Last year, New Zealand game studios
generated $759 million in revenue – a 38% surge year-on-year, with nearly all of it coming from exports. Jobs increased by 29% to 1418, with high-value roles in software, design, art, and production.
Gaming showcases the kind of future-facing growth that New Zealand talks about but rarely achieves. Unlike dairy and tourism, gaming generates exports without the need for containers or crowded tourist seasons.
The Game Development Sector Rebate delivers results. Industry jobs rose 20.5% in the rebate’s first year. Of the $40 million set aside annually for rebates, industry uptake reached $22m in the first year, demonstrating strong momentum but leaving room for further expansion.
Several studios admit they would have shifted to Australia without it – hardly surprising, since Canberra now offers a 30% production offset and Canada has long lured studios with even deeper subsidies.
Developers still seek further support on several fronts, but the rebate has already delivered two items from their four-item policy wish list.
This is not welfare. A focused incentive matches standard international practice. Global rivals invest heavily. Without a competitive environment, New Zealand loses companies and talent across the Tasman.
Critics argue that the rebate sits underused, and studio profits fluctuate. They are right – but the objection misses the point. Creative industries cycle up and down, but their long-term returns remain immense.
Grinding Gear Games, New Zealand’s biggest studio, saw profits halve in 2023. Yet it still employed hundreds and exported tens of millions of dollars. The scale of that impact dwarfs the volatility.
The smart response is not retreat but refinement. Politicians should simplify access so smaller studios can qualify. They should implement clawbacks if firms leave, tie incentives to exports and job creation, and expand training pathways to ensure local talent shares the benefits.
For decades, New Zealand has chased economic diversity. Too often, we let opportunities slip through our fingers. Gaming offers a skilled, export-driven industry with immense potential – intellectual property that generates revenue for years, rather than commodities that fluctuate with global prices.
Act decisively, and we keep studios and workers at home. Hesitate and we watch them cross the Tasman.
This is not about nostalgia for a hobby. It is about an industrial strategy. New Zealand should back gaming, not because it entertains us, but because it makes sense.
