Australia's Gaming Industry by the Numbers

The Australian gaming industry has experienced significant growth over the past six years, with a notable increase in revenue in 2022. According to reports from the Interactive Games and Entertainment Association (IGEA), the market has more than doubled in size, with a total value of AU$4.21 billion ($2.67 billion) in 2022, representing a 5% year-on-year increase. The mobile segment was the largest contributor, generating AU$1.56 billion ($989.2 million) in revenue, while digital sales reached AU$1.5 billion ($951.1 million), including AU$499 million ($316.4 million) from full-game purchases and AU$750 million ($475.6 million) from in-game transactions. Subscription revenues also saw a significant increase of 55%. Traditional retail experienced a boost, with full-game software sales reaching AU$412 million ($261.2 million) and hardware sales topping AU$607 million ($384.9 million). The IGEA report highlighted the growth of the Australian video game market, driven by new software releases and improved hardware availability. The retail software market saw a 10% increase in value spend, with new releases driving sales rather than back-catalog titles. Aidan Sakiris, regional manager for Asia Pacific at Sparkers, noted that the Australian video game market thrived in 2022, with a diverse range of new software releases and improved hardware availability. IGEA CEO Ron Curry added that the consistent performance of sales across games channels was a positive sign, with traditional games retailers continuing to play an important role in game distribution and indicating industry stability. Australians' love for video games is evident, with the population using them for entertainment, fun, relaxation, and socializing. The strong retail and distribution base, combined with a population that enjoys playing games, has contributed to sales exceeding AU$4 billion. The demand for games in Australia and internationally has also enabled the country to build a substantial video game development industry. The revenue generated by Australian developers reached AU$284 million ($180.1 million) in 2021/22, representing a 26% increase. The number of full-time employees in the industry also grew, with 2,104 employees as of December 2022, a 59% increase. The IGEA's year-end report noted that the Australian video game development scene has seen revenues rise by 148% since 2016, with the industry more than doubling in size over the past six years. The growth in revenue, employment, and confidence in the local game development sector is promising, with businesses maturing, studios performing well, and development teams expanding. International companies and investors are taking notice of Australia, and state and federal governments are recognizing the positive impact of the local games industry on the economy, providing support through initiatives like the Digital Games Tax Offset (DGTO). Many Australian studios are planning to hire new staff, with 69% of studios aiming to hire over 300 employees in 2023, following the creation of over 770 new jobs in 2022. Most studios are between six and nine years old, with 48% operating for ten or more years. The remaining quarter of studios are less than five years old and have contributed to the fact that over 80% of developers in Australia have shipped at least one game. The IGEA's Australia Plays study, conducted in partnership with Bond University, found that 81% of Australians play video games, up from 67% the previous year. The study also revealed that 94% of households have at least one device used for playing video games, with consoles being the most popular device, followed by smartphones, PCs, and tablets. Women make up 48% of all Australian players, with more women and girls playing games than ever before. The average age of players is 35 years, with an average playtime of 90 minutes per day. The study also found that 75% of respondents play games with others, with 91% of parents playing with their children. TV remains the preferred entertainment medium, but video games are ranked joint second with music, movies, social media, and YouTube. The average Australian gamer has been playing video games for 11 years or more, and 95% of parents implement rules and restrictions on their children's gaming habits. The Australian game market will continue to be explored throughout the week, with more insights into the industry's growth and challenges faced by local game developers.