New Zealand’s video game industry is now making $407m a year, but there are fears that further growth will be curtailed by tax incentives overseas.
The latest data from the NZ Game Developers Association revealed that the 74 video game companies it surveyed employed 1070 fulltime employees, a 10% increase on last year.
Those companies collectively made $407m in revenue – almost double last year’s revenue of $267m.
“Digital games are New Zealand’s single fastest growing export and one of our most productive sectors,” said Chelsea Rapp, NZ Game Developers Association chairperson.
But she said that growth was still under threat by Australian tax incentives, which had already succeeded in bringing Kiwi-based companies across the Tasman.
That included a 30% Digital Games Tax Offset – on top of an additional 10-15% offered in some states.
“The competitive threat to the NZ games industry comes just when we were experiencing record growth and have had success attracting investment,” said Rapp.
She said Wellington games studio A44 Games would open a headquarters in Melbourne, and while it would still have a New Zealand presence, growth would be focused in Australia.
Game companies had previously called for options like competitive grants to keep studios here.
Minister for Digital Economy and Communication, David Clark, has previously told 1News the government was already stepping up.
New grants were being made available and work was underway to develop plans that would help foster talent in New Zealand.
"It is an industry that is valued as a country and can see the potential to continue to grow. Obviously, some companies will want to expand overseas - we've seen that already," Clark told 1News earlier this year.
"We'll continue to work with the industry in New Zealand to make sure we grow."
That growth, some fear, would not be for long.
“If we can keep this current growth trajectory going, there will be significant benefits to New Zealand, including significant creation of high-paying jobs with a low carbon footprint,” said Rapp.
“That means the New Zealand government must take urgent action. If they do nothing, it will be a massive lost opportunity.”
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