The Press

Game over for $20m studio in Dunedin?

Awrangle with Immigratio­nNewZealan­d could force a Kiwigamede­veloper tomovehis $ Dunedin studio offshore. HAMISH McNEILLY reports.

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High-profile gaming developer Dean Hall was shaking hands with the CEO of Microsoft, just as Immigratio­n New Zealand contacted his company asking if it was financiall­y viable.

The creator of DayZ, a zombie survival game that has sold more than 3 million copies and made more than $137.7m, had been planning a $20m gaming studio in Dunedin.

After months of wrangling with Immigratio­n NZ, Hall may now base that business offshore.

The department recommende­d he pay migrant software developers around $60,000, which he argued was way above what the industry was paying in New Zealand.

Hall, frustrated by his treatment, has written an open letter to Immigratio­n New Zealand imploring them ‘‘to stop wasting the time of me and my staff and make a decision’’.

‘‘In selecting erroneous data, you are demanding that we either provide preferenti­al benefits to overseas graduates or that we alter all graduate employee positions,’’ he said in the letter. ‘‘That means either you are forcing us to give overseas graduates more or you are fixing industry prices.’’

A spokespers­on for Immigratio­n NZ said there was no suggestion migrants should be paid more than New Zealanders.

‘‘Anyone working in such a skilled position, with the qualificat­ions and/or experience that such a position requires, should be paid more than $35,000 – the salary that Mr Hall is proposing to pay workers in this case.’’

Immigratio­n New Zealand was assessing all the informatio­n submitted in support of Hall’s request before making a final decision, the spokespers­on said.

Even if Immigratio­n NZ backtracke­d on its stance, it may have come too late for Hall. ‘‘I’m still hopeful that in the future I can make my dreams of a Dunedin mecca for graduates – of all countries – come true. But I suspect without a serious change in government attitudes I’ll pass.’’

In comparison, the United Kingdom had been proactive in trying to get his company Rocketwerk­s to be based in London. ‘‘[The UK Government] is pulling out all stops to attract video game companies because of the tremendous opportunit­y the industry provides.’’

Hall said video games were worth more than the film and music industry combined, and the ‘‘New Zealand Government are bending over backward for both of those – where are video games?’’

‘‘Ultimately, I don’t think this is about blame so much as frustratio­n because I know how good it can be. I just want the politician­s, and New Zealand, to see just how much opportunit­y is out there to make video games.’’

In addition to his 30-strong team in London, Hall has six people working on a small-scale project in Dunedin and had wanted to increase that to around 30 before creating a Queenstown-based studio with similar numbers.

He said he had been planning and negotiatin­g to upscale the Dunedin studio as a place where ‘‘great graduates can go for their first video game job; leveraging Dunedin’s low cost of living, vibrant student life, and great facilities’’.

To overcome obstacles, such as chronic labour shortages, he was hoping to supplement New Zealand graduates with overseas graduates.

However, after receiving support from Work and Income, which noted the difficulty in finding local candidates, the search for internatio­nal candidates reached a stumbling block when Immigratio­n NZ rejected an applicatio­n because they did not feel a job offer to one of those graduates was genuine.

Hall described the ‘‘surreal moment’’ when attending a Microsoft press conference following the announceme­nt of his new project, ION.

He had just shaken hands with the Microsoft CEO when his company received an email from Immigratio­n New Zealand asking whether his company was financiall­y viable. ‘‘In the end, I got so desperate I asked the bank to provide Immigratio­n with details of all my accounts and the money available to me locally. I felt this was outrageous but by that time we had really run out of options.’’

On May 23, Hall made a complaint to Immigratio­n Minister Michael Woodhouse – a Dunedinbas­ed MP.

On July 6, Woodhouse replied that a remunerati­on report from Careers New Zealand stated lower quartile salaries for software developers was $60,000, not the $35,000 plus bonuses Hall was offering.

Hall said the Woodhouse’s specified salary levels ‘‘have no representa­tion in reality’’.

‘‘It really makes me wonder how a Dunedin MP could be so out of touch with what a large portion of his own constituen­ts are earning.’’

Woodhouse was not in a position to respond before deadline.

A letter of support from the New Zealand Gaming Developers Associatio­n (NZGDA) revealed a graduate with a tertiary game programmin­g or computer science degree could expect to receive a starting salary of $35,00-$45,000.

The associatio­n also noted that Hall was a ‘‘high-profile, internatio­nally acclaimed and successful game developer now reinvestin­g in his homeland’’.

Hall, with the support of Dunedin South MP Clare Curran, the Dunedin City Council, and the NZGDA, applied for ‘‘approval in principle’’ from Immigratio­n New Zealand.

At present, Immigratio­n New Zealand said it would accept the company’s approval in principle, if it paid the applicants $2500 more a year.

Hall said part of the problem was Immigratio­n New Zealand was fixated on salary, while his focus was on graduates. ‘‘Whatever salaries that are offered, my golden principle is that any one internatio­nal graduate we recruit should be paid the same as what our New Zealand graduates are paid. Immigratio­n simply seem like they fail to grasp how important this is.’’

The video game industry was not after handouts or tax breaks, but it wanted the Government to recognise how much money was in the industry and what that potential meant for New Zealand, he said.

‘‘If we really want to break out of our reliance on agricultur­e then let’s see some real commitment from the Government to video games. My last game has generated over $100m – that’s one game. That’s $30m tax revenue that could have been here if the game could have been made here,’’ Hall said. ‘‘Imagine what tax revenue would have been here if I could have done my future big projects here. And I’m just one person, there are plenty of talented studios in New Zealand with amazing ideas.’’

 ??  ?? Zombie survival horrorgame DayZ has sold more than 3 million copies and made more than $137.7 million worldwide.
Zombie survival horrorgame DayZ has sold more than 3 million copies and made more than $137.7 million worldwide.
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