HappySqurriel said:
To be blunt, this is why it is a bad idea to try to build specific industries through incentives; when the incentives have to be reduced or eliminated the industry shrinks or disappears. If countries focused more on creating fair environments for all businesses they wouldn't have this issue.
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I don't know if I'm misreading your post but I think you're missing the point. The incentives never exsisted in the UK in the first place (They were just proposed in an pre-election manifesto) - but they are needed to keep the UK games industry competitive on an international level, as it is currently a far more appealing venture for any publisher to set up / move to Canada, France, Asia, some US States etc where these incentives exsist.
The UK video game industry has i believe had the highest revenue per employee of most industries in the entire country for the past decade but the government is doing nothing to support it's growth or encourage international investment, and it's going to see what is one it's few remaining global exports leave to the international market - like pretty much everything else >_>.