MA. Considering Incentives for the Video Game Industry

January 18, 2011 -

Correction: I erroneously wrote earlier that "Massachusetts has a thriving video games industry - mostly in the Western part of the state in and around Boston." This is quite incorrect and doubly embarrassing because I actually live in Massachusetts (I do know where Boston is, for the record). A revised story below:

Massachusetts may join Texas, Georgia and countless other states that offer some sort of tax incentives to the interactive entertainment industry. According to a report in the Boston Herald, supports of the effort want to expand the "the state’s $2 billion video game industry to $20 billion" within the next five years. To do that, the state will have to be willing to invest in incentives, but opponents say the state is already in the red.

One of the initiative’s supporters, State Rep. Vincent Pedone (D-Worcester) said it is too early to say what the effort would cost, but wants to expand the industry:

"Twenty-five or 30 years ago, no one in the Commonwealth knew what biotechnology was, and it has now become a critical part of our Massachusetts economy," said Pedone. "We think the video game design industry has equal potential."

Massachusetts has a thriving video games industry - mostly in the Eastern part of the state in and around Boston. Companies such as Turbine and Harmonix are long-time studios that have managed to survive despite the lack of incentives and the not-so-pro-business atmosphere in the state. Approximately 1,295 people are directly employed by video game developers or publishers, according to the Entertainment Software Association. That places the state fifth behind California, Texas, Washington and New York.

Turbine says that local colleges and universities offer a decent talent pool that fits the industry’s needs: "Our world is really a combination of everything creative, from visual to storytelling to game play, combined with good, old-fashioned sophisticated software engineering," said Ken Surdan, vice president of operations for Needham-based Turbine, Inc., maker of the online "Lord of the Rings" game.

But Harmonix sees its business constrained by high costs in Massachusetts that tend to inhibit startups and firms looking to expand.

Florian Hunziker, chief operating officer for Cambridge-based Harmonix Music Systems, said his company is often forced to outsource work to out-of-state studios: "It’s difficult for some of the Massachusetts development companies to be cost competitive with studios that are either in a state where there is a tax break or studios that are in place where there is a lower cost of living," he said.

Meanwhile opponents of new tax incentives for the game industry point to past failures with tax incentives, as well as a budget that is already stretched beyond belief.

Rep. Bradley Jones, the House Republican leader, said he’s not against cutting taxes for companies, but doesn’t believe the state should pick "winners and losers" in the private sector: "Do we go pick an industry, or do we focus our energies on more broad-based initiatives that would help all companies?" he asked.

He also pointed to last week’s announcement that Evergreen Solar planned to close its solar panel factory in Devens and lay off 800 workers. He notes that the company received $58 million in state aid in 2007.

Still, the news that someone on Beacon Hill is thinking about the industry probably gives companies like Turbine and Harmonix hope that someday the environment for business might improve. After all, it's obvious that these companies -- and others like Irrational Games - love the state; if they didn't they'd probably be headquartered in Texas by now..

Source: Boston Herald


 
Forgot your password?
Username :
Password :

Poll

How do you usually divide up your Humble Bundle payments?:

Shout box

You're not permitted to post shouts.
Matthew Wilsonthe lose of nn would not be good for us, but it will not be good for verizion/comcast/att in the long run ether.04/24/2014 - 2:16pm
Matthew Wilsonsadly yes. it would take another sopa day to achieve it.04/24/2014 - 2:13pm
NeenekoI am also confused. Are you saying NN would only become law if Google/Netflix pushed the issue (against their own interests)?04/24/2014 - 2:10pm
E. Zachary KnightMatthew, you are saying a lot of things but I am still unclear on your point. Are you saying that the loss of Net Neutrality will be good in the long run?04/24/2014 - 2:06pm
Matthew WilsonOfcourse it does I never said it did not.though over time the death of NN will make backbone providers like Google, level3 and others stronger becouse most isps including the big ones can not provid internet without them. they can peer with smaller isps04/24/2014 - 1:54pm
E. Zachary KnightMatthew, and that still plays in Google's favor over their smaller rivals who don't have the muscle to stand up to ISPs.04/24/2014 - 1:45pm
Matthew Wilsongoogle wont pay becouse they control a large part of the backbone that all isps depend on. if verizon blocks their data, google does the same. the effect is Verizon loses access to 40% of the internet, and can not serve some areas at all.04/24/2014 - 1:14pm
Neenekolack of NN is in google and netflix interest. It is another tool for squeezing out smaller companies since they can afford to 'play'04/24/2014 - 12:57pm
Matthew WilsonI have said it before net nutrality will not be made in to law until Google or Netflix is blocked, or they do what they did for sopa and pull their sites down in protest.04/23/2014 - 8:02pm
Andrew EisenGee, I guess putting a former cable industry lobbyist as the Chairman of the FCC wasn't that great of an idea. http://www.nytimes.com/2014/04/24/technology/fcc-new-net-neutrality-rules.html?_r=204/23/2014 - 7:26pm
Andrew EisenIanC - I assume what he's getting at is the fact that once PS3/360 development ceases, there will be no more "For Everything But Wii U" games.04/23/2014 - 5:49pm
Andrew EisenMatthew - Yes, obviously developers will eventually move on from the PS3 and 360 but the phrase will continue to mean exactly what it means.04/23/2014 - 5:45pm
IanCAnd how does that equal his annoying phrase being meaningless?04/23/2014 - 5:09pm
Matthew Wilson@Andrew Eisen the phrase everything but wiiu will be meaningless afer this year becouse devs will drop 360/ps3 support.04/23/2014 - 4:43pm
Andrew EisenFor Everything But... 360? Huh, not many games can claim that title. Only three others that I know of.04/23/2014 - 3:45pm
MaskedPixelantehttp://www.joystiq.com/2014/04/23/another-world-rated-for-current-consoles-handhelds-in-germany/ Another World fulfills legal obligations of being on every gaming system under the sun.04/23/2014 - 12:34pm
Matthew Wilsonhttp://arstechnica.com/gaming/2014/04/steam-gauge-do-strong-reviews-lead-to-stronger-sales-on-steam/?comments=1 Here is another data driven article using sales data from steam to figure out if reviews effect sales. It is stats heavy like the last one.04/23/2014 - 11:33am
Andrew EisenI love RPGs but I didn't much care for Tales of Symphonia. I didn't bother with its sequel.04/23/2014 - 11:21am
InfophileIt had great RPGs because MS wanted to use them to break into Japan. (Which had the side-effect of screwing NA PS3 owners out of Tales of Vesperia. No, I'm not bitter, why do you ask?)04/23/2014 - 10:52am
RedMageI'm still disappointed the 360 never broke into Japan either. It had a bevy of great RPGs in the late 2000s.04/23/2014 - 9:48am
 

Be Heard - Contact Your Politician