Potential Tax Breaks for les Jeux Video

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Earlier this year, France inducted legendary game designers Shigeru Miyamoto, Michel Ancel, and Frederick Raynal into its Order of Arts and Letters, signifying a strong cultural endorsement of the video game medium. Now, the country's minister of culture wants to give even more official state recognition to video games as artistic expression by recognizing the games industry as a cultural industry, giving it tax benefits similar to those enjoyed by the French film industry. Major publishers such as Ubisoft, Blizzard parent Vivendi, and Atari parent Infogrames are headquartered in France.

"Call me the minister of video games if you want--I am proud of this. People have looked down on video games for far too long, overlooking their great creativity and cultural value. Video games are not a mere commercial product," said culture minister Renaud Donnedieu de Vabres. "They are a form of artistic expression involving creation from script writers, designers and directors." His proposal has both detractors and supporters. The multinational Interactive Software Federation of Europe is resisting Vabres' goals, expressing concern that France's traditional attitudes towards cultural works would interfere with developers' creative freedoms. Games that receive governmental aid, which would come in the form of a 20% tax reduction up to 500,000 euros, would have to be considered artistic by France and would receive creative input from the state. EA Switzerland's Gerhard Florin warned that such a program might create a situation similar to recognized French filmmakers receiving the bulk of governmental aid over their peers, allowing them to lose sight of average consumers. This may be less likely to occur with video games, however; major game publishers such as Ubisoft, Infogrames, and Vivendi necessarily cater much more to the global market than your average French auteur filmmaker.

Unsurprisingly, French game executives such as Ubisoft CEO Yves Guillemot support the potential move, particularly given difficulties in home turf development related to high French salaries. "Without production in France, we lose the creativity and diversity that this country offers," said Guillemot, speaking to Donnedieu de Vabres' claim that video games can reflect properties of their country of origin. These properties need not be extreme, he noted. "Video game characters will not be required to wear a beret and carry a liter of wine under their arm," Donnedieu de Vabres said. "But we do need to protect what is different in video games produced by each nation."

From The Chatty
  • reply
    November 9, 2006 9:09 AM

    This is probably very bad news rather then good news, the worse ennemy of culture has always been the State. And especially the French one. What this probably really means (gotta read between the lines with politicians...) is that FRENCH videogames are going to have tax cuts, and taxes on american video games are going to be increased, to finance subsidies on french videogames.

    This is how the french movie industry works; when you go to the movies seeing a foreign film is roughly 2€ more expensive then a french films. Part of that 2 euro comes from the fact that since the French movie has been almost nationalized (sic), movies are of rather bad qualities (except a few exception once in a while of course) so there's much less demand for those, and the other part is taxes on foreign movies (11 %).

    That 11% goes to into subsidies new french movie makers. This is why the french market is flooded with uninterresting and rather unprofessionnal movies. Another effect is that you now have to please bureaucrats, if you're doing a liberal movie about "social issues" you're more likely to receive these subsidies.

    This is indeed very bad news for french videogames fans.

    • reply
      November 9, 2006 9:49 AM

      I think they are just trying to compete with the Quebec gov that is subsidizing Ubisoft jobs in Quebec.
      Its not for nothing that we are the biggest Ubisoft studio in the world.

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        November 9, 2006 10:02 AM

        Hmm, yes and no, I think it's part of their extreme nationalist ideology, "Patriotisme Économique", and the big studios probably gave'em money to finance their upcoming elections.. A public choice analysis would be most interesting.

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          November 9, 2006 11:44 AM

          americans are far worse than the french on economic patriotism, i hope you're aware of that

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            November 9, 2006 12:00 PM

            I'm not sure that's true actually. I'm not sure there are as much quotas on importation as there is in America. The so-called 'external account deficit' shows that (I'm not sure that's really how it's called in English anymore, I've been loosing my english since i've been here..). And I'm absolutely sure capital is much more free to flow in America that it is to flow into France.

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      November 10, 2006 1:02 AM

      I don't know where you paid more to see a foreign movie in France, but you got scamed !
      The price is the same for all movies. It would be silly otherwise.

      • reply
        November 10, 2006 7:39 AM

        Maybe your theater does no do that, but many do. At least here in the south.

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