El33t’s Question of the Day: Should governments subsidise game development?

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El33tonline Question of the Day

Game development is difficult under any situation and circumstance but financial troubles are amongst the most stressful during the creation of a game, from an indie darling to a triple-A monstrosity.

Wouldn’t it be nice if governments around the world helped game developers living in their country by providing some sort of financial aid? Perhaps some incentives or tax relief to help the industry to grow and thrive while simultaneously spurring job creation and revenue generation in their country? This Question of the Day is so bold as to ask:

Should governments subsidise game development?

Canada is amongst the most friendly to game developers in this regard providing not inconsiderable incentives and tax relief to companies in the country, while certain states in the US specifically try to encourage developers to live and work in their part of the country using benefits to do so.

More recently, it was revealed that game developers in the UK will benefit from 25% tax relief in the region – something that TIGA (the industry’s representative body in the UK) has been striving towards for quite some time.

These incentives can go wrong, however, as evidenced by the recent 38 Studios debacle where the US state of Rhode Island was forced to absorb a loss of $75 million in tax payers’ money after the developer defaulted on loans and shuttered operations.

Should governments around the world subsidise game development with incentives, special loans and tax relief? Or is that money better spent on the development of the country itself?

(If you have a Question of the Day that you would like to put to the El33tonline community, mail it to oliver[@] and we’ll send it out, with credit of course!)

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