Ontario gov invests $4 million in gamecos

Ontario continues to extend open arms to the gaming industry, announcing Thursday that its industry tax credits program has helped lure two new companies to the province.

International mobile/social game publisher Gameloft is set to open a new office in Toronto, and Canadian game developer Silicon Knights has confirmed it is expanding its production capabilities and adding 80 new jobs to its facility in St. Catherines. Gameloft’s arrival adds 205 new jobs.

The total investment amounts to about $83 million: Gameloft has invested roughly $45 million, with $2 million of that coming from the government, according to Minister of Economic Development and Trade Sandra Pupatello, and Silicon Knights is investing $38 million, including $2 million from the government as well.

Not only will the money create another 80 jobs, it will retain 97 existing positions and will also go towards developing the gameco’s 3D game development engine.

“Silicon Knights is looking towards self-publishing and this new technology will allow them to do that,” explains Pupatello. “That means a lot in terms of IP, who controls it and where the bulk of the money stays.”

She notes that both companies are providing heavy post-secondary support, a key focus for the government.

“Talking about the next generation is important to us,” she says. “We know they’re getting great grads from our academic institutions. (The industry) changes so dramatically that if we’re going to be investing, we want the return to be long-term.”

Pictured: Silicon Knights’s Too Human