Former IGDA Boss: Tax Breaks Aren't Everything

May 24, 2011 -

Jason Della Rocca, the former IGDA boss and founder of Perimeter Partners, says that the video game industry needs to start thinking globally and stop worrying about local and regional advantages such as tax breaks. The elephant in the room was Canada's tax breaks and how various territories in the Great White North are pealing studios away from the United Kingdom.

Speaking to GameIndustry.biz at the Nordic Game Festival earlier this month, Della Rocca talked at length about tax-breaks and why they are such a small part of a larger eco-system. Della Rocca thinks that chasing tax breaks alone is a waste of energy.

"Well you know, look at California," said Della Rocca when asked about Canada's tax breaks. "They have forty percent of the US industry's workforce. There are no incentives there. Do we say that that pooling is cannibalizing the rest of the country? I mean, it absolutely is - people are coming from all over the world to work at the awesome companies there.

So Canada can also be 'blamed' for maybe recreating a bit of that through the incentives and the job creation demand, but my sense is that it's more rhetoric. 'Look at Canada and all they've done!' Can we actually look at the people and see how many people actually left and went to Canada? I don't get the sense that it's planes full of UK developers.

So are they stealing those people? I don't know. Maybe, but I don't really know. It'd be interesting to look at those numbers and see what sort of effect it has. I'm much more thinking in a global perspective. Although I may help specific governments grow their industry in their country, I want to see the industry be healthy on a global basis. So personally I don't care if you go from one country to another or not."

Della Rocca believes that tax breaks are not as important as an environment that establishes important necessities such as education, infrastructure and the talent that an industry requires.

"The tax-break issue... It's not about the tax-breaks alone. When I talk about the industry I talk about an eco-system kind of metaphor. It's very dynamic, it's a complex system, there's lots going on, it's not clear that introducing a tax-break is going to be the thing that all of a sudden makes your ecosystem thrive.

In fact there are regions where there's nothing - it's a desert. So you say, we have this desert and we'd really like there to be a game industry there because we think it's sexy and good jobs etc. So they look at Canada and say, well, they're doing so well because they have these tax-breaks, let's put a tax-break in our desert."

Della Rocca goes on to say that the UK games industry has a better chance of educating and engaging its membership than it does getting tax relief passed by politicians. He also says that you can't put tax relief in a region that has no talent or structure and expect good results. In his view, the UK should have spent its energy on business acumen and educating developers and publishers on new digital distribution methods and platforms.

In closing he says that trade groups, such as TIGA, don't always focus on what they should:

"Recently, I think in the last few months, TIGA announced some digital distribution training seminar. Great - but they should have done that three years ago. Had they done that three years ago, again, pure speculation, imagine they'd been talking to the UK studios and entrepreneurs and start-ups then. If they'd got started on these platforms three years ago? To me, that would have had much more impact than if they had won tax breaks."

Source: GameIndustry.biz


 
Forgot your password?
Username :
Password :

Poll

Will the FCC preempt state laws that limit municipal broadband services?:

Shout box

You're not permitted to post shouts.
Andrew EisenYes, the Wii U upscales but rendering in a higher resolution looks a hell of a lot better.08/01/2014 - 10:35pm
Andrew EisenIt's pretty. Lots of videos of it floating around. Just search "Xenoblade dolphin" and you'll find them.08/01/2014 - 10:32pm
ZippyDSMleeThe WII upscales tho. Matthew: It might be becue cartoonish desings do not age as fast as presudo realisim.08/01/2014 - 10:29pm
Matthew WilsonPeople who have run the Mario Galaxy games on a emulator have said they look better then most xb1/ps4 games when upscaled, so it would be interesting to see a upscaled version of Xenoblade08/01/2014 - 9:24pm
Andrew EisenHeck, it would probably sell better to newbies anyway. Even with its awesome art direction, the game looked dated when it came out years ago. I imagine an SD version would be a tougher sell.08/01/2014 - 8:55pm
Andrew EisenBecause it would be cool, would serve the game's fantastic art direction well and encourage people who've already played it to buy it again.08/01/2014 - 7:42pm
ZippyDSMleeWhy bother with an HD relese just repack the damn thing and promote it since it will play on the WIIU anyway....08/01/2014 - 7:04pm
Andrew EisenPlus, with Nintendo carrying the Wii U almost all by itself, it could help plug one of the unfortunately inevitable release schedule gaps.08/01/2014 - 3:23pm
Andrew EisenAn HD re-release would be cool though. It's a great game (and quite the looker, especially when up-rezzed) and more people should play it (the game had a limited release at a time when the Wii was all but dead an buried).08/01/2014 - 3:21pm
E. Zachary KnightSo no, people are not going to need to play the Wii game to undstand or enjoy the Wii U game.08/01/2014 - 1:27pm
E. Zachary KnightFrom what I understand, the two games have as much to do with eachother as Final Fantasy and Final Fantasy 2.08/01/2014 - 1:26pm
MaskedPixelanteIt's my secret hope that Nintendo announces Xenoblade HD to be released in the leadup to Xenoblade Chronicles X, or at least a mass market version of the first game so that people aren't going into this one blind.08/01/2014 - 12:40pm
PHX CorpI'm going to do a test stream later today, if anyone is intrested07/31/2014 - 2:40pm
Andrew EisenYes, I'm such a big Nintendo dork that I read Nintendo's quarterly financial reports.07/31/2014 - 2:09pm
Andrew EisenCool tidbit - Mario Kart 8 sales account for more than half of total Wii U software sales for the last quarter even though it was only available for the last third.07/31/2014 - 2:09pm
Andrew EisenStill a pretty cool promotion. Unfortunately for me, I'm not interested in purchasing Mario Kart 8 and I already owned or didn't want any of the free games on offer.07/31/2014 - 1:43pm
Andrew EisenInteresting that EU had 10 games to choose from while North America only had four.07/31/2014 - 1:41pm
MaskedPixelanteIt certainly worked, I probably would never have bought Mario Kart 8 if it didn't come with a free copy of Wind Waker HD.07/31/2014 - 1:14pm
Andrew EisenI imagine will see similar promotions like "Buy Mario Kart 8 get a download code for one of these specific games" but almost certainly not for all of its (however you would define) biggest releases.07/31/2014 - 11:24am
MaskedPixelanteI wonder if Nintendo is going to be doing "buy one get one free" promos for all their biggest releases going forward.07/31/2014 - 10:48am
 

Be Heard - Contact Your Politician