Ontario’s
digital gaming industry
Play to
WIN
Contents
Magical talent 2
Technology that lets you soar 7
R&D incentives dramatically cut costs 9
An ideal environment for work­and play 13
Note: Every effort has been made to
ensure the accuracy of the information
in this publication at the time of writing;
however, the programs referred to and
the data cited are subject to change.
All figures are in US dollars
unless otherwise noted.
Cdn $1.00 = US $0.882 (2006)
of the
Ontario – at the forefront
digital gaming revolution
To make great games you need creative minds, innovative technology,
financial expertise and a government that supports the industry.
Ontario has all that—in a positive investment climate.
That’s why premier developer/publishers like Capcom and Koei have
their North American production centres in Ontario. And it’s why
brilliant home-grown companies like Artech Studios, Magmic Games,
Silicon Knights, Digital Extremes, Pseudo Interactive and
March Entertainment are thriving here.
If you’re passionate about developing digital games, there’s no better
place to be than Ontario.
Come and grow your business here.
Fast fact:
The Greater Toronto Area (GTA) is
the third largest television, film
and digital media cluster in
North America.
P L A Y
T O
W I N
1
Spotlight on…
Capcom International
When video game giant Capcom established its first development and production facility outside Japan, it chose the
Greater Toronto Area (GTA). That’s because the GTA has everything the industry leader needs. “Toronto is a centre
for the North American entertainment industry,” says Midori Yuasa, president of Capcom International. “It gives us
access to a seemingly endless supply of young, skilled, entertainment-savvy people, thanks to its colleges and
universities. Ontario also offers relatively low business costs, exceptional R&D tax credits that you can’t find
anywhere else in the world and helpful economic development people to facilitate all aspects of business start-up.”
Capcom’s GTA facility, which opened in June 2006, is currently producing games for the mobile market, but, if all
goes according to plan, it will expand onto other platforms.
Magical talent
Talent is at the heart of digital game
development and production and
Ontario’s talent pool is second to
none. We’re recognized worldwide
for our superlative artists, designers,
animators and programmers.
Institutions like Sheridan College,
Seneca College, the University of
Ontario Institute of Technology, the
University of Toronto, McMaster
University and the University of
Waterloo are renowned. As are
specialty schools like the Ontario
College of Art & Design, the fourth
largest school of its kind in North
America and The Royal Conservatory
of Music. In fact, we have 44 topnotch colleges and universities with
2
P lay
to
win
thousands of students enrolled in
interactive digital media, fine art,
music, computer science and
programming.
Business in any language
We’re a multicultural society and
we do business in pretty well any
language—a definite advantage
when you’re creating games for the
global market. We also welcome
talent from abroad and make it easy
for companies to transfer key staff.
When needed, we can deliver work
visas within days.
Spotlight on…
Artech Studios
Artech Studios celebrated its 25th anniversary in 2007—and the Ottawa company had many reasons to celebrate.
With over 250 games on all formats, Artech’s clients include Hasbro, Disney, Atari, THQ, Warner Brothers, Sony,
Intel and Infogrames. Awarded Game of the Year twice by Billboard, Artech has also earned five Gold and
Platinum awards for million-selling titles. What has made this small company so successful? “Ontario is just a
great place to make games,” says director Paul Butler. “We’ve got awesome technical and artistic talent thanks
to our universities and colleges, great R&D tax credits, low business costs and an enviable quality of life that
keeps us here.”
“We’ve got awesome technical
and artistic talent...”
Fast fact:
Over the past five years nearly
every film nominated for a
special effects Oscar has used
technology developed in Ontario.
P L A Y
T O
W I N
3
Spotlight on…
Animation Arts Centre at Seneca College
Seneca’s Animation Arts Centre has built a reputation of working on innovative projects like the short
animated film “Ryan”, which won over 60 international awards, including the Oscar for Best Animated Short
in 2005. With Ontario’s growing gaming industry creating a demand for skilled modellers, texture artists,
animators, level builders/designers and game designers, Seneca has responded with two specialized programs:
a three-year diploma program in traditional animation with a digital animation specialty in year three that includes
a 3D Game Design stream and a one-year graduate certificate program in 3D Game Design. “Our students are
creative and they receive industry-leading training which is why they’re snapped up by gaming companies as
soon as they graduate,” says Laura Jo Gunter, dean of the faculty of information arts and technology.
