Video Games Occupy Tax Sweet Spot

Video games have come a long way since Pong, growing into a multi-billion dollar industry that rivals, and even at certain points exceeds, other entertainment industries such as music and movies, according to Ars Technica, an online technology magazine. But part of what’s driving that growth, at least in the U.S., is the fact that gaming is among the most heavily subsidized industries in the country, receiving more tax assistance than medical research, urban development or green energy, according to the New York Times.

It’s not because the government is particularly interested in video games specifically. It’s that video games occupy a unique niche in the world of federal tax subsidies, said the Times.

A good number of tax breaks are industry-specific, but because video games straddle the line between many of these sectors, they qualify for more incentives than most others. Software developers get tax breaks; research and development gets tax breaks; the entertainment industry gets tax breaks; online retailers get tax breaks -- but video games qualify for them all, reported the Times.