While we've often reported favorably on the tax incentives and other perks being handed out to developers to lure them to Canada, there is a consequence to companies overseas in countries such as the United Kingdom. Those consequences are being felt by employees of Games outsource firm Babel Media, who are in the midst of moving their operations from Brighton to Montreal. Those employees that want to stay with the company will either have to relocate or face a layoff, according to a GameIndustry.biz report.
Richard Leinfellner, CEO of the company, says that the move is necessary for their survival:
"The market demands have dictated our move," CEO Richard Leinfellner told Develop. "There is a brain drain in the UK while Canada is thriving, and benefiting from tax breaks that can save local studios thirty to forty percent on production costs. So like THQ, EA, Ubisoft, Square Enix and many more, Babel is taking advantage of these initiatives already."
Babel's UK operations are currently in a "consultancy period," and a large number of layoffs are expected. According to the report, senior staff members have already begun relocating to Montreal. Babel's Montreal office already employs around 300.
Babel Media was founded in 1999 and its clients include Warner Bros, Nintendo and LucasArts.
We will continue to follow this story as it develops.