The P.E.I. government said it is doing what it can to keep a U.S.-based video game developer from moving to Nova Scotia.

Last week, all 23 employees of Longtail Studios working in its Charlottetown office were told they had the option to move to a new office it plans to open in Halifax.

“I am concerned with the possible loss of these positions on P.E.I.,” Innovation Minister Allan Campbell told CBC News on Tuesday.

“I've asked staff in my department to put together a package that is attractive to the company and that incites them to remain here on P.E.I.,” he said.

"Why Nova Scotia in particular has targeted this particular company, I'm not sure about that," Campbell said.

Longtail Studios, headquartered in New York City, develops character-driven games and content for platforms such as iPhone, iPod Touch, Nintendo Wii and the web.

A company representative would not say whether it plans to shut down its office in Charlottetown.

The provincial government has a tax credit agreement with Longtail that expires in November. The company also receives subsidies on wages and rent at the Atlantic Technology Centre.

Campbell said discussions to keep the company in the province have been continuing for the past several months.

Longtail Studios opened its office in Charlottetown in November 2007.

The company also maintains an office in Quebec City.