The Coalition Government has claimed that the retraction of the promised tax break for UK developers will save the country £190 million.
The news comes after Tory Chancellor George Osborne announced this week that planned tax incentives for the industry would be scrapped in an Emergency Budget.
Labour promised tax relief for the games industry in its March Budget, following heavy lobbying by industry trade bodies TIGA and ELSPA.
The £190 million figure was today questioned by Labour.
"Why are so many of the video games industry work force leaving the UK at a time when global video game sales grew by 24 per cent. between 2007-09?" said Labour Minister Luciana Berger.
Directing her questions at Osborne, she added: "Can the Minister explain why it is stated in table 2.1 of the Red Book that the non-introduction of video games tax relief would raise an additional £190 million over the next five years? How was that figure arrived at?"
CVG understands that figure seems to be a re-purposing of TIGA's data. Although the body admits that the planned tax break would cost £192 million, it claims over £400m would be recouped in tax receipts.
In 2009, the UK games industry generated £2 billion of sales, adding approximately £1 billion to the UK's GDP.