[Rumor] Major Publisher Lobbied to Kill UK Tax Breaks

[DoctorFinger]

Two days ago (http://www.colonyofgamers.com/cogforums/showthread.php?t=18214) we noted that the UK had killed a previously announced series of tax breaks which would have greatly benefited the nation's games industry. Bad news, but not exactly earth shattering. However, if a source for Develop (http://develop-online.net/news/35224/Global-publisher-sabotaged-UK-games-tax-breaks) is right then the story is much bigger and potentially incendiary.
One of the biggest game companies in the world exerted pressure on the UK government and British trade associations to abandon plans for UK tax breaks, Develop can reveal.

While the majority of UK studios lobbied tirelessly to attain tax relief, one publisher counterbalanced the bid with a scandalous assertion of its own international influence and power.

Insiders tell us that the publisher spoke to well-placed parliament allies to dissuade any legislative measures.For legal reasons Develop could not publish the name of the developer in question. But that won't stop us from a little informed speculation. There are two criteria for a publisher to meet. They have to qualify as "[o]ne of the biggest game companies in the world", and they need to have minimal if any development resources in the UK. Any guesses?

Source - Develop (http://www.develop-online.net/news/35224/Global-publisher-sabotaged-UK-games-tax-breaks).

[Thanasimos]

Actiblizz. Evil and owned by the French, who have an axe to grind with the English anyhow.

[DoctorFinger]

Actiblizz. Evil and owned by the French, who have an axe to grind with the English anyhow.They have 2 UK studios: Bizarre Creations (Blur) and FreeStyleGames (DJ Hero), so I doubt it's them.

MY first instinct was to look at Japanese publishers. Outside of Square Enix they generally don't have Euro studios.

[fitbabits]

Possible candidates:

Microsoft
Sony
Nintendo

Activision-Blizzard
Electronic Arts
Ubisoft

[Iron Past]

I assume to kill off more competition? Considering how short-sighted Activision is, that's my guess. Even 'the new' EA wouldn't be above it from a business standpoint, but I think they can see how detrimental it would be in the long run.

[Gorvi]

Sony has a number of UK studios, so I doubt it'd be them. I doubt it's Microsoft either, I'm pretty sure Molyneux oversees a number of studios in the UK. Nintendo maybe? I don't think they have any teams in the UK.

[Iron Past]

Microsoft
Sony
Nintendo

Lionhead's doing alot of work for MS, and doesn't Sony have a couple companies making them money in the UK?

[DoctorFinger]

EA has 2 studios: Criterion and BrightLight.

Ubisoft has Reflections.

Sony has studios in London, Cambridge and Liverpool at a minimum.

[fitbabits]

Sony has a number of UK studios, so I doubt it'd be them. I doubt it's Microsoft either, I'm pretty sure Molyneux oversees a number of studios in the UK. Nintendo maybe? I don't think they have any teams in the UK.
Nintendo UK
Quadrant
55-57 High Street
Windsor
SL4 1LP Tel: +44 (0)870 6060247 (Calls charged at National Rate)
Fax: +44 (0)2392 383 444

Registered at
Companies House, Cardiff, (31st January 2001)
Company No. FC022968
Branch No. BR005889

Managing Director
Satoru Shibata

[quidmonkey]

I bet Ubi. There's also Take-Two or THQ.

[Dukefrukem]

Ubi was the first one that came to mind.

[Xerxes]

Are the Japanese even cut throat like that... anymore? I can't think of any of them being that bad. Aren't most of them still looking for ways to appeal to western gamers? This serves no point.

It reeks of Kotick. All of you were thinking it too.

[Gorvi]

Nintendo UK
Quadrant
55-57 High Street
Windsor
SL4 1LP Tel: +44 (0)870 6060247 (Calls charged at National Rate)
Fax: +44 (0)2392 383 444

Registered at
Companies House, Cardiff, (31st January 2001)
Company No. FC022968
Branch No. BR005889

Managing Director
Satoru Shibata
Is that just an office for UK relations/distribution or is it a development studio? I was under the impression that this was a tax break for developers, I could be wrong as I'm not completely up to speed on what the proposed break was.

[quidmonkey]

It reeks of Kotick. All of you were thinking it too.

No, it doesn't. Acti likes buying up small devs to become part of the Borg. They want this to happen.

[Stoke]

I don't understand why we're assuming this has to be a company without investments in the UK, but maybe I'm not understanding the way these breaks will work. My first though is that a major publisher would not want the tax breaks because it's not a problem for them like it would be for small or new publishers. Eliminating tax breaks would mean less competition.

