New Zealand games industry revenue surges past $270 million in 2023

The NZGDA report finds that PC is the dominant platform for developers followed by mobile, VR, and consoles

New Zealand games industry revenue surges past $270 million in 2023

New Zealand games industry revenue rose by 7% year-over-year to NZD 434.4 million ($270.9 million) during the fiscal year ending March 2023.

A new report delving into the local industry from the New Zealand Game Developers Association (NZGDA) shows a distinct contrast from the previous year, where sales grew by some 47%.

Currently, 44% of studios derive a significant income from the US, followed by Europe (34%), China (12%), Asia (9%), and Australia (6%). More than half of the studios in New Zealand said that over 10% of their income is sourced internally.

PC is the dominant platform for developers (54%) followed by mobile (31%), VR (17%), and consoles (16%).

The 93 studios that took part in the survey employ a total of 1,106 staff, with 51% of companies planning to hire during the next fiscal year.

Workforce and diversity

New Zealand's video game development industry has 12 major studios that collectively employ the majority of developers at 792 full-time employees, constituting 72% of the total workforce.

The report also found that women represent 22% of developers, and Maori representation increased from 2% to 5%. Approximately 10% of developers surveyed identified as LGBTQI+, 8% as neurodivergent, and 2% as having a disability.

Elsewhere, the report pointed towards the challenges relating to the Australian tax incentives that have impacted talent acquisition and growth. which led to skill shortages and limited hiring diversity.

“Australia's tax incentives deeply affected our industry over the past two years, constraining our studios in the battle for talent and curbing growth," said newly appointed NZGDA chairperson Carl Leducq.

“However, the commitment to the New Zealand Game Development Sector Rebate means the sector’s strong growth will resume. Our studios have stood strong amidst these challenges, and I am certain of their resilience and potential for future success.”

Staff Writer

Isa Muhammad is a B2B writer and video games journalist with 5+ years experience covering games, interviewing industry professionals, tracking industry trends and understanding the market.