Investing in Game Development: The Case in Australia
The global gaming market is now a billion-dollar behemoth, growing faster than the combined total for the film and music industries. For many years, Australians have been at the forefront of the global games market, producing some of the most successful games in the world such as those offered on the reputable Syndicate Casino platform.
Often referred to as one of the most exciting destinations in the world for investment in the creative sectorб Australia has long been admired as the home of a leading talent base, a strong entrepreneurial community, and oversight by the government supported by state-of-the-art technologies. This piece examines the current development of gaming production in Australia, investment opportunities, and the barriers that the sector faces.
Advancement & Development of the Australian Video Game Industry
In the past 10 years, this business has taken off quite a bit in Australia, almost exclusively due to an explosion of indie studios that have created internationally successful games such as Hollow Knight (Team Cherry) and Untitled Goose Game (House House). Not only has the success of these games helped to put Australia on the global gaming map, but it also points to a potential untapped domestic market for gaming progress.
The country’s historically strong educational standards produce a tidal wave of graduates with design and programming skills — and those skills are a boon to business. RMIT, Swinburne, Queensland University of Technology, and others offer courses that specialize in game-making — a ready supply for an industry that thrives on churning out content.
Support and Incentives From the Government
This industry in Australia has been given a major boost through government funding and investment incentives. The federal and state governments have also been active in trying to attract investment in the digital economy and its potential.
The most significant is the Digital Games Tax Offset (DGTO), offering a 30 percent cash rebate on qualified costs. These incentives encourage inward investment from domestic and foreign developers, making Australia a highly competitive location for gaming advancement. State government programs like Screen Queensland’s Game Development Fund and Film Victoria’s Assigned Production Investment program often assist regional developers.
Viable Opportunities for Investments
The Australian games development space is a sector where you can invest in different market categories, such as independent production companies, virtual and augmented reality (VR/AR) initiatives, and serious games, which are defined as applications for non-entertainment purposes such as teaching and education. Some viable options include:
- Independent Studios;
- VR/AR Projects;
- Serious Games.
Independent Studios
Australian independent studios can make internationally celebrated games (Hollow Knight (2016) and Untitled Goose Game (2019) are great examples), which can be lucrative to invest in if they are critically acclaimed and sell well. These investments are also more attractive from an economic standpoint than employing traditional means of profit-making, as Australia’s production costs are comparably lower than those in the US and Europe.
VR/AR Projects
Some pioneering experiences are being created in Australia. Companies such as Zero Latency are leading the way. Businesses like these are rapidly creating a hub for VR and AR development. There are many investment opportunities because the amounts of VR/AR content required by the education, gaming, and healthcare sectors are ever-increasing. VR/AR projects with the potential to disrupt existing markets will attract funding from investors.
Serious Games
However, serious game design concepts are now increasingly being seen in non-entertainment contexts in Australia. To create perpetually novel, interactive, and inspiring responses to complex problems, serious games are being used in various fields, such as education, health, and the defence forces. Serious design is an investment that can potentially return huge dividends, especially in areas where demand continues to grow for the latest tools for training and simulation.
What Are the Key Challenges and Obstacles the Industry Faces?
Future investors ought to be aware of the limitations preventing the sector from reaching its true potential, given the industry’s bright future.
The relative lack of size in any given local market makes drawing domestic investment from developers much more challenging. But, this represents an excellent opportunity for investors willing to take on more risk for the potential of larger returns.
Unlike markets in other parts of the world — North America, Europe, and Asia — the domestic market in Australia was comparatively tiny. That lack of domestic feet meant that Australian developers often had to look overseas to be successful commercially. Investors have to be willing to underwrite international marketing and distribution efforts for Australian-made games to access their potential.
Seizing Opportunities: The Australian Game Development Landscape
The gaming industry in Australia offers plentiful investment opportunities, and it is backed by a strong workforce, government support, and a reputation for producing quality games. While the sector is not without troubles, it can still be an attractive entry point to the digital entertainment business due to its enormous potential upside.
Investors would buy into the golden future of Australian game production by funding serious and indie game production and Virtual Reality and Augmented Reality initiatives. Early and smart investors — those who have faith in the sector’s potential — would reap the rewards!
