men aged between 21 and 64) 118 economy. More intelligent people will be 341,608 citations. According to the Royal were considered graduates, according subjects, would able to benefit from higher education, the Society, Britain achieved 8.1 per cent of the to the Office for National Statistics.129 quality of research will be strengthened, provide a strong world’s scientific citations between 2004 Yet the number of graduates in some the recruitment and retention of high financial incentive and 2008, while our humanities published STEM disciplines is in decline. While the 119 quality teaching staff will be enhanced and second most articles per year in the world. number of students studying mathematical to bright students to the UK’s leading position in the market for The UK is also second only to the USA in the sciences full- or part-time has increased overseas students will be reinforced. UK study this discipline. market for overseas students, although the considerably, the number of people taking games businesses will also be more likely number of first-year, non-EU students at UK Computer Science courses at University to draw on a healthy supply of high quality universities decreased for the first time in has fallen dramatically from 134,035 in graduates if investment in tertiary education 2011-2012. The net annual contribution to the academic year 2002/03 to 89,505 in the UK’s national income made by is increased. 2012/13.130 ‘Total War: SHOGUN 2’, developed by Realtime UK tiga.org 20/20 VISION TIGA’S MANIFESTO FOR THE UK VIDEO GAMES DEVELOPMENT INDUSTRY 41

tiga.org ‘Total War: Rome II’, developed by Realtime UK 20/20 VISION TIGA’S MANIFESTO FOR THE UK VIDEO GAMES DEVELOPMENT INDUSTRY 43 12  http://www.ft.com/cms/s/0/f9fbfd6c- 23 Interestingly, France currently operates a Fund for -Feasibility studies: small projects, approx. (March 2013), HL Paper 131, paragraph 2.7. Medium-sized company 9ecb-11e3-a48e-00144feab7de. new IPs, that provides 50 per cent of the production £50k-£100k part-funded by a TSB grant; in total £1M To be a medium-sized company, at least two of the html?siteedition=uk#axzz2udVF7NPO. Ed Balls, the cost if the game is original and innovative. has been announced and awarded for early-stage 44 http://www.ft.com/cms/s/0/3432879e-9562- following conditions must be met: Shadow Chancellor, commented on July 1st 2014 digital content production tools. See attached pdf 11e3-8371-00144feab7de.html?ftcamp=crm/ that business investment is still £6.1 billion a year from December 2013 with details of the 13 winning 24 Publishers fund game projects according to two email/2014217/nbe/UKBusiness/ • Annual turnover must be £25.9 million or less 1 Gibson, N., Gibson R., and Wilson, R, Making Games below its pre-crisis peak and is the fourth lowest main models: (a) work for hire, whereby a publisher applications. product&siteedition=uk#axzz33bArN4E0 in the UK Today 2014 (TIGA 2014). in the EU as a share of national income, only above commissions a studio to develop a video game for a -Collaborative studies: larger projects, up to £2M • The balance sheet total must be £12.9 million or Cyprus, Greece and Ireland (http://www.ft.com/ fee; (b) royalty advances, whereby a studio pitches a of grant funding from the TSB; a total of £14M is 45 Roads to Success: SME Exports, House of Lords less 2 Gardner, P., Gibson, R., and Wilson, R., Investing cms/s/0/74d7e8d4-006a-11e4-9a62-00144feab7de. project to a publisher with whom it agrees to share available; competition submissions have closed, and Select Committee Report on Small and Medium • The average number of employees must be 250 or in the Future: a Tax Relief for the UK Video Games html?siteedition=uk#axzz36EPbzcGa) royalties generated by the game in exchange for an the results will be announced on 11 March 2014. Sized Enterprises, Report of the Session 2012 – 13 Development Sector (TIGA, 2009). advance that funds development activities. Once the (March 2013), HL Paper 131, paragraph 5.18. fewer 13 http://www.ft.com/cms/s/0/a2e15f28- game is released the publisher recoups the advance Overall, this funding is aimed at projects addressing convergence in digital technologies, and covers film http://www.companieshouse.gov.uk/companiesAct/ 3 See http://www.mcvuk.com/press- f6f9-11e3-8ed6-00144feabdc0. from the sales receipts of the game in proportion 46 http://www.ft.com/cms/s/0/cd4f0c40- and television, online video, animation and video implementations/apr2008ExemptionThreshold.shtml releases/51488/2009-UK-National-Gamers-Survey html?siteedition=uk#axzz35Bu0UE9v to the agreed revenue share allocated to the studio, ab6f-11e3-8cae-00144feab7de. games (including pre-production, production and after which it shares royalties. html?siteedition=uk#axzz33bArN4E0 In addition the European union have a slightly post-production processes, particularly in visual 14 http://www.ft.com/cms/s/0/cd4f0c40- different definition and also has a category for 4 Gardner, P., Gibson, R., and Wilson, R., Investing effects technologies). in the Future: a Tax Relief for the UK Video Games ab6f-11e3-8cae-00144feab7de. 25 Gardner, P., Gibson, R., and Wilson, R., Investing 47 Roads to Success: SME Exports, House of Lords ‘micro’ companies: Development Sector (TIGA, 2009)p. 6. html?siteedition=uk#axzz33bArN4E0. George in the Future: a Tax Relief for the UK Video Games Innovate UK (formerly known as the Technology Select Committee Report on Small and Medium Osborne, Chancellor of the Exchequer, Industry, second edition (January 2011). Strategy Board), the Government agency charged Sized Enterprises, Report of the Session 2012 – 13 http://ec.europa.eu/enterprise/policies/sme/facts- with promoting business-led innovation, currently figures-analysis/sme-definition/ 5 Relentless, the Brighton based developer, created acknowledged in a speech in February 2014 that the (March 2013), HL Paper 131, paragraph 4.1. UK economy was “still too unbalanced.” The UK is 26 Creative Industries Council: Access to Finance distributes 0.4 per cent of its funds to the video Buzz! The School Quiz. The School Quiz created a As stated above the cost of Export Tax Relief is the world’s second biggest services exporter, after Working Group Report (Creative Industries Council, games sector. Following a question posed to Ed 48 Tax relief can be delivered in a number of different series of curricular video games in conjunction with difficult to estimate. To put the measure into the USA, but