Latest news with #GameDevelopmentSectorRebate
Scoop
09-07-2025
- Business
- Scoop
NZ On Air Announces Second-Year GDSR Recipients — Showing Improved Economic Value And Job Creation
Press Release – NZ On Air The key objectives of the GDSR from the outset were to retain industry talent, keep studios from heading offshore and enable studios to stabilise, scale and invest in long-term capability. The data is showing that were on the right track. Forty game development studios across Aotearoa New Zealand will receive a share of $22.44m in the second year of the Game Development Sector Rebate (GDSR), with initial data showing a 20.5 percent increase in roles and each GDSR-funded employee generating over $525,000 in revenue. In the second year of the GDSR, the number of studios receiving the rebate has also grown by 24 percent, up from 33 in 2024, showing more studios are meeting eligibility thresholds and actively scaling in response. 'These figures are hugely encouraging to see,' says Chantelle Cole, NZ On Air GDSR Programme Director. 'They show that the GDSR is not only allowing studios to sustain jobs but actively grow their teams.' 'The key objectives of the GDSR from the outset were to retain industry talent, keep studios from heading offshore and enable studios to stabilise, scale and invest in long-term capability. The data is showing that we're on the right track.' The GDSR, introduced in 2023, provides a 20 percent rebate on eligible expenditure to support the growth of Aotearoa New Zealand's game development sector. The GDSR is administered by NZ On Air, with policy oversight from MBIE. The rebate is capped at $3 million per studio per year, with a minimum qualifying expenditure of $250,000. This year's recipients represent a diverse range of studios from across the motu, developing original IP and contributing to a thriving digital export industry. 'The GDSR is clearly starting to play a big role in retaining talent and IP in New Zealand, while also boosting our presence and capabilities in the global marketplace,' says Cole. 'Over the next few years, its impacts will continue to become even clearer– but it is evident that the rebate's existence has already resulted in studios continuing to do business in Aotearoa New Zealand and ignited further investment in our local sector.' Key GDSR 2025 data highlights: • Eligible staff numbers grew from 1,141 to 1,353, an 18.6 percent year-on-year increase. Full-Time Equivalent (FTE) roles similarly grew, up 20.5 percent from 1079 to 1300. • Average revenue per GDSR-funded employee reached approximately $525,260, up 14.8 percent from 2024 – highlighting the sector's high-value, export-oriented output. • Overall, total eligible expenditure increased by 16 percent, with three studios more than doubling their eligible spend. Preliminary data for 2025 from NZGDA shows revenue is now tracking 61% higher than it was two years ago, before the introduction of the rebate, when annual growth had slowed to just 7%. Finalised 2025 revenue figures are expected in September. 'These early indicators suggest the GDSR is delivering on its economic promise — supporting a high growth sector that's making a meaningful contribution to Aotearoa New Zealand's creative economy and export success,' says Cole. GDSR 2025 Recipients 2Up Games A44 Balancing Monkey Games Beyond Studio Big Adventure Blind Squirrel Entertainment Camshaft Software CerebralFix Conical Deep Field Games Digital Confectioners Dinosaur Polo Club DreamLoft Dry Cactus Evans Taylor Digital Flightless Floating Rock Studio Futureverse Geo AR Gfactor Grinding Gear Games Insight Creative Melodics Mighty Eyes Mytona Niantic Aotearoa Ninja Kiwi Outerdawn PikPok PlaySide Studios RiffRaff Games RocketWerkz Runaway SharpMind Games Snickerdoodle Games Space Rock Games Splitting Point Staples Productions Synty Studios Wētā Workshop * The rebate amount received by each individual studio is confidential and commercially sensitive. The amount each business received – grouped in dollar bands – will be published on the NZ On Air website two years after the rebate is paid out.
Scoop
09-07-2025
- Business
- Scoop
NZ On Air Announces Second-Year GDSR Recipients — Showing Improved Economic Value And Job Creation
Forty game development studios across Aotearoa New Zealand will receive a share of $22.44m in the second year of the Game Development Sector Rebate (GDSR), with initial data showing a 20.5 percent increase in roles and each GDSR-funded employee generating over $525,000 in revenue. In the second year of the GDSR, the number of studios receiving the rebate has also grown by 24 percent, up from 33 in 2024, showing more studios are meeting eligibility thresholds and actively scaling in response. 'These figures are hugely encouraging to see,' says Chantelle Cole, NZ On Air GDSR Programme Director. 'They show that the GDSR is not only allowing studios to sustain jobs but actively grow their teams.' 'The key objectives of the GDSR from the outset were to retain industry talent, keep studios from heading offshore and enable studios to stabilise, scale and invest in long-term capability. The data is showing that we're on the right track.' The GDSR, introduced in 2023, provides a 20 percent rebate on eligible expenditure to support the growth of Aotearoa New Zealand's game development sector. The GDSR is administered by NZ On Air, with policy oversight from MBIE. The rebate is capped at $3 million per studio per year, with a minimum qualifying expenditure of $250,000. This year's recipients represent a diverse range of studios from across the motu, developing original IP and contributing to a thriving digital export industry. 'The GDSR is clearly starting to play a big role in retaining talent and IP in New Zealand, while also boosting our presence and capabilities in the global marketplace,' says Cole. 'Over the next few years, its impacts will continue to become even clearer– but it is evident that the rebate's existence has already resulted in studios continuing to do business in Aotearoa New Zealand and ignited further investment in our local sector.' Key GDSR 2025 data highlights: • Eligible staff numbers grew from 1,141 to 1,353, an 18.6 percent year-on-year increase. Full-Time Equivalent (FTE) roles similarly grew, up 20.5 percent from 1079 to 1300. • Average revenue per GDSR-funded employee reached approximately $525,260, up 14.8 percent from 2024 – highlighting the sector's high-value, export-oriented output. • Overall, total eligible expenditure increased by 16 percent, with three studios more than doubling their eligible spend. Preliminary data for 2025 from NZGDA shows revenue is now tracking 61% higher than it was two years ago, before the introduction of the rebate, when annual growth had slowed to just 7%. Finalised 2025 revenue figures are expected in September. 'These early indicators suggest the GDSR is delivering on its economic promise — supporting a high growth sector that's making a meaningful contribution to Aotearoa New Zealand's creative economy and export success,' says Cole. GDSR 2025 Recipients 2Up Games A44 Balancing Monkey Games Beyond Studio Big Adventure Blind Squirrel Entertainment Camshaft Software CerebralFix Conical Deep Field Games Digital Confectioners Dinosaur Polo Club DreamLoft Dry Cactus Evans Taylor Digital Flightless Floating Rock Studio Futureverse Geo AR Gfactor Grinding Gear Games Insight Creative Melodics Mighty Eyes Mytona Niantic Aotearoa Ninja Kiwi Outerdawn PikPok PlaySide Studios RiffRaff Games RocketWerkz Runaway SharpMind Games Snickerdoodle Games Space Rock Games Splitting Point Staples Productions Synty Studios Wētā Workshop * The rebate amount received by each individual studio is confidential and commercially sensitive. The amount each business received – grouped in dollar bands – will be published on the NZ On Air website two years after the rebate is paid out.