Spotlight on…
University of Ontario Institute of Technology
To be successful in the fast-growing gaming sector, companies need artistic, technical and management and
business expertise. The University of Ontario Institute of Technology (UOIT) offers degree programs in all three
areas, making it unique in North America. “We pride ourselves on being a single source of talent,” says professor
Mark Green. In addition to its computer science and digital media programs, UOIT offers a Bachelor of Information
Technology, Game Development and Entrepreneurship. Operated through the faculty of business and information
technology, the four-year program was developed with industry input. It trains students in management and
business skills specific to the gaming sector, and ensures they get a thorough grounding in technical and artistic
gaming skills as well. “Our graduates know the industry inside and out,” says Green.
4
P L A Y
T O
W I N
Spotlight on…
Algoma University College
Aspiring computer game designers can now get a Master’s level degree in computer games technology at Algoma
University College in Sault Ste. Marie. The program, which was developed by the University of Abertay Dundee in
Scotland in 1997, runs for three semesters over 12 months. It includes two semesters of lectures and labs via
video-conferencing with faculty in Dundee, followed by a semester of team-based project work involving the design
and test of a prototype game. Students are also given an invaluable opportunity to meet with visiting experts from
the North American game development and publishing industry. “What makes our program unique is that it
offers real-world experience, with students acting as team leaders developing a game that’s ready to take to
publishers,” says Deborah Loosemore, director of advancement and external relations at the university.
“When the right career opportunity came along, I jumped at the chance
to move from San Francisco to Toronto. The talent pool here is expansive,
thanks to the innovative digital media programs offered by Ontario’s
colleges and universities. Passion is a cornerstone of the video game
industry—and Ontario has it in spades. With cities like Toronto providing
far more than just peace of mind and affordable living, my Ontario
experience has been one of exciting collaboration, celebrated creativity
and never-ending possibilities.”
Cord Smith, Director of Project Strategy
Pseudo Interactive
P lay
to
win
5
Spotlight on…
Side Effects Software
Digital game developers who want to achieve feature film quality don’t need to look any further than Side Effects
Software. For the past 20 years the Toronto-based company has been producing its award-winning Houdini 3D
software for clients that include Sony Pictures Imageworks, Disney Feature Animation, Digital Domain, C.O.R.E.
Digital Pictures and Framestore-CFC. It’s so leading edge that the Academy of Motion Pictures, Arts and Sciences
has twice honoured it for its contribution to “the art and science of making motion pictures.” With artist-friendly
Houdini 9 set for release, Side Effects is expanding its market to include boutique animation studios and game
developers. “We’re constantly pushing the envelope,” says president, Kim Davidson. “And it’s thanks to the
exceptional programming talent coming out of Ontario’s universities, amazing R&D tax credits and access to a
strong computer gaming community in Toronto.”
Spotlight on…
Motion capture facility
With the demand for motion capture capability growing in the gaming industry, Seneca College, in partnership with
Fast Motion Studios, recently opened a new, state-of-the-art facility. The new complex is 745 square metres (8,000
square feet) in total, with the capture studio area taking up 230+ square metres (2,500+ square feet). The studio
includes a 20-camera VICON system, which can perform single and multiple body, facial, and single and multiple
prop motion capture. At two stories high, it can accommodate Hong Kong style wirework, as well as other action
stunts such as simulated car crashes, and it includes a data clean-up facility. “Ours is the largest independent
motion capture studio in Eastern Canada,” says Mark Jones, program coordinator at Seneca’s Animation Arts
Centre. “It’s used for education, research and industry production.”
6
P lay
to
win
Technology that lets
you soar
With games constantly pushing the
boundaries of innovation, game
developers rely on the latest in
technology—and Ontario has it.
State-of-the-art enhanced optical fibre
and access to broadband is widespread.
We have full disaster recovery, business
continuity services and 24/7 technical
support—and with a choice of carriers,
costs are highly competitive.
Oscar-winning software
Then there’s our 3D software
capability; we excel at it as well.
You’ll find both Side Effects Software
(known for Houdini) and AutoDesk
(known for Maya) in Toronto—
because that’s where they began.
And they’re constantly evolving
and producing new technologies
and techniques.
As for hardware, AMD (which acquired
world-leading Toronto-based ATI
Technologies) is behind the latest
graphics processors and motherboard
chipsets that deliver essential quality,
features and high-end graphics
performance.