its £79 billion annual trade surplus December 2012) Vaizey, Minister of State for Culture and the Digital ways, and each has its benefits and issues. the Department for Ed and Skills (as it was then context, in 2011‐12, the cost of R&D Tax Relief in services is not large enough to cancel out its Economy by Luciana Berger, Shadow Minister, called). Red Redemption launched a game in 2007 -Additional deduction (e.g. R&D tax relief, Patent amounted to £1.2 billion, based on £11.9 billion of £108 billion deficit in goods (http://www.ft.com/ 27 It’s Time to Play. A survey on the impact of a Public Health and MP for Liverpool Wavertree, it was called “Operation Climate Control” (with Defra and Box): An additional deduction is made from taxable R&D expenditure. For 2011‐12, a total of 11,920 cms/s/0/5ac46826-ff95-11e3-8a35-00144feab7de. tax credit for cultural video games in the UK revealed that in 2013/14 Innovate UK provided 0.4 per Oxford University), aimed at GCSE school children profits, resulting in less tax being paid. This is companies submitted 12,190 returns, making 12,550 html#axzz36EPbzcGa) development sector (NESTA, August 2009). cent (£1.9 million) of its core budget to videogames. aged 15-16 to educate them about climate change straightforward to administer and would not include separate relief claims. See: https://www.gov.uk/ See also: http://www.ft.com/cms/ This compares to £277,000 (0.06 per cent of its core and to stimulate changes in behaviour. cash credits from the Government, but has little government/uploads/system/uploads/attachment_ s/0/5ed2e0c6-1edc-11e4-ad93-00144feabdc0. 28 The Funding would be within EU State Aid Funding budget) in 2012/13, and no funding at all for the benefit for loss making companies unless there is data/file/255617/rd-introduction.pdf html?siteedition=uk#axzz3B6pRG8PO videogame sector in 2011/12. Innovate UK operates 6 Gardner, P., Gibson, R., and Wilson, R., Investing rules and would not need to be declared to the an additional opportunity to surrender losses for a Commission for the following reasons: some very useful schemes and it is good to see that in the Future: a Tax Relief for the UK Video Games credit (such as the SME R&D tax relief scheme). 51 Significantly, rates of relief already appear to be 15 http://www.ft.com/cms/s/0/852da4fa- its funding for the videogame industry has increased Development Sector, p. 27. increasing in the EU. For example, Ireland wants 0135-11e4-9750-00144feab7de. -The funding would encompass several General over the past two years. Yet the £1.9 million -Payable credit (e.g. new large company RDEC to introduce a rate of 32.5 per cent of relief for film html?siteedition=uk#axzz36QMsXi00 Block Exemption Regulations such as ‘Aid for Newly invested in the video games sector in 2013/14 pales 7 See Sandford, Richard, Ulicsak, Mary, Facer, Keri, scheme): A credit paid directly to companies by and TV productions. The EU Commission still has to See also: http://www.ft.com/cms/ Created Small Enterprises, ‘Aid for Young Innovative in comparison to the £26 million of Lottery Funds and Rudd, Tim, Teaching with Games (Futurelab, HMRC, which can be used to discharge tax liabilities, approve this request (information from HMRC, June s/0/6abcb458-1bde-11e4-adc7-00144feabdc0. Enterprises’ and ‘Research and Development Aid’. provided to the UK’s film industry each year. 2006). Available at: http://www.futurelab.org.uk/ or (if none exist) claimed as cash. This approach has 10th 2014). html?siteedition=uk#axzz3B6pRG8PO resources/documents/project_reports/teaching_ Source: Commission Regulation (EC) No 800/2008 of the advantage of being easy to calculate and explain 6 August 2008 35 Source: http://www.tekes.fi/en/programmes-and- with_games/TWG_report.pdf to companies, as the benefit is very clear. This does 52 Interestingly, The Rt Hon George Osborne MP, 16 Gibson, N., Gibson, R., Wilson, R, Making Games in services/tekes-programmes/skene/ and http:// -The majority of this funding would fall under have the potential to require more cash outflow from Chancellor of the Exchequer, has said: “I want the UK Today 2014 (TIGA, 2014). techcrunch.com/2013/12/03/rovio-supercell-finland/ 8 The potential market for corporate video training €200,000 and would therefore be considered ‘de the Treasury however, and it is likely that HMRC the UK to remain a world leader in the creative games is substantial. Caspian Learning developed a minimis’ funding and would not need to be declared will wish to tax this payable credit, adding some industries, that’s why I am announcing tax reliefs 17 Gibson, N., Gibson, R., Wilson, R, Making Games in 36 Borowiecki, K. J., Prieto-Rodriquez, J. (2013) game to train Volvo’s sales workforce; PIXELearning to the commission. Source: Commission Regulation complication to the calculation, in line with the RDEC that will be among the most generous available the UK Today 2014 (TIGA, 2014). Video Games Playing: A Substitute for Cultural developed games involving diversity training and (EU) No 1407/2013 of 18 December 2013 scheme. Consumptions? (TEP Working Paper No. 0413, anywhere.” See “UK to get world class creative tax corporate social responsibility; and PlayGen created -The commercial nature of the loans would also available at https://www.tcd.ie/Economics/TEP/2013/ -Allowance (e.g. Annual exemption for capital gains breaks” (HM Treasury press release, June 18th 2012 anti-money laundering and data security training 18 Ian Davidson MP, Chair of the House of Commons exempt them from state aid regulation. According TEP0413.pdf) tax (which is available for individuals)): A company http://www.hm-treasury.gov.uk/press_48_12.htm). games. Scottish Affairs Committee, said: “The Committee strongly believes that the video games interactive to the Department for Business, Innovation and could pay no tax on Export Profits up to a certain 53 http://www.gamesindustry.biz/articles/2013-05- technology industry is potentially a world leader Skills State Aid Guide ‘If the State is acting in a way 37 These funding bodies are: Arts Council England, Arts value, and full CT thereafter. This might encourage 9 The deficit is still high compared with other countries 22-gaming-tax-credits-a-developers-guide-to- for the UK and the Government must do more to that a private investor would in a market economy, Council of Northern Ireland, Arts Council of Wales, non-exporting companies to begin to make export and average pre crash levels. With borrowing of 6.6 free-money. Although Quebec recently reduced its encourage development and growth in the sector.” for example in providing loans or capital on similar The British Film Institute, Big Lottery Fund, Creative sales, but would do less to encourage significant per cent of national income last financial year, the level of relief for English speaking games (http:// See House of Commons Scottish Affairs Committee, terms to that of a private investor, it is not providing Scotland, Heritage Lottery Fund, Sport England, exporters to increase their activity (though it would UK still compares poorly with the average of 4.8 per www.gamesindustry.biz/articles/2014-06-13-game- Video Games Industry in Scotland, Second Report State aid within the meaning of Article 107(1).’ Sport Northern Ireland, Sport Wales, sportscotland, reduce their total tax bill, ‘rewarding’ them for their cent for all advanced economies and 3 per cent for subsidies-cut-as-quebec-government-slashes- of Session 2010-11, Volume 1, February 2011, p. 10, Source: The State Aid Guide, The Department for and UK Sport. substantial exports), although this could be an the eurozone in 2013, according to the most recent spending), French language games continue to paragraph 30. Indeed, the Committee recommended Business, Innovation and Skills, June 2011, p.6 expensive option. International Monetary Fund assessment. See http:// attract a high level of relief: English language that “the Government should make the future of 38 National Lottery (2014), Where the Money Goes -Exemption (e.g. United States IC-DISC scheme): A www.ft.com/cms/s/0/07ebc8b4-cac6-11e3-ba95- games will benefit from 24 per cent tax relief, this industry a priority”. See House of Commons 29 The precise repayment mechanisms should be (available at https://www.national-lottery. separate subsidiary is set up to make exports, and 00144feabdc0.html#axzz30PAdL1t9 French language games will receive 30 per cent tax Scottish Affairs Committee, Video Games Industry in determined after consultation with the industry. co.uk/player/p/goodcausesandwinners/ pays no corporation tax. This is probably somewhat relief. Some Canadian provinces continue to provide Scotland, Second Report of Session 2010-11, Volume However, even if 70 per cent of the net revenue wherethemoneygoes.ftl) complex and a big change to the UK tax system. On July 25th 2014 it was reported that the UK for more generous levels of tax relief for video 1, February 2011, p. 10, paragraph 30. was returned to the CCF that would still be a better Accordingly, this is not the most attractive option. economy had finally reached and surpassed the size games than in the UK (http://www.gamesindustry. royalty rate than developers receive from most 39 Encouragingly, some UK politicians, including the of its pre-recession peak six years ago. It has been biz/articles/2013-05-22-gaming-tax-credits-a- 19 72 per cent of respondents who had benefited traditional global publishers and should provide Minister for Culture, Communications and Creative 49 Option c) provokes real difficulties: the profits are the UK’s longest slump for more than 100 years. developers-guide-to-free-money. At the time of from the Abertay Prototype Fund reported that suitable on-going cash flow to support the recipient Industries, Ed Vaizey MP, has supported the taxed in the host country, any dividends may be The collapse of Lehman Brothers in 2008 heralded a writing, it has been reported that a number of games the scheme had enabled them to surmount the company in the future. In the case of one of these allocation of Lottery funding to the games industry. subject to withholding tax, although may be treated savage moment of reckoning for Britain’s economy; businesses in Quebec, including Ubisoft and Warner constraint on their business of accessing working projects performing very well commercially 70 per See Interview with The Market for Computer as non-taxable in the UK. A tax credit based in the shock that started in the financial sector wiped Brothers, will be immune from any reductions in tax capital. 62 per cent said that the Fund had enabled cent should allow for multiple complete failures to and Video Games, 31 March 2014, available at the UK for these overseas profits would create 7.2 per cent off national output, wrecking the public relief until 2019 at the earliest (http://www.develop- them to deliver employment growth, 53 per cent be borne without compromising the Fund. http://www.mcvuk.com/news/read/ed-vaizey- numerous complications because the profits may not finances. Of the G7 major economies, only Italy has online.net/news/ubisoft-and-warner-bros-exempt- stated that it had allowed them to secure new mp-tax-relief-is-just-the-start-for-uk-games- ever be subject to UK taxes and would already have taken longer than the UK to regain its pre-crisis from-quebec-tax-relief-cuts/0194614). 30 Developers may have to rescue themselves if a developers/0130403 size and output per head in Britain is still 4 per cent commercial partnerships and 88 per cent noted that been subject to tax in the source country. However, it had helped them to develop an effective business conflict of interest arises. if these companies were excluded, an export tax below its pre-crisis level. See http://www.ft.com/ 54 e-skills, the Sector Skills Council for Business and cms/s/0/27d93aa2-1419-11e4-b46f-00144feabdc0. model. 25 per cent of respondents said that the Fund 40 Creative England could be suggested as an credit might create artificial discrimination between 31 See the AppCampus as an example of this approach: Information Technology. The Report, Technology html?siteedition=uk#axzz3B6pRG8PO and http:// had enabled them to release new IP and a further alternative designated funding body, and distribute companies that export directly, and companies that https://www.appcampus.fi/ Insights 2011: The Games Development Sector. www.ft.com/cms/s/0/bad33d56-13d5-11e4-8485- 60 per cent said that the IP was still in development. National Lottery funding to the video games industry. export from a base in the host country. 