One of Australia’s least known billion-dollar industries is expected to almost double in size by 2025, according to a new report.
Australia’s billion-dollar gaming industry is about to boom with three major states vying to be a gaming silicon valley.
In the latest PwC entertainment and media outlook report, the gaming industry had continued its growth in 2020. In 2019, Australians spent $3.175 billion on video games and exports – this grew by about eight per cent in 2020 with the revenue expected to top $3.4 billion.
However, a key government change will act like jet fuel for the industry.
Earlier this year, the federal government announced a Digital Games Tax Offset, which is a scheme that grants gaming businesses earning more than $500,000 a 30 per cent offset. This will come into effect in July 2020 and some states have followed the trend.
South Australia, New South Wales and Victoria are now offering an additional 10 per cent for game developers in their states.
Queensland is the latest to jump on board offering 15 per cent to developers in the sunshine state. The announcement has prompted some Brisbane developers to double the amount of their staff ahead of the boom.
Gameloft studio manager Dylan Miklashek told news.com.au the announcement will catch the eye of major international game developers in the industry which earns about $250 billion each year.
“It is a gamechanger, an absolute gamechanger,” he said.
“We knew both the federal and state government had been looking at it. We were hoping that Queensland would contribute a significant amount. Places like Montreal, which has one of the biggest game developer ecosystems, has a similar deal for 45 per cent.
“This can put Australia on a similar level to other countries. We have been waiting for this news, we are going to double our Brisbane operation from 40 to 80 employees.”
Mr Miklashek has worked in the game development industry for more than 25-years. He’s previously worked for gaming heavy-hitter like EA and developed $100 million gaming projects.
After working in Montreal, he worked for a few years in LA before moving to Brisbane in the mid 2000s.
Queensland’s capital was fast becoming Australia’s gaming capital at this time.
“Brisbane was a massive part of the country’s gaming industry. There were four major studios, each with over 200 staff pushing out games. The global financial crisis ended that and the local economy hasn’t recovered.
“There are some big developers and studios in Melbourne but I believe the 45 per cent offering will drag people to Brisbane.”
Australia’s gaming industry is expected to grow to be a $5 billion dollar industry by 2025, the PwC report said.
It also earns more than the combined amount of video streaming services, like Netflix and Stan.
Similar offset schemes have been popular in the film industry with the federal government raising the 16.5 per cent location offset program to 30 per cent.
Almost immediately after the change in legislation the Marvel blockbuster Thor: Love and Thunder began filming in Australia.
Originally published as One of Australia’s least known billion-dollar industries is about to boom
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