Ireland is primed to be a video game development hub, so why hasn’t it broken big?

Ireland is primed to be a video game development hub, so why hasn't it broken big?

As a seasoned observer and supporter of the vibrant world of video game development, I find myself both heartened and dismayed by the current state of affairs in Ireland’s gaming scene. Having spent many years immersed in this captivating realm, I can confidently say that there is an undeniable wave of creativity and camaraderie sweeping across the Emerald Isle. From Enigma Studio’s critically acclaimed trilogy to the burgeoning talent nurtured by groups like Ardán, it’s clear that Ireland’s game development scene is brimming with potential.

2024 finds Ireland poised to become a thriving epicenter for video game development. Already recognized as a tech powerhouse with global giants like Microsoft, Google, and Intel establishing their presence, the country boasts an abundant pool of well-educated English-speaking graduates. This is coupled with a rich literary heritage that includes renowned figures such as Yeats, Wilde, Heaney, McDonagh, Rooney, and Blindboy. The success stories of homegrown talents like Shawn Murray and Brendan Greene, who have found international acclaim outside Ireland, further underscore its potential. Additionally, Ireland’s strategic location offers seamless travel and distribution opportunities across Europe and beyond. Politically stable in 2024, the country is also home to a population that passionately embraces video games, with more than half actively gaming.

It appears that, despite numerous conversations with developers active in the Irish gaming industry, there remains a significant issue. Approaching its tenth anniversary since Ireland’s game scene was predicted to burst onto the global stage, it seems the world remains unaware that Ireland welcomes entrepreneurship in this sector.

If you’ve never been to Gamescom before, it might be challenging to fully grasp its immense scale. Each year, six to eight public exhibition halls are jam-packed with games, technology, and publishers. During the event’s four days, approximately 300,000 individuals pass through these areas. But that’s not all! There’s also a dedicated business area, along with three more large halls spanning two floors, where B2B (business-to-business) and press conferences take place.

Ireland is primed to be a video game development hub, so why hasn't it broken big?

These halls are made up of publishers big and small, from Xbox to Devolver, service providers like AWS(Amazon Web Services), and even gaming chair suppliers, like Razor. However, roughly one hall is dedicated to country-specific delegations. Different countries’ governments, through their enterprise/foreign direct investment bodies or art councils, buy floor space in the business area so that developers working out of those countries can visit the show, and exhibit their games to the press and potential partners alike. Dozens of countries have booths, including France, Belgium, Greece Sweden, Spain, Serbia and the UK. Even countries from further afield like Australia, Hong Kong Singapore, Brazil, and the Philippines all have show floor space. The Republic of Ireland has never had a floor space.

Booth Space Bother

As a passionate gamer and a member of the thriving gaming community here in Ireland, I’ve been witnessing for years now how our local game makers association, IMIRT, has been generously funding trips to global events such as Gamescom, GDC in San Francisco, and pre-pandemic, E3 in LA. However, it’s important to note that these prestigious gatherings have never provided our creators with a designated space to exhibit their remarkable games. Instead, you often hear tales from our developers about conducting their meetings on the show floor itself, or in nearby bars, restaurants, or even at booths of other nations. It’s an intriguing dance they do, navigating these events without a dedicated platform to truly showcase their talent and innovation.

Discontent over Irish developers not having their own booth space at Gamescom 2023 was expressed through various recounts of the event’s happenings. Contrary to some reports, it wasn’t an Irish developer who showcased their Gaelic Football game at the British booth due to a lack of Irish presence. Instead, Buck Eejit, a small team consisting of around a dozen members, was the developer behind this Gaelic Football project. For those unaware, Gaelic Football (alongside Hurling) are two traditional sports in Ireland that hold significant historical and cultural significance within the country, often symbolizing Irish nationalism under British rule. Although Ireland is divided into two separate regions – one an independent republic in the south and one part of the United Kingdom in the North – both areas still play Hurling and Football and compete against each other in the same competitions.

According to secondary sources, Buck Eejit allegedly lacked a space to display its playable demo and was given a spot at The Association for UK Interactive Entertainment (UKIE) booth – the UK’s trade association for the video game industry. However, Peadar McMahon of Buck Eejit corrected this information via email. “Although we were part of the UKIE stand, it wasn’t because we lacked a space to display our demo. Our studio is based in Belfast [Northern Ireland], and we collaborate closely with Northern Ireland Screen for opportunities specific to the region. Since we are still under British rule, we function within a different legal system compared to developers from the Republic of Ireland.

Ireland is primed to be a video game development hub, so why hasn't it broken big?

In conversation with several developers who knew about the Gaelic Football game displayed at the UKIE booth but didn’t know Buck Eejit’s location in Belfast, the incident was generally considered “embarrassing.” A senior developer from a studio based in Dublin commented, “They are friendly and welcoming, and they’re our neighbors, but we should have our own separate display.” An employee of IMIRT stated, “It seems culturally incongruous.