78 per cent said that they would not have secured Policy makers would have to weigh the benefits 00144feabdc0.html?siteedition=uk#axzz3B6pRG8PO 55 UK Trade and Investment (UKTI) is the government funding elsewhere (information from Abertay 32 This is based on the following estimates of £10,000 of expanding the scope and responsibilities of an 50 Companies House gives this definition of Small and body that is responsible for growing our overseas University, January 21st 2014). due diligence per project, 2 financially-trained established organisation like Creative England Medium companies according to the 2006 Act: 10 http://www.ft.com/cms/s/0/5538caf6-0061-11e4- trade and attracting inward investment from administrators with investment background £200,000 against the creation of a new organisation like the 8aaf-00144feab7de.html#axzz36EPbzcGa Companies Act 2006 overseas to the UK. It is structured across 9 English 20 Creative England’s funds are primarily derived from + £50,000 overheads. CCF which would be solely focused on the video regions and the Devolved Administrations with each either the Regional Growth Fund or ERDF, both of games sector. Accounts Exemption Thresholds for companies with 11 This compares to an estimated 12.8 per cent in the regional contract being delivered by a commercial which are made available on geographical eligibility 33 See https://www.innovateuk.org/competition- accounting periods starting on or after 6th April USA, 17.6 per cent in Germany, 18.2 per cent in Italy, contract holder. Whilst fundamentally the same, based on historic support (or lack of). ERDF in display-page/-/asset_publisher/RqEt2AKmEBhi/ 41 See http://www.publications.parliament.uk/pa/ 2008. 19.4 per cent in Finland, 19.8 per cent in France, 24 each region can alter slightly how services are particular, is restricted to very specific regions, content/cross-platform-production-in-digital-media- cm201314/cmselect/cmpubacc/709/70902.htm per cent in Canada, 26.7 per cent in South Korea delivered and adapt them according to regional whilst RGF is more “national” and the aim is for us feasibility-study Small company and a global average of 23.8 per cent in 2012 (see The Government does spend resources on promoting needs. Across the regions there are International to determine the areas that would most benefit from https://www.cia.gov/library/publications/the-world- https://www.innovateuk.org/competition-display- exports. For example, the PAC notes that In 2012-13, To be a small company, at least two of the following Trade Advisers (ITAs) whose job it is to help the funds. factbook/fields/2185.html). Interestingly, according page/-/asset_publisher/RqEt2AKmEBhi/content/ UKTI and FCO spent £420 million to promote exports. conditions must be met: companies trade securely and successfully overseas. to the OECD, Britain has for the past two decades cross-platform-production-in-digital-media- These ITAs are not civil servants and come from 21 Recipients of prototype funding could be required invested less in public infrastructure assets than collaborative-r-d 42 Business, Innovation and Skills, Trade and • Annual turnover must be £6.5 million or less the private sector and brings with them a wealth to provide some evidence of how they would ensure many of its main competitors. In 2009-10, the UK https://connect.innovateuk.org/web/creativektn/ Investment for Growth White Paper (February 2011), of experience gained from the private sector. The that their game gets funding beyond the prototype • The balance sheet total must be £3.26 million or invested 3.5 per cent of gross domestic product in funding Cm 8015. Inward Investment Services Team is responsible for phase and out into the market as part of the less public infrastructure assets. See http://www.ft.com/ promoting the UK regions to overseas businesses application process for prototype funding. cms/s/0/ce9e10b0-ca09-11e3-8a31-00144feabdc0. 34 The competition has been run in two streams: 43 Roads to Success: SME Exports, House of Lords • The average number of employees must be 50 or and to attract them to expand and develop in the html?siteedition=uk#axzz30PAdL1t9 Select Committee Report on Small and Medium fewer UK. Many foreign studios are interested in setting 22 https://www.appcampus.fi/ Sized Enterprises, Report of the Session 2012 – 13 up business in the UK to collaborate with the depth 20/20 VISION TIGA’S MANIFESTO FOR THE UK VIDEO GAMES DEVELOPMENT INDUSTRY 45

of talent we produce and to help them expand into 64 http://theesa.ca/wp-content/uploads/2011/08/ http://www.scribd.com/doc/43354992/Home- • the presence of functioning networks and Rules/tier1statementofintent.pdf). global economy – world class skills. Final Report other areas of Europe. Far from threatening our SECOR_ESAC_report_eng_2011.pdf p.12 Business-Report-2007?in_collection=2728400. partnerships (HM Treasury, December 2006), p. 3. home grown industry, these overseas companies See also: https://www.gov.uk/government/ • a strong innovation base with supporting research 110 The Migration Observatory at the University of Oxford provide new jobs and bring with them an 65 Ibid. P.24 uploads/system/uploads/attachment_data/ and development (R&D) facilities (2012), Britain’s ’70 Million’ Debate: Chapter 4 – 129 Office for National Statistics (2013), Full Report – understanding of other cultures and markets that file/39255/12-829-home-business-guide.pdf and Migration of Non-EU Nationals (available at http:// Graduates in the UK Labour Market 2013 (available • a strong skills base enhance our international reputation as the leading 66 House of Commons, Scottish Affairs Committee, http://www.flexibility.co.uk/flexwork/location/ migrationobservatory.ox.ac.uk/reports/4-migration- at http://www.ons.gov.uk/ons/dcp171776_337841. games development country in the world. Most UK ‘Video games industry in Scotland’, Second Report of home-enterprise.htm and http://www.btplc.com/ • adequate physical infrastructure non-eu-nationals). pdf). studios will enagage with UKTI through their ITA Session, 2010-11, Volume 1, 19th January 2011, p.94 Thegroup/BTUKandWorldwide/BTRegions/England/ • the presence of large firms with whom they develop a personal relationship and Factsandfigures/EnterpriseNationHomeBusinessRe 111 Immigration Statistics, July to September 2011 130 According to e-skills, the sector skills council for • an entrepreneurial culture a series of Action Plans that enable them to identify 67 Bank finance is not an important source of finance port2009-Nov09.pdf (Office for National Statistics). Business and Information Technology, the number and successfully execute a strategic growth plan to for most games developers. Developers typically • access to finance. of IT and computer science graduates fell by 25% help them increase international trade. have no main assets that can be used as collateral 81 http://www.itu.int/ITU-D/treg/broadband/ITU-BB- 112 A similar argument has also been advanced between 2004 and 2008 (from 20,210 to 14,920). - See more at: http://www.local.gov.uk/economy/-/ unlike traditional industries with lots of plant and Reports_Impact-of-Broadband-on-the-Economy.pdf by James Dyson. See http://www.ft.com/ See http://www.hesa.ac.uk/index.php?option=com_ journal_content/56/10180/3510371/ARTICLE#sthash. 