UK game tax policies has Realtime Worlds considering move to Ireland
by James Egan 
Sep 28th 2009 at 6:00PM
Filed under: Economy, MMO industry, News items, All Points Bulletin
Realtime Worlds is becoming synonymous with Scotland's game development with their upcoming title All Points Bulletin, but there are reports the company may consider relocating to Ireland. As one of Scotland's most prominent development studios, Realtime Worlds is keenly aware that as the computer games industry grows the UK lags behind other countries in terms of tax incentives. (Edge Online has an excellent overview of the situation which details how UK firms pay tax on R&D while countries like Canada and France provide rebates for game developers.) The situation as it affects Realtime Worlds and other Dundee-based companies is that if corporate tax breaks aren't possible in Scotland, they may need to head to greener pastures. Even moreso if such pastures include a 5-year tax holiday, which was mentioned at last weekend's Global Irish Economic Forum in Dublin.
Herald Scotland quotes Colin Macdonald, Realtime Worlds Studio Manager, as saying,"If the package on offer in Ireland was attractive we'd have to give it serious consideration. [...] Dundee is a great place to be based, one of the main hubs for computer games in Britain, but at the end of the day we've got to look after our bottom line."
Macdonald, however, still hopes that the Scottish government will be able to provide the needed incentives for Realtime Worlds to remain where they are. According to The Herald, Macdonald stated, "This sector is growing at a pace outstripping most traditional industries and Scotland is ideally placed to punch above its weight in seizing new opportunities with its world-leading capability, from the larger studios producing games which have grossed billions of dollars to the cumulative synergy of countless smaller outlets."
[Via Develop]
Reader Comments (Page 1 of 1)
Archipelagos said on 6:15PM 9-28-2009
I don't think that there's enough money in the pot for the Scottish government to change the tax laws. The budget is stretched incredibly thin as it is. I could be wrong, I'd like to be wrong, but that's simply how it seems.
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Al Riddoch said on 6:39PM 9-28-2009
The Irish Government doesn't have any money in the pot either. It is massively in debt, and really struggling to control its spending, but unless it attracts more growth there is no hope of a recovery.
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Ardy said on 4:12AM 9-29-2009
Still though, it'd be interesting to see if this is a trend for Ireland. We've already got GOA for the Euro servers on DAoC and WAR here and a few f2p games companies.
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HexDSL said on 4:35AM 9-29-2009
this line bothered me
- however, still hopes that the Scottish government will be able to provide the needed incentives for Realtime Worlds to remain where they are. -
don't big company's have to pay Tax? what? they really think they are so big they can force a government to change policy? -
if they cut a deal for Realtime worlds and not for smaller independent company (not just game developers) they that's just wrong, if anything i would think this company needs help less than a small greengrocers or a local laundrette
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Archipelagos said on 5:27AM 9-29-2009
The only thing that companies care about is the bottom line. This is why we see so many move to the far east so they can pay their work force less and enjoy greater tax benefits. It's a sorry situation for those who lose their jobs but unless a government is willing to bend over backwards for said company (just look at the recent deals Germany made with the car industry) they will always seek brighter (cheaper) shores. This is the simple and sometimes stark reality of a global economy.
It's not sustainable but I imagine that's why a lot of companies are getting their bucks worth sooner rather than later.
Biophazer242 said on 8:19AM 9-29-2009
Haggis
mmmmmmmmmmmmmm
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steve said on 2:23PM 9-29-2009
im not sure i hate both ways myself mainly because government tend to not know how to do it right. they are either to light on tax or kill you with tax, so here is my problem. im all for taxing but it has to be balanced with the company itself not joe bob down the street.
that what im a afraid of they will pull a stunt of 50% game tax or some like that i don't that it will be above that but we will have to wait and see.
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Des Colada said on 7:22AM 10-21-2009
Well I'm sure that they need the help at the moment. Their new game "APC" has slipped on it's timeline and they have been recruiting like there's no tomorrow. That $31 Million USD they got back in 2006 must be getting awful thin by now.
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