THQ: With Government Subsidies We Could Have Built Studio in UK

THQ has said that if the UK offered tax relief for the videogame industry, the company would have considered building a studio in the country, just as they opened a new 400-person studio in Canada.

Speaking with GamesIndustry.biz, THQ VP Danny Bilson said that the “talent in the UK is extraordinary” but that it comes to down to the economics of the venture. “If the government finds subsidies there, absolutely we would build out [...] but I’m sorry, it’s all about money at the end of the day,” he said.

“I actually spent a couple of years of my career when I was helping out with the early days of the Harry Potter franchise with EA, I worked closely with the team there on the first three games. I got to know a lot of teams in the UK – it’s one of the greatest talent centres in the world,” said Bilson. He noted that THQ has a small studio in Warrington, Cheshire (formerly Juice who made the street racer Juiced) who are currently developing for XBLA and PSN, but that for larger projects it’s not attractive.

“We want to deliver a great experience for our gamers in really huge, immersive worlds – and it’s starting to cost upwards of $35 million and more, so to be able to get a [tax] break, it enables us to put more on the screen,” he said.

GI.biz notes that right now the Canadian government offers a discount of 37.5 cents of every dollar paid to staff. Bilson says he wishes “Los Angeles or California would give us [that,] then we’d be building out here. If it was in Manchester we’d be building out there. If it was in Lyon, we’d be building out there.”

Tax relief in the UK has all evaporated as the Lib-Con Government pushes forwards its programme of cuts. When things like benefits and healthcare are seeing their budgets slashed, videogames have little chance of support, despite the fact that both parties agreed that it was important venture during the election build-up. Crucially, only Labour had tax relief written into its manifesto.

In this case, we’re seeing a direct effect of the lack of support for the industry and I imagine that we’ll see more and more examples across the the next five years.