New Zealand Game Development Industry Reports 26% Growth, Achieving NZD 548 Million In Revenue For 2023/2024

Wellington, 18 October 2024 – The New Zealand Game Developers Association (NZGDA) is pleased to announce that the New Zealand game development industry has achieved a record NZD 548 million in pre-tax revenue for the 2023/2024 financial year, representing a 24.4% increase from the previous year’s revenue of NZD 434 million.

The industry’s strong performance highlights its resilience and growth potential, making it one of New Zealand’s fastest-growing creative sectors. Despite global economic challenges, the industry continues to thrive, creating high-value jobs and expanding its global reach.

Key Highlights:

Record Revenue: The industry generated NZD 548 million in 2023/2024, marking a 24.4% year-on-year increase.

Optimistic Projections: Over 53% of studios expect further growth in 2024/2025, with 31% forecasting significant growth of more than 20%.

Diverse Platforms: New Zealand game developers earned revenue from a variety of platforms, with 51% of developers generating income from PC games, followed by 24% from mobile platforms and 14% from consoles.

Global Presence: The industry’s international footprint continues to expand, with studios employing overseas staff and considering further expansion into key markets like Australia, driven by favourable incentives.

Industry Challenges and Opportunities

While the report highlights the industry’s significant growth, it also identifies key challenges, including skill shortages and reliance on international talent. The most critical roles in demand are programmers (30% shortage), producers (14% shortage), and 2D/3D artists (9% and 7%, respectively).

Additionally, 47% of studios remain uncertain about hiring plans for 2024/2025, reflecting cautious optimism in the face of global market conditions.

The Game Development Sector Rebate (GDSR) program continues to be a critical lifeline, with NZD 22.3 million claimed by studios, which has helped significantly with staff retention and reinvestment in business growth.

The number of women in the industry has increased from 22% in 2023 to 28% in 2024 and it is interesting to note that 41% of our senior leaders are women.

Looking Ahead

The industry remains optimistic about future growth, with many studios looking to capitalise on emerging trends such as virtual reality (VR) and augmented reality (AR), which accounted for 15% and 7% of revenue, respectively. The report also highlights the need for continued government support to ensure sustainable growth, especially as some studios consider expanding operations to Australia.

Comments from the NZGDA

“We are thrilled to see the New Zealand game development industry continue to grow at such a notable rate” said Carl Leducq Chairperson of NZGDA. “This growth clearly demonstrates the talent and innovation within the sector, but it also highlights the opportunity we have as a nation to continue leaning into addressing the skill shortages and helping the industry remain competitive on the global stage.”

About NZGDA

The New Zealand Game Developers Association (NZGDA) is the industry body representing game development studios, interactive media professionals, and associated businesses in New Zealand. NZGDA is committed to supporting the growth and success of the local game development sector through advocacy, education, and collaboration with government and industry stakeholders.

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