New Zealand Boosts Game Industry with $2.75 Million Funding Increase

The New Zealand Government has announced an increase in funding for the gaming industry, allocating an additional $2.75 million annually to support game studios and start-ups. This initiative, revealed by Science, Innovation and Technology Minister Shane Reti, aims to enhance grants for prototype development, project funding, and travel support, effective from next year.

This funding announcement coincides with the upcoming release of a report by the Game Developers’ Association, which is expected to highlight significant growth within the sector. Reti noted that the new grants would effectively double the financial support offered through the industry’s Centre of Digital Excellence (Code), which has been instrumental in fostering innovation.

Since 2023, game developers have benefited from subsidies under the Game Development Sector Rebate, which resembles the production subsidies available to the film sector. This rebate offers a 20% return on eligible expenditures for approved studios, capped at $3 million per studio each year.

In the past year, the gaming industry in New Zealand generated revenues of $513 million, with projections indicating an increase to over $750 million in the current year and a target of exceeding $1 billion by 2027. Notably, more than 90% of these revenues are derived from exports.

The sector has seen substantial growth in employment, with a 29% increase last year, resulting in an additional 321 jobs. Leading studios such as Grinding Gear Games and PikPok have played pivotal roles in this expansion. Reti emphasized the broader implications of this funding, stating, “This is about more than games – it’s about high-tech jobs, export growth, and putting New Zealand creativity on the world stage.”

He also highlighted the success rates of studios supported by Code. While only 1.6% of pitches to publishers typically result in deals, studios backed by Code achieve a remarkable 40% success rate. Reti acknowledged that the demand for support is high, noting that Code’s programs currently receive twice as many applications as they can fund. By doubling the funding, the government aims to accelerate growth and facilitate access to global markets.

In parallel with these initiatives, Games Week is set to commence on Saturday at the Tākina venue in Wellington. The event will showcase a record of over 70 games developed in New Zealand, underscoring the nation’s vibrant gaming community. In the past year, three New Zealand-made games have achieved remarkable success, reaching the global top-10 most-played charts. Notably, the game Grow a Garden, part of the popular platform Roblox, briefly surpassed Fortnite to claim the world’s number one spot with 21.3 million concurrent users.

As New Zealand continues to invest in its gaming industry, the future appears bright, with expanded funding and a growing global presence set to propel local studios to new heights.