Government funding initiatives provide direct financial support to game studios through rebates and grants, while innovation agencies offer technical expertise and connections to help developers scale their operations. These programmes have already prevented nearly half of New Zealand’s game studios from relocating overseas.
Current Opportunities for Game Developers
The Game Development Sector Rebate reimburses 20 per cent of eligible expenditure incurred in New Zealand, with a cap of $3 million per year per studio. This scheme distributed over $12 million to 32 studios in its first general registration round in 2024.
New Zealand game developers can also access funding through the Centre of Digital Excellence (CODE). Starting in 2026, the government will double CODE’s funding by adding $2.75 million annually. This increase enables more grants for:
- Prototype development
- Production support
- Travel opportunities for emerging developers
- Founding new studios
The game development sector, including kiwi online casinos, currently contributes over $400 million annually to New Zealand’s economy. Research on similar schemes worldwide shows some countries achieving two to four dollars in returns for each dollar invested.
Role of Callaghan Innovation and Other Agencies
NZ On Air administers the Game Development Sector Rebate whilst the Ministry of Business, Innovation and Employment holds policy responsibility. Callaghan Innovation supports the broader technology sector with research and development grants that game developers can access alongside sector-specific funding.
The NZ Game Developers Association represents industry interests and advocates for policy changes. Their 2023 survey revealed that nearly 50 per cent of studios were considering moving operations to Australia before the rebate was established.
Studios have indicated they will use rebate funds for talent acquisition and retention, paying internationally competitive salaries, launching new games, and creating new intellectual property. Initial modelling from consulting firm Nordicity estimated that Year One reinvestment could potentially increase the following year’s labour pool by upwards of eight per cent.
Success Stories Enabled by Government Support
Runaway, one of the first-year rebate recipients, reports the funding allows them to hire and retain more people whilst paying more competitive salaries. CEO Zoe Hobson says this enables faster product development and stronger revenue growth.
PikPok’s Chief Financial Officer Lance Burgess states the rebate has enabled them to keep their team together in New Zealand and continue developing multiple titles. Major studios including Grinding Gear Games, Wētā Workshop, and Ninja Kiwi received support in the inaugural round.
The rebate has already resulted in studios continuing operations in New Zealand rather than relocating. Growth in the game industry creates spillover effects into adjacent sectors like virtual production, animation, and eSports development.
Expanding Industry Capabilities and Creative Potential
Government innovation grants create pathways for studios to build stronger teams, adopt cutting-edge technologies, and establish development hubs outside major cities. These investments address critical workforce gaps while positioning New Zealand as a leader in emerging game technologies.
Addressing Skill Shortages and Talent Growth
The gaming sector added 321 jobs in a single year, but rapid growth creates challenges in finding qualified developers, artists, and designers. Government funding programmes help studios invest in training initiatives that build technical skills within their teams.
The Centre of Digital Excellence now receives $2.75 million annually to support emerging developers through mentorship and production grants. This funding helps new graduates transition into professional roles while giving experienced developers opportunities to learn advanced techniques.
Studios can use grant money to partner with universities and polytechnics on specialised courses. These partnerships create pipelines of work-ready talent trained in game engines, 3D modelling, and programming languages specific to game development.
Emerging Technologies and Industry Diversification
Innovation grants enable studios to experiment with virtual reality, augmented reality, and artificial intelligence without risking their core business. These technologies require expensive equipment and specialised expertise that smaller studios often can’t afford.
Funding supports prototype development for new platforms and gaming experiences. Studios can test market viability before committing to full production, reducing financial risk while exploring creative possibilities.
The New Zealand game development sector earned $513 million in 2024 and targets $1 billion by 2027. Diversification into emerging technologies helps studios capture new market segments and stay competitive globally.
Strengthening Regional Game Development Hubs
Most New Zealand studios concentrate in Auckland and Wellington, but innovation grants can support development centres in smaller cities. Regional hubs reduce living costs for developers while spreading economic benefits across the country.
Government support helps regional studios access the same resources as metropolitan competitors. This includes funding for high-speed internet infrastructure, collaborative workspaces, and travel to industry events.
Smaller communities benefit from high-paying tech jobs that don’t require relocating to expensive cities. Regional studios also tap into local creative talent that might otherwise leave for overseas opportunities.