RNZ News
22-04-2025
- Business
- RNZ News
Local game developers call for more tax relief to stay in New Zealand
Labour leader Chris Hipkins tries his hand at Into the Dead: Our Darkest Days. Photo: RNZ / Samuel Rillstone A leading New Zealand video game developer has praised a rebate scheme introduced by the previous government, but says the cap may need to be increased, if firms want to keep their operations in New Zealand. The gaming industry, which is aiming for $1 billion in export revenue by 2028, is one of New Zealand's fastest growing sectors, with a recent industry report showing it grew by 26 percent in 2024, compared to the global average of 2.1 percent . In 2023, the Labour government introduced a 20 percent tax rebate scheme for video game developers, which the current government has kept. Studios that met the minimum $250,000 expenditure threshold per year could receive up to $3 million a year in rebate funding. The Game Development Sector Rebate (GDSR) was designed to ward off overtures from overseas developers, and keep more staff and operations in New Zealand. Developers were losing staff to Australian firms , which receive a 30 percent rebate (up to AU$20m), with some states adding their own rebates on top of the federal scheme. Registered developers are currently applying for the 2025 round, which is administered by NZ On Air. Applications close on 9 May, with decisions due by 14 July. Wellington-based developer PikPok said the GDSR was the difference between them staying in New Zealand and moving offshore. "There were a lot of challenges coming through and out of Covid," chief executive Mario Wynands said. "In particular, it made a lot of sense on paper for us to move some portion or all of the studio to Australia. "We were actively investigating that and the GDSR is a big part of why we chose to remain in New Zealand." Budget 2023 contained funding of $40m per year for four years to deliver and administrate a rebate scheme for the gaming sector. The coalition has kept the rebate scheme and will review it after two years. In its first full year, about $12m was paid to 32 studios, with an initial pilot phase, bringing the total payout to $23m. PikPok was one of two companies to receive the full $3m allocation in the first year, along with Grinding Gear Games, but PikPok financial officer Lance Burgess said the claim cap may need to be increased. "The two largest studios in New Zealand are at that cap now, so there needs to be some thought around whether that cap is appropriate," he said. "Otherwise, there is a risk that the two largest studios may look to put some of their talent offshore." Wynands said PikPok had acquired a company in Colombia three years ago, which opened up expansion opportunities, and there remained an incentive to open some sort of on-the-ground footprint in Australia. "It's a combination of, 'Where does the market go? What benefits the business? What can we grow here? What can't we grow here? What skills do we need to access to that we otherwise can't build the capability for?'" Visiting PikPok's Wellington headquarters to hear from the company's leadership - and try out its latest game, Into the Dead: Our Darkest Days - Labour leader Chris Hipkins touted the scheme's success. "We did realise, back in 2023, we were going to lose businesses in this industry, if we didn't do something to encourage them to stay in New Zealand, which was why the gaming rebate was introduced," he said. "As a result, not only are we keeping them, but now the sector's growing and it generates good, well-paid jobs for New Zealand." Hipkins said the funding envelope set aside was "reasonable" as the industry grows and expected there would be more calls for the envelope. He said he would await the outcome of the current government's review of the scheme to decide whether to extend it, should Labour return to office, although early signs were encouraging. PikPok chief executive Mario Wynands. Photo: RNZ / Samuel Rillstone "They're exactly the sort of thing that we were looking for, so we've got now an industry here that's growing healthily and that was what we were aiming to achieve. If you look at the big indicator that's available at the moment, it's a very, very good start." Some developers that claimed the rebate are owned by overseas firms, but continue to operate in New Zealand. Grinding Gear Games - developer of the Path of Exile series, which counts Elon Musk among its fans - was acquired by Chinese holding company Tencent in 2018, while developer Ninja Kiwi has been owned by Swedish company Modern Times Group since 2021. Burgess said there was no reason to restrict the scheme to New Zealand-owned companies. "While these companies still develop games in New Zealand and employ people here, and pay tax here, I can't see why they should not be included." Hipkins said the alternative was these businesses would do their business elsewhere, and New Zealand would not benefit from their economic activity or the tax take that came with it. Sign up for Ngā Pitopito Kōrero , a daily newsletter curated by our editors and delivered straight to your inbox every weekday.
