UpdatedIt's been a long ride, but the European Commission has finally approved UK game tax breaks.
The games industry in the UK is on the brink of having any chance of future tax breaks taken away, with European-wide tax relief for the industry set to expire in 2012.
The UK games industry is worth £1 billion to UK gross domestic product - but it still lags behind other countries in terms of public financial support such as tax credits and tax relief.
One aspect of this week's Digital Britain report from the UK government that many games developers are quietly hopeful about is the pledge to support Britain's flourishing development sector with tax breaks.
Lord Carter's interim report on Digital Britain, published late last month, has come under heavy fire from critics that have slammed its jargonistic, woolly nature and lack of concrete proposals for properly preparing the UK for 'a digital future'.
A new market report of the UK games development industry claims that the government needs to offer a 20 per cent tax credit to help developers avoid bankruptcy.
The National Endowment for Science Technology & the Arts (NESTA) has launched Raise the Game – a £450,000 national initiative to drive growth, collaboration and innovation in the UK games industry – and confirmed its support for the three-day Edinburgh Edinburgh Interactive Festival 2008.
The European Leisure Software Publishers Association (ELSPA) has hit out at the Byron Review’s recommendations for overhauling the current games rating system, with concerns that the BBFC is unprepared to handle the massive workload of assessing and rating all games. The industry needs to be “re-assured that the BBFC would be capable of delivering against any new remit, or whether PEGI may be more appropriate," said ELSPA director general Paul Jackson.