Displaying Buck Eejit at the UKIE booth seems logical both in terms of practicality and cultural context, yet it underscores the irritation among Irish game developers due to the absence of a unified front. Additionally, this occurrence illustrates how the lack of backing for centralized groups such as IMIRT can foster industry rumors.

In summary, Ireland boasts a number of prominent gaming developers on its roster. Notably, Dublin houses around 60 employees from Larian Studios, buoyed by the triumph of Baldur’s Gate 3. Among others, Black Shamrock, known for Marvel’s Midnight Suns, The Outer Worlds, Grounded, Back 4 Blood, and additional projects, is also based there. In 2019, Scopely, creators of the widely played Monopoly Go!, purchased DIGIT interactive, a Dublin-based studio. Furthermore, Ireland nurtures a small but influential indie scene, with studios like Dreamfeel, Spooky Doorway, and Enigma Studio all residing within its borders. To add to this, the renowned game designers John and Brenda Romero have chosen Galway City as the location for their studio, Romero Games.

In the past few years, there’s been an increasing emphasis on organizing internal business development events and networking chances. Previously, you might find Irish developers at a bar in Cologne during Gamescom more frequently than attending any domestic events in their own country.

Nexus Point

For several years, events such as the FÍS Games Summit have been held in Galway and emphasize boosting local and self-reliant projects by collaborating with IMIRT and Screen Ireland’s Irish film board. Conversely, NEXUS occurs annually in the capital city and is now in its second year, spotlighting broader dialogues concerning the Irish video game industry. In 2024, these discussions included panels that centered on Ireland’s global presence, including one titled “Play And Progress: The Expansion of Ireland’s Gaming Ecosystem.

In this discussion, Colm Larkin, both CEO of IMIRT and Game Director at Gambrinous, moderated a panel with three key participants. Justin O’Connor, Finance Head from Dublin-based child-focused app developer StoryToys, was present, as well as Chris Vossen, the Narrative Head at Larian. Lastly, Donal Travers represented the Irish government’s Foreign Direct Investment Agency (IDA) as the Head of Technology, Consumer, and Business Service. This gathering offered valuable perspectives on a significant issue between Irish game developers and the current Irish administration: miscommunication or lack of understanding.

Ireland is primed to be a video game development hub, so why hasn't it broken big?

At this discussion, the topic of Ireland’s minimal participation in international trade exhibitions like Gamescom and GDC was frequently brought up. When asked about Ireland never having a booth at these events, Travers tactfully replied that investing in exhibition space is expensive and apparently not seen as beneficial by the IDA and Enterprise Ireland. However, the other panelists appeared skeptical of this response, suggesting that it’s hard to view it as an expense when the potential cost of missing out on such opportunities appears so clear. Additionally, O’Connor from StoryToys questioned Travers about why the government couldn’t fund a booth at these events but could afford a €300,000 bike shelter near The Dáil.

Credit Where Credit’s Due

As a gaming enthusiast, I’ve been following the developments in the Irish gaming industry closely. One significant move by the government that caught my attention was the introduction of the Digital Gaming Tax Credit in 2022. This credit offers a refundable tax break on up to 32% of expenses related to digital game production. Initially, this policy was hailed as a major stride towards making Ireland a competitive hub for game development. However, as we approach the third year since its implementation, I and many others have expressed concerns about the outdated restrictions and fear that the government may take too long to revise the policy, potentially hindering the industry’s growth.

Before the 2024 national budget, IMIRT was advocating for the government to revise the Digital Game Tax Credit (DGTC), particularly in light of two significant concerns that arise in contemporary game development.

Currently, the credit is only applicable to projects completely created within Ireland. This implies that entities like Black Shamrock, third-party contractors or co-development studios, cannot claim this credit. Moreover, games developed by multiple international teams, such as Baldur’s Gate 3, are also ineligible for the credit. In their submission to the government, IMIRT suggests that by considering contributions from Irish Studios as qualifying, it could attract foreign studios to establish satellite offices in Ireland, thereby supporting local talent and fostering foreign direct investment.

A second point of contention comes down to when the tax credit can be claimed According to the scheme, once a game’s expenditure passes €100,000 a developer can apply for credit “on Completion”. These two words have caused a fair amount of acrimony as “On Completion” is defined as when a game “has been released to the public” or when “the game is provided to a third-party commissioner/publisher.” Furthermore, it is noted that further costs retailed to post completion content are not covered, this includes, “patching or development of additional downloadable content.” For many, this is a huge source of frustration. While the credit can be claimed each through production, the phrasing around game “completion” has many devs worried about the Irish government’s awareness of the state of the industry.  As it stands, live service games, which see continued support, will not be able to avail of the tax post-release. 

