Alberta losing out on investment in the video game industry, says tech sector – Calgary Herald

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Alberta has proven a poor player in grabbing investment in a booming video game sector, say some of those in the province’s tech industry.

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They point to a report issued Tuesday by the Entertainment Software Association of Canada (ESAC) showing Alberta – with 11 percent of the country’s population – has only 4 per cent of the jobs in a video game sector that’s boomed since the start of the COVID-19 pandemic with isolated people seeking diversion.

At the same time, 90 per cent of the field’s employment is spread between B.C., Ontario and Quebec, which host 80 per cent of video game companies serving an industry whose revenues have grown 23 per cent since 2019, says Scott Nye, president of Digital Alberta.

But he said it doesn’t have to be that way with an industry that now contributes $5.5 billion to the Canadian economy.

“The fact of the matter is that Alberta is losing to the rest of Canada, but the province is in a prime position to seize the opportunity of the booming video game sector,” said Scott Nye, President of Digital Alberta.

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“As part of the broader economic recovery and strategy to keep jobs in Alberta, we are encouraging the government to explore proven competitive incentives that are found in other thriving jurisdictions.”

While 88 software companies are located in Alberta, the province’s is being vastly out-paced by other provinces in attracting start-ups and studios, said Nye.

Alberta can turn that around by employing some of the government policies and incentives used by those other jurisdictions, he said.

“There is no reason we can’t be doing the same here in Alberta. It’s time we build upon the strong foundation we have of video game companies in the province,” said Nye.

If primed, the interactive digital media sector would help reduce the nearly 30 per cent vacancy rate in downtown Calgary’s office space, he said.

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On Monday, Premier Jason Kenney trumpeted what he called his government’s tech industry investment policy for helping convince Amazon Web Services to locate its second Canadian regional hub in Calgary, a commitment ultimately worth $4.3 billion.

Following that announcement came word Tuesday that California-based business accelerator Plug and Play LLC is setting up shop in Calgary.

But the NDP opposition has said the UCP government has hurt the province’s economic development and diversification by cutting nearly $700 million from post-secondary education and the elimination of the Alberta Investor Tax Credit that had been created by its NDP predecessor.

The party’s economic development and innovation critic Deron Bilous said Calgary and the province has been lagging behind others in tech investment well beyond the video games sector.

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“While other jurisdictions continue to set new records for investment, Alberta has stalled under the UCP government,” Bilous said late last month.

“Instead of being leaders, we’re laggards.”

Echoing Bilous’ views was ESAC CEO Jayson Hilchie, who said Alberta once showed promise in tapping into the video game windfall until the UCP government ditched the NDP tax credit.

A similar incentive currently offered to the film industry should apply to his sector, he said.

“I’ve never understood why the government is perfectly happy to provide tax incentives to the film but is saying we’re not worthy,” said Hilchie

Alberta’s lower corporate tax regime isn’t effective in attracting digital media investment as is the availability of talent and credit incentives, he said.

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The province does have work to do in enticing the video gaming sector to Alberta and is examining incentives that could be included in the government’s next budget Jobs, Economy and Innovation Minister Doug Schweitzer said Tuesday.

“We want to see if there’s further policy levers and one area we’re looking at is a second stream of the innovation employment grant,” he said.

“The work is still being developed.”

Nye said he’s happy to hear the province is considering new programs for his industry.

“That’s encouraging – we’ve had really good conversations with minister Schweitzer,” he said.

“With some of the advantages, Alberta has we don’t need really aggressive incentives, just something that’ll level the playing field.”

-with files from Chris Varcoe

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Twitter: @BillKaufmannjrn