56 Over recent months, BIS has cut funding to UKTI property on the balance sheet. p.4 cms/s/0/34226450-8a76-11e3-9c29-00144feab7de. datatables&Itemid=121&task=show_ and diverted this money to the Regional Growth Jrx8hfwV.dpuf. See also: http://www.ipt.org.uk/ html?siteedition=uk#axzz33bArN4E0 category&catdex=3#subject the-rise-and-rise-of-uk-business-clusters.aspx. See Hubs each of whom have an Internationalisation 68 BIS and DCMS, Access to Finance for Creative 82 http://www.ehow.com/info_12036378_country-leads- also: http://www.ipt.org.uk/how-can-government- programme. As each Region handles it’s budget Industry Businesses, May 2011 (Warwick Business video-game-industry.html 113 UNESCO (2009), Top Destinations for Mobile 131 According to an estimate by the Center for STEM support-business-clusters-in-the-uk.aspx; See also: separately there is no standard procedure with School and IFF) (see http://www.berr.gov.uk/ Students and Outbound Mobility Ration Statistics Education & Innovation at American Institutes https://www.sussex.ac.uk/webteam/gateway/file. regard to financial support. Some Hubs are assets/biscore/enterprise/docs/a/11-898-access- 83 ‘The Video Games Industry: Explaining the (available at http://www.uis.unesco.org/Education/ for Research, most STEM degrees have higher php?name=workpaper9.pdf&site=2 maintaining the 50/50 match funded grant system to-finance-for-creative-industry-businesses.pdf Emergence of New Markets, Quentin Cucuel, Otago Pages/tertiary-education.aspx). than average production costs for the higher while others adopt a 33/66 or 20/80 contribution and Creative Industries Council: Access to Finance Management Graduate Review, Volume 9, 2011 See also: http://www.aimresearch.org/uploads/ education institutions at undergraduate level (Delta level whilst some offer no direct cash funding at Working Group Report (Creative Industries Council, File/Publications/Academic%20Publications%202/ 114 Financial Times (27 February 2014), Data Cost Project Data Brief, American Institutes for all. However all Growth Hubs are charged with December 2012). 84 http://www.oft.gov.uk/shared_oft/markets-work/ Challenging_clusters.pdf on Immigration to UK Deal Blow to David Research, September 2013, available at http://www. encouraging SMEs to grow and there is support sme-update.pdf See also: http://www.clusterobservatory.eu/ Cameron (available at http://www.ft.com/ deltacostproject.org/sites/default/files/products/ available locally for companies that can demonstrate 69 The SEIS, which was introduced in 2012, currently index.html#!view=documents;mode=all;sort=name cms/s/0/051d8e54-9f99-11e3-b6c7-00144feab7de. Cost%20to%20Institutions%20of%20STEM%20 a clear business plan to develop and create jobs operates under the following parameters: 85 Wilson, R., State of the UK Game Development ;uid=;id= html#axzz2udVF7NPO). Degrees.pdf). Furthermore, the House of Lords over the next two years. UKTI is working closely Sector (TIGA, 2010). Science and Technology Committee expressed has with the Regional Growth Hubs and other agencies • any one company can raise no more than £150,000 received similar evidence from UK universities 98 It would be important to identify and audit bona fide 115 QS Top Universities (2013), Student Mobility: to ensure that all our SME clients are aware of in total via SEIS investment; (Higher Education in Science, Technology, 86 Source: http://ec.europa.eu/budget/library/biblio/ courses to eliminate any potential for abusing SME Most Popular Countries (available at http://www. the range of support and services that exist such topuniversities.com/blog/student-mobility-most- Engineering and Mathematics subjects, Chapter • SEIS investors can allocate £100,000 in a single documents/2014/DB2014_WD_I_en.pdf (pages 239- Training Tax Relief. as the Growth Accelerator Scheme. It is a sad 240). See also http://www.egdf.eu/egdfwelcomes- popular-countries). 6: Policy Reforms, 2012, available at http://www. fact that some studios do not see themselves as tax year which can be spread over a number of publications.parliament.uk/pa/ld201213/ldselect/ the-european-game-development-support-scheme/ 99 Full Report – Graduates in the UK Labour Market traditional businesses and do not engage as well as companies; ldsctech/37/3709.htm). 2013 (Office for National Statistics 2013) p.3. 116 Government of Canada (2014), Stay in Canada “traditional” companies. UKTI would like to change • Investors cannot control the company receiving 87 See http://ec.europa.eu/research/participants/ After Graduation (available at http://www.cic.gc.ca/ that perception to ensure that any Studio – whether 132 Some universities already have their own bursary their capital and have more than a 30% stake in the portal/desktop/en/opportunities/h2020/calls/h2020- 100 The UK finished 22nd out of 34 OECD countries english/study/work-postgrad.asp) large or small understands the need to adopt the schemes to support students from disadvantaged company in which they invest; ict-2014-1.html). See also http://www.egdf.eu/ for educational attainment ‘Education at a Glance’ same fundamental business principles as any other backgrounds and/or to support students on STEM european-commission-provides-record-funding-for- (Organisation for Economic Co-operation and 117 www.shanghairanking.com. According to QS, commercial organisation to safeguard growth and • investors can receive up to 50% tax relief in the tax courses. These traditions need to be developed european-game-developers/ Development, 2013) p.32. the education consultancy, there are 18 British profitability. year the investment is made; universities in the world’s top 100 (www. further. Additionally, H2020 provides for a sub-programme Just tiny fractions of two of UKT&I’s key schemes 101 Considered to below GCSE grade D. ‘2011 skills topuniversities.com), whereas Times Higher • the business company must be a UK company and called