Gaming Growth Levels Up Says Minister: New Zealand 2020

Key insights

6 takeaways

01
New Zealand’s game development sector achieved $324 million in export revenue for the year ending April 2020, marking a 59% increase.
02
The industry has maintained a strong growth trajectory, averaging 43% annual growth over the eight-year period leading up to 2020.
03
The sector is highly export-focused, with 96% of its total revenue generated from international markets.
04
The New Zealand government has set a target for the game development industry to reach $1 billion in value by 2025.
05
While established firms are driving current growth, the government has identified a need to support new, competitive firms in developing investment-ready products.
06
The game development sector is a key component of the government's Digital Technologies Industry Transformation Plan, which aims to secure long-term growth for the next 20 to 30 years.

Summary

The New Zealand game development sector demonstrated significant economic resilience and growth during the 2020 fiscal year, despite the global disruptions caused by the COVID-19 pandemic. According to data from the New Zealand Game Developers Association’s annual survey, the industry achieved a 59 percent increase in export revenue for the year ending April 2020, reaching a total of $324 million. This performance aligns with a broader eight-year trend of consistent expansion, which has averaged 43 percent annual growth.

The sector remains heavily export-oriented, with 96 percent of its total revenue generated from international markets. While the industry has established a strong foundation for economic contribution, current analysis indicates that the majority of this growth is concentrated within well-established firms. Consequently, a primary strategic challenge involves fostering the development of new, competitive studios and assisting emerging companies in creating investment-ready products.

Government officials have identified the game development industry as a key component of the national Digital Technologies Industry Transformation Plan. This initiative aims to cultivate a sustainable pipeline of local talent and businesses, with an ambitious long-term goal of reaching $1 billion in sector value by 2025. The government views the industry as a vital contributor to post-pandemic economic recovery, emphasizing its capacity to generate high-value, weightless exports and create diverse employment opportunities across the country. Future efforts will focus on leveraging existing creative successes to solidify New Zealand’s position as a global hub for both entertainment software and serious games, including applications for health, safety, and mental wellbeing.