NZ Game Studio Revenues: 2018 Survey

Key insights

4 slides

Record Growth

New Zealand game studio revenue reached a record $143 million for the financial year ending March 31, 2018.

This represents a 43% increase over the previous year.

$143 million

Total New Zealand game studio revenue for FY2018.

Year-over-year increase: 43%
Revenue from exports: 93%

Employment Figures

The sector employed 550 full-time staff as of March 2018.

However, 24% of firms report that skills shortages constrain growth.

Workforce Snapshot. The sector employed 550 full-time staff as of March 2018, with studios projecting the addition of 130 new roles in the coming year despite 24% of firms reporting that skills…

550

Full-time staff employed in the sector as of March 2018.

Projected new roles: 130
Firms reporting skills shortages: 24%

1 / 4

Ask AI about this article

Summary

The New Zealand game development sector experienced significant growth during the 2018 financial year, with total studio revenues reaching a record $143 million. This represents a 43% increase over the previous year, with 93% of this revenue derived from the export of digital creative entertainment software. The industry also saw a 10% rise in employment, supporting 550 full-time professional roles. These findings are based on an independent survey of 41 studios conducted by Tim Thorpe Consulting Limited for the New Zealand Game Developers Association.

Despite the record-breaking revenue, the industry remains highly concentrated. The ten largest studios, which average eight years of operation, account for 94% of total revenue and 81% of industry employment. A primary concern highlighted is the lack of a robust pipeline of new, fast-growing startups to join these established leaders. While 77% of revenue is generated through the development and export of original intellectual property, the sector faces challenges regarding early-stage funding, access to expansion capital, and a shortage of experienced senior staff.

The broader outlook remains optimistic, with 63% of studios projecting growth exceeding 10% in the coming year. Beyond development, the total value of the interactive games industry in New Zealand, including domestic retail and digital consumer spending, is estimated at $595.3 million. Moving forward, the industry continues to prioritize workforce development and diversity, noting that women currently represent only 21% of the sector's employees. Addressing skills shortages and fostering a more sustainable ecosystem for emerging studios remain critical objectives for long-term industry expansion.