While other American cities and states have been courting the video game industry with incentives and tax breaks in recent years, Philadelphia has largely stood on the sidelines.

But, as Philadelphia City Paper reports, a small team is hoping to change that equation by convincing government officials that encouraging video game development would prevent brain drain and bring jobs and tax dollars to the local economy.

The Videogame Growth Initiative Philadelphia recently pitched its case to state government officials at a meeting in the City of Brotherly Love. From the City Paper's coverage:

The group has two hours to convince representatives of state government that it's worth creating new incentives to lure video game companies to Philly... 

 

Philly might be an ideal city to take advantage of this opportunity. Currently, many video game studios are based out of Silicon Valley, Boston or New York. Philly's comparably low cost of living is attractive. What's more... Philly has... [at] the University of Pennsylvania... the only Ivy League game development program in the country, and graduates are routinely poached by large West Coast-based gaming companies...

There are, however, significant obstacles. The Pennsylvania legislature hasn't been able to reach agreement on a budget which should have been in place by July 1st. The city of Philadelphia itself is habitually in dire financial straits; earlier this week Mayor Michael Nutter warned that he may have to lay off more than a thousand cops and fire fighters.

While state officials suggested that the group try to push already-existing business incentives to entice video game firms, VGI member Hardik Bhatt, himself a developer, was skeptical:

That's still not enough, it's not like other cities don't have these kinds of incentives. I'm hoping it doesn't take a [video game] studio to look into the city and decide to go somewhere else for them to change their minds.

GP: As a Philly native, I pondered the same issue in a November, 2006 column for Joystiq...