Game Development Industry's Record-Breaking Rise: New Zealand

Key insights

6 takeaways

01
New Zealand’s game development industry reached a record $143 million in annual revenue, marking a 43% increase over the previous year.
02
The industry is heavily export-oriented, with 93% of total revenue generated from the export of digital creative software.
03
Employment within the sector grew by 10% as studios expanded their teams of artists and developers.
04
Market concentration is high, with the 10 largest game development companies accounting for 81% of the total industry workforce.
05
The government aims to grow the ICT sector into the second-largest contributor to national GDP by 2025, with a focus on supporting the scale-up of small game studios.
06
The New Zealand Technology Industry Association and the New Zealand Game Developers Association are collaborating on new research to better align the interactive media industry with national economic goals.

Summary

New Zealand’s game development industry experienced significant growth during the most recent financial year, reaching a record $143 million in annual revenue. This figure represents a 43 percent increase compared to the previous year, underscoring the sector's expanding influence on the international stage. The industry remains heavily export-oriented, with 93 percent of total revenue generated from the sale of digital creative software abroad.

These findings are based on an independent survey of 41 studios conducted by the New Zealand Game Developers Association. The data indicates that the industry’s workforce also expanded, with a 10 percent increase in the number of artists and developers employed. However, the sector exhibits a high degree of concentration; the ten largest companies account for the majority of total revenue and employ 81 percent of the industry's workforce.

Government officials have identified this growth as a critical component of broader national objectives to elevate the information and communications technology (ICT) sector into the second-largest contributor to the country's GDP by 2025. To ensure long-term, sustainable development, there is a recognized need to support the scaling of smaller, emerging studios. Future research, supported by the Ministry of Business, Innovation and Employment, will further examine the interactive media landscape to develop recommendations for fostering industry-wide growth and aligning the sector with national economic goals.