Home Entertainment NZ games industry revenue grew 7% in 2016

NZ games industry revenue grew 7% in 2016

The New Zealand video and computer games industry generated NZ$424 million in revenue in 2016, a 7% increase on 2015 sales. Overall, it had NZ$125 million in retail sales, with an additional NZ$299 million in digital and mobile sales.

Data released by the Interactive Games and Entertainment Association (IGEA) shows that New Zealand industry growth outpaced that of Australia, which only experienced a 4% increase in revenues last year (although on different population bases – iTWire article here).

Since 2009, IGEA has provided a review of the state of the video games industry in New Zealand using commissioned research from The NPD Group. With the growth in downloads and mobile gaming, the NPD data has been augmented with research from Australian analyst firm Telsyte to provide a complete picture of the state of the industry.

Ron Curry, chief executive of IGEA, said, “The New Zealand video game industry is in great shape and continues to grow year-on-year. The data clearly shows an ongoing revolution in the purchasing habits of what is an increasingly digital customer base. Consumers are incredibly engaged with our industry’s products and have embraced new ways to access and play game content, and extend the life of their games, such as virtual and augmented reality and downloadable extras.”

IGEA commissioned Telsyte that found digital and mobile sales continued an upward trajectory in 2016, with 16% growth on 2015 revenues. Mobile games remain the largest revenue source, generating $167 million last year. Downloadable games and downloadable content (DLC) saw the most growth – up 20% and 21% respectively.

Complementary market data from The NPD Group shows traditional retail sales decreased 9% on 2015 figures, with hardware and software sales both declining. However, the New Zealand video games industry overall experienced a 7% boost in revenues in 2016, with consumers’ digital purchasing habits far outweighing the decline in traditional retail sales.

Telsyte managing director Foad Fadaghi said, “New Zealand gamers continue to evolve their game purchasing behaviour, boosted by the greater availability of high-speed broadband service.”

Highlights from Telsyte:

  • Video and computer games generated NZ$299 million in digital and mobile sales in 2016, a 16% increase on 2015.
  • Mobile games remain the largest revenue source, generating NZ$167 million in 2016.
  • Downloadable games and downloadable content (DLC) saw the most growth – up 20% and 21% respectively.

Highlights from The NPD Group:

  • Video and computer games generated NZ$125 million in traditional retail sales in 2016, a 9% decrease on 2015 sales.
  • Current generation consoles PS4, Xbox One, and Nintendo 3DS all experienced growth in the volume of software sold.
  • About 53% of games sold had an unrestricted classification (G, PG or M).

 NZ Info

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Ray Shaw

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Ray Shaw ray@im.com.au  has a passion for IT ever since building his first computer in 1980. He is a qualified journalist, hosted a consumer IT based radio program on ABC radio for 10 years, has developed world leading software for the events industry and is smart enough to no longer own a retail computer store!