Chancellor George Osborne has announced long-awaited tax breaks for the games industry in today's budget.
The news comes on the same day that retailer Game announced it was preparing to appoint an administrator.
Osborne plans to introduce corporation tax relief from April 2013 for the video games, animation and television industries.
Richard Wilson, chief executive of video games industry trade body Tiga, welcomed the news.
"This is a brilliant decision by the Government and terrific news for the UK video games industry. It is also a decisive victory won by Tiga through audacity, determination and endurance," he said.
More after the break
The Chancellor said he wanted to make the UK the technology centre of Europe.