In the fiscal year 2025/26, New Zealand’s game industry saw a 17% increase in combined studio revenue, reaching $829 million, supported by the Game Development Sector Rebate (GDSR).
Data from NZ On Air revealed that 43 studios received $21.9 million in funding, slightly lower than the previous year’s $22.4 million.
The number of games in development rose from 170 to 194, although the overall funding decreased due to the growing number of studios.
Ninety percent of the studios benefiting from GDSR were small to medium-sized businesses, with medium-sized studios experiencing a 44% revenue increase, small studios a 21% rise, and large studios a 10% growth.
Export revenue made up 98% of the total revenue for studios receiving GDSR funding.
Although total full-time employment dropped from 1,288 to 1,124, the average studio increased its workforce by 14%.
Chantelle Cole, the GDSR programme director at NZ On Air, emphasized the importance of small and medium-sized studios in New Zealand’s games sector and highlighted the sector’s resilience and growth.
The New Zealand game development industry surpassed $1 billion in revenue ahead of schedule, with the 2026 GDSR result contributing significantly to this milestone.
The New Zealand Game Developers Association (NZGDA) had initially projected reaching this target by 2028, following the introduction of the GDSR in 2023.
In the previous year, the sector generated $758.9 million and saw a 29% increase in workforce numbers.