Australian Video Game Studios Generated an Incredible Milestone of Almost $350 Million
Revenue in the Australian video game industry has risen to a record-breaking $345.5 million, an increase of 21% above the previous financial year.
This data comes as part of the eighth annual Australian Game Developer Survey (AGDS), released by the peak industry body, the Interactive Games & Entertainment Association (IGEA). This data is directly supported by IGEA’s consumer sales data. It stated that Australians spent $4.21 billion across video game hardware, software, and peripherals. Fortunately, the future looks bright for Australia’s video game industry despite the multitude of layoffs in the past year.
While the current data by IGEA is from FY23 (July 1, 2022 – June 30, 2023) and doesn’t cover the recent studio closures, the Australian video game industry is seeing unprecedented growth.
“79% of studios have less than 20 employees, and nearly half of all studios (45%) have existed for less than five years, highlighting growth in independent and emerging businesses,” said Ron Curry, CEO of IGEA. “With continued government support to ensure success in our industry, we will likely see our younger studios turn into veterans – like the 32% of Australian studios that are 10 years or older today. We even have 63% of studios planning on hiring over this financial year, creating 200+ new jobs.”
“It is important to acknowledge that this is a challenging time for the industry, and some studios are really feeling the effects. Funding and support must continue to ensure the long-term growth and success of the Australian industry so we can maintain the positive trajectory and continue contributing to the Australian economy and talent development.” Curry added.
Biggest Challenges Australian Video Game Developers Face
The IGEA survey also indicates the biggest challenges Australian video game developers face are difficulties in securing funding for early-stage development, establishing international publisher agreements, and sourcing specialized talent in situations where local talent is scarce.
To address these issues, an increasing number of studios have adopted remote working practices to reduce costs and access a broader pool of candidates. This has also led to increased diversity in local studios. 26% of developers identify as women and 5% identify as trans, non-binary, or gender diverse.
Australian video games are performing incredibly well overseas, with “87% of our video game revenue” coming from outside Australia. After seeing the quality of games at the recent Australian Game Developer Awards (AGDAs) and the SXSW Sydney 2023 Games Awards, the future is bright for the Australian video game industry. We can’t wait to see what releases in 2024. You can view the full report here.