UK secretary of state for culture Jeremy Hunt says the UK government should up its game by offering the games industry the same kinds of incentives as Canada does.
"We need to offer the video game industry a package as financially competitive as Canada," the Conservative MP told The Guardian.
The publication reported that Canada's aggressive incentive scheme saw local industry grow by 33 percent between 2008 and 2010, while the UK, a traditionally strong home for development, dropped by nine percent.
Hunt said he wasn't certain tax breaks awarded to the industry in the recent budget were the right solution.
"We need to diversify our economy, replicate some of the success of the City ... with the right regulatory framework", he offered.
UK industry body Tiga called for a more rigorous incentives package prior to the budget announcement, but failed to secure more than an increase in tax breaks.
The Chancellor of the Exchequer promised to increase research and development tax credits by 200 percent from April, and again by 225 percent in 2012.