We also have a comprehensive
motion capture complex. A partnership between Fast Motion Studios
and Seneca College, it offers 230+
square metres (2,500+ square feet) of
studio space and everything you
could possibly want, including a
VICON optical camera system, stunt
fly rig/traveler system, green screen
and an in-house action and stunt
team, making it one of the most
advanced facilities of its kind.
Fast fact:
Ontario’s digital media industry
generates annual revenues of
more than $1 billion—and is
growing fast.
We’re also leaders in wireless
communications. Ontario’s Tira
Wireless, for example, is a premier
provider of porting technology for
the mobile game sector. The CDMA
Development Group (an international
consortium of 217 commercial
operators across 95 countries) was
so impressed with Tira’s technology
it awarded the Toronto company its
3G CDMA Industry Achievement
Award for Innovative Entertainment
Technology.
New complex boasts North
America’s biggest sound stage
FILMPORT, Toronto’s new media
complex, is scheduled to open in
2008. It will offer 51,000 square
metres (550,000 square feet) of film
and television production facilities,
including 14 state-of-the-art sound
stages, one of which, at 4,200 square
metres (45,000 square feet) will be the
largest sound stage in North America.
P L A Y
T O
W I N
7
Spotlight on…
Courage Capital
“The digital gaming sector in Ontario is exploding and there are extraordinary returns to be made by investors,”
says Bob Shoniker, president of Courage Capital. “It’s the right sector to be in, the right location and the right time.”
Shoniker knows what he’s talking about. His company has secured more than $400 million and specializes in
helping entrepreneurs—including game developers and producers—develop their companies. Courage Capital
provides the financial market advice and expertise that growing companies need to build shareholder value. What
makes Ontario gaming companies so attractive to investors? “The intellectual capital of Ontario’s game developers is
unparalleled,” says Shoniker. “Ontario also offers lower production costs and proximity to major publishers and the
huge U.S. gaming market.”
“It’s the right sector to be in,
the right location and the
right time.”
Fast fact:
Ontario’s R&D tax credits and
digital media incentives can cut
R&D costs by more than 60%.
8
P lay
to
win
R&D incentives
dramatically
cut costs
The Ontario government is providing
games producers with some powerful
financial incentives.
Media Tax Credit (OIDMTC) refunds
30% of the costs of labour, marketing
and distribution for games created in
Ontario—and there’s no per project or
annual corporate limit on the amount
that can be claimed.
To start, we have the most generous
R&D tax credits of any G7 country.
In fact, the combined federal and provincial tax incentives can cut the cost
of $100 in R&D to less than $44.
The Ontario Computer Animation and
Special Effects (OCASE) Tax Credit
refunds 20% of the labour costs for
computer animation and special
effects activities and is in addition
to the OIDMTC.
We also have programs targeted at
helping digital games producers cut
costs. The Ontario Interactive Digital
The Sound Recording Tax Credit
refunds 20% of production and
marketing costs of sound recording.
And if you work with a university
or college, you may be eligible for
another 20% refundable tax credit
on your production expenses.
Tax credits significantly lower R&D costs
Notes:
1Medium-sized companies have
taxable income of less than
$400,000 and taxable capital of
less than $50 million.
2Eligible Ontario research institutes
include universities, colleges of
applied arts and technology,
research hospitals and other
entities in Ontario.
3The 10% refundable Ontario
Innovation Tax Credit (OITC).
4The 20% refundable Ontario
Business-Research Institute Tax
Credit (OBRITC).
5Tax rates for non-manufacturers:
Federal 22.12% plus Ontario
14.0% = Total 36.12%
“We’re constantly pushing the
envelope, thanks to amazing
R&D tax credits...”
Targeted incentives for
hiring and training
We also provide incentives for hiring
and training students from Ontario
universities and colleges. These
include cash-back incentives or tax
refunds for student salaries. Not only
does this save you money, it’s an
excellent way to evaluate potential
new hires.
Game prototype initiative
Established game producers can
also take advantage of Ontario’s new
Video Game Prototype Initiative. It
provides a repayable contribution of
up to $500,000 (Cdn) to help developers create a market-ready game.
All these incentives are available for
game developers and outsource
providers based in Ontario.
And finally, we have venture capital
companies that are experienced in
digital game development and
production.
P L A Y
T O
W I N
9
Spotlight on…
March Entertainment
Northern Ontario has everything gaming companies need to succeed—as March Entertainment has discovered.
