Australian Games Industry: Exploring Impressive Growth and Revenue
Australia’s games industry has experienced remarkable growth in recent years, with its market size more than doubling over the past six years. As part of Australia Games Week, we have delved into reports from the Interactive Games and Entertainment Association (IGEA) to gain insights into the state of the local market.
The Australian Games Market at a Glance
- Total market value: AU$4.21 billion ($2.67 billion, up 5% year-on-year)
- Mobile revenue: AU$1.56 billion ($989.2 million, up 3%)
- Digital revenue: AU$1.5 billion ($951.1 million, up 6%)
- Traditional retail revenue: AU$1.15 billion ($729.2 million, up 7%)
While the global games market witnessed a slight decline in 2022, Australia’s market value actually grew by 5% to AU$4.21 billion ($2.67 billion), as reported by IGEA in June 2023. Mobile gaming remained the biggest contributor with AU$1.56 billion ($989.2 million) in revenue, showing stability compared to the previous year. Digital revenues were also impressive at AU$1.5 billion ($951.1 million), including AU$499 million ($316.4 million) from full game purchases and AU$750 million ($475.6 million) from in-game transactions. Furthermore, the IGEA reported a 55% growth in subscription revenues in the previous year.
Traditional retail also experienced a boost with improved supply for consoles and a successful year of game releases. Full game software sales reached AU$412 million ($261.2 million), while hardware sales surpassed this at AU$607 million ($384.9 million).
The Thriving Australian Games Industry
- Revenue generated by Australian developers (2021/22): AU$284 million ($180.1 million, up 26%)
- Number of full-time employees (as of December 2022): 2,104 (up 59%)
In the IGEA’s year-end report from December 2022, it was revealed that Australian-developed games generated a revenue increase of 26% to nearly AU$285 million ($180.7 million). Moreover, the industry has more than doubled in size over the last six years, with revenues rising by 148% since the start of the Australian Game Development Survey (AGDS) in 2016.
“The growth in revenue, employment, and confidence in the local game development sector is fantastic,” said Ron Curry, IGEA CEO. He emphasized the maturation of businesses and studios, expanding development teams, and increased international attention towards Australia’s gaming industry. Curry also acknowledged the support of both state and federal governments, who recognize the industry’s positive impact on the economy and offer benefits such as the Federal Government’s Digital Games Tax Offset (DGTO). At the time of the report, 69% of Australian studios were planning to hire over 300 staff in 2023, following the creation of more than 770 jobs in 2022.
The Australian Games Audience
An Australia Plays study conducted by IGEA and Bond University in August 2023 shed light on the demographics of game players in the nation. The study, covering 1,219 Australian households (including 414 parents), revealed that 81% of Australians play video games, a significant increase from the previous year’s figure of 67%.
Consoles were the most popular gaming devices, used by 81% of households, followed by smartphones at 70%. Additionally, 59% played games on PC, 43% on tablets, 6% on dedicated handhelds, and 5% had VR headsets. Notably, women accounted for 48% of gamers in Australia, up from 46% the previous year, and over the age of 55, more women played video games than men.
Among individuals aged 18 to 64, 84% played video games, representing 69% of all gamers in Australia. The average age of players is 35 years, with an average daily playtime of 90 minutes (81 minutes for women, 97 minutes for men). Importantly, this increase in gaming prevalence is not solely due to the pandemic; the average Australian gamer has been playing video games for 11 years or more.
The study also revealed that 75% of respondents played games with others, with 91% of parents playing with their children. Additionally, 95% of parents imposed certain rules and restrictions, such as time limits and online play permissions, on their children’s gaming habits. While television remained the preferred entertainment medium across Australian households, video games were ranked joint second with music, movies, social media, and YouTube.
In conclusion, the Australian games industry has exhibited remarkable growth and revenue in recent years, with the market size more than doubling and revenues significantly increasing. The widespread interest in gaming, particularly among women and older age groups, has contributed to the industry’s expansion and influence. With a thriving market and supportive government initiatives, Australia’s games industry is poised for further success.
“Australians love to play video games; they use them for entertainment, to have fun, to relax and connect with friends and family.”Ron Curry, IGEA CEO
Stay tuned for more insights into the Australian game market throughout the week, including an overview of industry growth and the challenges faced by local game firms. Don’t miss out on the latest news – sign up for the GI Daily to have the biggest headlines delivered straight to your inbox.