The modern games industry already has its elite side. Despite this, most countries have policies to support game developers to ultimately bring larger profits to all participants. New Zealand and Australia were once outsiders in this sector, but after a certain time, one region emerged from a period of stagnation while the other is still looking for investment. In this article, we will try to answer why the New Zealand gaming industry receives more profit than the Australian one and the reason for this phenomenon.#
New Zealand Digital Games Sector Statistics
In 2017, the games industry practically stagnated and did not bring any income, which is why it was one of the most unpromising sectors in the country. In that year, New Zealand studios earned only $64.3 million, which is very small for the game development market.
After several years of difficult stages, income grew rapidly, becoming one of the country's fastest-growing. And in 2022, it brought in a record profit of 350 million NZD. Most work with mobile games and make up 53% of the total studios, followed by developers of PC games and games for consoles.
Additionally, New Zealand’s game developers are supported by the New Zealand Game Developers Association (NZGDA) which is a non-profit organisation that promotes local game studios. The NZGDA supports new companies, organises annual conferences, helps to implement new technologies into the video gaming industry and more. Its contribution to the gaming sector of the country is crucial.Australian Digital Games Sector Statistics
Gaming companies in Australia are up 29% in revenue compared to 2022. At the same time, 87% of the $140 million received by developers came from abroad. Most studios expect earnings to continue to grow or at least stay at current levels.
However, 14% of companies are unsure about this - they are already in a difficult financial situation. Australian gaming companies could earn more if not for the numerous problems. These include the lack of state support, difficulties obtaining investments in the early stages, and few narrow specialists.
In total, 1,275 employees worked in Australian studios at the end of last year. That sounds like a significant number, but Riot Games has over 2,500 employees by comparison.
Reasons Why NZ Gaming Industry is More Profitable Than Australian
The territory in this aspect is essential to profit from games. Australia is divided into states with business rules and regulations, resulting in mixed-income figures. But still, there are three main reasons why the NZ gaming industry is more profitable than the Australian one.
Pokie Video Games Are Legal
In New Zealand, it is legal to play pokies for real money. Slot machines are one of the most trending games in offline and online casinos. Gamblers are offered to play real pokies online at NZ casinos with a great choice of game developers.
Australian state laws subdivide gambling into specific categories, which may vary from place to place. Therefore, slot machines are taboo and banned in some states of Australia.
Although this segment of games belongs to the casino, these are still games that, in turn, bring profits for New Zealand. On average, New Zealand receives an income of about 120-150 million NZ annually, including half of the amount exactly from pokie video games. Moreover, gamblers spend more than 1 billion NZ dollars a year.
The NZ government, on the contrary, is trying to promote all kinds of games, including pokie, to get the maximum profit. In Australia, they have been trying to fight against gambling video games for several years. The authorities are especially active in criticising projects with loot boxes.
NZ Government Supports Local Game Developers
In 2020, the first seminar was held, aimed at the creative industries and digital technologies, including iGaming. As a result, New Zealand game studios and companies that develop software for games began to appear.
Earlier, it was mentioned that the Australian state does not support the game development segment in any way, which is a critical element of the financial system. In turn, the New Zealand associations and ministries understand the value of video games in the modern world. Therefore they are actively promoting and supporting local game developers.
Foreign Investment in Kiwi Game Studios
Investments are one of the leading indicators of a successful business, especially for foreign investors and companies. Kiwi Game Studio is one of the most stable and efficient companies that create different projects.
A few years ago, a major Chinese company Tencent Holdings bought a majority stake in the company, which signalled others to invest in Kiwi Game Studio.
The Final Word
Without going into details and figures, it is obvious that the NZ gaming industry is much more promising and modern than the Australian one. The reason for this is the interest of the authorities in the quality and level of local studios and their projects, which in the end, will bring a percentage to the country's budget.
In addition, the brand and image of New Zealand in the gaming market in the form of Path of Exile are known to many. Australia also boasts interesting AI projects, but unfortunately, not all studios can afford new games to make a profit and compete with the NZ gaming industry.
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