FinancialInteractive Games & Entertainment Association
Australian Game Development Survey FY2023 Industry Snapshot
1 Jan 202314 pages~1 min full read
The Australian game development industry generated $345.5 million in revenue during FY2023, representing a 21% year-over-year increase.
The workforce grew by 17% to 2,458 full-time equivalent employees, with 63% of studios planning further hiring in the coming year.
The sector is highly export-dependent, with 87% of total revenue derived from international markets.
Government support is a critical growth driver, as 49% of the 111 surveyed studios received funding through mechanisms like the Digital Games Tax Offset and state-level rebates.
The industry is characterized by small-scale operations, with 79% of studios employing fewer than 20 people and 45% of firms having operated for five years or less.
Victoria serves as the primary industry hub, hosting 29% of all studios and 41% of the total national workforce.
Despite 68% of studios projecting income growth, the sector faces significant challenges in recruiting specialized talent, securing early-stage funding, and obtaining international publishing deals.
The Australian Game Development Survey: FY2023 Industry Snapshot reveals a sector experiencing significant maturation and financial expansion. During the 2023 fiscal year, the local industry generated $345.5 million in revenue, marking a 21% increase over the previous year. This growth is mirrored in the workforce, which expanded by 17% to reach 2,458 full-time equivalent employees. The industry remains heavily export-oriented, with 87% of revenue derived from markets outside of Australia.
The data indicates a diverse ecosystem where 32% of studios have operated for over a decade, while 45% are relatively new, having existed for five years or less. Despite the presence of established firms, the sector is primarily composed of small businesses, with 79% of studios employing fewer than 20 people. Geographically, Victoria remains the primary hub, accounting for 29% of studios and 41% of the total workforce. Diversity metrics show a shift in the labor force, with women representing 26% of employees and gender-diverse individuals making up 5%.
Conducted by Bond University on behalf of the Interactive Games & Entertainment Association (IGEA), the survey gathered voluntary data from 111 Australian development studios between September and November 2023. The findings suggest that growth is heavily underpinned by government support, such as the Digital Games Tax Offset (DGTO) and state-level rebates, with 49% of respondents receiving some form of government funding.
While 68% of studios predict continued income growth, the industry faces notable headwinds. The primary challenges identified include difficulty hiring staff with specialized skills, attracting early-stage development funding, and securing international publishing deals amidst tightening global economic conditions. Nevertheless, the sector maintains a cautiously optimistic outlook, with 63% of studios planning to hire additional staff in the coming year.
