People like to play games - maybe more so in tough times, and so despite various global economic challenges, the digital media and video game industries continue to thrive.
Over the past two years, Canada's gaming industry has expanded 11 per cent annually. Forecasts say ait will continue to grow, 17 per cent in each of the next two years.
Give credit to the creative talent base here. The high tech infrastructure. The training and incubation facilities.
And give credit to Federal and Ontario research and development tax credits, which are seen as giving the Canada the most favourable tax treatment among G-8 countries.
Ontario tech companies can apply the credits to cutting R&D expenditures by up to 63%, and so the province is one reason why Canada has passed the U.K. and is now the world's third largest centre for video-game development talent.
Canada trails only Japan and the United States, based on reports from the Ontario's so-called Technology Corridor.
In fact, executives from the OTC are regular players at major international events, such as GamesCom, the Game Developers Conference in Cologne, Germany.
They make a strong play to show global digital entertainment companies that Ontario is the best place in North America to expand or relocate their businesses.
GamesCom is a good place to do so - it's described as the world's largest game show, regularly drawing draw some 245,000 visitors, nearly 500 exhibitors, 4,600 journalists and dozens of new gaming releases.
Larry MacKinnon, Director of Business Development for Technology in London, ON and member of the Ontario Technology Corridor, is just back from GamesCom.
He underscored the economic impact of development activities there, noting that "Our job at GamesCom is to add to our tremendous home-grown crop of companies and help demonstrate that Ontario is a prime destination in North America for gaming investments. Ontario continues to offer the talent and the financial incentives that make this region such a strong part of the digital entertainment industry."
He describes the province's fast-growing entertainment and creative cluster as employing nearly 300,000 people, while contributing $12.2 billion to the province's GDP. In addition, OTC describes, 22 Ontario colleges and universities produce 18,000 graduates per year from174 specialized digital media programs including 3D animation, film studies, advanced computer programming, math, and hardware engineering.
Gaming and digital media graduates from Ontario colleges and universities have proven to be prized employees at companies like Pixar Animation Studios, Electronic Arts, Walt Disney and Microsoft. Companies like Ascension CrossMedia, Ubisoft, Drinkbox Studios, Fuel Industries and Magmic Games are proof that the digital media business is thriving right here in Ontario.
Last year alone, Ontario's gaming sector scored several big wins, attracting international companies here and helping home-grown companies reach out globally:
New York-based online flash games development company Arkadium has not only announced a move into mobile development, but a move to Toronto and the establishment of a new office tasked with focusing on the venture. Arkadium's new Toronto base - staffed locally, for the most part - has a total of 10 new titles destined for the mobile market in the next year, with its focus on HTML5, Android and iOS development.
Company executives said "key factors" in the move were assistance from the Ontario government and the Digital Media Tax Credit, plus help from the Greater Toronto Marketing Alliance.
Gameloft, the French company, is hiring more than 200 people for a new Toronto office and state-of-the-art gaming studio. The company also confirms the key role played by the provincial tax credit. The company's General Manager for Canada, Mario Poulin said, "We remain at the top of our game by partnering with jurisdictions like Ontario where there is a real interest backed by sound policies to make the gaming sector a strong contributor to the economy and the creation of jobs."
Gameloft reported a 15 per cent revenue growth in the first part of 2011.
Silicon Knights, the successful St. Catharines-based company is doubling its staff by adding 80 new jobs, based on its own investment and support from provincial tax credit programs.
SK was incorporated in July, 1992, and its first products were real-time strategy/action hybrids for the PC, Amiga and Atari.
The company has developed its game-based nonlinear storytelling since then, and has released action adventure and role-playing games (Silicon Knights' promotional 'action figure' pictured) for the Sony PlayStation, Microsoft Xbox 360, and Nintendo.
What's more, Morro is working with Silicon Knights as it expands its current visual effects operation in St. Catharines. Morro Canada is a sister firm to Morro Images of Germany, further underscoring OTC's presence at GamesCom.
Darius Basarab, Senior Business Development Specialist with the Ontario Ministry of Economic Development and Trade was also at GamesCom, said "Ontario is well positioned to compete with other jurisdictions who are trying to attract gaming firms and we have a lot to offer - that [was] one of my messages at the conference."
The Ontario Technology Corridor is supported by the Greater Toronto Marketing Alliance (GTMA), the Ottawa Centre for Regional Innovation (OCRI), Canada's Technology Triangle, the London Economic Development Corporation and the Niagara Economic Development Corporation.
Ontario's lead agency for provincial incentives in digital media is the Ontario Media Development Corporation (OMDC).