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GDAA calls for more support

Yes, it's another article about the Games Developer Association of Australia (GDAA) calling for more Government support, at IGN. While I'm sure you guys know the entire deal about the lack of support our industry receives from the Government and the GDAA's push for support, the article does provide some interesting info on how largely supported countries like Canada and China are thriving in game development.

Mike Fegan, recently CEO at IR Gurus, describes the help that the Chinese games industry receives...

"These offshore companies have been greatly assisted in setting up by the Chinese Government and a number of regional development boards who have established a 'green fields' effect whereby they create the foundation and the financial incentives to attract the big video game publishers to come to their shores and set up big studios. This in turn spawns literally dozens of smaller development companies which are founded by local practitioners who have learnt their local skills from the big multi-nationals. They are going to steamroll us if we sit around - and India isn't that far behind on the technology front.
Submitted by anonymous (not verified) on Thu, 13/09/07 - 8:18 AM Permalink

  • 1. Gendo - Thu, 13 Sep 2007 17:59:06 EST
    Let's face it my brothers we are seriously fcked. The Australian government gives as much care to Aussie game's industry as they do to the aboriginal's.
  • 1. Anonymous - Thu, 13 Sep 2007 19:01:24 EST
    You mean they're going to ban our alcohol? It's all we've got :(
  • 1. Anonymous - Thu, 13 Sep 2007 19:22:44 EST
    AWW HELL NO!!!!!!!!!!
  • 1. Anonymous - Thu, 13 Sep 2007 19:22:44 EST
    AWW HELL NO!!!!!!!!!!
  • 1. Anonymous - Thu, 13 Sep 2007 19:01:24 EST
    You mean they're going to ban our alcohol? It's all we've got :(
  • 1. Anonymous - Thu, 13 Sep 2007 19:22:44 EST
    AWW HELL NO!!!!!!!!!!
  • 1. Anonymous - Thu, 13 Sep 2007 19:22:44 EST
    AWW HELL NO!!!!!!!!!!
  • 2. MarkSA - Thu, 13 Sep 2007 18:03:48 EST
    If the government supported the game industry there would be less struggling developers.

    Interesting to note what people waste on the pokies..

  • 3. Anonymous - Thu, 13 Sep 2007 19:05:28 EST
    Well that's the conservatives for you -- the Liberals. No investment in the future, just a fire-sale of our natural resources: coal, gas and uranium -- along with the rest ;)
  • 1. Gebdo - Thu, 13 Sep 2007 19:56:58 EST
    What about labour will they be different?

    That's who im voting for;)

  • 1. Anonymous - Thu, 13 Sep 2007 20:10:25 EST
    Labour will invest all their money in games and give us all puppies too.
  • 2. Anonymous - Thu, 13 Sep 2007 21:37:34 EST
    Not really sure to tell you the truth. My impression is that they are at least moderate, and have more vision for the future and plans for it other than making every employee compete with Chinese workers -- that's not the whole argument but a big part of it.

    If you want a better idea of what a government needs to be doing and how the Liberals have failed us, try the book:

    "Ozonomics -- Andrew Charlton"

    That's a really good read and explains a whole lot quite simply :).

  • 1. Anonymous - Thu, 13 Sep 2007 22:29:26 EST
    Can you summarize or briefly outline the books points for us? Would be interesting to know.
  • 1. Anonymous - Thu, 13 Sep 2007 22:29:26 EST
    Can you summarize or briefly outline the books points for us? Would be interesting to know.
  • 1. Anonymous - Thu, 13 Sep 2007 20:10:25 EST
    Labour will invest all their money in games and give us all puppies too.
  • 2. Anonymous - Thu, 13 Sep 2007 21:37:34 EST
    Not really sure to tell you the truth. My impression is that they are at least moderate, and have more vision for the future and plans for it other than making every employee compete with Chinese workers -- that's not the whole argument but a big part of it.

    If you want a better idea of what a government needs to be doing and how the Liberals have failed us, try the book:

    "Ozonomics -- Andrew Charlton"

    That's a really good read and explains a whole lot quite simply :).

  • 1. Anonymous - Thu, 13 Sep 2007 22:29:26 EST
    Can you summarize or briefly outline the books points for us? Would be interesting to know.
  • 1. Anonymous - Thu, 13 Sep 2007 22:29:26 EST
    Can you summarize or briefly outline the books points for us? Would be interesting to know.
  • 1. Gebdo - Thu, 13 Sep 2007 19:56:58 EST
    What about labour will they be different?

