Gaming firms’ plea to reach another level

The UK games industry’s trade association has called on the Scottish Government to establish a fund to boost the video games sector north of the Border.

Games industry association TIGA is proposing the introduction of a creative content fund (CCF) to encourage new studio production and stimulate the generation of new intellectual property.

The CCF could provide funding of up to £100,000 to game developers, and would operate on a commercial basis.

TIGA said the measure could help put Scotland on the global map as a centre for video games development.

It claimed the country was losing out after the UK Government failed to introduce games tax relief, with investment and jobs going overseas to countries which have tax relief.

Dr Richard Wilson, TIGA CEO, said: “The Westminster coalition government is failing to invest in the Scottish and UK game development sector. The Scottish Government now has the chance to show decisive leadership in support of the video games industry by adopting TIGA’s proposal for a creative content fund.

“TIGA’s proposed CCF would improve developers’ access to finance, stimulate original intellectual property generation and promote studio growth. It would enhance the independence of developers and strengthen the expansion of the Scottish video games industry.”

He added: “In the long-term it would establish Scotland as one of the best places in the UK to develop games. It would give a really powerful signal to the UK and global games industry that it’s open for business.”

The proposed CCF would make investment available on a matched funding basis.

It would be entitled to recoup the money from recipients out of successful sales of the games once they had generated a certain amount of revenue and over an agreed time period, together with a defined share of the additional profits.

These profits could then be used to augment the CCF and be applied to future projects.

Scottish game development studios have backed the bid.

Colin Anderson, MD of Denki, said: “By adopting this policy the Scottish Government would ensure Scotland’s exceptional creative talent develops in a sustainable way for the long-term benefit of the Scottish economy.”

More than half (58 per cent) of Scottish game developers said that a lack of finance was holding back their businesses, according to a recent TIGA survey to which around 25 responded.

A Scottish Government spokeswoman said: “We will continue to put pressure on the UK Government to implement tax breaks, which we believe is the best way to enhance the competitive edge of our computer games industry on the international stage.”