[Scull]

I read it the same as Stoke. I think this is a large publisher with a strong UK foundation that is trying to prevent competition. The little guys need all the help they can get, but the big boys, while certainly in favor of the tax breaks, don't want the upstarts to get in the way.

It all comes down to which makes more money, tax breaks, or sales without a lot of competition.

[menage]

I think rampant speculation really won´t get us anywhere. Is this even confirmed as truth?

If so a big publisher wouldn't mind paying a bit extra to wipe out comepetition, but I fail to see how small studios could mean a real treath. It's killing the fish you have to catch in the future.

[roboninja]

I would not take the existence of a UK studio as proof that it could not have been publisher X. It may make them a little less likely culprit, but I would caution against ruling them out entirely.

EDIT: As has been said above. Damn stagnant tabs.

[Xerxes]

No, it doesn't. Acti likes buying up small devs to become part of the Borg. They want this to happen.

You're Bobby fucking Kotcik aren't you.

[RandoM51]

I can't see why any publisher would have done this.

[DoctorFinger]

I don't understand why we're assuming this has to be a company without investments in the UK, but maybe I'm not understanding the way these breaks will work. My first though is that a major publisher would not want the tax breaks because it's not a problem for them like it would be for small or new publishers. Eliminating tax breaks would mean less competition.The tax breaks would make it cheaper to operate a development house in the UK. Any publisher with development houses in the UK would have saved a not insignificant wad of cash had these breaks been passed.

I guess in theory it could be a publisher with lots of UK houses who doesn't want any more opening up and raiding the talent. But I figure the loss of revenue would subsume any fears over headhunting. Because lets face it, publishers don't really care about the individuals making the game, at least not enough to lose big quid to prevent movement.

[Philonious]

I say Take Two. Why? Because they haven't been mentioned yet.

The U.K. tax break is aimed at fighting the amazing breaks we have in Canada (and especially Quebec). Montreal is videogame central and all the major publishers have taken advantage, so I don't see why publishers would fight this off in the U.K.

[Generation ABXY]

I'm with Stoke, as well. If you're looking to stifle competition (whether by killing 'em or merely getting them under your thumb), it's probably worth the loss.

It's probably what I'd do, at any rate.

[Xerxes]

I doubt it's the big three. The more games for the system the better. They'll get that money regardless.

[Doctor Setebos]

From the 1up article (http://www.1up.com/do/newsStory?cId=3180088):

According to the report, this unnamed company "had apparently viewed game tax relief as a measure that would have given the UK an unfair advantage over other nations."Sounds like a company that has little to no UK presence.

[Grifter]

It's probably less about stifling the competition and more about making things as expensive as possible for the smaller development studios in turn forcing them to eventually sign with one of the major publishers.

[MagGnome]

Why hasn't anyone mentioned Valve yet as a possibility? :p

Seriously though, my first two thoughts were ActiBlizz or EA.

[TrackZero]

My first thoughts are either Acti or Ubi. I only say Ubi since they have similar tax cut programs elsewhere where they're building out new studios from scratch and probably don't need to set up another, preferring rather buy out existing ones in the UK that will struggle.

[quidmonkey]

You're Bobby fucking Kotcik aren't you.

Does that mean I get free blow jobs?

[Widgetcraft]

I know who it was! It was -- Oh god, they found me!

[GigaFuzz]

Ubisoft would fit the bill pretty well. They're definitely one of the biggest publishers, with little UK developer presence, and a big presence in other countries with tax breaks (e.g. Canada) (well pointed out, TrackZero). They're not exactly shy about pulling the odd dick-move either.

Apologies in advance if it wasn't them though!

[Xerxes]

But Ubi has no competition... in the baby game market. If it was Ubisoft, I demand we rename the thread Imaginez Dick Move.

[Cit Phil Cit]

ActiBlizz. They certainly don't want The GamesWorkshop to have any local traction to all the original material that Blizz "borrowed" for virtually all of their games.

You think they are happy at the prospect of them getting any traction with the original IPs that they were inspired by?

[MagGnome]

Does that mean I get free blow jobs?

From Bobby Kotick? I'd rather be blown by a Candiru.

[MagGnome]

ActiBlizz. They certainly don't want The GamesWorkshop to have any local traction to all the original material that Blizz "borrowed" for virtually all of their games.

You think they are happy at the prospect of them getting any traction with the original IPs that they were inspired by?

I'm really surprised that Games Workshop hasn't sued ActiBlizzTard.

