Government Incentives for Video Game Companies

In the past several months, many government bodies world-wide have voted to give tax breaks (and other incentives) to video game companies. As the industry grows and becomes ever more central to entertainment in general, governments are seeing a rare opportunity to build their own game-centric “Hollywood,” with corresponding long-term economic and cultural benefits.

The Isle of Man, a tiny self-governing democracy in the British Isles, just announced a zero corporate tax rate for game companies. Its neighbor, the UK, also offers major tax credits to game developers, but apparently many studios fail to take advantage of this due to confusion and/or ignorance.

The Australian government has created a $25M fund to encourge local developers, with the stated purpose of freeing studios “from the onerous constraints publishers impose.”

The Singaporean government has also made a major financial committment to fostering local game studios and training its citizens in 3d animation and game engineering.

In the US, both Georgia and Louisiana recently announced tax credits for game companies.

2 responses to “Government Incentives for Video Game Companies

  1. Wow, cool news! Unfortunately, down the line this could result in exactly the sort of Hollywood we have today: uncreative, focused only on hits, and located in the City of Smog.

  2. OK, wow, I just read the article on the Isle of Man.

    What we need to do is start a games company whose logo is those three legs in the Isle of Man flag, repeatedly kicking someone in the head. We could even register the domain The sports division could have the legs kicking a soccer ball.

    God, it’s so brilliant! The ideas are flowing to me like water! That flag rules.

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