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TIGA report says tax breaks abroad are helping firms ‘entice’ UK video games developers

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Dundee’s computer games industry will be damaged by a brain drain as staff leave the UK to work abroad, it has been warned.

A new survey has found that one in five computer games companies lost staff to developers based overseas, where tax relief for games firms allows them to offer higher wages.

The survey, by trade association TIGA, found Canada was the most likely destination for those moving abroad.

A recent report by the Entertainment Software Association of Canada revealed the country had been “notably successful in attracting investment and skilled personnel from jurisdictions like the United Kingdom.”

TIGA chief executive Dr Richard Wilson said, “The UK games development sector has an excellent workforce. Unfortunately, some of our overseas competitors, powered by tax breaks for games production, have the financial resources to entice some development staff away from the UK to work in their studios.

“This is not just damaging to the UK video games sector it is damaging to the UK economy.”

TIGA chairman Jason Kingsley added, “A brain drain of developers exacerbates skill shortages within the games industry and in the long term hurts the UK.”

Photo courtesy of Flickr user wodi.