adminThe New Zealand game development sector recorded strong growth in 2025/26, with combined revenue from studios supported by the Game Development Sector Rebate (GDSR) rising 17% to $829 million. The figures show expanding activity across studios of different sizes, alongside an increase in games under development.
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New Zealand game development sector revenue and studio activity
Data from NZ On Air shows that 43 studios received $21.9 million in GDSR funding. The previous year’s funding total was $22.4 million. The lower funding amount was attributed to a larger number of studios sharing support, while the number of games in development increased from 170 to 194.
When comparing these figures, it is useful to distinguish between revenue, rebate funding and the number of projects in development. They measure different aspects of the industry: revenue reflects studio earnings, funding indicates programme support, and project counts show the volume of work underway.
Small and medium-sized studios drive growth
Ninety percent of studios benefiting from the rebate were small or medium-sized businesses. Medium-sized studios reported the largest revenue increase, at 44%. Revenue grew by 21% among small studios and by 10% among large studios.
These results point to growth across the size range, rather than in only the largest companies. For anyone following the sector, studio-size breakdowns offer useful context alongside the overall revenue figure, because they show how widely growth is shared.
Export sales made up 98% of total revenue among studios receiving GDSR support. That high proportion underscores the international reach of the funded businesses. Total full-time employment declined from 1,288 to 1,124, even as the average studio increased its workforce by 14%. These are different measures, so the overall employment total and the average studio trend should be read separately.
Industry leaders point to a resilient ecosystem
NZ On Air GDSR programme director Chantelle Cole said the industry is largely made up of small and medium-sized studios and highlighted their importance to the results. She also noted that New Zealand games are gaining international recognition and that studios of all sizes contribute to the country’s success.
Cole described the revenue growth as a sign of a more resilient ecosystem and said the sector is continuing to emerge as a successful digital export industry. The figures support a broader view of progress: revenue growth, export earnings and the number of games in development each reveal a different part of the sector’s performance.
New Zealand game development sector passes $1 billion
In the previous month, the New Zealand game development industry surpassed $1 billion in revenue, reaching the milestone two years earlier than projected. The 2026 GDSR result accounted for the majority of that total. The New Zealand Game Developers Association (NZGDA) had forecast that the industry would reach the target by 2028 after the rebate was introduced in 2023.
In the year before the latest results, the sector generated $758.9 million and its workforce grew by 29%. Taken together, the figures indicate a fast-changing industry, but comparisons should always be made using the same reporting period and measure.
What the figures mean
The latest data presents a picture of continued expansion: revenue from GDSR-supported studios rose to $829 million, projects in development increased to 194, and exports remained a major source of earnings. The New Zealand game development sector is growing through contributions from studios of different sizes, while employment and funding totals show that individual indicators can move in different directions. Readers assessing the trend should consider the full set of measures, rather than relying on revenue growth alone.
