Call for tax breaks to help computer games industry

THE European head of video gaming giant Sony Computer Entertainment Worldwide has urged the Government to offer tax breaks to games developers to protect the national industry from foreign competitors.

The computer games industry is one of the region's economic success stories, with hundreds employed at firms such as Sony Computer Entertainment Worldwide Studios Europe (SCE WWS) in Liverpool and Cheshire.

But many in the industry say the sector needs tax breaks to help it compete with countries such as Canada.

They say that, unless the UK matches those countries, then companies and talented individuals could head overseas.

Liverpool's BT Convention Centre yesterday hosted national video gaming conference Develop – the first time the event has been held in the North.

SCE WWS is one of the UK's biggest games developers, employing 600 people across its studios and development centres in Liverpool and Runcorn.

Michael Denny, Liverpool-based senior vice-president of SCE WWS, told LDP Business: "I think there is more the government can do, particularly in terms of tax relief, tax breaks or support in other areas such as local grants. I hope the government looks at our industry favourably, and that we get the support we deserve.

"Canada has shown itself to be a shining example of how government support can support a creative industry such as ours.”

Richard Wilson, chief executive of TIGA (The Independent Game Developers Association), said tax breaks were essential for the industry.

He told delegates at the event: "We are lobbying to get tax breaks for games producers.

"We believe it will generate in the UK, over five years, 3,500 jobs, £450m in tax revenue and something like £450m in additional investment."

Develop, which ran alongside Liverpool Software City conference at the BT Convention Centre yesterday, included seminars on subjects ranging from LEGO Rock Band to new ways of distributing games online.

It also included a debate on how best to promote the region's gaming sector.

Enda Carey of business support agency Northwest Vision and Media said the education system and games companies themselves needed to encourage more young people to take up maths and physics to give them the skills they need to enter the industry.

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