10/06/2013 World Business Report


10/06/2013

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to clear the crowds. Those are the latest headlines. Now

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it is time for the latest financial news.

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Console makers battle it out to prove they have the best ideas to

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win customers, despite the pricey machines, at this week's gaining

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exposure. Cracking down on tax evasion. We

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learned that the Indian government's attempts to bring in

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it needed tax revenues. This is World Business Report. Also

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in the programme, a report on authorities in Japan. They have

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revised upwards their growth forecasts for the economy. Starting

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with the $67 billion industry in the grip of a two-year slump thanks

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to the rise and rise of tablets and smart phones. We are not talking

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about the PC market, but the video games industry, where consumers

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have cut back drastically on expensive purchases of Consols and

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games. Los Angeles is host to the Electronic Entertainment Expo, the

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game in this to's biggest trade show. The pressure is on the makers

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of a new generation of consuls to impress. I am joined by technology

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analyst Chris Green to ask him what we can expect. All attention is on

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Microsoft and the ex-boxer and Sony's PlayStation. They are

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teasing us with expectations of a new console. That is right. They

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have started feeding this information. They are due for a new

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release from seven years old. They are getting long in the tooth. That

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has contributed. They have been revealing more information about

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the consols. You can also see them trying to get game makers to

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support them. Will we find out when they watch them? There is a chance

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that they will. Talk us through the change in the industry. Since most

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of us are recurring about on mobile devices, the attention on the

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gaming device has really gone down. Is it just for the hardcore gamers?

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Not at the moment. We have seen a shift away from dedicated gaming

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devices to people using their existing smart phones and tablets

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far more as a gaming platform. That is because the devices are more

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powerful and capable and able to be used as game devices. It has

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brought in a generation of younger gamers. But it has also had

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repercussions for the industry. In terms of the revenue they can

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generate. Tell us about activation blizzard. This is the biggest game

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company in the States. Their problem is endemic. The situation

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is a great example of that how traditional gaming is starting to

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drop off. This company is successful for the very successful

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'World of Warcraft'. But there has been a drop off in demand partly

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because of cost, partly because of a lack of interest. They have also

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had a drop in subscribers. That is the model, you have to pay every

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month instead of just buying the game. They have been unable to stop

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the fall. We will keep an eye on how they get on this week. Thank

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you for filling us in. Economic growth in Japan is stronger than

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first thought at the start of the year. When you look at the annual

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figure, the world stirred largest economy grew at a rate of 4.1%.

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That is surging ahead of many other industrialised nations. That sounds

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very impressive. But there is still a lot of challenges facing Japan,

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isn't there? Indeed there are. But at the moment, the data is adding

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to a lot of hopes of recovery. It has also seen the stock market

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rebounding. We will see over 3% gains for the Nikkei, and

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incredibly volatile market in the past few weeks. It was down 6% last

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week. This estimate is good, because it does mean that analysed

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growth is following a series of very aggressive policy moves. It

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has been named after the Prime Minister. He was behind the push by

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policy makers to introduce measures aimed at reviving the Japanese

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economy after years of stagnation. This included doubling the

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inflation target. It has been deterring businesses from spending.

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They're holding out for a better deal. What they have been trying to

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do is boost consumer spending. They have been putting trillions of yen

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into the money markets. They are trying to keep long-term interest

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rates low. The ad is that more money around, borrowing costs are

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low, businesses and consumers will have more cash to spend. But it has

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responded in a weaker yen. That has pumped up the cost of energy.

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G8 leaders gather again in a week's time. Top of their agenda will be

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tax. Politicians are keener than ever to stop companies avoiding

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paying what they're going. We are looking at those measures that they

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are taking. We start with India. Out of 1.2 billion people, less

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than 3% pay any income tax at all. In a country with so many

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challengers, such low revenues are a major problem. Many people cannot

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afford to contribute. But one issue is getting those that can to pay

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their share. We found out how authorities in Bangalore are

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dealing with the problem. It may look like a wedding party or

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a religious festival. But actually, these men are making a noise about

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tax. They have been deployed to play outside the offices of

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companies who have not paid their taxes. The Bangalore civic

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authority says that drawing attention to tax avoiders is

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helping them to recover some of the money. Companies get embarrassed

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when these people play outside their offices. We started this

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about six months ago. Since then, we have seen that some of the funds

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have been recovered. It is a unique attempt at a solution to what is a

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widespread problem in India. From companies to individuals, tax

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evasion is very common. Only 3% of people in the country actually pay

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their taxes. Around a third of the country's 1.2 billion people are

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very poor end to not and enough to pay any taxes. -- and to not phone.

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But a lot of people do not pay tax either because they are working in

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agriculture. A lot of people are paid in cash, those transactions go

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unaccounted. The income tax department has released

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advertisements like this one, featuring a Bollywood actor, to

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encourage people to pay their share and help the country's development.

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Members of the public who do pay their taxes say they often feel

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they see little in return. We are not enjoying. We pay the road tax,

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but look at the roads. One rain, the roads are debris. At least the

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honest taxpayers pay. This year the income tax department is sending

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out letters to 1.2 million people who they believe should pay tax. In

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March, the finance minister raised taxes for India's produced. But

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this applied to just 40,000 people. -- richest. Many people need to be

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