New Zealand’s game development industry has exceeded $1 billion in revenue, reaching this milestone two years ahead of schedule.
Following the introduction of the country’s Game Development Sector Rebate (GDSR) in 2023, the New Zealand Game Developers Association (NZGDA) predicted that this target would be reached by 2028.
By the end of 2023, the industry grew by 7%, reaching $270.9 million.
Last year, the sector generated $758.9 million and saw a 29% increase in workforce size.
Developers create games with support from the GDSR and funding from the Centre of Digital Excellence (CODE).
The New Zealand government receives an estimated eight-to-one return on each dollar invested through these funding streams.
For the first time, New Zealand’s creative, digital, and tech sectors are expected to surpass the primary sector in GDP.
Former NZGDA chair Chelsea Rapp noted after the 2023 tax rebate introduction that the country’s game industry now surpasses its wool industry, “which is the thing we are known for.”
“We love to say that we’re going to be a billion dollar industry by 2026. We have about between 28% and 35% growth annually, so if we keep with that, then it’ll be 2025-26.”
In response to the latest figures, NZGDA executive director Joy Keene said that “we’re seeing a truly inspiring industry success story” and that the sector “is growing more than 20 times the global average, year on year.”
“This is the result of government and industry working together to boost the innovation and growth of our studios, which has directly led to an economic boost for the country.”
Keene continued: “Our focus now is to ensure the education and vocational pathways are in place to make sure the sector can keep growing.
“Growth means jobs and, as a weightless export industry, game development presents a real opportunity for New Zealand to insulate itself against disruptions in the broader world economy.”