Activision are considering moving their UK studio abroad after what they feel is a "terrible mistake" by the government.

Early last year the Labour government in the UK planned to introduce a video games industry tax break but after the Conservative and Liberal Democrat coalition government took power in May this plan was scrapped. Activision, who has a studio in Slough, is considering moving to a different country because of this decision.

Speaking to The Telegraph Bobby Kotick, Activision's chief executive, referred to the government's decision as "a terrible mistake". Mr. Kotick noted that the UK is full of talented developers but "there are so many other places that are encouraging the video games industry."

Activision are not the only ones who have criticised the coalition government's decision. TIGA, the UK trade body representing the industry, has frequently called for the tax breaks in order to help the UK industry grow.