Bacta has released survey results indicating that a proposed rise in Machine Games Duty would force multiple companies to shut down operations. The findings also project widespread job reductions and a halt in sector investment.
The research gathered data from industry members to assess the financial effects of the proposed duty adjustment. Respondents indicated that elevated operational costs would narrow profit margins, limiting expansion plans for several studios. The membership data highlights a direct correlation between the MGD rate change and reduced liquidity for development teams.
Projected Market Consequences
According to the survey, the MGD increase would initiate a market consolidation phase. Smaller developers face potential closure, while larger entities plan to pause recruitment and delay new project funding. The data shows that capital allocation will shift toward operational maintenance rather than new development.
Bacta compiled these findings to outline the expected structural changes across the industry.