    That's who im voting for;)

  • 1. Anonymous - Thu, 13 Sep 2007 20:10:25 EST
    Labour will invest all their money in games and give us all puppies too.
  • 2. Anonymous - Thu, 13 Sep 2007 21:37:34 EST
    Not really sure to tell you the truth. My impression is that they are at least moderate, and have more vision for the future and plans for it other than making every employee compete with Chinese workers -- that's not the whole argument but a big part of it.

    If you want a better idea of what a government needs to be doing and how the Liberals have failed us, try the book:

    "Ozonomics -- Andrew Charlton"

    That's a really good read and explains a whole lot quite simply :).

  • 1. Anonymous - Thu, 13 Sep 2007 22:29:26 EST
    Can you summarize or briefly outline the books points for us? Would be interesting to know.
  • 1. Anonymous - Thu, 13 Sep 2007 22:29:26 EST
    Can you summarize or briefly outline the books points for us? Would be interesting to know.
  • 1. Anonymous - Thu, 13 Sep 2007 20:10:25 EST
    Labour will invest all their money in games and give us all puppies too.
  • 2. Anonymous - Thu, 13 Sep 2007 21:37:34 EST
    Not really sure to tell you the truth. My impression is that they are at least moderate, and have more vision for the future and plans for it other than making every employee compete with Chinese workers -- that's not the whole argument but a big part of it.

    If you want a better idea of what a government needs to be doing and how the Liberals have failed us, try the book:

    "Ozonomics -- Andrew Charlton"

    That's a really good read and explains a whole lot quite simply :).

  • 1. Anonymous - Thu, 13 Sep 2007 22:29:26 EST
    Can you summarize or briefly outline the books points for us? Would be interesting to know.
  • 1. Anonymous - Thu, 13 Sep 2007 22:29:26 EST
    Can you summarize or briefly outline the books points for us? Would be interesting to know.
  • 4. Anonymous - Thu, 13 Sep 2007 23:25:13 EST
    Ozonomics summarized -- as best I can:

    That a lot of the economic success has actually come about due to what the Labor government set in place prior to the Liberals taking over -- they've only fiddled with these and added to them to make some improvements. That Labor saw what was coming and how it was inevitable, so they put things in place that though were tough in the beginning (people losing jobs due to progress), have been fruitful in the long-run (economic growth).

    Much of the foreign "debt" they keep on going on about that the Labor government left over, has actually moved into other forms of debt, and we actually owe more now than we did then -- in fact there is no way to escape this, as all "business" (economies) borrows in order to fund growth.

    That "private" debt (personal as in credit cards and loans) has become a very big problem as well as homeownership for first-time buyers -- basically the boomers have bought up big whilst cheap and this has caused a supply shortage and price increase, due, to incentives the Liberals put in place, but not only due to this. That one is a major f*ck-up that they don't seem to have done much about but instead left to get worse.

    That there are two schools of thought, one is to deregulate and open up completely to private (corporate) control and the whims of the markets (the Liberal way), and, the other is that we sandbag with tarrifs to protect our dying industries from the tidal wave about to hit our shores (this is reminiscent of Pauline Hanson's: One Nation).

    Neither way will work. China isn't going to go away as is the rest of Asia. There is no point in providing safe guards and investment to industries that can no longer compete with other regions of development -- they will have to change in some way to become healthy again, it is inevitable. Nor can you deregulate so that business can apparantly be more "competitive" with these burgeoning regions of development, like China -- due to their society, they have a hell of a lot of unskilled workers that will work for a lot less, and put up with very poor working conditions.

    That the best way to go, is to move away from an unskilled (industrial) workforce and moved into more specialised skilled workforce -- as we moved away from a farming / mining workforce to an industrial one. That it has a lot to do with a services based society, aiming for the top rather than aiming to compete at the bottom with China's cheap labour. So instead of manufacturing / producing goods cheaply, you are creating high-quality and more original designed goods that are then manufactured in places like China -- I haven't explained this very well, but that is kind of what he said, that and becoming a more "services" based economy.

    So they've actually gone way too far with their new "workplace agreements" -- the idea is to retain our level of quality of life, not diminish it in order to compete with China.

    The Liberals have focused on short-term profit sources rather than longer-term ones, like investing in our future with education and other schemes -- to create a skilled workforce, in fact, they have offered no new initiatives in this area, labor have. Rather than reducing funding for education, like our Universities -- the idea being that this will lead to innovation that then leads to economic growth and new industries for a skilled / specialised workforce to fill.

