The digital games industry was already one of the world’s largest and fastest-growing entertainment sectors before COVID-19. The pandemic further fueled its expansion, reaching a global worth of $240 billion in 2020, projected to hit $294 billion by 2024.
The games industry in Australia hit $226.5 million in revenue in 2021, a 22 percent increase from the previous year. An impressive 83 percent of this revenue comes from overseas markets, showcasing the industry’s international appeal.
To support this growth, generous tax incentives were introduced in 2022. The Digital Games Tax Offset (DGTO) and state-based programs provide valuable financial benefits to game studios and online gaming platforms, including real money casinos for Australians, solidifying Australia’s position as a key player in the global gaming industry. The country’s game development scene is set for further success, attracting local and international talent and contributing significantly to the economy.
Australia’s investment in the future of game development should serve as an inspiring example for the industry
The video game industry has grown into a colossal global business, projected to reach a worth of $321 billion by 2026, surpassing the combined revenues of the movie and music industries. With 91% of Australian households owning a video game device and over 17 million gaming enthusiasts, which accounts for over 66% of the population, it’s evident why governments, including Australia, are eyeing a share of this lucrative market.
Recognizing games’ significant impact on contemporary Australian culture, the National Film and Sound Archive of Australia (NFSA) has tried to preserve and collect significant video games. The games industry in Australia boasts a turnover as substantial as that of the film and recorded sound industries combined, reflecting its prominent position in the country’s cultural landscape.
To tap into the immense revenue potential of the gaming sector, it’s crucial to make game development more accessible and attainable. However, the process can be arduous, time-consuming, and expensive, with no guarantee of success. Most game developers struggle to release their creations without the backing of a large established studio, a publisher, crowdfunding, or financial support schemes.
Encouragingly, the Australian Government has taken proactive steps to support game development from its grassroots. Both smaller indie developers and larger studios in the country can seek financial assistance through two funding programs: Games: Expansion Pack, providing grants to smaller developers with budgets below AU$500,000, and the Digital Games Tax Offset, offering tax breaks for those with budgets above AU$500,000.
Australia’s game developers have significantly contributed to some of the world’s most popular games. The ongoing support offered to the industry provides opportunities for further growth and success. This blog will explore the country’s achievements so far, shed light on the support available to developers and studios to expand on their accomplishments and discuss what factors they should consider to make the most of this additional support.
Australia’s game development industry has defied expectations, creating influential and beloved games despite operating in a smaller market. Adelaide’s Team Cherry’s ‘Hollow Knight’ and its upcoming sequel, ‘Hollow Knight: Silksong,’ garnered immense success. Melbourne’s House House scored big with ‘Untitled Goose Game,’ while Brisbane’s Witch Beam found triumph with ‘Unpacking.’ These games have earned recognition at prestigious events like the BAFTA Awards, showcasing Australia’s gaming pedigree and the talent of its developers on the global stage. Despite its smaller scale, the Australian gaming industry continues to impact and deliver unforgettable experiences worldwide.
When leveraging Australia’s Games: Expansion Pack or the Digital Games Tax Offset, game developers should consider essential factors beyond finances and workforce:
Research Regulatory Requirements: Understand local market regulations for international success. Compliance with content and sensitive topic laws, such as Australia’s loot box labeling, impacts acceptance and sales.
Localization: Engage a diverse audience by considering language barriers. Full translation or professional localization for new markets can enhance player experience and sales.
Invest in Robust Infrastructure: Ensure seamless gaming with a strong IT infrastructure. Choose data center location wisely for low latency and consider scalable bare-metal servers for baseline player numbers.
Investing in virtual build machines streamlines testing and collaboration. By considering these aspects, Australian game developers can excel in the global gaming industry, enhancing player experiences and promoting the growth of the local game development scene.