the H2020 SME instrument, Again, this is not 133  According to HESA, only 21.8% of mathematical (Trade Assistance Programme funding and Events for life survey: headline findings’ (Department for Education World University Rankings puts this figure have a permanent establishment in the UK; a fund dedicated to game development but games science students and 28% of computer science and Missions spending) were allocated to the Business Innovation and Skills, December 2011), p. 5 at 11 (www.timeshighereducation.co.uk/world- businesses can apply for funding under the scheme. students were of ethnic minority in 2012/13. Overall, video games sector. Following a question posed and p. 8. university-rankings). • in the 2012-13 tax year, tax payers can roll a See http://ec.europa.eu/research/participants/ according to Race for Opportunity, only 19% of all to Matthew Hancock MP, Minister of State at the chargeable gain on the disposal of assets in the portal/desktop/en/opportunities/h2020/topics/2538- STEM students were of Black, Asian or Minority Department for Business, Innovation and Skills, 102 Improving the nation’s skill profile is essential to 118 SCImago Journal and Country Rank (www.scimagojr. tax year into shares qualifying for SEIS income tax ict-37-2014-1.html and http://www.egdf.eu/ Ethnic background in 2009/10. Minister of State at the Department of Energy the future prosperity of the UK. The benefits of com, accessed on 26 March 2014). relief, with a full capital gains tax exemption; eufundingspring2014/ and Climate Change and Minister of State for this investment are felt by individuals, employers 134 £1,188,100 has been awarded from the Skills Portsmouth, by Luciana Berger, Shadow Minister, • the company must have fewer than 25 employees and the economy ‘Employability and Skills in the 119 www.researchtrends.com (Issue 32, March 2013). 88 For information on the OFT’s eight Principles, see Investment Fund to 88 different games businesses. Public Health and MP for Liverpool Wavertree, it was (if the company is the parent company of a group, UK: Redefining the Debate’ (The Work Foundation, http://www.tiga.org/news/press-releases/tiga- The breakdown is as follows: revealed that in 2013-14, just 1.4 per cent (£220,100) that figure applies to the whole group). November 2010) p.3. 120 Universities UK Parliamentary Briefing (Universities seven-days-til-dday-for-iap of total UKT&I Trade Assistance Programme UK, available at http://www.universitiesuk. • Challenge Fund: £50,872 for 2 companies • the company’s trade must be no more than two funding was allocated to the video games sector. 103 Ibid. ac.uk/highereducation/Documents/2013/ 89 Gibson, N, Gibson, R., and Wilson, R., Making Games • Commissioned Training: £15,550 for 1 company Additionally, just 0.18 per cent (£25,000) of total years old; BriefingImmigrationBillSecondReading.pdf) in the UK Today 2014 (TIGA 2014). UKT&I Events and Missions spending was assigned • Funded Training: £37,143 for 44 different companies • the company must have assets of less than 104 The UK average is 7 hours vocational training, to the video games sector. For information about 121  The UK spent 1.4 per cent of its GDP on tertiary £200,000; and the company has to trade in an below the EU average and half the level of France. • Trainee Finder: £1,084,535 for 56 different UKTI’s support for the video games sector, see: 90 See http://www.growthaccelerator.com/ education in 2010 (Education at a Glance, OECD, approved sector – generally not in finance or ‘Business Investment in Skills’ (Confederation of companies http://www.parliament.uk/business/publications/ 2013), of which 0.7 per cent came from public investmenthttp://www.seis.co.uk/ British Industry, August 2011) p.13. written-questions-answers-statements/written- 91 See http://www.growthaccelerator.com/ sources (including public subsidies to households questions-answers/?page=1&max=20&questiontype 70 ‘The fourth utility: Delivering universal broadband 105 SMEs devote significant time and resources to attributable to educational institutions and direct 92  http://www.dutchgamegarden.nl/english/about- =AllQuestions&house=commons%2clords&member connectivity for small businesses across the UK’, The developing their staff. ‘Business Investment in Skills’ expenditure from international sources) and 0.6 dutch-game-garden/ =4070&keywords=ukti%2cand%2cvideo%2cgames Federation of Small Business, July 2014, p. 4 (Confederation of British Industry, August 2011) p.6. percent from private sources of funding. Core tertiary education services accounted for 0.8 per cent 93 https://www.appcampus.fi/ 57 Roads to Success: SME Exports, House of Lords 71 ibid 106 Wilson, Richard, State of the UK Video Game of the GDP, ancillary services 0.11 per cent, and R&D Select Committee Report on Small and Medium Development Sector (TIGA, 2008), p. 6. at tertiary institutions 0.46 per cent. Excluding public Sized Enterprises, Report of the Session 2012 – 13 72 ibid 94 http://www.ft.com/cms/s/0/1dde4404- subsidies attributable to payments to educational f60e-11e2-8388-00144feabdc0. institutions, public funding for tertiary education (March 2013). 107 The role of Producer is currently on the SOL but it html?siteedition=uk#axzz30V53CMIf accounted only for 25.2 per cent of all funding for 73 http://www.scotland.gov.uk/ might be helpful for both the industry and for the tertiary education. 58 http://www.parliament.uk/business/publications/ Resource?Doc/981?0114237.pdf MAC to delineate the precise producer roles that the written-questions-answers-statements/ 95 Bagwell, S, ‘Creative clusters and city growth’, in games industry needs more clearly. writtenquestions-answers/?page=1&max=20&questi 74 The State of the Internet’, 2013 Report, Volume 6, Creative Industries Journal Volume 1 Number 1 122 Including subsidies. Education at a Glance 2013 © 2008 Intellect Ltd; Pandit, N.R., Cook, G.A.S, (OECD, 2013). ontype=AllQuestions&house=commons%2clords& Number 3, 3rd Quarter, p.25 108 Take one of our members, Codeplay, an Edinburgh Beaverstock, J.V. and Ghauri, P.N., ‘An empirical member=4070&keywords=ukti%2cand%2cvideo% based business and an internationally recognised study of service sector clustering and multinational 2cgames) 75 Ibid, p.13 expert in advanced optimising technologies for 123 Leitch Review of Skills, Prosperity for All in the enterprises’ in Journal of Services Research, Special computer and video game graphics. Codeplay Global Economy – World Class Skills. Final Report 59 House of Commons, Scottish Affairs Committee, Issue, February 2008. (HM Treasury, December 2006), p. 67. 