The award-winning television producer moved its head office to Sudbury in 2003, attracted, in part, by financial
incentives, including the Emerging Technology Program. March’s 10,000 square foot production facility is wired
with the latest in fibre optic cable, necessary for the production of its highly popular web and wireless games,
which began as spin-offs of its television properties. Games like Chilly Beach Beach Hunt and Dex Hamilton.com
are played in 90 countries—and counting. “We’ve been successful because we’ve been able to attract top-notch
creative people who want to be part of a team developing original content and live the good life in northern Ontario,”
says vice president of business development Sandra MacLeod.
“We’ve been successful
because we’ve been able
to attract top-notch
creative people...”
Fast fact:
In a recent study conducted
by IBM’s Global Business
Services, Ontario’s capital
Toronto ranks first as a digital
media location, ahead of
world-leading locations:
Boston, San Jose, Washington,
DC, Frankfurt, Manchester, and
Bangalore. Toronto received
high marks for its strong base
of creative industries, large
pool of computer programmers
and creative talent, and its
attractiveness as a place
to live.
10
P L A Y
T O
W I N
Spotlight on…
Magmic
When Magmic started in 2002 its goal was clear: to become a major producer and publisher of mobile
entertainment. Today, the Ottawa company is Canada’s top independent publisher and among the top 12
publishers in North America. With a growing list of popular titles, it’s on its way up. Games like Texas Hold ‘em
King 2, Battlestations 1942, Miner 2049er and Ka-Glom are available worldwide for handsets that include
Blackberry, J2ME, Brew and Sidekick. “Ottawa is a great place to create games,” says Phil Giroux, a partner
at Magmic. “There’s an entrepreneurial spirit here that’s backed up with a wealth of talent, both in terms of
programming and management. Ottawa also offers a wonderful lifestyle that appeals to people who like to be
challenged at work but want to enjoy themselves when the day is done.” He adds, “Being so multicultural
helps us appeal to different audiences.”
“Being so multicultural
helps us appeal to
different audiences.”
P lay
to
win
11
Spotlight on…
Tira Wireless
Toronto-based Tira Wireless bills itself as the premier provider of porting technology for the mobile content market.
Industry leaders like Disney Mobile, Sony Pictures Mobile, Sega Mobile, Warner Brothers and Capcom agree.
Tira’s proprietary technology, called Tira Jump, makes it possible for mobile publishers, operators and developers
to bring quality mobile content to the world-wide market quickly and economically. It’s a remarkable achievement
in a marketplace that’s exploding. How did Tira do it? “Ontario has vibrant and innovative software and wireless
industries, a strong venture capital community and a steady supply of creative and skilled workers coming out of
its universities and colleges,” says Tony de la Lama, Tira’s senior vice president of product management
and marketing.
Spider-Man, the Character: TM & © 2007 Marvel Characters, Inc. Spider-Man 3, the movie: © 2007 Columbia Pictures Industries Inc.
All rights reserved. Portions of Spider-Man 3, the mobile action game are © 2007 Sony Online Entertainment LLC. SOE and the SOE logo
are registered trademarks of Sony Online Entertainment LLC. All rights reserved.
“Ontario has vibrant and
innovative software and
wireless industries...”
12
P L A Y
T O
W I N
An ideal environment
for work and play
In addition to providing powerful
R&D tax credits and digital media
incentives, Ontario offers other
significant financial benefits.
Employee salaries are significantly
lower than in the U.S. For example,
the average annual income for a 3D
animator with four years experience in
Toronto is $43,625 compared to
$58,835 in New York, NY or $58,981
in San Jose, CA.
Business taxes are also lower. In fact,
payroll taxes are 40-60% lower than in
the U.S. When it comes to health care
costs, employers pay about half what
they are in the U.S., thanks to our
publicly funded health care system.
And according to recent studies, our
system provides care that is as
good or better than privately funded
health care.
Get your business going quickly
We know that companies want to get
on with growing their business, so we
make it possible for them to get up
and running quickly. The necessary
infrastructure—telecom, broadband,
buildings—is already in place. And our
regulatory systems are streamlined.
Business start-ups in Ontario require
just two simple steps, compared to
as many as 20 in other industrialized
countries.
Telephone, email and conference call
communication is effortless and five
international airports (Toronto, Ottawa,
Hamilton, London and Thunder Bay)
enable smooth, quick on-site
meetings.
And of course we welcome foreign
investment, as companies from the
U.S. and Japan have discovered.
