So realistically the major difference is "security", which to be honest there isn't much of regardless you being an employee or contractor. So at least in Australia, unless you're getting an increase in your hourly rate, or a company says they'll only continue to send you work if you're an employee, there's no major advantage to switching to be an employee.

Often it appears that you take a hit to your pay, but when you do the benefits math (paid holidays, vacation, health insurance, sick days) it's at least a wash.

I went to the UK in 2004 to do some travelling and working for a couple of years. Initially I was contracting in London at pretty good rates (between GBP 400 and 600 per day -- as I said, in 2004). The first year of contracting I earned just over GBP 120K. That's approx. USD $190k on the current exchange rate.

Part of the reason I went there was because I wanted to take a stab at the games industry. It was something that I had always wanted to do, and the industry here in Australia was awful. So I took at job at one of EA's studios.

That year I earned GBP 27k, approx. GBP 90k less than the year before.

Do I regret it? Not at all. I had a blast. It was a great experience and I met some amazing people.

So no, it's not all about the money. For the right gig in the right place with the right level of passion, earning enough to survive is exactly that: enough.

OJ