Online sales drive big increase in NZ computer game industry

We've already seen it with music and movies. Now we're seeing it in the computer games industry too: If you give people a street-legal option to access content online, most will gladly pay. And if you embrace digital distribution, and all of its convenience and possibilities for up-sells, you can actually grow your market.

2014 saw New Zealand’s interactive games industry soar by 18% to a value of $347 million off the back of a strong increase in digital sales, according to market data collected by the Interactive Games and Entertainment Association (iGEA) and independent market researcher NPD Group Australia and released this morning.

A shift to mobile and subscription-based services showed the largest increase, continuing the trend established in previous years. According to research conducted by technology analyst firm, Telsyte for iGEA, subscription-based services climbed by 41% to $31 million, while mobile games and in-app purchases jumped by 43% to $132 million

And offline stats collected by NPD for iGEA show an upward swing in console hardware and accessory sales, rising 24 and 2% respectively following the 2014 launch of the Sony PlayStation 4 and Microsoft Xbox One.

In addition, the NZ Game Developers Association (NZGDA) predicts that digital exports of New Zealand-made interactive entertainment will $100 million this year. 

"Collectively this would soon make interactive entertainment a half-a-billion-dollar industry for New Zealand," NZGDA chairman Stephen Kinightly tells NBR (see more local gaming industry details and stats in Stephen's AMA here, which also takes in Griding Gear Games' Jonathan Rogers).

One a side note, it's good to see that the popular commercial download service Steam (based in the US but operating globally) now explicitly acknowledges New Zealand's Consumer Guarantees Act, and will give you your money back if a game turns out to be filled with bugs or otherwise unplayable. Good stuff.

Highlights from Telsyte for iGEA

• The New Zealand mobile (smartphone & tablet) gaming market exceeded $130 million, growing by 36% in 2014
• The majority of New Zealand mobile games revenues was generated through in-app purchases
• New Zealanders love their MMOGs (Massive Multiplayer Online Games) which was the fastest growing ‘digital’ category in 2014
• Purchases of online, in-game extras, such as additional levels, missions campaigns and map packs grew over 100% in the second half of 2014, boosted by new titles such as Watch Dogs, Titan Fall, Destiny and Call of Duty.

Source: Telsyte – IGEA Digital Market Monitor, 2014