First banks, and now the games - a new report by the National Endowment for Science, Technology and the Arts suggesting that the games industry needs a little help from the government, as Britain slides two places in the world rankings.

Once ranked the third most important game nation behind the and Japan, NESTA now expects the UK to slide to fifth, the new report noting a lack of funding, skills, development and big-name UK publishers.

"UK videogames producers are recognised to be amongst the most innovative in the world. Our recommendations offer ways that the Government can boost the power of this sector so that we maintain our strong global position," explains Jonathan Kestenbaum.

"The generous tax breaks on offer from other countries are resulting in a mass exodus of some of the best talent in the UK. In order to put a halt to this, the UK needs to wake up to the value in this sector and beat these foreign incentives with our own supportive measures."

Thanks GI.biz.

By Luke Guttridge