BBCNews: By Rory Cellan Jones
A casual observer might think the UK games sector was in rude good health. After all, this is the country where the year's biggest blockbuster Grand Theft Auto IV was developed - even if the franchise is in foreign hands - and there are hordes of smart young games designers and developers competing to come up with the next big thing.
But according to the innovation quango NESTA (hard to find a better term for this non-governmental body), the picture is a lot gloomier.
Its report, Raising the Game, says Britain is going to slip from third to fifth in the global games developers league table, we haven't the skills we need, and studios and staff are heading to Canada to enjoy that country's generous tax breaks. The solution? Well I think NESTA is calling for similar tax breaks in the UK - but it's hard to be sure.