NZ On Air Announces Second-Year GDSR Recipients

The Game Development Sector Rebate (GDSR) in Aotearoa New Zealand has entered its second year, with 40 studios receiving a collective $22.44 million in funding. Administered by NZ On Air with oversight from the Ministry of Business, Innovation and Employment, the scheme provides a 20 percent rebate on eligible expenditure to support the retention of local talent, prevent industry migration, and encourage long-term scaling. The program requires a minimum qualifying expenditure of $250,000, with individual rebates capped at $3 million per studio annually.

Data from the second year indicates significant growth across the sector. The number of participating studios increased by 24 percent compared to the previous year, while the number of full-time equivalent (FTE) roles rose by 20.5 percent, reaching 1,300 positions. Furthermore, the average revenue generated per GDSR-funded employee grew by 14.8 percent to approximately $525,260. Total eligible expenditure across the participating studios increased by 16 percent, signaling a robust expansion in the industry's operational capacity.

These findings suggest that the rebate is successfully fostering a high-growth, export-oriented environment. Preliminary industry data indicates that sector revenue is currently tracking 61 percent higher than it was two years ago, prior to the introduction of the rebate, when annual growth had stagnated at 7 percent. By stabilizing studios and incentivizing investment in local intellectual property, the initiative is effectively strengthening the country’s digital creative economy and enhancing its competitive position in the global marketplace.