76 https://www.gov.uk/government/policies/ operate in a highly specialised niche field, ‘Video games industry in Scotland’, Second Report of transforming-uk-broadband working with global technology giants like ARM Session, 2010-11, Volume 1, 19th January 2011, p.93 96 On high technology regional clusters, see and Qualcomm and create, for example, graphics 124 Education at a Glance 2013 (OECD, 2013). http://www.ft.com/cms/s/0/034f6fda-8aa8- 77 The fourth utility: Delivering universal broadband compilers that make their chipsets run faster and 60 Ibid. 11e3-9465-00144feab7de.html?ftcamp=crm/ connectivity for small businesses across the UK’, The more efficiently. This is a fantastic example of 125 Total funding for higher education via HEFCE in the email/201423/nbe/InformationTechnology/ Federation of Small Business, July 2014, p.10 Britain’s intellectual contribution to the progress 2014-15 budget is £4,091 million, down from £5,014 61 http://www.bcjobsplan.ca/wp-content/uploads/ product&siteedition=uk#axzz2sFKTTU8C of bleeding-edge technology around the world. million in 2013-14 (HEFCE, 2014). TechnologyStrategy2012.pdf p.14 78 http://www.businesszone.co.uk/topic/technology/ Yet Codeplay is finding it increasingly challenging 97 http://webarchive.nationalarchives.gov.uk/+/http:// small-firms-hindered-slow-broadband-450000-still- to meet market demand for its services and 126 Clearly, this policy does not apply to Scotland, which www.dti.gov.uk/clusters/ecotec-report/dti_clusters. 62 http://www.international.gc.ca/media_commerce/ using-dial/57271 grow because it cannot find the talent locally and does not charge under-graduates tuition fees. comm/news-communiques/2013/04/10b. pdf; see also: http://www.publications.parliament. is inhibited from hiring specialised talent from aspx?lang=eng uk/pa/cm200304/cmselect/cmtrdind/118/11808. 79 The fourth utility: Delivering universal broadband overseas because of our immigration regulations. 127 Statistical First Release 197, The Higher htm. See also: http://webarchive.nationalarchives. connectivity for small businesses across the UK’, The Education Statistics Agency (http://www. gov.uk/+/http:/www.bis.gov.uk/policies/economic- 63 http://theesa.ca/wp-content/uploads/2013/10/ESAC- Federation of Small Business, July 2014, p.10 109 Border & Immigration Agency (2006), Highly hesa.ac.uk/index.php?option=com_ Video-Games-Profile-2013-FINAL-2013-10-21-CIRC. development/clusters-in-the-uk. There are a Skilled Migrants under the Points Based System – content&task=view&id=3103&Itemid=161) pdf p.48 number of factors critical to successful clusters, 80 Enterprise Nation (2007), “Home Business Report”: Statement of Intent (available at http://www.bswn. including: org.uk/resources/law/public-law/New-Immigration- 128 Leitch Review of Skills, Prosperity for all in the 20/20 VISION TIGA’S MANIFESTO FOR THE UK VIDEO GAMES DEVELOPMENT INDUSTRY 47

ENDORSEMENTS Mark Field MP: Elaine Green, owner, Nellyvision “On 27 March 2014, the European Commission gave “As a member of TIGA we have been able to attend OF TIGA full approval to UK government plans for a video several of their events to our benefit. As a company games tax relief. It marks a successful end to a that does a lot of contract work, our network is From MPs, MSPs and government over the hard-won fight to get this vital industry the boost it critical to us and any contacts we gain through last five years: needs, enabling eligible companies to benefit from a events like these are greatly appreciated. Our Alex Salmond MSP, Scotland’s First Minister: payable tax credit worth 25% of qualifying production TIGA membership has also allowed us to seek TIGA is “an excellent tradee body”. costs. TIGA has been a key player in getting this out vital information about funding through their fantastic result. Through their efforts, video games GrowthAccelerator event, as well as information John Swinney MSP Cabinet Secretary for Finance makers now have a secure future on these shores, about taxes and grants. We are happy to say a TIGA and Sustainable Growth: providing UK jobs in what is a youth-oriented industry membership can have some very tangible benefits, and ensuring that gamers across the world will see “I was very impressed by the case that you made whether it be information you need or growing your the enormous talent, ingenuity and creative spirit we network – or indeed expanding your company. We in relation to tax breaks for computer games and have here in Britain.” needed an artist and decided to advertise the position I pressed this point again when I wrote to the through TIGA, and we quickly found just the right Chancellor of the Exchequer about the budget…I… Rt Hon Stephen Timms MP: candidate. Perhaps we would have found someone congratulate you and TIGA on being such a driving “Both as a Government Minister and from the advertising somewhere else as well, but doing it force in achieving it [GTR].” Opposition benches, I have seen TIGA campaigning through TIGA meant it was targeted at just the right professionally and tenaciously for Games Tax Relief. people we were looking for – and it’s hard to argue Fiona Hyslop MSP, Cabinet Secretary for Culture TIGA played a critical role in securing the Relief, with results!” and External Affairs: convincing successive governments - a difficult “I know TIGA played a key influencing role in bringing job in both cases. I hope the tax credit which their Mike Hawkyard, Business Development Director, [Games Tax Relief] to where it has got to today… lobbying has secured, and which I strongly support, Amuzo Games: The computer games industry specifically is a very will provide a powerful boost to the UK video games “Networking with the right people is essential for important part of the Creative Industries Growth industry.” game developers, business owners and the broader Sector in Scotland and we are grateful for the support tech industry, especially as the ecosystem continues Jim McGovern MP, said: which TIGA has offered through their research to broaden, whilst the pressures on our time are as “TIGA has played a crucial role in making the case which has helped to provide a better reflection of high as ever. TIGA goes to great lengths to ensure and winning the argument for a tax break for games the