In general tax breaks are bad under these circumstances, as the article pointed out along with tax breaks come a demand that the goverment be given an increasing say in what is produced. This leads to more censorship when we're already having trouble getting violence, and sexual content through the process unmolested. Not to mention the fact that attention-whoring nitwits are trying to bring racial issues into games and nearly EVERY game from Drakensang to Resident Evil 5 to Street Fighter IV has has at least a mild accusation of racism thrown at it in the last few years. Tax breaks of course means that the same overblown standards of political correctness that apply to other media (and oftentimes ruin it as many have criticized) will be applied to games.

Drakensang for example got the question about "where are all the black folks" in a game loosely based on ancient Germany... and this despite the prescence of an Arabic race of Spellcasters (playable). This leading to a discussion on at least one forum about "how dark someone needs to be to be black" and whether deep urban slang and an attitude is needed for it to not be a racist depiction. Detracting of course from any discussion about the game itself.

The goverment gets involved, and next thing you know we've got Fifty Cent stomping around the ancient world, firing his crossbow sideways "Gangsta style" despite the obvious implausible technique that would imply... Laugh if you want, and even think that the stereotype above is in it's own way racist. HOWEVER that is exactly where things are going to go with video game "affirmitive action" which is going to come about with goverment involvement at least in the US (and I can assume the same would apply in Europe if they adapted to the same standards).

As far as the industry succeeding, well it comes down to the fact that the corperate process has never been good at producing original works. That takes the "bedroom coders" so to speak. As more money is involved corperations are less likely to take risks, but the longer they keep spewing out the same stuff the more they need those risks to be taken. The problem is compounded when YESTERDAY's "bedroom coder", long since out of viable ideas, has an office and is defending his job against the young turks, and uses his reputation to turn out mediocre product after mediocre product with the company figuring "ahh well, he's breaking even, maybe genius will strike again".

Letting the current game companies fall is ultimatly good for the game industry. The demand will still be there, it will simply mean new companies will rise to replace them, with their own generation of "Bedroom programmers" providing the inspiration. Propping up the game industry just means more people buying the GRAQ/Unreal/Havoc engines, reskinning them, and turning out more and more derivitive crud.