Dundee’s fragile video games sector will receive a significant vote of confidence when First Minister Alex Salmond announces Outplay Entertainment’s intention to create 150 jobs in the city.
The company will set up in the city and specialise in producing mobile and social games for use on smart phones, social networks and other internet platforms.
The news will reinforce Dundee’s importance to the video games sector at a time when doubts have been expressed over its long-term future in Scotland.
The “high value” jobs created will also help mitigate the damage caused by the collapse of Realtime Worlds, which closed last year with the loss of 200 jobs.
Mr Salmond told The Courier that Outplay’s decision to base its headquarters in Dundee emphasised Scotland’s reputation as an “attractive and competitive” location for games firms.
“Over the last decade the games industry has evolved into one of the largest grossing entertainment industries in the world,” he said. “Scotland has demonstrated that it has the talent, infrastructure and skills to deliver success in this fast growing sector.
“Scotland’s creative industries have high potential for growth and are a key sector in the Government economic strategy. Once famed for jam, jute and journalism, Dundee is transforming into a hub for our creative industries and digital publishing.”
Outplay Entertainment was founded last year by Scottish brothers Douglas and Richard Hare, who have already enjoyed a successful career in the video games industry in the United States.
They have now decided to move back home to Scotland and say they decided to base their operations in Dundee due to the city’s competitiveness for games development and proximity to a skilled workforce coming out of Abertay University.
The brothers are due to travel to the Scottish Parliament today to further discuss their vision for the industry with senior government figures.AstonishingDouglas Hare, the company’s chief executive, said the video games market was evolving at a “truly astonishing” rate.
“There are more people now playing games on different devices and in different ways than ever before, creating a huge new audience that can truly be considered global in nature,” he said.
“Outplay has been created to address these new opportunities and bring a new generation of video games to players around the world, regardless of where, or how they are playing.
“From the earliest days of the industry, Scotland has built a reputation for creativity, inspiration and innovation, with the right skills, the right people and the right support all in the right place.”
His brother Richard, Outplay’s president, said, “When we chose to bring Outplay to Scotland it was because of the country’s reputation, the country’s world class skill set in this area and the enthusiasm, professionalism and support we received here from day one.
“We are delighted to be back home.”
This week there was a warning Dundee’s video games industry could be lost to foreign markets if the UK Government did not provide greater financial assistance.
Labour’s Dundee West MP Jim McGovern made the claim following the publication of a Scottish affairs committee report into the games development industry in the country.
Compiled by a cross-party group of MPs, the report described the case for tax breaks for developers as “compelling” and urged educational institutions to help develop the next generation of programming talent.
With countries outside the UK heavily subsidising their gaming industries, there are real fears top British companies and talent could be lured abroad unless dramatic action is taken to address the issue.
Tax breaks for the industry were promised by the previous Labour administration but never implemented, and then scrapped by the coalition government in their emergency Budget in June.
The size of the development workforce in the video games industry in Scotland shrank by 18% last year, largely due to the collapse of Realtime Worlds.