EU proposal could stifle creativity in computer games

Valerie | 20 May 2009, 08:16

The computer games industry contributes more than £1 billion to Britain’s gross domestic product, more than the film industry.  However, potential new legislation from the EU calling for developers to provide a two year guarantee has called into question the future of games development, the BBC has reported.

Helen Kearns, a spokesperson for Commissioner Meglena Kuneva who is calling for the expansion of the EU Sales and Guarantees Directive explained the motivation behind the proposed legislation:

“The current status quo, where licensed products are exempt from EU law, is unsatisfactory.

“At present, retailers are not obliged to give a refund on a video game that has a bug or glitch that prevents a user completing a game. If the proposals become law, this could change as users would have the right “to get a product that works with fair commercial conditions”.

The proposed legislation has met with criticism across the software sector. Dr Richard Wilson, head of the video games developers’ association Tiga, said over regulation could stifle creativity and a balance between consumers and developers was needed.  The Business Software Alliance meanwhile has underlined that digital content is “contractually licensed to consumers and not sold” and therefore should “not be subject to the same liability as toasters”.

The issue of regulation also highlights another challenge in the sector, with the games industry recently lobbying the government for greater support through tax breaks. 

Earlier this week, an article in the Telegraph highlighted the need for greater investment in the video games industry. It argues that Britain is currently slipping from its third place position in the global video games industry (behind the US and Japan) as a result of fierce competition from France and Canada where there is considerable state support for games staff – which is also leading to a “brain drain” with developers being lured abroad.

MCV reported this week that the value of the UK games market is down 14 per cent year-on-year, due to the recession which saw a lack of major releases launched compared with the previous year. The rising prominence of Apple has also contributed to a dent in game developer mindshare, with much of the recent buzz in gaming about iPhone games.

The sector has previously seemed resistant to the economic pressures of the recession but innovation could be the answer – games are constantly expanding their borders this blog argues, as illustrated by the launch of the first on-demand gaming service by Onlive to much fanfare at the Game Developer Conference and more recently, the news that Ubisoft, the French games publishing giant is expanding its business into the movie special effects market.

The creative and regulatory structure for creative industries such as the games sector will be a key theme for the c&binet forum in October, when global business leaders and government will come together to agree on a MoU that will help secure its future prosperity.