New Zealand’s local video games industry has reportedly reached its NZ$1 billion annual revenue target, two years ahead of schedule. The news arrives courtesy of the New Zealand Game Developers Association, which provided a breakdown of significant growth over the last eight years.
NZ games industry hits milestone – quick links
The growth of the New Zealand games industry
Since 2018, New Zealand game developers and studios have grown at a phenomenal pace, driven by major successes. Where once the country’s games industry was elevated by singular titles, like Grinding Gear Games’ mammoth RPG Path of Exile, there are now many studios creating successful hits that have contributed to economic growth.
Titles like Ashen, Before We Leave, Flintlock: The Siege of Dawn, Tales of the Shire and Mini Motorways are worth mentioning, as is Dredge, from Black Salt Games. This particular title, released in 2023, was such a success for developer Black Salt Games that it was able to branch out to publishing, to help support other New Zealand studios developing their new titles.
Also helping developers is a robust and supportive infrastructure, with various government organisations providing tax relief, rebates and financial support for companies looking to release new, creative and innovative games.
As noted by the NZGDA, the Game Development Sector Rebate allows companies to save on expenditure, with a 20% refund on approved expenses for eligible businesses with a minimum cost base of NZ$250,000. Funding from the Centre of Digital Excellence has also aided growth, providing funding and support for developers through all stages of the game development process.
It’s believed the New Zealand Government gets an ‘eight to one return’ on every dollar it invests into these two initiatives, proving the value of supporting video games as a valuable cultural export.
NZGDA praises ‘government and industry working together’
‘We’re seeing a truly inspiring industry success story here – our local game development sector is growing at more than 20 times the global average, year on year,’ said NZGDA Executive Director Joy Keene.
‘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.’
As shared, New Zealand’s games industry has now met its $1 billion annual industry revenue target after consecutive years of growth, including for jobs. Originally, it was predicted the milestone would arrive by 2028, but sustained and higher-than-anticipated revenue year-on-year has meant an early bullseye.
It’s worth noting there have been significant leaps over the last few years. Per data provided by the NZGDA, 2024 saw revenue of NZ$548 million and 2025 saw revenue of NZ$759 million. With a large leap between these years, 2026 is now sitting at NZ$1 billion total revenue, to the year ending March 2026.
‘Our focus now is to ensure the education and vocational pathways are in place to make sure the sector can keep growing,’ Keene said.
‘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.’
Also on ScreenHub: Atari acquires Australian game developer Hipster Whale for $40 million
Tenured games company Atari has agreed to purchase Australian studio Hipster Whale for the initial sum of US$29.3 million (AU$40 million). Per Atari, it’s the next step in the company’s plan to move into the mobile market, with Hipster Whale’s mobile specialty, and the popularity of its multi-platform Crossy Road franchise, driving interest in the company.
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