Blog by Game Republic Affiliate Member Escape Technology
Just a bit of news for Game Republic members regarding Autodesk’s changes to its maintenance model. Effective immediately multi-year maintenance plans are no longer available, so any games developer customers wishing to remain on maintenance will now be required to renew on a yearly basis. The move is aimed at encouraging a switch to Autodesk’s subscription model, which gives users greater flexibility and ease of management.
Beginning in May maintenance renewal prices will also increase by 5%. 2018 will see a 10% increase, and 20% in 2019. In support of the change – and to recognise existing commitment – Autodesk will be running a promotion from June this year, offering up to 60% off new subscription licences for maintenance customers who decide to make the move.
Managing two different licence models is costly in time and expense, making it inefficient for both studios and Autodesk to continue with the status quo. And as the subscription model gives users access to new industry collections, improved support, and simplified administration it remains the favoured approach by the industry at large.
To find out more about how this could affect your team contact firstname.lastname@example.org or call us on 020 7734 8809. Thanks!
Guest Blog by Rob Durrant-Walker of Game Republic Affiliate Members Garbutt+Elliott
Research & Development relief is a valuable tax relief from HM Revenue & Customs which can give you an enhanced 46% tax relief on qualifying development spend. It is available to any sector, including gaming and other software developers.
It is only available for companies though, so if you are an unincorporated business then its availability may be one of the factors in your choice of whether to become a company or not. If your company is loss making, a further advantage is that unlike a normal company you can surrender your enhanced loss to HMRC for a repayable tax credit worth 33.35% of your qualifying spend. That can be particularly valuable for an early-stage company. Figures just released from HMRC show that:
- The largest number of claims came from young companies between 0-5 years old (25%).
- In 2014/15 over 1,500 claims were made by companies in the Yorkshire and Humberside region alone, with the amount claimed being around £70m.
The government’s aim for R&D relief has always been to encourage greater R&D spending, leading in turn to greater investment in innovation by UK companies. There is no minimum spend needed to qualify. There needs to be an advance in science or technology that is not readily apparent to a competent professional working in that field, and there must be some uncertainty over the project outcome even with the available routes of tried and tested peer-discussion and your usual methods of analysis. The routine copying or adaptation of existing processes or services will not qualify, and the outcome should be more than a minor or routine upgrade. For software developers, some indicators of whether your software development will or will not qualify are:
|Unlikely to Involve R&D||Likely to be R&D|
|Using standard methods of encryption, security verification and data integrity testing.||Developing new terrain generation systems
|The visual presentation of information to users using existing tools designed
for that purpose.
|Resolving conflicts within hardware or software, where the existence of a problem area and the absence of a known solution have been documented.|
|The assembling, carrying out routine operations on, and the presenting of, data.||Creating new or more efficient algorithms whose improvements depend on previously untried techniques.|
Garbutt + Elliott’s R&D team have prepared numerous R&D claims over the years and can assist Game Republic members with a no obligation discussion about whether there is a potential claim. Just contact Rob email@example.com
Kickstarter Crowdfunding Tips
At the recent GamesIndustry.biz Investment Summit on 22nd September 2016 at EGX Birmingham, Kickstarter provided some slides for a very handy state-of-play of the platform’s games activity, as well as a collection of extremely useful bits of info for games developers looking at running their own crowdfunding campaign.
Firstly, there have been a total of 8,600 successful games projects on Kickstarter from 2009 – 2016, with a total pledged of $534 million. In the UK, £31,238,036 has been raised for games projects since 2012, with 2,457 games projects launched enjoying a 42% success rate.
Games has the most engaged funding community on Kickstarter with 2.2 million people worldwide that have now backed a games project, with 1.3 million backing more than one project.
For developers planning their campaigns, the $35 reward tier is by far the most popular, followed by $20 and $15 – so you should concentrate on making sure those tiers are attractive to backers. The average pledge to games is $54, which is high considering you can back projects for as little as $1 – again, something to consider. For more information on Kickstarter games, hit the link.
26th September 2016
Top 5 Things to Know About Videogames Tax Credits
In this first post for Game Republic, Rob Durrant-Walker from our affiliate member Garbutt + Elliott, gives his top five things to know about Videogames Tax Relief (VGTR), which can make a major difference to your company’s games development budget.
- VGTR was launched by HM Revenue & Customs in April 2014, and runs on the same model as other creative sector credits such as film (which has been running since 2007), children’s TV, animation, and high-end TV. HMRC’s latest statistics for July 2016 report that 135 VGTR claims have been made up to 31 March 2016 and represent total development expenditure by the games industry of £417m. HMRC have out nearly £46m in additional tax relief to the sector. The uptake in the industry is increasing.
- Your company can qualify for extra tax relief on various costs of game development if it has overall responsibility for creating, designing, producing and negotiating contracts and rights for the game, even if some of the development work is subcontracted.
- All types of games and formats are covered by VGTR, except for those created for advertising, promotional, or gambling purposes. The game must have been intended for public release when development started, and at least 25% of the “core” expenditure must be on goods/services in the UK/EEA such as production staff costs.