    The Liberals main focus seems to be selling our resources off, but that can't last forever, nor is it good for our environment, if not the global environment. The other thing they are big on, is privatisation, but that can only be taken so far before it breaks down, nor can you apply it to every case.

    The guy who wrote it, has very solid credentials in economics -- I clearly don't :). I might also point out, that the book is not pro-Labor either.

    I'm not sure who I'll vote for yet, either labor or the Greens is likely. All I know is that the Liberals have nothing new in the bag other than to strip Australia of its quality of life, and to sell off everything they can, even our futures. They just need to go in my opinion, before they do any more long-term damage and support regime-change failures.

  • 1. Anonymous - Thu, 13 Sep 2007 23:36:02 EST
    Dear god, not a services based economy. It won't be long before all those jobs are outsourced overseas as well (which is already happening).
  • 1. Anonymous - Thu, 13 Sep 2007 23:56:34 EST
    You can't outsource everything, just like you can't privatize everything ;)
  • 1. Anonymous - Thu, 13 Sep 2007 23:56:34 EST
    You can't outsource everything, just like you can't privatize everything ;)
  • 1. Anonymous - Thu, 13 Sep 2007 23:36:02 EST
    Dear god, not a services based economy. It won't be long before all those jobs are outsourced overseas as well (which is already happening).
  • 1. Anonymous - Thu, 13 Sep 2007 23:56:34 EST
    You can't outsource everything, just like you can't privatize everything ;)
  • 1. Anonymous - Thu, 13 Sep 2007 23:56:34 EST
    You can't outsource everything, just like you can't privatize everything ;)
  • 5. Anonymous - Thu, 13 Sep 2007 23:29:43 EST
    Things I forgot to mention...

    That Unions aren't that great, because they are sandbaggers -- trying to stave off the inevitable. But removing them entirely and the safe-guards in place for workers, is just stupid -- in the end the result will have to be the same, the road will just of been harder ;).

  • 6. Gendo - Fri, 14 Sep 2007 00:27:38 EST
    So really we should have electronics company's and have the chinese manufacture them for us. Hay just look at the Japanese very rich because of electronic's & gorgeous women :).
  • 7. Paul - Fri, 14 Sep 2007 02:24:36 EST
    Excuse my armchair theorising, and please cut in if you feel I'm wrong at any point.

    The 'green fields' effect that Mike Fegan is talking about is not a unique phenomenon, but what is occurring is an unrepeatable event, once you take into account China's population, economy and culture. One billion people, plus cheap workers both eager and smart, plus a national work ethic that defies belief when compared to our laconic lifestyle, equals the next capitalist colossus flexing its fists for a fight.

    The 'green fields' theory does not scale down anywhere near as effectively for a population as small as Australia's. We are a small population, with little respect for learning and academic achievement, and judging by the cutting of tall poppies and racial slurs I hear bandied about daily, a very small-minded and xenophobic culture. This is not the kind of environment that spawns 'green fields' of game developers as far as the eye can see. It is more akin to a few weedy bushes struggling to survive in a desolate wasteland.

    The financial incentives will not attract large companies to establish large bases of operations; we are too small, without any clear advantage other than being a fantastic importer of American culture. Not only that, but the proposed incentives are designed to help established companies maintain their stake in the market, while explicitly doing nothing to allow new ventures to be seeded. You can't have any sort of 'green fields' effect if there is no money for new ventures.

    Australian industries are going to get steamrolled no matter what. All you can do is hope the games industry is agile enough to avoid the wreckage and reinvent itself as something other than a fee-for-service dumping ground.

  • 1. Anonymous - Fri, 14 Sep 2007 10:53:05 EST
    Very true about China, they aren't just cheap due to their labour force, they are also smart as well. This can be seen in their clones. First off cheap knockoffs of clothing, then they've become more and more sophisticated so as to have knockoffs of cars and mobiles - and just about everything else.

    Furthermore, they aren't just begining to match these goods in quality, technology and design. They are actually beginning to surpass it.

    One day "Made in China" is really going to be a big deal ;).

    However the good news is, if you can call it that, is that it is easy to have high growth and results when you are a region that is playing catch-up to the rest of the world. So they will end up like Japan and the others. They'll get to around were the rest of the developed world is, and then their growth will level-off.

