New Zealand's Gaming Industry Grows Despite Challenges, Hits $270.9 Million in 2023
The New Zealand gaming industry experienced a modest 7% growth in the financial year ending March 2023, reaching 434.4 million NZD (270.9 million USD), as reported by the New Zealand Game Developers Association (NZGDA). This growth, although smaller compared to the previous year's 47% increase, signifies the industry's resilience in a competitive landscape.
NZGDA attributes this slower growth to several factors, including competition from Australian tax incentives, skill shortages, and a shift from lockdown conditions. Carl Leducq, the new NZGDA chairperson, noted that Australian incentives have posed significant challenges, particularly in talent acquisition, impacting the sector's expansion.
The introduction of the New Zealand Game Development Sector Rebate is expected to reinvigorate the industry. While its revenue impacts are anticipated in the coming years, it has already sparked interest and investment.
The industry's revenue sources are diverse, with significant earnings from the US, Europe, China, Asia, and Australia. The PC platform dominates the local market, followed by mobile, VR, and consoles.
Despite the hiring challenges posed by neighboring Australia, over half of the Kiwi studios plan to expand their workforce in the next financial year. The NZGDA's survey highlights a strong local ownership of studios, with many founded in recent years.
The NZGDA also pointed out success stories like Black Salt Games' "Dredge," developed by a small team, showcasing the capability of New Zealand studios to create engaging experiences for a global audience. This growth and resilience underscore New Zealand's potential as a key player in the global gaming industry.
Source: GamesIndustry.biz