The gaming industry saw a huge spike during 2020 and 2021, and mainly due to the coronavirus outbreak and lockdowns. Gaming markets such as online, mobile, and console gaming and online iGaming or gambling skyrocketed. New Zealand’s gaming industry has recorded an incredible increase in profit over the last year. Namely, the industry’s profit increased by $121 over a period of only 12 months.
Moreover, this sector has recorded 42% annual growth in 2020, according to the New Zealand Game Developer Association analysis. This kind of rapid development was noted across the globe over the past years or so. However, the New Zealand Game Developer Association is putting a lot of effort into making this industry grow immensely. And according to the Economic Development Minister of New Zealand, Phil Twyford, the gaming industry in New Zealand is predicted to be worth $1 billion over the next three years.
Problems that Can Slow Down the Growth
A rising number of local gaming companies are emerging and trying to deliver top-notch products. This is precisely why this NZ market is welcoming new online casinos, video games, new online pokies, and more entertaining software, and more. So, what awaits in the future? Surely the overall plan is to boost the industry and help it grow. However, one thing that is currently slowing down this growth is the shortage of experts and skills.
Besides, the number of vacancies is still higher than the number of experts in the sector. Thus, the percentage of shortage of skills is around 79%, and 14% of the industry experts are foreigners.
Let’s not forget to mention that the industry might be facing some stumbling blocks due to early financing. The early development stages of young companies are often in need of financial support. Thus, companies with insufficient funds have difficulties with growing at a fast pace and hiring more people.
Gaming Software Developers and Employment Rate in New Zealand
According to the NZ Game Developer Association chairman, Chelsea Rapp, the country is diligently working on the development of this sector.
Furthermore, New Zealand offers education programs for gaming software developers, where many schools offer programs for eager developers to specialize in games development. Chelsea Rapp also noted that this sector in NZ might need more experienced senior developers that will help train the younger generations.
This will also affect the employment rate in New Zealand, in her opinion. With one senior developer hired, one could hire multiple junior developers to be simultaneously trained. On the other hand, there won’t be any chance to hire junior developers who still need their talents to be honed without the senior software developers. The young hopes are the future of New Zealand’s gaming sector and the future owners of new IT companies. This is why they need to be adequately trained by experienced people to get an even bigger chance at career success.
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Even though the number of software developing companies in NZ is growing, only 12 out of all of them are responsible for the major part of the general gaming revenue. According to the NZ Game Developers Industry Survey, these enterprises are responsible for 93% of the revenues and the 77% industry employment rate. On average, the lifetime of these creative studios in New Zealand is around a decade, while some like PikPok managed to make it to two decades.
Latest Numbers
According to Cassandra Gray, the NZ Game Developers Industry Survey chairman, most game development studios’ revenue comes from exports. She claims that the incredible numbers result from solid governmental regulations of enterprises and tons of hard work. She also believes that the key to rapid growth lies in the cooperation of those enterprises and the government. There is even a record that 24% of development companies develop apps/games for government institutions and business clients. Some percent of developing studios even make educational software for universities and colleges.
In addition, 59% of industry enterprises have a 10% growth on an annual basis. If we are looking at the whole industry number regarding different sectors, 63% of software companies create apps, 53% make games for PCs, 38% make games for consoles, 22% deal in AR apps, and 19% in VR games.
And as this is one of the highest-paid occupations in the country, more and more people are growing interested in this. Thus, 31% of the sector’s employees are programmers, 29% by creative artists, 24% by graphic designers, and also producers. Furthermore, the marketing and management specialist take up to 12% of the employees in the industry.
The Future of the Sector
As we already mentioned, the gaming industry in New Zealand is predicted to become a multi-billion industry by 2024. Considering how supportive the local government is, the rising numbers so far, and the growing interest, this industry will reach unbelievable heights with just the right people.