New Zealand games industry grew 7% to $270.9 million in 2023

gamesindustry.biz:

The New Zealand games industry generated NZD $434.4 million ($270.9 million) in the financial year ended March 2023, according to a survey by the New Zealand Game Developers Association.

This represents a 7% growth year-over-year, compared to an increase of 47% in the previous financial year.

According to the NZGDA, this small growth was attributed to competition from Australian tax incentives and the end of lockdown, as well as skill shortages and a lack of 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 recently appointed NZGDA chairperson Carl Leducq.

Leducq took over the role from Chelsea Rapp this month, who spoke to GamesIndustry.biz earlier this year about the continued growth of the New Zealand games industry and the introduction of its tax relief scheme.

Leducq continued: "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."

Studios will be able to claim this rebate for the current financial year ending 31 March, 2024.

While the impact of this rebate won't be "reflected in our revenues until it comes into effect in a year or two," Leducq said "it has ignited a new wave of interest and investment by developers."

The report found that 44% of studios earn a significant portion of their income from the US, followed by Europe (34%), China (12%), Asia (9%), and Australia (6%). Over half of studios in New Zealand said more than 10% of their income is sourced internally.

PC was the most dominant