> They will just move on to countries with less regulation

This knee-jerk application of libertarian ideology makes even less sense in this situation than usual. The gaming industry is dependent on improving computer hardware hardware, in-game sales rely on consumers with at least a certain degree of expendable capital. The core markets will always be countries that are well off, companies cant 'just go elsewhere' without significantly sacrificing their potential income.

Also you do realise that the wealth of a country does not correlate directly to it's levels of education?