- The VGTR process involves passing the “cultural test” before a claim can be submitted to HMRC, and the cultural test is administered by the British Film Institute. A game must achieve at least 16 out of a possible 31 cultural points. Points are awarded in areas such as whether 75% or more of the story is set in the UK/EEA; if lead characters are UK/EEA (or are at least “indeterminate”); if it is English language; if the story takes an aspect of British culture or history; if storyboarding development is carried out in the UK; if various key personnel such as project leader, music/voice are UK; and so on. An interim clearance can be applied for to the BFI, which can act as a comfort letter to investors.
- There are rules over what types of costs qualify for relief (such as initial concept design and de-bugging being excluded), but for each qualifying £100 of development cost the benefit to your company is tax saved of £36 compared to the usual corporation tax relief of £20. Your company also has the ability to surrender losses to HMRC for a cash credit of £20.
There is no minimum or maximum of company size or turnover and you should definitely consider if your company could benefit from VGTR – contact us for more details.
Head of Business Tax
Garbutt + Elliott LLP
28th July 2016
Game Republic Makes Real and Virtual Connects at GDC 2016
Over 27,000 visitors went to the 20th Game Developers Conference 2016 (GDC) in San Francisco, USA last week from 14th – 18th March. It was the biggest GDC event yet with more exhibitors, more attendees, more tech and more games to see and play than ever before.
Numbers were boosted by Game Republic’s contribution – leading a UK Trade & Investment “Northern Powerhouse” mission to the show and appearing on the superb Ukie stand at the GDC Expo (pictured above).
UKTI and GR took more than 40 companies from across Yorkshire and the North of England (as well as a few smuggled in from the West Midlands) to the event to meet with major publishers and platform-holders, including Microsoft, Sony and Google. The meetings could well result in new opportunities for the companies that joined us to produce new titles and gain greater global interest in the fantastic games we produce in the North.
Fest Of Fun
GDC is the must-attend event for games companies with global ambition. No wonder really when the programme includes world-class technical bootcamps, networking drinks, superb industry talks, star panels, networking drinks, incredible games showcases (such as the IGF – Independent Games Festival), award shows, mindblowing live demos, pop-up shops and dozens of industry networking parties – did I mention those? It’s a festival of games.
Alongside GDC is Game Connection, a separate speed-dating business event that took place over three days of the week. Not in any old meeting room though – this year the networking took place at the San Francisco Giants’ baseball stadium, AT&T Park. The space was a popular spot for developers to have more than 20 meetings a day (using the online meeting schedule system) to hook up with platform-holders, publishers and other developers.
Back to GDC, where there were some great talks, including discussions on how to encourage more diversity in the games industry – ensuring more women get the support and opportunities in games. Other presentations included the funding of games and the different models to get support, the increasing visibility of games (with so many releases every week) plus the growing importance (and profits) of eSports.
Virtual Reality Check
As well as the getting insider and global insights on securing real opportunities for the developers, a huge focus for GDC this year was Virtual Reality (VR). I have seen VR at GDC over the years, but this year there has been a major gearshift, with three major platforms to be launched over next few months – the Oculus Rift, HTC/Valve Vive and PlayStation VR – plus a dedicated VR track for attendees.
How rapidly mainstream VR is going to get adopted across markets remains to be seen, but there looked to be a good appetite for it from games fans and the industry. Our companies were able to see many, many VR demos at GDC, from virtual rollercoasters to flying experiences complete with full physical rig and wind machine (see photo – left).
For me Epic Games’ Bullet Train on the Oculus VR was very impressive (nicely demonstrating the power of Unreal Engine 4 in VR), and the Vive continues to amaze with its full room virtual experience.
However, it was Sony’s PlayStation VR announcement that grabbed most of the headlines, with an announcement that the PlayStation 4 headset add-on would be £349 and launched in October, along with more than 200 games to be released before the end of the year. Pre-orders sold out within 45 minutes on Amazon (and I bagged one of them).
One of the most impressive design features of the Sony headset at GDC was the comfort with easy functionality to move the headset backwards and forwards meaning it can fit over glasses and avoids the tight straps that have often been an issue with the other VR head sets. I was lucky to get a chance to play a few multiplayer games, including one where I was a virtual Ghostbuster. The game involved shining a torch in a virtual playroom to find ghosts and hitting the PlayStation controller pad to suck up the spirits, while the other players helped to locate the remaining ghouls on the main TV. Not particularly complex but looks really nice in VR.
Other impressive demos in VR included Rebellion’s Battlezone (based on the old coin-op) and a new virtual version of Mizuguchi’s mesmerizing game Rez Infinite.
North at its Heights
Stepping away from VR was a challenge, but just two of the new games worth watching out for in reality were Dreams by Media Molecule, an incredible game/creative tool that allows players to make environments, characters and animations, play with them and share online and Astroneer by System Era, a beautiful planet exploration game with you as an astronaut armed with the ability to instantly terraform the landscape around them.
GDC 2016 showed the global games industry in good health, forging ahead with new tech innovations, and creating incredible titles on mobile, console, PC and web. It was great and inspiring that our Yorkshire and Northern companies such as Cardboard Sword, Red Kite Games, Team17, Double Eleven, Sumo Digital, Team Pesky, Draw & Code and Revolution Software are right there at the cutting edge of development, leading the world, innovating and developing amazing games.
23rd March 2016