<\/p>\n
Guha Bala, left, and his brother Karthik, who run video game development company Velan Studios in Troy.\u00a0<\/p>\n
Guha Bala<\/p>\n
A promotional image for the upcoming video game Grand Theft Auto VI, created by New York-based game studio Rockstar Games, projected to become\u00a0one of the biggest media releases of all time when it comes out this fall.\u00a0<\/p>\n
Rockstar Games <\/p>\n
Competitive video gamers from 16 Capitol Region area high schools\u00a0at the University at Albany Esports Arena during an event in 2024.(Lori Van Buren\/Times Union)\u00a0<\/p>\n
Lori Van Buren\/Times Union<\/p>\n
ALBANY\u00a0\u2014 This fall, a New York studio is expected to have the largest media release perhaps in the history of entertainment, with billions of dollars in projected sales. But it isn\u2019t the release of a blockbuster film, a hit television series or a Broadway musical.\u00a0<\/p>\n
<\/p>\n
It\u2019s the scheduled release of \u201cGrand Theft Auto VI\u201d, the latest installment of the popular video game series created by Rockstar Games, whose headquarters are located in New York City (as is the headquarters of its parent company, Take-Two Interactive). The release emphasizes both the economic and cultural powerhouse video games now represent\u00a0\u2014 and the need for the state to try to bring more of the industry to New York.\u00a0<\/p>\n
Article continues below this ad<\/p>\n
While gaming studios, including major ones like Rockstar, abound across the state, New York still lags behind other locations as a hub of game development, with most studios in the country based on the west coast around Silicon Valley, Los Angeles or Seattle. On the East Coast, New York also faces heavy competition from the Canadian province of Quebec and the city of Montreal, thanks to generous tax incentives that attract studios to establish footholds there.\u00a0<\/p>\n
\u201cThese are all metros that are have a level of talent density and density of companies,\u201d said Guha Bala, president of game development company\u00a0Velan Studios, located in Troy. \u201cSo, if a person wants to make video games, they can move there, have a family and not worry if one product doesn\u2019t work or one company doesn\u2019t work.\u201d\u00a0<\/p>\n
New York offers its own tax credit program for video game production, something it now plans on expanding in order to further bolster development.<\/p>\n
Empire State Development, the state\u2019s economic development agency, announced earlier this month that it was proposing an update to its Digital Gaming Media Production Tax Credit Program to allow companies to receive up to $5 million in tax credit for producing digital gaming products in the state. In order to qualify, gaming companies must have a minimum budget of $50,000 in development costs and 51% of all production costs must be paid in New York. Credits are only awarded after a game studio has published or shipped a finished product.\u00a0<\/p>\n
Article continues below this ad<\/p>\n
\u201cVideo game development is very expensive. These are high-paying roles, and game development is both a team-oriented process and also a lengthy process,\u201d said Jenn Hinton, director of games industry relations at the Rochester Institute of Technology, considered one of the top universities nationwide for game design. \u201cVideo games are in development for multiple years, so by having a credit associated with them, that can relieve some of the financial burden associated with the development of those games.\u201d\u00a0<\/p>\n
The tax credit is modeled after the state\u2019s Film Tax Credit Program, providing incentives for movie and television productions, types of media that have long been associated with New York\u2019s cultural output. But Hinton noted that video game production doesn\u2019t quite work the same way as film. \u00a0<\/p>\n
\u201cFilm and television is a pretty transient business. A feature film comes into town wherever that may be, the talent comes in and the crew comes in, and when they\u2019ve gotten all the shots that they need they leave,\u201d Hinton said. \u201cVideo game studios set up their roots. They\u2019re brick and mortar buildings, and the people that work there ideally become members of that community.\u201d\u00a0<\/p>\n
Outside of New York City, the Capital Region also serves as one of the main centers for video game production in the state. The video game company Blizzard, known for worldwide hit games like \u201cOverwatch\u201d and \u201cWorld of Warcraft,\u201d maintains a studio in Albany. At Velan Studios in Troy, Bala and his brother Karthik have worked with Nintendo to develop games in popular franchises like \u201cMario Kart\u201d and \u201cStar Fox.\u201d\u00a0<\/p>\n
Article continues below this ad<\/p>\n
Bala called the state\u2019s video game tax credit program a \u201cstep in the right direction,\u201d but said more needs to be done if New York wants to have the same kind of cultural clout with video games as it does with other forms of media.<\/p>\n
Video game studios like\u00a0Velan often rely on global labor supply chains, meaning certain aspects of work may be done outside of the state and even overseas. Having 51% of production costs, including wages and salaries for employees, required to be in New York to eligible for the tax credit might inhibit some studios from seeking it, Bala said.\u00a0<\/p>\n
\u201cIt\u2019s neither as extensive nor as accessible as other programs,\u201d he said. \u201cThere\u2019s some peculiarities of the program in New York that makes it harder for companies here to participate.\u201d<\/p>\n
Bala contrasted it with a game studio Velan runs in Toronto, which receives a 35% tax credit from the province of Ontario based on the number\u00a0of people in the region who worked on the product, rather than a percentage. He said more game developers would be inclined to enroll in the New York\u2019s tax credit program if it used a similar threshold.\u00a0<\/p>\n
Article continues below this ad<\/p>\n
Newsletter<\/p>\n
Sign up for the Capitol A.M. Roundup newsletter<\/p>\n
Get a free roundup of New York government and political news, delivered weekdays to your inbox.<\/p>\n