State of Play, an independent board established to provide data-led games industry analysis to the Australian Government, has released a new survey indicating a major crisis brewing for NSW-based game developers. Speaking to developers across the state, the organisation discovered a major lack of funding opportunities and support, which has led many developers (74% surveyed) to consider moving to another state.
For specific reasoning, developers identified not only a lack of funding opportunities (61%), but also a need for a better games industry ecosystem for networking and connection (49%), being able to live closer to talent (20%), and challenges with cost of living pressures (under 5%).
As noted by State of Play, NSW-based game developers do not have the same opportunities to gain stable funding that developers in other states have. Under similar circumstances, a NSW game developer may access up to AUD $30,000 per project, where a Victorian-based game developer would be able to access up to AUD $500,00.
In addition, NSW-based game developers reported a range of other challenges in actually getting funding. Beyond challenges to awareness of opportunities (60% of developers were reportedly not aware of the Screen NSW Seed Fund), only 3% of developers reported being able to successfully attain funding from the Emerging Gamemakers Fund or the Screen NSW Seed Fund.
Many NSW game developers are not aware of funding opportunities, or are ineligible
‘After examining the grant application process and speaking to studios who submitted, there is a significant amount of work and time required to submit a grant application with a government agency,’ State of Play reported. Moreover, the organisation reported the process as being cumbersome and difficult for developers to undertake.
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‘The several week commitment can be arduous and impact the willingness of developers to attempt the grant application … More work needs to be done to increase the accessibility of information from both state and federal institutes so indie studios in NSW have the best opportunity to engage and access support.’
Another significant challenge identified in the report is that while NSW provides some tax rebates for game projects, the vast majority of local developers are not eligible for these breaks, due to the lower budgets of most independent game productions. Nearly 50% of responders noted they weren’t eligible for the NSW Digital Games Rebate, with the average project costing around AUD $150,000 to complete – well below the existing AUD $350,000 threshold.
State of Play calls on NSW Government to make significant changes
State of Play has called on the NSW State and Federal Governments to do more for local game developers in this position, highlighting that games are a valuable creative and financial export which create jobs in the state. Currently, tax rebates and production funding do not serve NSW-based game developers.
As State of Play points out, ongoing challenges may also inspire a significant developer exodus in future, to the benefit of other states. We have already seen the beginnings of this exodus, with many prominent game developers now based in other Australian states, driven by a desire for greater stability and better support for game creation.
‘With 67% of developers expressing little confidence in future government support, the industry is
calling for urgent, equitable funding reform to stop the talent drain and unlock the state’s economic
potential,’ State of Play said.
‘We are hopeful the key recommendations derived from the survey will be adopted by Screen NSW to
transform our industry from survival mode, into a thriving centre for game development and increase
economic outcomes for our state.’
You can read more findings from the State of Play NSW Independent Developer Survey Report on the State of Play website.
