Renewed call for games tax credits following Realtime Worlds administration
The UK video games trade association, TIGA has called for an action plan to be implemented in order to strengthen the video games sector in Scotland following the news that Realtime Worlds has been placed into administration.
TIGA has outlined some of the features of the plan, including once again calling for the introduction of the Games Tax Relief to allow the games industry to compete against other games companies around the world.
The games tax was expected to be introduced earlier this year, but was scrapped by the current Government following the election.
Dr Richard Wilson, CEO of TIGA, said: “If the Scottish video games industry in particular and the UK games sector in general are to come through the current crisis and attain their potential, then we must take decisive action.”
Wilson highlighted five areas where he believed that action must be taken including the introduction of a Games Tax Relief, the retention and enhancement of research and development tax credits, the establishment of business incubators to help form a new wave of video games firms where they can receive support and advice, support for video games clusters to transfer knowledge and business efficiencies and funding for education and the study of Science, Technology, Engineering and Mathematical subjects to enhance the skills and knowledge of the workforce.
“We still hope that Realtime Worlds will find a buyer. Whether this transpires or not, we need action to ensure that our video games industry comes through the current turmoil in as strong a shape as possible. TIGA, the trade association representing the UK games industry, will play its part through the provision of best practice business advice and support and we will continue to champion our video games sector,” added Wilson.
Dundee based video games company Realtime Worlds was placed into administration on Tuesday, resulting in the loss of over 170 jobs in Scotland alone.
Yesterday, Scottish Enterprise told The Drum that it hoped to retain the staff within the Scottish industry.
Meanwhile, it is understood that interest from within the UK and the US has been expressed in the computer games firm with administrators Begbies Traynor hopeful of rescuing the company.