Video game company gets $4-million boost

Local company Silicon Knights is getting nearly $4 million in federal money to create a new video game, leaving community leaders gushing the region is one step closing to being a gaming capital.

The St. Catharines company will use the money to create a new high-end game for multiple platforms and will immediately create 65 additional jobs.

"This is going to benefit Silicon Knights in ways that are profound and long-lasting," said company president Denis Dyack.

The announcement was made Friday by MP Rick Dykstra at the company's offices at 1 St. Paul Street in downtown St. Catharines.

Dyack said there are only a handful of developers worldwide making AAA products, or top tier titles. The company is hush hush about its new project, which will take an estimated two to five years to develop.

"In our industry, you have to be very careful never to announce anything until the right time. We can only say it's a next generation title and a high production value game," Dyack said. "That's all we can say."

Dyack expected the project will create other jobs in the future.

"We are blown away and we're happy with the support we're getting," he said. "It is something that couldn't have come at a better time."

Silicon Knights, which has over 100 employees, released the Xbox 360 game Too Human in 2008.

Dyack said his company competes in a $55 billion industry and growth in the sector is good for the community, Ontario and Canada.

While a lot of businesses are being outsourced, video games are here to stay for the long-term, he said.

Silicon Knights is a shining example of the kinds of innovative companies that are already in Niagara, Dykstra said.

"Their growth and their success is very important to our community," Dykstra said. "Not only in terms of job creation but also in terms of attracting and retaining the types of highly skilled workers Niagara needs to prosper."

As for providing taxpayer dollars to fund a private company, Dykstra said the federal government can give money if it doesn't impact on a competing business. Silicon Knights doesn't have competition in the province and is rare in the country.

"This isn't going to have a negative impact on any other companies in Ontario. What it's going to do is build this company up to the point where it's going to create 65 jobs and longer-term jobs down the road."