So, the news today probably had a few people wondering why Animal Logic chose to create a new game development branch in Los Angeles rather than right here in Australia. Why couldn't they have opened up a new local studio instead? We certainly could do with more game studios and thus more opportunities for the many students who graduate from their game development courses every year. Giving more of these graduates their first foot in the door, providing them some solid experience in the process, it sounds like a great idea to me. But for whatever reason, Animal Logic are setting up shop in L.A, supporting a whole studio full of talented overseas developers.
But let's remember that the Australian film industry gets a rather generous 40% tax incentive from the Government, courtesy of us tax payers. Animal Logic has done pretty good in recent times, all kudos to them. They've been involved with many box office hit films, and let's not forget their immensely successful animated feature, Happy Feet, and the new animated fantasy, Guardians of Ga'Hoole. All the result of hard work, creative talent, and... a whole load of Government benefits. Tax incentives are great because, as Helen Coonan has said late last year, there's a positive indirect flow-on effect where other industries, like our very local games industry, benefits as well. Here's the exact quote from The Minister for Communications, Information Technology and the Arts where she describes the flow-on effect, and at the same time dashes the hopes for an equal rebate for our games industry..
(The Hon. Helen Coonan): "..the Screen Media Support Package announced in the Budget has the potential to benefit screen content producers of all kinds. While games will not be eligible for the tax offsets announced as part of the Package, the introduction of a Location Offset is expected to have positive indirect flow-on effects for screen businesses, as digital and visual companies develop larger and more skilled workforces."
You've got to wonder if the Games Developer Association of Australia can't help but feel a little bit insulted by all of this. Who wouldn't be? They've pushed pretty hard for a fair and equal tax rebate for a long time, but after being repeatedly denied it, all they got was the promise of a "positive flow-on" effect from the film industry. And unfortunately, even that isn't forthcoming.
anon
Helen Coonan said that before the election, is what she said then still relevant?
i thought we had a new person doing her job.
although maybe i'm just out of touch with politics...
LA presence makes sense
Sadly it does make sense for Animal Logic to have a presence in LA as that is probably where they would be making their deals. It is a pity that they then aren't bringing the work back home though. I guess with the Aussie dollar strengthening against the US dollar (and no tax cuts) there is little financial incentive to do.
I guess if Animal Logic grows in the US it would probably lead to more film and TV work in their Australian office down the track. Hardly the lions share of the 'flow-on' and not in the industry niche we want it in either.
...Maybe the government could 'encourage' companies like Animal Logic to keep new work here by removing existing film related tax incentive if they don't.
Logic's a business
Animal Logic's a business - they'll set up shop wherever it makes financial sense for them to. The fact that a well developed Australian new media company like Animal Logic has chosen to set up in LA instead of Sydney - where they are already established - really just shows that we're not providing enough incentives for the local industry.
I'm not saying we should throw taxpayer dollars to make local business owners rich. But some kind of incentive that helps them compete on an equal playing field with the rest of the world might be nice. If they compete equally and still fail, then fair enough.
I guess it's all about vision at the end of the day, and I'm starting to think this government's rhetoric is just hot air. Let's see some policies, Mr Garrett. And can we have them soon - before yet another industry withers and dies before it has a fair chance to get started?
Oh, I agree
I don't have a problem with Animal Logic on whatever business decisions they have. That's fine. If they wanted to move their main visual effects business to L.A because it makes more sense, that's fine too. It would actually make sense to have the visual effects business in Hollywood than it is to have the interactive games department there - most Hollywood studios would prefer to look over and collaborate with studios next door on films I would say. Not so much games.
I guess my real beef is with Helen Coonan and her statement that local industries are supposed to benefit from the flow-on effect from the film industry, as if it were some consolation for getting denied again for a fair rebate. And that small benefit the industry is supposed to get - they aren't. What we had here could have been the perfect example of what she was saying but unfortunately what we got instead was Company A getting generous Government film incentives, then expands overseas.