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Ubisoft analyzing Canadian tax breaks situation
Ubisoft analyzing Canadian tax breaks situation
June 19, 2014 | By Mike Rose

June 19, 2014 | By Mike Rose
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More: Console/PC, Business/Marketing



"I think what Quebec has become over the years in terms of video game development, itís not a hotbed."
- Ubisoft Montreal CEO Yannis Mallat is unsure of his studio's future, following reports that Quebec plans to cut millions in subsidiary bonuses.

Earlier this month it was reported that the Quebec government is cutting tax relief for video games, meaning that many game studios in the area, including both Ubisoft Montreal and Ubisoft Quebec, will take a big hit.

Now Mallat has told IGN that his Montreal studio, which has titles like Watch Dogs, Assassin's Creed Unity and Tom Clancy's Rainbow Six: Siege to its name, is currently exploring the situation and trying to decide what to do with this information.

"I think we need to analyze what this means for us," he said. "Then once the analysis is done, weíll be able to decide what the next stage is for us."

Notably, these tax relief models were a large factor in why Ubisoft moved into Quebec in the first place, so this talk of tax bonuses being cut back is not good news for the company, especially as it recently announced plans to invest millions in its Quebec City studio.

The tax breaks are essential to bolster game development in the area, Mallat says, and create an environment where game dev can thrive.

"Obviously this tax program was here to help build that environment," he adds. "So we see this program as an important reason for the growth of the sector in Quebec."


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Comments


Ron Dippold
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$500M in subsidies cut? Well there goes your budget for female animations.

Jennis Kartens
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Hookers, apparently...
http://gamasutra.com/blogs/KrystianMajewski/20140618/219403/But_I
ts_Worse_in_Games_Because_They_are_Interactive.php

Adriaan Jansen
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Tax breaks are stupid. A company comes in, gets an advantage at the cost of the citizen, and once that advantage stops, the companies move to another tax breaking country.

Justin Kovac
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Yep, they save money despite relocation costs.

I always thought the tax breaks were there to help establish an industry, not sustain and subsidize it. I doubt the long time employees will want to uproot their families just because their company wants to save a few dollars.


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