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Texas Film Commission Increases Incentives For Game Studios
Texas Film Commission Increases Incentives For Game Studios
August 11, 2011 | By Mike Rose

The Texas Film Commission has announced that it will increase incentives for the video games industry in the state to a level equal to those provided to film and television initiatives.

Game studios are currently able to apply for reimbursement grants up to 5 percent of eligible in-state spending paid to Texas residents.

From August 28, this figure will be raised to 15 percent in time for the Film Commission's new fiscal year, reports the Statesman.

Evan Fitzmaurice, director of the Film Commission, noted that the increase was in aid of the economic impact the video games industry is currently providing in Texas, citing the recent news that EA Sports is looking to open a new development studio in Austin.

Earlier in the year, Texas state comptroller Susan Combs revealed that the games industry created more full-time jobs in the last two years than other industries that were eligible for the Moving Image Industry Incentive Program.

Just last month, nonprofit medicine research and education company The Cooper Institute said that its initiative to fight childhood obesity through educational games was being funded by the Texas Department of Agriculture.

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Bill Merrill
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As Texas gives developers more incentives to do developers in their state, California continues to do the opposite.

Bill Merrill
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Er... "As Texas gives developers more incentives to do *business* in their state, California continues to do the opposite."

Christopher Enderle
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This is nice and all, but isn't Texas in serious debt? I kind of feel bad about children and the elderly/disabled being kicked off medicaid so that Riccitiello can tout slightly larger profits to his shareholders. Is that extra 10% really going to make or break a studio?

Dave Prout
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It's a potentially giant increase in margins. A typical 3rd party development deal would have the developer earn 15-18% royalties after earnout - meaning a $10m budget would need to net ~$67m at retail first before the developer will start seeing any money. This incentive would get the developer back $1.5m before *any* retail targets; that itself is a larger margin than most developers will make on royalties.