NZ Interactive Media Industry Survey: 2023

The 2023 New Zealand Interactive Media Industry Survey provides a comprehensive analysis of the nation’s video game sector, highlighting a period of resilience amidst cooling growth. Conducted by Premium Research for the New Zealand Game Developers Association, the study surveyed 93 businesses as of March 31, 2023. The primary thesis identifies that while the industry remains a high-value export powerhouse, its growth trajectory slowed significantly to 7% in the 2023 fiscal year, down from a 47% increase the previous year and a five-year average of 26%.

Key findings attribute this deceleration to intense international competition, specifically citing Australian tax incentives that led to the poaching of skilled talent and constrained local hiring. Despite these headwinds, the sector generated $434.4 million in revenue, with 95% derived from digital exports and average earnings per worker exceeding $392,000. The industry maintains a strong independent foundation, with 82% of studios locally owned and 74% focused on developing original intellectual property. Employment remained stable at 1,106 full-time equivalent roles, though 51% of studios expressed positive hiring intentions for the upcoming year.

The report also underscores ongoing structural challenges, including persistent skill shortages in programming and 3D artistry, as well as a need for greater workforce diversity. While representation of Māori in the sector grew to 5%, gender and demographic gaps remain prevalent. Looking forward, the industry anticipates a recovery in growth rates, supported by the newly introduced Game Development Sector Rebate. This policy intervention is expected to bolster investment and mitigate the competitive disadvantages that hindered the sector during the 2023 reporting period.