The federal, provincial and municipal governments are pumping $350,000 into a new video-game development studio in Winnipeg in the hopes of sparking a new growth industry.

The money will fund Fortune Cat Games Studio, a not-for-profit "incubator studio" that will house up to three video-game project teams of three to five people each year during a three-year project period, government officials said Tuesday.

Each team will produce a prototype game that will be marketed to publishers.

"Yesterday, game developers were working in their basements, trying to make a living while building their games," said Jose Rueda, chair of the studio board. "Today, they have assistance."

Officials from the three levels of government said they hope the development of the games will be a growth industry in the province. 

"We are going to support this industry as much as we support film and sound," said Intergovernmental Affairs Minister Scott Smith.

Smith acknowledged that $350,000 might not sound like a lot to kick-start a new industry, but said more announcements are on their way.

"We're actually coming out very shortly with a full package for this industry specifically that will assist them and support them, as well, on a tax-credit type of system," he said.

Smith said the industry could benefit from tax breaks of up to 45 per cent — a worthwhile investment, he said, considering the gaming industry has grossed more than the Hollywood film industry in recent years.

The video-game industry is worth an estimated $30 billion a year worldwide.