Newspaper article The Journal (Newcastle, England)

Thinking Local Is No Game for Duo; Eutechnyx Happy to Seek North Talent

Newspaper article The Journal (Newcastle, England)

Thinking Local Is No Game for Duo; Eutechnyx Happy to Seek North Talent

Article excerpt

Byline: Andrew Mernin

ONE of the region's biggest video games companies has spurned foreign suitors as it believes only the North East has the skills it needs to succeed.

Gateshead's Eutechnyx had looked into a move to Canada, but found there is no place like home when it comes to young talent in the sector and has now committed its future to the region.

Leading players from the UK's video games have spent recent years lobbying the Government for more support to allow British developers compete on a level playing field with other leading games-developing countries.

In countries like Canada, France and the US, governments give developers subsidies and other financial incentives to encourage huge levels of investment from global games companies.

Meanwhile, the UK has become the most expensive country in the world in which to develop games, with little or no support from the Government.

Gateshead-based Eutechnyx has long been in favour of more support from the UK Government and has now revealed it has conducted feasibility studies into a possible move to Canada. Founder Darren Jobling, whose company employs close to 100 people in the North East alongside other operations in the US and Asia, said: "In Canada, 30% of all of our salary costs would be paid by the Canadian government.

"An additional 7.5% of salary costs would be paid if we produced our games in the French language, which we always do. This means our salary costs would be reduced by 37.5% in total, which is a phenomenal saving.

"These tax breaks have resulted in most of the major players setting up large operations in Canada, creating huge industries in places like Montreal where only a few companies existed five years ago.

"So Canada has gone from nowhere to third biggest game producer in the world, pushing the UK down to number four in the process. …

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