TROY, N.Y. — Troy’s Velan Studios is a major player in the gaming industry. They’re responsible for producing such popular games as Knockout City and Mario Kart Live. They’re also part of a rapidly growing sector that saw the video game market size hit an all-time industry high of $85.86 billion in 2021.
The number of employees has also ballooned to more than 273,000 last year in the United States. In an effort to maintain a competitive edge and attract talent to the Capital Region, founders Guha, and Karthik Bala gathered with legislators in Troy this week to urge Gov. Kathy Hochul to include the funding of a $20 million Empire State Digital Gaming Production Credit.
State Assemblymember John T. McDonald III, D-Cohoes, joined with Senator Neil Breslin, D-Bethlehem, and Assemblymember Carrie Woerner, D-Round Lake, to make the push to invest in growing the industry and keeping top talent right here in our own backyard. It’s an effort to remain competitive with states such as California and Texas.
The legislation proposed by McDonald and Breslin would also establish a Diversity Job Training Fund, akin to what is established for the Empire State Film Tax Credit, to recruit, hire, promote, retain, develop and train a diverse and inclusive workforce.
“I have carried the legislation to establish the Digital Gaming Production Credit because I do not want New York to be left behind in what is an ever-growing industry that has been proven to provide economic dividends when the seed is planted for growth.,” McDonald said. “Also, I have seen first-hand how companies such as Velan Studios and other local gaming companies have positively impacted our communities, through investment that has led to growth in our neighborhoods and in our workforce.
“Companies such as Velan will continue to grow and we can capitalize on this credit to spur additional investment. I thank Speaker Heastie for including this funding in the NYS Assembly one-house budget proposal and I will continue to work to make it a reality in the final enacted budget.”
“The Empire State Digital Gaming Credit would be a game-changer for the Capital Region. I applaud the NYS Senate and Assembly for including this credit in their One House budget proposals, and I will work to ensure it remains in the final budget. The video game industry is a billion-dollar industry, and New York State needs to take advantage of the role it can play in continuing to cultivate its growth,” Breslin remarked on growing the gaming industry here.
“Digital Game development is a fast-growing and nascent industry in New York and particularly the Capital Region. From Troy to Saratoga Springs, companies in this sector are growing and thriving. Our colleges, universities, and even high school programs are producing a talented and skilled workforce for this industry and we want them to build their career here in New York. The Digital Gaming Tax Credit will serve to accelerate the growth of this industry by attracting additional private investment in game companies, building on the region’s success to enable us to compete effectively against other states for these investments,” Woerner noted on the solid pipeline for accumulating and retaining talent here in the Capital Region.
“With the rise of remote work, it is harder than ever to relocate talent into New York state. Moreover, growing companies in New York are increasingly investing elsewhere. The Empire State Digital Gaming Production Credit will immediately help Velan invest in New York jobs in our downtown communities,” Guha Bala, President of Velan Studios, said, in the importance of keeping and adding talent to the area.
“This tax incentive will make New York state a premier location for video games companies to expand and relocate,” Steven Flenory, Studio Head, WB Games New York, Subsidiary of Warner Bros, remarked on helping local gaming studios remain competitive in a global industry.
“New York has an opportunity to play a leading role in the global gaming industry. This bill gives us the opportunity to attract new companies to what is already a growing sector, as well as foster more entrepreneurs from experts already in the region,” Brian Corrigan, Co-Founder MadGlory Games, VP and Head of Americas of Krafton, added.
Center for Economic Growth Chief Economic Development Officer Katie Newcombe also spoke to the importance of making the Capital District attractive to prospective talent.
“New York’s Capital Region is home to a dynamic and growing digital gaming cluster that includes 24 studios with more than 500 workers. We have a built-in pipeline of talent from local colleges and universities, and developers here are making some of the world’s most popular games and driving innovation in the areas of AI, augmented reality, and simulation. CEG works with its academic, industry, regional, and state partners to market the Capital Region as a location-of-choice for investment, and the Empire State Digital Gaming Production Credit is a critical tool for the region to compete and rapidly accelerate the industry’s growth here in New York,” Newcombe explained.
Annmarie Lanesey, Founder and CEO of CanCode Communities remarked on the essential need to make technology investments to keep pace with the industry.
“The rapid growth of the video game industry, along with the wider innovation economy, demands the presence of a highly-skilled tech workforce,” Lanesey said.
“Investing in technology education and training, particularly for underrepresented individuals who have aptitude and passion but lack resources, helps to build a diverse talent pipeline that enables careers, enhances businesses, and enriches communities,” Lanesey explained.
Andrew Russell, SUNY Polytechnic Institute Dean of the College of Arts and Sciences, echoed those sentiments and commented on the importance of forging that homegrown pipeline of talent.
“This is an exciting day to see academic and industry partners come together to show support for this thriving sector that promises exciting opportunities for students to pursue meaningful careers. This effort dovetails with SUNY Poly’s growing Interactive Media and Game Design program where we teach a variety of skills and tools that are critical for success in digital media production. We are proud to facilitate affordability and access to build a diverse and robust pipeline of talented people who can transition directly to industry,” Russell explained.
“Our students represent the future talent of the video game industry, an industry that must continue to work collaboratively to achieve greater diversity,” Jennifer Hinton, Associate Director, RIT MAGIC Center stated.
“We have a unique opportunity to ensure that the next generation of content creators better represents the diverse communities of content consumers. RIT remains committed to maintaining a leadership role in this effort,” Hinton added.
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