Activision Warns it Might Leave the UK Over Tax Break U-Turn

[Logan Westbrook]

Activision Warns it Might Leave the UK Over Tax Break U-Turn

CEO Bobby Kotick says the UK has plenty of talented developers, but the government doesn't do enough to support them.

Activision top dog Kotick has said that the publisher hasn't ruled out moving its UK operation elsewhere in the world, after the UK's coalition government went back on its promise to support tax relief for the videogame industry.

Kotick called the decision by the UK government not to grant the tax breaks a "terrible mistake," adding that there were places all over the world that were actively encouraging the videogame industry. Besides its UK-based developers, Activision operates a corporate office and a manufacturing/distribution center in the UK. If the company does decide to look for greener pastures elsewhere, then the UK could lose around 600 jobs.

TIGA, a trade body representing the UK videogame industry, says that Activision might not be the only company who decides to up sticks and leave. It warns that the UK risks losing a lot of its talented developers to other countries, and has accused the government of not doing enough to foster growth in the UK economy.

It's hard to believe that Kotick's warning/threat is entirely serious. It seems much more likely that he's trying to rattle a few cages and get people in Westminster paying attention to the issue again. Whether it will work or not remains to be seen however, as the UK government has expressed a preference for more general infrastructural changes - like the recent cut in corporation tax [http://www.escapistmagazine.com/news/view/105008-UK-Videogame-Industry-Might-Get-Government-Help-After-All] - rather than benefits for one particular industry.

Source: The Telegraph [http://www.telegraph.co.uk/finance/newsbysector/retailandconsumer/leisure/8233861/Call-of-Duty-maker-Activision-Blizzard-could-quit-Britain-over-terrible-mistake-on-video-game-tax.html] via Kotaku [http://kotaku.com/5722916/activision-threatens-600-uk-jobs-over-loss-of-tax-breaks?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed:+kotaku/full+(Kotaku)]




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[Vie]

Don't worry, they won't be in after the Lib Dems get hammered in the local elections.

He's better off making the case to Labour, though I doubt they will be in a position to do it while trying to clear up the shit the Condems are dumping on us. Uhg.

 

[Debirufisshu]

I'ts not just the Lib Dems, its those Tory bastards aswell. I'm fully expecting Labour to get back into power in the next election. Even though I think all of the 3 major parties are crooks and arseholes, I'll be voting for the 'Monster Raving Loony party' this time. They can't be any worse than what we already have, and we can have a laugh at the same time.

 

[ZiggyE]

Here's an idea, Activision. Pay the taxes out of the trillions you've made out of CoD instead of insulating your offices with $100 notes.

You know what... if non-charitable religious organisations get tax exempt status, than game publishers should get some relief too.

 

[Palademon]

Even though I think all of the 3 major parties are crooks and arseholes, I'll be voting for the 'Monster Raving Loony party' this time. They can't be any worse than what we already have, and we can have a laugh at the same time.

Hell yeah!
I want 99p coins, I'm tired of having to count pennies!

 

[Dr Ampersand]

Oh well it's not like the Lib Dems will be around for much longer anyway.

Even though I think all of the 3 major parties are crooks and arseholes, I'll be voting for the 'Monster Raving Loony party' this time. They can't be any worse than what we already have, and we can have a laugh at the same time.

Hell yeah!
I want 99p coins, I'm tired of having to count pennies!

But we keep 1 and 2 p coins right?

 

[Alandoril]

Activision are complaining about not getting tax breaks? ACTIVISION?

Don't they have enough money already?

I could tolerate this from a smaller company, or an organisation of several smaller companies...but not Activision. This statement just drips with greed.

 

[DTWolfwood]

It cant possibly be more cost effective to pick up sticks and leave.

Ah well having the UK gov' to reconsider is just fine.

Activision are complaining about not getting tax breaks? ACTIVISION?

Don't they have enough money already?

I could tolerate this from a smaller company, or an organisation of several smaller companies...but not Activision. This statement just drips with greed.

to be fair smaller companies dont have the cloud a mega corp like Activision has. And if the big wigs get into this it also benefits the smaller companies. Its a tax break for the Videogame industry, not just Activision.

 

[Baldry]

I'ts not just the Lib Dems, its those Tory bastards aswell. I'm fully expecting Labour to get back into power in the next election. Even though I think all of the 3 major parties are crooks and arseholes, I'll be voting for the 'Monster Raving Loony party' this time. They can't be any worse than what we already have, and we can have a laugh at the same time.

Once I can vote I'm voting for them.

 

[Vie]

This statement just drips with greed.

It is Activision, its rather a given.

 

[Jetsetneo]

Why are people so eager to give rich people more money?

Because usually those Rich people own your job, and more often than not, if they don't get those tax breaks, they'll keep their money by cutting costs. That cost is most likely 'you'.

I don't particularly like this brand of bulling, but it happens.

Edit:Typos.Yay!

 

[elvor0]

This might help, I would imagine alot of smaller companies have been trying to get through on this, and as much as I dislike Kotick, Activision saying something could potentially cause something, as they are far more known about, and are threatening more job losses, so it could be good and the government might help them.

Ah who am I kidding, we'll never get it while that **** Cameron is in charge.

 

[Woodsey]

Whilst I find it hard to believe Activision of all people need tax-breaks, having one of the biggest publishers move out of the country may actually kick the morons up the arse to get a fucking move on and do something.

Hey, maybe they could cover some of the lost expenses of the tax-breaks by closing all the loop-holes that allow nom-doms to go tax free!

(Maybe George Osbourne could pay his taxes properly too instead of putting his earnings into his wife's account - just a thought.)

All they're doing is cutting everything they can, regardless of actual people's livelihoods and their futures.

 

[UnravThreads]

I'll be voting for the 'Monster Raving Loony party' this time. They can't be any worse than what we already have, and we can have a laugh at the same time.

You can only vote for them if they have a presence in your constituency, which for the majority of the country isn't the case. They, sadly, don't have a chance. I live in a Labour one, so lucky me, I guess. Yeah, I don't like Labour.

It's not too fair to go on at the Tories/LibDems like some do. They inherited the crap that Brown and Blair left for them, along with this recession and the tail end of a war. I'm not saying the Tories are doing a brilliant job, but I think they're getting a lot more stick than is warranted over a number of things. Student fees are a pisstake, though, and I'm fully behind those who are protesting peacefully.

Back on topic:
Activision can bugger off.

 

[ASnogarD]

This is mere political crap to hide behind, what will happen is Activision will pull out the UK and move operations to a east EU country where you can pay much less wages.
Yes, there are graphic artists and coders even in those countries.

By claiming its was in protest of the UK goverments non action regarding taxes, Activision can avoid public backlash from sacking a lot of the UK based workers.
In short you can pay some east EU country worker a lot less and get about the same than in the UK where the cost of living is much higher than in the east EU.
Lots of UK companies have done that already, bailed out of the UK, opened shop in some eastern EU country and simply transport the goods back into the UK... cheap labour pays for transport costs plus a tidy extra in the profit tab, never mind that in these countries labour laws and minimal wages are none existant.

 

[Hamster at Dawn]

Oh Lib Dems, if only you could have actually stuck to your promises instead of siding with the Tories.

 

[Dogstile]

I'ts not just the Lib Dems, its those Tory bastards aswell. I'm fully expecting Labour to get back into power in the next election. Even though I think all of the 3 major parties are crooks and arseholes, I'll be voting for the 'Monster Raving Loony party' this time. They can't be any worse than what we already have, and we can have a laugh at the same time.

Here here. My first vote is going to the Monster Raving Rooney party. It'll be a hell of a good time.

The government sucks either way