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ELSPA calls for Government support for videogames industry

Publisher association ELSPA has warned that without Government support, the videogames industry may face difficulty in maintaining its positive balance of trade - which has once again outstripped film and TV in the latest figures.

Publisher association ELSPA has warned that without Government support, the videogames industry may face difficulty in maintaining its positive balance of trade - which has once again outstripped film and TV in the latest figures.

Figures from analysts Screen Digest show that the leisure software industry made a positive contribution of almost UKP 200 million to the balance of trade in 2003, compared to negative figures of UKP 282 million for film, and UKP 465 million for television.

"To be in a position where the interactive entertainment industry is financially exceeding such well-established industries as film and television is a marvellous achievement," according to ELSPA director general Roger Bennett. However, "the years ahead look less promising for the UK development and publishing sector," he warned.

"Our greatest asset is our creativity and in recent times we have seen this talent being leeched away through lack of funding and more attractive prospects overseas," explained Bennett. "The UK is at risk of losing its position both as the font of some of the most successful games produced for a global market worth $20bn and as the major European destination for global investment."

The Screen Digest report revealed that over 22,000 people now work in the games industry in the UK - up 7.5 per cent in the last four years - but that the number of those actually employed in game development has fallen by 6 per cent in the same timeframe, to just over 6,000.

The increased cost of developing current generation games is fingered as a key culprit for the decline in the number of UK development studios - and with even higher costs on the horizon as the next-gen consoles loom, Bennett believes that Government assistance is needed to protect the industry.

"It is now time for Government to recognise the valuable contribution we make to the UK economy, comparative to other entertainment sectors," he said. "It needs to give the games industry the same level of support provided to the film industry for example as announced on Thursday in this week's budget. The Government should also reflect the policy in other countries where investment in game technology and creativity is encouraged and where attractive location incentives are readily available."

Earlier this year, Ubisoft announced plans for massive expansion of its development studio in Montreal, with the proposed expansion to 1,000 development staff by 2010 being facilitated in part by financial support from the Canadian government.

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Rob Fahey avatar
Rob Fahey is a former editor of GamesIndustry.biz who has spent several years living in Japan and probably still has a mint condition Dreamcast Samba de Amigo set.