And after work…
Canada has the best overall quality of
life among the G7 countries and the
cost of living in Toronto and Ottawa is
subtantially lower than in New York
City, Los Angeles and San Francisco.
We have top-class public school
and post-secondary institutions
and as one of the most multicultural
societies anywhere, no matter where
you’re from, we’ll make you feel
right at home.
The choice of leisure pursuits is
endless. Ontario offers everything
from sophisticated nightlife to
relaxed cottage living.
Bottom line? If you’re not already making games
here, you probably should be. There’s no better
place in the world for game development
and production.
Proximity to major publishers
and developers
We operate on Eastern Time, which
means no more than a three-hour
time difference with the North
American west coast and provides
an evening overlap with Asia.
P L A Y
T O
W I N
13
Spotlight on…
Koei Canada
For worldwide game developer and publisher Koei, choosing a site for its overseas production facility came down
to one thing: talent. The Yokohama, Japan-based company headed straight for Toronto. “Toronto is famous for its
computer graphics and gaming talent,” says Hidenori Taniguichi, Koei Canada’s senior vice president. “The fact that
it’s so multicultural is also an advantage when, like us, you’re developing games for the world market.” Adding to
Toronto’s attraction: costs are reasonable, the city offers access to both the North American and European markets
and a lifestyle Koei’s Japanese and Canadian staff enjoy. And transferring key staff from Japan has also proved to be
easy. Koei Canada set up shop in 2001, expanded in 2005 and has plans for future growth following the release of
its first in-house productions in 2007.
“Transferring key staff
from Japan also proved
to be easy...”
Fast fact:
Ontario is politically and
economically stable and offers
virtually the same security,
privacy and intellectual
property protection as in
the U.S.
14
P L A Y
T O
W I N
Spotlight on…
Silicon Knights
Silicon Knights may not be a household name, but its video games are wildly popular with millions of people in North
America, Europe and Asia. Since its inception in the late 1980s, the St. Catharines Ontario-based company has
been developing and producing groundbreaking action/adventure, science fiction and horror games for the world’s
top publishers, including Sega, Microsoft and Nintendo. How has Silicon Knights created a successful niche for
itself? “In our business it all comes down to creative talent,” says Denis Dyack, president and co-founder. “We have
brilliant writers, artists, programmers and game designers, all graduates of Ontario colleges and universities. And St.
Catharines provides a quality of life that’s second to none which enables us to recruit and keep our talent.”
P lay
to
W in
15
Spotlight on…
Digital Extremes
Digital Extremes got its foothold in the digital gaming industry in the shareware craze of the early 1990s, when
companies released a level or two of a game to encourage players to buy the whole thing. Founder James Schmalz
created Epic Pinball, which became one of the most successful shareware games ever. Today, the award-winning
London, Ontario-based company sets the standard for “first-person” action games. Its successful Unreal franchise
(co-created with Epic Games) has sold more than 9 million copies worldwide and the company predicts its
upcoming title, Dark Sector, will take the gaming world by storm. “Digital gaming relies on talent,” says Schmalz.
“We’re able to hire the best from Ontario and abroad—and keep them—because of our reputation for creating
top-quality games and an amazing work environment.”
“We’re able to hire the best
from Ontario and abroad...”
16
P L A Y
T O
W I N
We can help
If you want to establish a company or satellite studio or
partner with an existing company, we can help.
Call: 1
-800-819-8701 (North America)
00-800-46-68-27-46 (U.K. and Europe)
Email: [email protected]
Or visit us at: www.investandtradeontario.com
Special thanks to the following
organizations for providing photographs
Algoma University College
Artech Studios
Capcom USA
Digital Extremes
Groove Games
Koei Canada
Magmic Games
March Entertainment
Pseudo Interactive
Seneca College
Side Effects Software
Silicon Knights
Tira Wireless
University of Ontario Institute of Technology
For more information about investing in Ontario,
please visit our website:
www.investandtradeontario.com
There’s no better place in the world to do business.
1-800-819-8701 (North America)
00-800-46-68-27-46 (U.K. and Europe)
Ontario Investment and Trade Services
BCE Place
TD Canada Trust Tower, Suite 4040, 161 Bay Street
Toronto, Ontario, M5J 2S1 CANADA
Tel: 416-360-4647
Fax: 416-360-1817
e-mail: [email protected]
Printed in Ontario on recycled paper
© Queen’s Printer for Ontario, 2007
365-ENG/10/07