[Orca]

From the 1up article (http://www.1up.com/do/newsStory?cId=3180088):

Sounds like a company that has little to no UK presence.

More likely they have a great deal of UK presence and don't want competition moving in. Why would the government listen to a company that doesn't do business within its borders?

It's a publisher that's already established in the UK and doesn't want tax breaks bringing competition for the talent.

[Kielaran]

No, it doesn't. Acti likes buying up small devs to become part of the Borg. They want this to happen.

I don't understand why we're assuming this has to be a company without investments in the UK, but maybe I'm not understanding the way these breaks will work. My first though is that a major publisher would not want the tax breaks because it's not a problem for them like it would be for small or new publishers. Eliminating tax breaks would mean less competition.

Combine these thoughts. Less tax breaks makes independent studios cheaper to buy out when they hit a rough patch. My conspiracy theory goes to activision.

From Bobby Kotick? I'd rather be blown by a Candiru.

Not an image I needed right now...or ever.

[boratika]

I say Take Two. Why? Because they haven't been mentioned yet.

One, they were:

I bet Ubi. There's also Take-Two or THQ.

Two, Take Two probably had more to gain from the breaks than anyone. Considering how much they rely on Rockstar North to actually turn a profit. Plus Rockstar North's ability to consume historical amounts of money to actually make games.


Alternatively, perhaps Take Two feared that key talent such as the Housers would leave to start a new developer if it was made affordable to do so.

[TheFlyingOrc]

Sony has a number of UK studios, so I doubt it'd be them. I doubt it's Microsoft either, I'm pretty sure Molyneux oversees a number of studios in the UK. Nintendo maybe? I don't think they have any teams in the UK.

I have never seen Nintendo behave monstrously in this fashion since Yamauchi left. I'm very skeptical.

[RandoM51]

Wouldn't be Nintendo, they don't give two shits about 3rd party software development. They don't have any real competition on their own platforms and they don't develop for anything else.

[Philonious]

One, they were...

My point was that people were just throwing names around at random. I'm not really sure that the major publishers really have the kind of this kind of pull (Microsoft maybe). Seems like a political decision really.

[SilentScreams]

It's obviously Activision...because you know...they are the cartoon villains of the gaming industry. ;)

[Generation ABXY]

It's obviously Activision...because you know...they are the cartoon villains of the gaming industry. ;)

At this point, they should just embrace it and add a big curly mustache to their logo.

[Doctor Setebos]

Everyone claiming that Activision is the devil behind closed doors in this situation; time to find a new villain (http://www.gamesindustry.biz/articles/activision-blizzard-backs-tiga-tax-campaign):

Global publisher Activision Blizzard has joined developer organisation TIGA, backing the continued fight to gain tax relief in the UK. The company has two major UK teams, Blur studio Bizarre Creations and FreeStyleGames, makers of DJ Hero.

"At Activision Blizzard we are extremely supportive of TIGA's campaign to secure games tax relief for the UK development community," said George Rose, chief policy officer at Activision Blizzard.

[Generation ABXY]

Just a clever ruse, I'm sure. :p

[boratika]

They're so evil, they're even acting out their evil against themselves.

[Kielaran]

Everyone claiming that Activision is the devil behind closed doors in this situation; time to find a new villain (http://www.gamesindustry.biz/articles/activision-blizzard-backs-tiga-tax-campaign):

Remorse. :p

Seriously though, what's a better way to throw off everyone saying you did it then by joining TIGA? I won't say I think it is them over anyone else, but this gesture doesn't really abate my skepticism about them.

[quidmonkey]

Combine these thoughts. Less tax breaks makes independent studios cheaper to buy out when they hit a rough patch. My conspiracy theory goes to activision.

Just for the record (http://www.gamasutra.com/view/news/29181/Kotick_For_Activision_To_Invest_In_UK_There_Needs_ To_Be_An_Incentive.php):

Major publishers Activision and Sony have expressed frustration with the UK's recent withdrawal of game tax breaks, as Activision CEO Bobby Kotick warns his company will not invest further in the UK without tax relief or other financial benefits.

"For us to continue to invest in the UK there needs to be an incentive provided for us to do so," Kotick said in a Financial Times report that comes on the heels of the publisher joining UK trade body TIGA.

[Xerxes]

So what if it's not really a major publisher at all.

[Doctor Setebos]

So what if it's not really a major publisher at all.So, Atari?

[Xerxes]

So, Atari?

I'm going with Banamco. (Namco-Bandai)