    That's still a ways to go and even then, don't expect things in Australia to be the same, especially for game development :).

  • 1. Anonymous - Fri, 14 Sep 2007 16:35:47 EST
    I disagreed. "Made in China" certainly doesn't mean too much at the moment, and won't for a long while yet! Toy manufacturing recalls because they used lead paint, poor standards in their food and drugs industry means that people die because of shoddy medicine, and the food they export is highly suspect (look on youtube for Chinese chocolates imported to South Korea which contained moth worms), not to mention their ex-food and drug chief was caught taking bribes and therefore executed. Their latest car was tested in Europe under European crash standards and failed spectacularly with the front of the car completely caving into the driver and passenger zone in a low speed (something like 60kms) test. That's what happens when you skimp and use cheap metals. China isn't cheap only because of their labour force, but cheap because they will use the cheapest materials and alternatives available, all to the detriment of the product.
  • 1. Anonymous - Fri, 14 Sep 2007 16:35:47 EST
    I disagreed. "Made in China" certainly doesn't mean too much at the moment, and won't for a long while yet! Toy manufacturing recalls because they used lead paint, poor standards in their food and drugs industry means that people die because of shoddy medicine, and the food they export is highly suspect (look on youtube for Chinese chocolates imported to South Korea which contained moth worms), not to mention their ex-food and drug chief was caught taking bribes and therefore executed. Their latest car was tested in Europe under European crash standards and failed spectacularly with the front of the car completely caving into the driver and passenger zone in a low speed (something like 60kms) test. That's what happens when you skimp and use cheap metals. China isn't cheap only because of their labour force, but cheap because they will use the cheapest materials and alternatives available, all to the detriment of the product.
  • 2. Anonymous - Fri, 14 Sep 2007 16:04:42 EST
    The most important resource for the Games industry is talent, and particularly senior talent. This is a hit based industry, which means there is not a linear relationship between talent and financial outcomes. Brilliant talent, brilliant process, and a strong environment for business produces financial outcomes that are hugely successful compared to what you acheive when all your inputs are 'nearly as good'.

    If the world opens up and genuinely globalizes, then talent will become a more liquid resource (that is, it can cross borders and cultures more easily in search of greener pastures). China, India and Eastern Europe cannot maintain senior talent without paying them enough so that they aren't tempted over to countries like Australia.

    By that theory, the nicest places to live and work will ultimately win in the talent wars, and the cost of senior talent will tend back to a reasonable equilibrium position that balances all factors.

    So if the world opens up further, and Australia offers a great place to live, along with an established industry that can utilize talent effectively, then there shouldn't be any long term lack of competitiveness. However, in practice things are much more complicated and short term issues could last for decades. If we lose out in establishing brilliant capabilities before the industry matures then it will be remarkably difficult if not impossible to catch up, and without a viable and organized industry, there will be no political will left to even try to do so.

    I guess I am not saying much, except that the threat is not cheap labor as such. It is just that cheap labor and benevolent government policy is giving some countries an advantage in growing a 'brilliant' industry. I think maybe what the GDAA is looking for is to act now to ensure that when the smoke clears and our industry moves into a more 'mature' stage of development, Australia will have a good piece of the pie. However, even with the absence of supportive policy and cheap labor, we have enough momentum and talent to see some pretty amazing business results emerge here.

  • 1. Anonymous - Fri, 14 Sep 2007 16:55:51 EST
    That doesn't explain why Australian developers are migrating overseas to places that aren't better places to live than here. It's all about money. If our senior developers were looked after financially /received the same benefits as their overseas counterparts, we'd be able to keep the industry from the brain drain.
  • 1. Anonymous - Fri, 14 Sep 2007 16:55:51 EST
    That doesn't explain why Australian developers are migrating overseas to places that aren't better places to live than here. It's all about money. If our senior developers were looked after financially /received the same benefits as their overseas counterparts, we'd be able to keep the industry from the brain drain.
  • 1. Anonymous - Fri, 14 Sep 2007 10:53:05 EST
    Very true about China, they aren't just cheap due to their labour force, they are also smart as well. This can be seen in their clones. First off cheap knockoffs of clothing, then they've become more and more sophisticated so as to have knockoffs of cars and mobiles - and just about everything else.

    Furthermore, they aren't just begining to match these goods in quality, technology and design. They are actually beginning to surpass it.

    One day "Made in China" is really going to be a big deal ;).

