Tag: inside-rebellion

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EU Approves UK Games Tax Relief

On March 27th 2014 the EU Commission finally approved games tax relief for UK game developers. It’s huge news for independent studios up and down the land, but it’s an especially sweet moment for Chris and Jason Kingsley – Rebellion’s co-founders.

You see, Chris and Jason helped found the industry organisation TIGA, and have campaigned tirelessly on behalf of the UK development scene for over a decade to secure the tax breaks announced today.

We sat down with Jason to ask him a few questions about the past and future of UK development:

What impact will this tax relief have on the games development sector?

Jason: In terms of financial impact TIGA’s figures demonstrate Games Tax Relief (GTR) will lead to an estimated £188m in additional investment for UK game developers over the next five years alone. We’re talking about an industry wide 25% reduction in the cost of games development in the UK, which is massive.

A more forgiving financial environment means greater creative freedom so more edgy, creatively focussed titles will get the green light. Games Tax Relief will help to level the international playing field, and drive the UK games industry forward, enabling UK studios to make even more world-beating award winning games.

How did it all come about? 

Jason: Well originally the idea for a games tax relief came up in discussion with my brother Chris, who’s CTO at Rebellion. However, it started to be discussed as a serious concept a little over a decade ago. I was sitting in a TIGA board meeting with a group of UK devs both great and small, many of whom are sadly no longer around in the business any more, and said

“Why don’t we push for a games tax break akin to that which UK film makers benefit from? After all, we’re just as creative as them and perhaps even more globally focussed.”  

Did you face any opposition?

Jason: During that time we’ve faced objections from outside as well as from inside the industry, with some politicians telling us we should shut up and quit, which we were simply not prepared to do. TIGA just kept on going. 

Back in 2010 Games Tax relief was introduced in the last Labour Government’s budget. However, there was some back room counter lobbying taking place at the time. The new coalition Government then dropped Games Tax Relief in the June 2010 budget.

The next development was when, after another 18 months of relentless work, TIGA convinced the UK Government to finally back the measure in the Coalition’s March 2012 Budget. Yet again though, another roadblock appeared with the EU Commission citing concerns including video games not being culturally equal to film, and thus not deserving of the same or similar tax breaks.

At every stage TIGA has provided compelling evidence, and kept the issue of Games Tax Relief at the top of the agenda. Ultimately, that willingness to wage an unremitting, evidence based argument has taken us to today’s victory, one that finally gives the UK a level playing field and a fighting chance to become a top three game making nation once again.

Is there now an onus on the industry to prove to the Government that we are worth this investment? 

Jason: Thanks to TIGA’s lobbying, politicians of all political parties recognise the value and potential of the UK video game industry. They talk to us on a regular basis and at all levels are interested in helping out as best they can, within the EU rules that we all have to live by. 

What we do have to do is keep showing them and telling them that the video game sector, and particularly UK-tax-paying developers can really help the UK balance of payments – as we’re almost always export driven, and trying to reach that global audience.

What happens now?

Jason: With regard to the mechanics of application and approval, we’ll know exactly how this will work soon enough, as DCMS and HMRC will be confirming the details. It essentially comes down to passing a ‘cultural test’ which is administered by the British Film Institute, working with your accountant to identify which costs are eligible and including your claim for Games Tax Relief in your businesses end of year tax return.

At Rebellion we’ve been planning for this to happen for well over a year. It’s certainly been a long journey for the industry in the UK, but to paraphrase another Great Briton, it may just be ‘The End of the Beginning’.

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Jason Kingsley – The Sunday Times follow up

Jason and Warlord posing for The Sunday Times. Photography courtesy of Kasumi Kitano.

I’ve been at Rebellion for nearly 6 months now and just in that time we’ve seen huge changes in the industry, with the next generation of consoles being released and digital distribution becoming ever present in the way developers release their games. Video games are rapidly becoming part of mass culture and where the industry may go over the next 10 could change instantaneously.

