French PM promises tax breaks for developers

The French Government has announced plans to introduce a tax credit system next year which is designed to bolster the country's publishers and developers, such as Ubisoft and Vivendi.

The move was announced by Prime Minister Dominique de Villepin, who described the system as "an intelligent tool" that will help to create new jobs within the French games industry.

Villepin said that the new system would be brought in as soon as possible. The French Ministry of Culture will put the plans before the European Commission later this week.

The announcement comes at the end of a year of ups and downs for the French videogaming industry. Whilst publishing giant Vivendi has performed well financially, others such as Infogrames have seen a fall in profits, and Ubisoft has had to face the possibility of a takeover bid by Electronic Arts. The new tax credit system can be seen as evidence of the French Government's commitment to keeping homegrown talent at home and ensuring that France remains a major player in the global gaming market.