    However the good news is, if you can call it that, is that it is easy to have high growth and results when you are a region that is playing catch-up to the rest of the world. So they will end up like Japan and the others. They'll get to around were the rest of the developed world is, and then their growth will level-off.

    That's still a ways to go and even then, don't expect things in Australia to be the same, especially for game development :).

  • 1. Anonymous - Fri, 14 Sep 2007 16:35:47 EST
    I disagreed. "Made in China" certainly doesn't mean too much at the moment, and won't for a long while yet! Toy manufacturing recalls because they used lead paint, poor standards in their food and drugs industry means that people die because of shoddy medicine, and the food they export is highly suspect (look on youtube for Chinese chocolates imported to South Korea which contained moth worms), not to mention their ex-food and drug chief was caught taking bribes and therefore executed. Their latest car was tested in Europe under European crash standards and failed spectacularly with the front of the car completely caving into the driver and passenger zone in a low speed (something like 60kms) test. That's what happens when you skimp and use cheap metals. China isn't cheap only because of their labour force, but cheap because they will use the cheapest materials and alternatives available, all to the detriment of the product.
  • 1. Anonymous - Fri, 14 Sep 2007 16:35:47 EST
    I disagreed. "Made in China" certainly doesn't mean too much at the moment, and won't for a long while yet! Toy manufacturing recalls because they used lead paint, poor standards in their food and drugs industry means that people die because of shoddy medicine, and the food they export is highly suspect (look on youtube for Chinese chocolates imported to South Korea which contained moth worms), not to mention their ex-food and drug chief was caught taking bribes and therefore executed. Their latest car was tested in Europe under European crash standards and failed spectacularly with the front of the car completely caving into the driver and passenger zone in a low speed (something like 60kms) test. That's what happens when you skimp and use cheap metals. China isn't cheap only because of their labour force, but cheap because they will use the cheapest materials and alternatives available, all to the detriment of the product.
  • 2. Anonymous - Fri, 14 Sep 2007 16:04:42 EST
    The most important resource for the Games industry is talent, and particularly senior talent. This is a hit based industry, which means there is not a linear relationship between talent and financial outcomes. Brilliant talent, brilliant process, and a strong environment for business produces financial outcomes that are hugely successful compared to what you acheive when all your inputs are 'nearly as good'.

    If the world opens up and genuinely globalizes, then talent will become a more liquid resource (that is, it can cross borders and cultures more easily in search of greener pastures). China, India and Eastern Europe cannot maintain senior talent without paying them enough so that they aren't tempted over to countries like Australia.

    By that theory, the nicest places to live and work will ultimately win in the talent wars, and the cost of senior talent will tend back to a reasonable equilibrium position that balances all factors.

    So if the world opens up further, and Australia offers a great place to live, along with an established industry that can utilize talent effectively, then there shouldn't be any long term lack of competitiveness. However, in practice things are much more complicated and short term issues could last for decades. If we lose out in establishing brilliant capabilities before the industry matures then it will be remarkably difficult if not impossible to catch up, and without a viable and organized industry, there will be no political will left to even try to do so.

    I guess I am not saying much, except that the threat is not cheap labor as such. It is just that cheap labor and benevolent government policy is giving some countries an advantage in growing a 'brilliant' industry. I think maybe what the GDAA is looking for is to act now to ensure that when the smoke clears and our industry moves into a more 'mature' stage of development, Australia will have a good piece of the pie. However, even with the absence of supportive policy and cheap labor, we have enough momentum and talent to see some pretty amazing business results emerge here.

  • 1. Anonymous - Fri, 14 Sep 2007 16:55:51 EST
    That doesn't explain why Australian developers are migrating overseas to places that aren't better places to live than here. It's all about money. If our senior developers were looked after financially /received the same benefits as their overseas counterparts, we'd be able to keep the industry from the brain drain.
  • 1. Anonymous - Fri, 14 Sep 2007 16:55:51 EST
    That doesn't explain why Australian developers are migrating overseas to places that aren't better places to live than here. It's all about money. If our senior developers were looked after financially /received the same benefits as their overseas counterparts, we'd be able to keep the industry from the brain drain.
  • 8. Gendo - Fri, 14 Sep 2007 09:32:05 EST
    John howard should be letting in a lot more young people in to Australia. That is so true and sad about the racial slur's. Maybe we should change the flag we had that flag when we had the white Australian policy.

    And as for our games industry. It will most likely collapse. When America start's giving the licences to their games. Over to asian country's that most likely have larger talent pools.