many games industry networking opportunities an industry which may not be captured accurately production.” it provides are simple, effective and fun, which is through traditional statistical reporting methods.” precisely why they are so valuable.” Tom Watson MP: Stewart Hosie MP, said: “I have no doubt that with TIGA - the UK’s best Patrick O’Luanaigh, CEO, nDreams: “TIGA has played a vital role in making the case for trade association – the issues that matter to the “A major benefit TIGA offers members, in addition to Games Tax Relief. The quality of TIGA’s research video games sector will remain high up the political networking opportunities and money saving offers and its tenacious campaigning have enabled MPs agenda.” from others in the network, is the best practice including myself to make the case for a tax relief for content and guidance it provides. For example, TIGA’s the video games sector in Parliament.” Don Foster, former Liberal Democrat Culture Guide to Self-Publishing provides excellent expert Spokesman and now Liberal Democrat Chief Whip & advice for any studio looking to self-publish (as well Justin Tomlinson MP, said: Govt Deputy Chief Whip: as co-publish). I’m sure this resource, and the many “Unlike many trade associations, TIGA has “I have witnessed TIGA campaign proficiently, others TIGA offers its members, will be of great consistently provided strong empirical evidence persistently and persuasively for a video Games value to the UK’s developer and digital publishing to back up its case for Government support and Tax Relief over many years. Along the way TIGA has community. TIGA’s also delivered valuable PR investment. TIGA made a powerful case for a tax successfully convinced political parties, governments opportunities for my business, and repeatedly takes a credit for games production and I was pleased to and finally the EU Commission to support video stand in consumer media too, defending the cultural, Games Tax Relief. TIGA has played a vital role in work with TIGA in securing this measure in the artistic and economic value of the UK video games delivering a tax reform which will have a major and industry.” Budget [i.e. 2012 budget].” positive impact on the UK video games industry.” Oli Christie CEO, Neon Play: John Whittingdale OBE MP, Chair of the Culture, Business endorsements: “As a new mobile games studio, it made complete Media and Sport Select Committee: sense for Neon Play to join TIGA. We saw huge “I pay tribute to TIGA for playing a leading role Gary Bracey, Commercial Director, Kuju Entertainment: benefits from joining, not least the considerable in raising the profile of the games industry in “Kuju considers TIGA an invaluable organisation amount of money we’ve saved on everything Parliament and for playing a critical role in lobbying for videogame developers. Not only have their from services to events as a result. On top of this, for this tax change [GTR]”. campaigns made a massive difference with regard the number and quality of networking and PR to governmental tax incentives and general opportunities TIGA provides really sets it apart as “The final approval of tax relief for the video games Parliamentary support but also their events play a superlative trade organisation. As Neon Play industry is terrific news and will ensure that the an important role in providing information and a continues to mature and grow, these benefits have UK remains one of the leaders in the development networking resource which is second-to-none. proved as useful as ever, so regardless of what stage and production of electronic games. TIGA deserves your business is at, I’d recommend joining TIGA for considerable credit for the success of their campaign Jeff Meek, Partner and Head of Forensic Accounting, all the support it will provide.” which they have promoted over a number of years.” French Duncan: “At French Duncan we are pleased to be a TIGA Colin Anderson, MD, Denki: Damian Collins, MP: member and to work with the TIGA team. Our “If you’re a developer or digital publisher, whether “In my role as an MP I come across many trade membership enables us to maintain close ties with you’re based in Scotland or anywhere else in the UK, associations. TIGA is distinctive in its focus, the video game industry, which in turn allows us to there’s no question TIGA is the right trade association professionalism, and tenacity. TIGA has campaigned give TIGA’s developer members tailored accountancy for you. For over a decade it’s been helping relentlessly for Games Tax Relief over many years services from a provider that knows their territory. developers build successful studios and make and played a critical role in convincing first the TIGA membership makes perfect commercial sense valuable contacts throughout the industry, especially UK Government to adopt this measure and then for French Duncan.” when it comes to connecting with investors & publishers. All of which is on top of the determination enabling the Government to make a successful Harald Riegler, CEO, Sproing: and political savvy the organisation shows year case for Games Tax Relief to the EU Commission. “TIGA provides networking events where I can after year, campaigning for a fairer business and TIGA’s successful campaign for Games Tax Relief learn and network, and this has helped me and legislative environment for games businesses across will benefit both the games industry and the wider my business a great deal. I also value the lobbying the UK. TIGA has not only helped to deliver improved economy and I am glad to have been able to advance work that TIGA carries out. In this regard TIGA is a R&D credits for UK developers, but Games Tax Relief this important measure.” role model for other organisations. I am pleased to as well. ” ‘DiRT Showdown’, developed by Realtime UK be a member of TIGA and would recommend TIGA membership to other developers and publishers.” OUR ORGANISATION & OUR INDUSTRY TIGA is the trade association representing the video games industry. Our members include games developers, digital publishers, in-house publisher owned developers, outsourcing companies, technology businesses and universities.

TIGA helps developers build successful studios, connect with investors & publishers, network with the right people, save money and access professional business advice. [email protected] 0845 468 2330

First published January 2015

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