New Zealand's Gaming Sector Sees 7% Growth, Reaching $270.9 Million in 2023

In the financial year ending March 2023, New Zealand's gaming industry generated a revenue of NZD $434.4 million, equivalent to $270.9 million. This figure represents a 7% year-over-year increase, as reported by the New Zealand Game Developers Association. The growth is notably smaller compared to the 47% increase seen in the previous financial year. The NZGDA attributes this modest growth to factors such as competition from Australian tax incentives, the end of lockdown, skill shortages, and limited hiring diversity. Recently appointed NZGDA chairperson Carl Leducq noted that Australia's tax incentives have significantly impacted the local industry, affecting talent acquisition and overall growth. Despite these challenges, Leducq expressed optimism about the sector's future, citing the New Zealand Game Development Sector Rebate as a key factor in resuming strong growth. This rebate, available for the current financial year, is expected to ignite new interest and investment, although its impact on revenues will be seen in the next year or two. The report highlights that a significant portion of studios' income comes from the US, Europe, and other international markets, with over half of the studios generating more than 10% of their income internally. PC games dominate the New Zealand market, with 54% of surveyed studios earning revenue from this platform, followed by mobile, VR, and consoles. The surveyed studios, representing 1,106 employees, show a slight increase in workforce size. The majority of developers are employed by the 12 largest studios, accounting for 72% of the workforce. The industry also sees a growing representation of women, Maori, and other diverse groups. Despite limited hiring in 2023 due to external factors, 51% of studios plan to expand their staff in the next financial year. The NZGDA survey further reveals that most studios are locally owned and operated, with a significant number founded in the last three years. A major factor contributing to the success of local startups is the Centre of Digital Excellence, providing essential training and grants. The success of games like Dredge, developed by Black Salt Games, underscores the potential of New Zealand's gaming industry to deliver high-quality experiences despite the challenges it faces.