Funding boost ‘crucial’ for fast-growing games industry

GROWTH INDUSTRY: Computer game developer Dr Phyllis Callaghan is pleased with new government backing for the industry. File Picture

A funding boost for computer game developers outside of Dunedin has been welcomed here because the sector is ripe for “massive growth”.

The Government has said New Zealand's game developers will receive an immediate funding boost to help support the growth of studios beyond the current Dunedin centre.

“New Zealand's game development sector has been rapidly growing. The latest data from the New Zealand Game Developers Association show the total revenue for the industry is $407 million, compared to $276 million a year ago,” Minister for the Digital Economy and Communications David Clark said.

NZGDA 2022 data also show Otago accounts for a disproportionate number of studios, at 26 percent of New Zealand's total. Significant growth has been driven by the Centre of Digital Excellence (CODE) in Dunedin.

“I'm pleased to announce that the Government will invest $2.25 million a year until 2027 — with $1 million already allocated this financial year — to expand the CODE programme to other centres.”

Gisborne-based developer Dr Phyllis Callaghan, who developed the Maori-based Katuku Island game, said government support and funding was crucial for the burgeoning games industry in Aotearoa.

“The games industry is a billion-dollar marketplace and it keeps on growing. If we expect to be competing with some of the world's best, then government funding is essential — as game development is hugely costly.

“We also need to increase the skill set available in New Zealand, so that the industry can cope with our own national gaming growth. There are many factors that go into a game, from creation, development to publication and then the ongoing development of future series, which the gaming industry will expect of you; it also creates great publicity and traction for Aotearoa.

“KI (Katuku Island) is currently looking at major developments abroad, due to the huge interest in indigenous gaming growth, but we would wholeheartedly welcome that funding and support to come from Aotearoa.

“I think it's a work in progress and I know that the Tairawhiti Tech strategy has been doing some great work in this space.”

Dr Callaghan recently finished presenting virtually at the IGDA PathfindinGS Conference, involving 15 presenters from Latin America, South East Asia, Australia and New Zealand.

“There is some major interest in indigenous game growth and we are looking to create a spin-off from KI in the Metaverse — so as I mentioned, the games industry has massive growth.”

The new funding will help to establish new regional hubs and provide contestable grants and skills development to game development studios across the country.

“We've invested in community-led projects across the country to ensure our regions can thrive, grow and boost local economies,” Minister for Economic and Regional Development Stuart Nash said.

“We also want to drive innovation and create opportunities in our regions. Expanding CODE across New Zealand should pique the interest of burgeoning game developers, and provide them with a foot in the door,” Mr Nash said.

“The Government has been working closely with the New Zealand Game Developers Association (NZGDA) on how we can provide more support for this sector. The expansion of CODE is something they have asked for, and we've listened,” Mr Clark said.

“However, I will continue to work with industry and my colleagues around what more we can do to nurture our local talent and keep them on home soil.”