The growing number of governments offering tax incentives to videogame developers is increasingly making the UK look like an inhospitable environment for games production, according to trade body Tiga.

Following last week's news that Georgia’s state government had signed new legislation allowing entertainment industry production studios up to 30 percent tax breaks, Tiga CEO Richard Wilson (pictured) has called on the UK government to introduce a more favorable taxation system in order to encourage greater domestic videogame production.

“Georgia’s introduction of games development tax breaks illustrates once again that other state and national governments are competing to create the most hospitable environment for games production,” said Wilson.

“If the UK Government wants to see a thriving video games industry in this country, then it must create a more favorable taxation system, keep the regulatory burden on business relatively light and work to increase the supply of suitably qualified graduates.

“The UK games development sector continues to be a world beating industry, but we cannot afford to ignore the heavily subsidized competition. The playing field continues to be tipped against UK games developers. Our position as a leading player in the development of videogames is at stake.”