Last week The Sunday Times sat down with Rebellion CEO and Creative Director Jason Kingsley, to discuss how he got started in the video game industry and built Rebellion into the award winning studio it is today.

We wanted to do a few follow up questions going into how Rebellion began and what the future may hold for both the studio and the industry as a whole.

When yourself and Chris started Rebellion more than 20 years ago, were there any ways that you set out to prove yourselves in the industry?

Jason: Not really, we were just interested in making games and trying to turn it into a living. We learnt the business side as we went along. Our ethos has remained the same, try to make the best games you can with the resources you have.

Were there any hurdles that you had to overcome during Rebellion’s start up, did working with a family member change any typical business dynamics?

Jason: Again it wasn’t a hurdle at all. Chris and I had been working together on projects for fun for ages, and whilst we shared similar ideas and objectives, Chris was much more technical than me, and I was better at making art, so there were areas we could specialise in and areas where we co-operated.

Rebellion now has just under 200 employees and two studios, what is the most important aspect you need to be able to oversee everything?

Jason: A major burden of having a larger company is that you get removed from the day to day details sometimes, and it’s important that where possible we get to be involved, and properly tuned into the games we make. Having knowledge of every tiny little piece is now impossible, but having talented team members who are true professionals helps make that unnecessary. We also have to keep driving communication, both between the two studios and between individuals in the team. Often a good short chat can sort out any number of misunderstood emails.

Rebellion has worked with some high profile licenses in the past, did you have to work towards gaining various publisher’s trust before working with their IP’s?

Jason: Generally the IP owner has approached us because of our track record, to make games, so the trust was already there. Only very occasionally have we pitched to do a game based on a license, and that business model is probably in fast decline currently. Not many licensed game’s are being made these days.

Over the last couple of years we have seen more studios and developers close down, would you say over the past decade the video game industry has become less stable and how does Rebellion try so safeguard itself against?

Jason: We have tried to have a portfolio approach to the type of games we make, who we work for and the types of business we are in. The idea is that the risk is spread out, and one non-so-successful project does not damage the company, instead we learn from our mistakes and build on the successes. We have comic publishing and book publishing to add to the mix these days.

You’ve been in the industry for more than 20 years, what do you consider Next Gen gaming?

Jason: Next gen is always the gen of computers that is not quite here yet, or has just landed. We are in that awkward linguistic place where the use of Next gen to describe them is still used, but probably wrong and everything has to shuffle down, to last gen and current gen, which seems weird for a while.

We are now in the 7th Generation of gaming, what do you think we can expect from the next generations?

Jason: No idea. Prediction is a risky strategy. What will almost certainly happen though is that computer processing speeds will increase, as will the options for games designers, and hopefully players. Development costs too will likely increase.

As the industry moves into digital distribution, how do you think this will affect a developer’s ability to self publish their games?

Jason: Self publishing is potentially very worth-while but it has aspects that are probably not too familiar to the average developer. Marketing and consumer support is a big part of the release of a title. Whilst it is fashionable to criticise big publishers they do have skill sets that are unfamiliar to developers, and those skill sets take some learning to acquire.

You graduated with a degree in Zoology at Oxford,  as CEO run Rebellion, have acquired various Publishers (2000 AD, Solaris &Raven Stone), have a chair on the board of TIGA and still managed to become a Champion Jouster. Do you ever sleep?

Jason: Ha, but yes, when I can, and normally well, but after long-haul flights to the USA or China, badly for a few days whilst my body adjusts. Jet lag makes a bad partner to business decisions.

We’ve heard before about your influences in video games, but are there any companies or people that have or continue to influence you in the business world?

Jason: I try to forge my own path. I read both fiction and business books when I get time, often alternating them or adding a history book also to the mix. There are impressive business leaders out there, worth listening to, but listening with a critical ear, as some portion of everyone’s success is down to a bit of luck, and recognising as well as using that luck effectively is part of doing anything successfully.

For more insights into the video game industry you can follow Jason on Twitter @RebellionJason

and see Jason’s Linked in Profile here.