More than two-fifths of UK developers who lost their jobs between 2009 and 2011 relocated overseas, according to a report by UK trade association TIGA.
The report, "Making games in the UK today: a census of the UK developer and digital publishing sector," claims that the UK game industry workforce shrank by more than 10 per cent between 2008 and 2011. Of those that went overseas, the most popular destination was tax haven Canada, followed by the USA.
Bizarre Creations, the Liverpool-based developer of the Project Gotham Racing series shuttered by parent company Activision last year, was an alarming case in point. Thirty-five percent of those that lost their jobs went overseas, mainly to Canada, with an even higher proportion of senior staff choosing to relocate.
In a press release, TIGA CEO Dr Richard Wilson said the report was further evidence of the industry "brain drain," with swathes of talented developers training in the UK then moving to countries like Canada, which can offer higher salaries and more senior positions.
"Our industry is suffering from a serious brain drain," he said. "Our competitors in Canada and elsewhere are able to recruit highly skilled developers from the UK largely because they benefit from tax breaks, which effectively reduce the cost of game development.
"Tax breaks both stimulate job creation in the game sector and provide game businesses with significant financial resources which they can deploy to recruit staff."