Aussies Love for Video Games Continues to Grow

Australian consumer spending on video games reached $4.029 billion in calendar year 2018, a 25 per cent increase on the previous year, according to data released by the Interactive Games and Entertainment Association (IGEA) in May 2019. The growth was driven predominantly by digital channels, which generated $2.851 billion, up 39 per cent, while physical retail sales totalled $1.179 billion, a marginal rise of 0.2 per cent.

Within digital sales, in-game purchases such as season passes, cosmetics and expansions grew by 190 per cent year-on-year, with the report attributing much of this surge to the Fortnite phenomenon. Full digital game downloads rose 20 per cent, subscription revenue climbed 31 per cent, and mobile remained one of the largest digital categories with 11 per cent growth. In physical retail, console accessories posted a 19 per cent increase, and the Nintendo Switch showed strong second-year performance, while several titles set fastest-selling records.

The figures combine commissioned research from The NPD Group, which has tracked the Australian industry since 2009, with digital market data from Telsyte, which was added to capture the growth of online and mobile gaming. The publication is a short industry media release rather than a full methodological study, so specific sample sizes and detailed survey procedures are not described.

Beyond the sales data, the release advocates for extending screen industry support programs, such as refundable tax offsets, to Australian game developers. It argues that local developers need comparable government backing to compete with international jurisdictions, and it previews a forthcoming biennial Digital Australia report on player demographics and non-entertainment uses of games.