New Zealand’s game sector continues to grow as combined studio revenue supported by its Game Development Sector Rebate (GDSR) rose 17% to $829 million in 2025/26.
According to data NZ On Air, 43 studios received $21.9 million in funding, compared to $22.4 million the previous year.
While the number of games in development grew from 170 to 194, the decrease in overall funding was attributed to the rise in the number of studios.
Ninety percent of studios benefiting from GDSR were small to medium-sized businesses.
Medium-sized studios reported the strongest gains, with a 44% increase in revenue. Small studios saw a 21% rise, and large studios grew by 10%.
Export revenue accounted for 98% of total revenue for studios receiving GDSR funding.
While total full-time employment fell from 1,288 to 1,124, the average studio increased its workforce by 14%.
“New Zealand’s games sector is largely made up of small and medium-sized studios, and these results show just how important they are,” said NZ On Air GDSR programme director Chantelle Cole.
“While the industry is increasingly gaining international recognition for producing world-class games, it’s important to note that New Zealand’s success is being built by ambitious studios of all sizes.”
Cole added: “Alongside that, strong overall revenue growth shows that the ecosystem is increasingly resilient and points to the sector continuing to emerge as one of our most successful digital export industries.”
Last month, the New Zealand game development industry surpassed $1 billion in revenue, reaching this milestone two years ahead of schedule. The 2026 GDSR result contributed the majority of this total.
The New Zealand Game Developers Association (NZGDA) had projected the sector would reach 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.
