Following Eidos' decision to move its production services from London to Montreal, UK trade association Tiga has warned the government that it must create a fair competitive environment for UK games developers.
Eidos cited Quebec's heavily-subsidised, lower cost environment as a reason for the move.
Wilson said that UK games developers want to compete in a fair global market, but that the UK Government should make it a priority to determine whether incentives offered by Canada violate World Trade rules.
"If they do, as seems likely, the Government must take action via the World Trade Organisation against Canada at the earliest opportunity," he said.
“However, a WTO ruling on the issue could take years to reach and UK games developers are losing jobs now. The Government should therefore introduce tax breaks for game production in the UK in order to level the playing field against unfair competition."
The UK trade association's strategy seems to be (1) try to get Canada to stop their tax breaks, but (2) in the meantime, get the UK to hand out some tax breaks. I'd really like to see some WTO talks in the area of location subsidies, as the current rules are a bit lacking, leaving this situation uncertain and prone to conflict.