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Australian Game Industry Under Threat

Evelyn Richardson, president of the Game Developers' Association of Australia (GDAA) has predicted that the local games industry could die within 2 years without help from the Federal Government. She cites the rising costs and talent resources needed for next-gen development to be the concern, insisting that developers need to double their size to compete or face being taken over by multi-national companies...

The GDAA is calling on the government to inject $A50 million over three years into the Australian industry to help it compete against game producers in Canada, eastern Europe and Asia.

Game companies in Australia employ 1000 people and earn $A100 million a year in exports, but Ms Richardson said $A50 million from the government would allow the industry to grow and employ 2000 people and earn $A500 million in exports within five years.

"It's all about critical mass. Growing organically won't do," she said. "We aren't looking for a government handout. We're looking for a hand up to assist us to grow quickly to the next level."

Australian companies just don't have the size or deep pockets to compete with rivals in other countries to win projects when the new, more sophisticated and bigger budget games for the Playstation and Xbox consoles become available.

"The next 18 months are really important for the industry," Ms Richardson said.

The GDAA is also lobbying for tax concessions that the Federal Government provides for the film industry...