Observed Signal · Jul 10, 2026 · Policy Update · Source: PocketGamer.biz · Impact: 2/5 · Sentiment: Neutral
NZ Game Studios Revenue Rises 17% to $829M
New Zealand game development studios supported by the Game Development Sector Rebate (GDSR) produced a combined $829 million in revenue in 2025/26, a 17% increase year-over-year. NZ On Air reported that rebates of $21.9m were distributed to 43 studios in 2026 (versus $22.4m in 2025). The number of participating studios rose from 40 to 43, games in development increased from 170 to 194, and small and medium-sized businesses made up 90% of recipients. Export revenue represented 98% of recipients' revenue. While total full-time equivalent employment across recipient studios fell, the average GDSR-supported studio grew its workforce by 14%.
Shows measurable growth in a national games sector and the effect of a government rebate program (GDSR), relevant to gaming and digital export markets but of limited direct impact to core AdTech/MarTech ecosystems.
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Key Takeaways & Evidence Grounding
- GDSR-supported studios grew combined revenue 17% to $829 million in 2025/26.
- NZ On Air distributed $21.9m in GDSR rebates to 43 studios in 2026 (compared with $22.4m in 2025).
- Participating studios increased from 40 to 43; games in development rose from 170 to 194.
- Small and medium-sized businesses accounted for 90% of GDSR recipient studios.
- Export revenue represented 98% of total revenue generated by recipient studios.
Connected Companies & Entities
1 Entity mapped“Link: https://www.pocketgamer.biz/new-zealand-game-studios-grow-revenue-17-to-829m-with-rebate-support/...”
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Related Market Signals & Shifts
Recent verified developments and strategic activity across this market segment.
South Australia doubles Digital Games Fund to $1M
The South Australian Film Corporation (SAFC) has announced the second round of its Digital Games Fund, now increased to $1 million, marking the largest pool of game development funding in the state's history. The first round, launched in October 2025, distributed $500,000 among 11 local studios, several of which have already released commercial titles. The new round offers three funding streams: up to $30,000 for pre-production, $150,000 for production, and $50,000 for post-release activities like localisation and porting. Applications open on October 21st. Additionally, the SAFC is launching a Games Studio Placement Programme to subsidise salaries for placements at local studios, further supporting talent development. This initiative builds on the existing Video Game Development Rebate, which has backed over 40 games since 2020.
UK Games Industry Eyes Growth as Government Boosts Support
UKIE CEO Nick Poole and TIGA CEO Richard Wilson outline the UK games sector’s strengths and challenges ahead of a potentially strong 2026. UK consumer spend reached £8.76bn in 2025, but employment contracted to 27,347 and startup formation has fallen sharply. Industry groups stress skills shortages, a funding gap for studios scaling from micro to mid-size, and the need for improved tax relief and grants. The government has pledged £30m — including £28.5m for the UK Games Fund — and recent steps such as SIC code classification and recognition of games as a 'frontier industry' are welcomed, while trade bodies recommend enhancing the Video Games Expenditure Credit (VGEC) to unlock further investment and growth.
Canada's Games Industry: Test Market, Talent, Tax Breaks
Canada's games industry is a strategic hub for North American development thanks to a mature consumer market, deep talent pools and generous tax incentives. Major international publishers maintain significant Canadian teams in cities such as Montréal, Vancouver, Edmonton and Toronto, and the country is widely used for mobile soft launches that predict US performance. Mobile revenue in Canada grew from $543.5M to $1.7441B between 2015 and 2025 (over 220% growth). Industry groups report differing total-revenue estimates (ESAC: $4.3B in 2021; government administrative data: $6.7B). Provincial incentives — for example Ontario’s 35–40% Interactive Digital Media Tax Credit and Québec’s long-standing credits — plus recent moves like British Columbia raising its credit to 25% (from Sept 2025) reinforce Canada’s attractiveness for publishers and developers.
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