The British game developer association TIGA has put forward a plan for giving developers in the UK a tax break, and we learned today that the Government has accepted this plan.
What this means is essentially that the UK based studios will have more money to go around, which can mean more jobs, bigger budgets and so on. It also makes it easier and more lucrative for up-and-coming developers to start their own studio.
Several other big countries in video games have tax breaks for developers, as does the UK film industry, so the British developer community have been pushing for this for a while.
Big studios in the UK include Lionhead (Fable), Rocksteady (Batman: AA), Rare (Banjo-Kazooie, Viva Piñjata), Rockstar (GTA), Criterion Games (Burnout), Bizarre Creations (Blur, Geometry Wars), Media Molecule (LittleBigPlanet) and a host more.