Video games get a Texas boost, too

New law to help state's film industry also includes incentives for game developers.

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By Lilly Rockwell
AMERICAN-STATESMAN STAFF
Friday, June 08, 2007

When Gov. Rick Perry signed into law Thursday a bill setting up $22 million in film incentives Thursday, he gave the video game industry a boost, too.

In a first for Texas, Perry also approved incentives for gaming companies, which have been overshadowed in the push to lure Hollywood productions.

"I feel very good about people beginning to appreciate the video game industry," said Bob Hudgins, the director of the Texas Film Commission, which will administer the incentive program. "It's an industry we want to foster and retain in the state, and acknowledging they are out there and the state is making an attempt to assist those companies is a major positive statement to the industry."

The grant gives up to 5 percent of the total in-state spending on a video or computer game project, capped at $250,000.

It's a lot smaller than the film grant, which goes up to $2 million per production, but Austin game companies say this is a huge first step.

"It may not be the most generous incentive, but at least it's something," Hudgins said.

Local game developers say this has more of a symbolic than financial impact.

"This is a great first step in trying to support developers who already are in the state of Texas or might consider developing projects in the state of Texas," said game developer Richard Garriott of Austin, the creator of the "Ultima" series of computer games.

Austin is a major player in game development and is home to about 1,100 such workers at about 50 companies. But just as film production companies have started looking to New Mexico and Louisiana, both of which have generous incentives, Texas has lost game companies over the past few years to other states and cities offering special deals.

The Texas Motion Picture Alliance, while emphasizing film incentives, helped get games included in the incentive program.

"Our industry doesn't have a very sophisticated lobbying process," Garriott said. "I do believe the legislators that have carried this through for us have done so in spite of the utter lack of lobbying."

The game industry has struggled to distance itself from the stereotype of a "Grand Theft Auto" game, which glorifies the gangster life and encourages players to shoot and kill police officers.

Game company Amaze Entertainment Inc., which has an office in downtown Austin, makes kid-friendly games for the hand-held device Nintendo DS.

"What we do is mass-market mainstream family-friendly stuff," Executive Director Rodney Gibbs said. The incentive program "is helping to overcome that stigma we still suffer from: 'Oh, games; that's shooting people.' That's just like saying all films are Quentin Tarantino films."

To appease some concerned legislators, the incentive program was structured to guard against paying companies that make violent games. The state will be allowed to pick and choose projects, eliminating those that have "inappropriate content" or are "obscene."

Game companies are left wondering which projects could be deemed "inappropriate."

Hudgins said his office is still "wrangling with" how to implement the new law. He said projects will be examined as a whole, and specific instances of violence or nudity do not mean a project won't be considered.

"My primary job is to bring projects to the state of Texas. I'm not going to be the 'no' guy," Hudgins said. "We are going to work very hard to make sure we are as accommodating as possible."

lrockwell@statesman.com; 445-3819

What is it?

A grant of up to 5 percent of the total in-state spending for a film, television, commercial or video game project.

This amount is capped at $2 million for a film, $2.5 million for a television program, $200,000 for a commercial or series of commercials and $250,000 for a 'digital interactive media project,' or game.

How to qualify:

1. For a film, commercial or video game project, 70 percent of the people working on it must be Texas residents. At least 80 percent of the project needs to be made in Texas.

2. For a film or television project, the amount of in-state spending should be at least $1 million. For a commercial or video game project, the in-state spending should be at least $100,000.

3. The project cannot be defined as 'obscene' under Texas law, a provision designed to rule out pornography. It also shouldn't have 'inappropriate content' or 'portray Texas or Texans in a negative fashion.'

How to apply:

1. Go to the Texas Film Commission Web site at www.texas filmcommission.com and click on 'incentives.'

To apply, a company must include an estimate of the total amount of in-state spending on the project and an estimated number of jobs it will produce. Also include a storyboard, script or game design document.

2. Also, submit an estimated budget, and once the project is completed, turn in receipts, invoices and pay orders that reflect the total amount of in-state spending that occurred.

Other states or countries that have incentive or tax credit programs for game companies: Florida, Louisiana, New Mexico and Canada.