Right call to subsidise video games industry

Right call to subsidise video games industry
The video games sector generated $400m in exports last year and employs around 1,200 people. (Image: Getty) (Image: Getty)
Peter Griffin
Accusations of “corporate welfare” greeted the news in last week’s budget that the government would introduce a 20% subsidy for video games development companies. “They are subsidising fxxking video games,” the New Zealand Initiative’s chief economist Dr Eric Crampton, a vocal subsidy sceptic, vented on Twitter. Former economic development minister Steven Joyce said the subsidy, which is applicable to a game development studio with annual development costs of $250,000 or more and will cost the taxpa...

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