Richard Wilson, CEO of the trade association representing U.K. videogame developers, said the decision to offer tax rebates of up to 30 percent to entertainment production companies in Georgia, including game developers, is further evidence that the U.K.'s refusal to take similar steps is increasingly out of touch with the realities of the industry.
"Georgia's introduction of games development tax breaks illustrates once again that other state and national governments are competing to create the most hospitable environment for games production," Wilson said.
"If the U.K. government wants to see a thriving videogames industry in this country, then it must create a more favorable taxation system, keep the regulatory burden on business relatively light and work to increase the supply of suitably qualified graduates," he continued. "The U.K. games development sector continues to be a world beating industry, but we cannot afford to ignore the heavily subsidized competition. The playing field continues to be tipped against U.K. games developers. Our position as a leading player in the development of videogames is at stake."
Despite industry pressure, the U.K. government has thus far refused to offer any tax incentives for domestic videogame developers, and has in fact leveled criticism against other nations who do offer such subsidies.
In March, the U.K. launched a European Commission investigation into tax breaks offered to developers and publishers by various Canadian provinces, claiming such support may contravene World Trade Organization regulations. The government has not yet indicated whether it will consider similar moves against the Peach State.