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


 
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Andrew EisenKrono - Many of the people pushing gender issues aren't nice people? I'm sure not everyone's a sweatheart but so far, everyone I've seen with such a critique had absolutely nothing to back them up.09/19/2014 - 10:46am
InfophileI think there's a qualitative difference between a site and a hashtag though. GP can ban anyone from commenting, so they can have the image they want. But anyone can use any hashtag and try to poison it. Granted, that hasn't happened to the other one yet09/19/2014 - 10:13am
E. Zachary KnightKrono, your comparison to GP does not work. We do not need to get rid of GP, because no one associates GP with trolls and abuse. The same can't be said for gamergate.09/19/2014 - 10:09am
Krono@Michael You don't remember the "other hashtag" because no one actually uses it. We're talking 836,983 uses of #gamergate over it's lifetime, and 8,119 for the "alternative". 47,129 uses on the 18th vs 41. With #notyourshield at 140,133 uses & 5,209 uses09/19/2014 - 9:48am
Kronoresearch it. Changing tags to get away from trolls would be like wiping GamePolitics and restarting under a new name to get away from people calling Jack Thompson a filthy names in the comments section.09/19/2014 - 9:35am
Sleaker@quiknkold - seems like all that page is is a bunch of random developer opinions and rumors that we're supposedto do what with?09/19/2014 - 9:31am
Kronoas an opportunity to push back against them. It's one of the things muddling the issue. @conster A new hashtag would do nothing to improve anything. Trolls will simply follow to the new hashtag, and it will confuse the issue for anyone attempting to09/19/2014 - 9:25am
Krono@Andrew aaah. Yes, I'm sure there's some of that. Part of the problem is many of the people pushing gender issues are not very nice people. Basically the latest incarnation of moralists we've seen in the past couple decades. Naturually some will take this09/19/2014 - 9:23am
quiknkoldhttp://www.nichegamer.net/2014/09/real-gamedevs-sound-off-regarding-the-gamergate-controversy/09/19/2014 - 8:35am
MaskedPixelanteMeanwhile, in news that actually DOES matter, Scotland voted "NO" to Scottish independance.09/19/2014 - 8:20am
ConsterSeriously? "We shouldn't make a new hashtag - it's better to associate ourselves with psychos than to decrease our visibility"?09/19/2014 - 7:54am
Michael ChandraI forget what it is exactly, but there already is another hashtag that some use, exactly to separate themselves from the abusive behaviour. So don't bother lying to me.09/19/2014 - 7:06am
quiknkold2 to 3 or more09/19/2014 - 6:53am
quiknkoldMichael Chandra : I'll say this. The only reason they havent used another hashtag is because it would look like a form of dividing the arguement. Using another Hashtag has come up, and they feel like if they made a new hashtag, it'll split the debate from09/19/2014 - 6:53am
Michael ChandraYou want a debate? Build a wall between you and the poisoned well. Make clear you despise it, despise the behaviour. Then get into the other issues you are troubled with, and don't say a single word again about the poisoned well.09/19/2014 - 3:46am
Michael ChandraAnd someone claiming #notyourshield was to be taken serious, when chatlogs show they wanted it going to hide even more harassment behind? Yeah, not buying a word you're saying. You poisoned your own well.09/19/2014 - 3:45am
Michael Chandraallegedly fired over giving a game a mediocre review and the company threatened to pull ads? Sorry but I ain't buying this.09/19/2014 - 3:45am
Michael ChandraBut people arguing this is horrible and just about ethics, even though there's very little support that journalistic integrity was actually violated here, while they never spoke up when a journalist was09/19/2014 - 3:43am
Michael ChandraIf people start with condemning the way GamersGate was used as a misdirection, then use a better hashtag, that would work in convincing me they mean it.09/19/2014 - 3:43am
Andrew EisenOoo, this one came down to the wire! https://www.kickstarter.com/projects/749082525/nefarious09/19/2014 - 1:03am
 

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