Larian Studios clarified that Baldur’s Gate 3 wasn’t eligible for the tax credit because the game had already been in development prior to 2022. This implies that even if they had attempted to claim it, they wouldn’t have been able to benefit from it after the game’s 2023 release due to its extensive post-launch content. Additionally, there’s a possibility that the credit expired when the game entered early access on Steam in 2020, as at that point, it was considered publicly available.

Ireland is primed to be a video game development hub, so why hasn't it broken big?

Currently, just 16 companies are taking advantage of the tax credit. IMIRT’s CEO Colm Larkin believes this is largely due to lack of visibility. He notes that while the tax credit serves as a significant “tentpole” for growth, he adds, “If you have a tax break but don’t publicize it, it won’t attract much attention.” Due to insufficient government promotion, international partners remain unaware of the potential advantages of establishing businesses in Ireland. Larkin suggests investing further in this area, either by purchasing booth space at events like Gamescom or by supporting independent development beyond the €15,000 indie game grant announced at FÍS Game summit last year.

Larkin stated, “Our games have been making a significant impact on the world stage without much fanfare. I believe the public may not fully appreciate them yet… however, we could be better at sharing our achievements.

Compared to Screen Ireland’s Tax Credit for Irish films and television, the Digital Games Tax Credit is found to be less advantageous. In essence, filmmakers can apply for the tax credit even before production starts, based on estimated budgets. The government then provides 90% of the credit upfront, serving as a helpful injection of funds during early stages of production. Conversely, the Digital Games credit doesn’t work in this manner. Instead, developers can only request relief once they receive a temporary certificate for the credit, which takes at least six months to process and can only be initiated after development has already started. This poses significant challenges for game development companies, particularly those that haven’t previously released games. While the film credit offers an initial cash allocation that filmmakers can use to start production and seek additional funding, the game credit means developers must cover their overheads for six months before they can access the limited support. Since game development often necessitates large upfront investments in hardware and tools, many feel that the tax credit does not provide adequate assistance when it’s needed most.

As of the last national budget on October 10th, 2024, the Digital Game Tax Credit was not revised. Following the recent General Election on November 29th, which led to a change of government members, there is concern among developers that progress made with the previous administration may be reversed and their issues may lose momentum in the coming months, especially with potential new Ministers for Enterprise, Trade and Employment, Tourism, Culture, Arts, Gaeltacht, Sport and Media taking office in the new year.

Bleed Green

Despite some Irish game developers expressing dissatisfaction with the level of support for game development in Ireland, it’s important to acknowledge that there are numerous exciting game projects being developed here. For instance, Enigma Studio has recently finished its five-game trilogy to great praise, Larian Studios is growing and advancing onto its next project, Romero Games is actively recruiting for a new first-person shooter, Dreamfeel is still busy with several games following the success of If Found…, and studios such as Gambrinous, Spooky Doorway, and Tall Team continue to thrive in challenging market conditions.

Residing in Ireland and conversing with around a dozen individuals, there’s an infectious atmosphere of enthusiasm and camaraderie within the Irish gaming community that stands out. Organizations such as Ardán have been instrumental in propelling developers from their personal spaces into the broader industry, as Jamie Gavin, owner of Enigma Studio, articulates. Furthermore, endeavors like Run For The Border foster collaboration between game developers based in the Republic of Ireland and those in Northern Ireland, allowing them to leverage the UK’s game development resources.

Ireland is primed to be a video game development hub, so why hasn't it broken big?

Additionally, some developers express dissatisfaction with the level of support from the Irish government and organizations like the IDA. However, there is a growing sentiment that their concerns are being acknowledged. Elaine Reynolds, General Manager at Black Shamrock, articulated this feeling, stating that developers feel valued when seeking government endorsement. She expressed, “The fact that the IDA is participating in Nexus 2024, sponsoring this event, visiting our office, and even having someone on stage to address developers’ questions… I believe there is a great deal of backing there.

Denman Rooke, an artist who has worked with studios like Romero Games, DIGIT, and Wizards of The Coast at Studio Rucach, succinctly expressed that the Irish game development sector has been gradually expanding over the past decade. However, he noted a significant acceleration in the last five years, particularly due to the successes of larger studios such as DIGIT, Black Shamrock, and Romero Games. While there’s an abundance of creative talent in Ireland, Rooke highlighted a need for more support for small indigenous companies to establish themselves. Despite this challenge, he remains optimistic about the industry’s growth potential but emphasized that there’s much work to be done.

At the time of releasing this content, the IDA had not given a formal response. This was because their key personnel were reportedly unavailable to comment due to travel commitments.

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2024-12-17 23:35