Game industry hot
spot springs up in
Middle Earth
We’ve created a white paper
that details the unparalleled
growth of New Zealand’s (NZ)
games industry — a production
hot spot that punches well
above its weight.
… We know all about it because Media Design School has been fuelling the
ravenous industry with talented game programmers and artists since 2004.
The school is recognized amongst the world’s best training providers for the
games industry and is the only place in NZ (one of two in Australasia) where
students can learn how to develop for the PlayStation platforms.
Fast-forward to 2014, and NZ’s technology sectors and creative
industries are booming, with some game companies experiencing yearon-year revenue growth of more than 250%.
Here’s the secret to NZ’s success…
Eager adoption of digital distribution
Kiwis were early adopters of digital distribution allowing the industry to
match global demand for online and social games. According to data
from the New Zealand Game Developers Association (NZGDA), the
industry grew by 86% in 2013 alone.
Another key factor in the success of the industry comes from original IP,
which means higher margins and sustained audience growth.
A great relationship with international brands
NZ has established an international reputation for producing games.
Dreamworks, Disney, BBC, Lionsgate and Hasbro have all worked with
Kiwi studios to produce smartphone games over the last year. One of those companies is Christchurch-based Cerebral Fix, which has
enjoyed revenue growth of 250% year-on-year (for five years) through
international contract work.
Quality of life
A high quality of life, comparatively low taxes and a ready supply of
skilled workers are all major draw-cards for large gaming studios that
have set up shop in NZ.
Gameloft International turned to Middle Earth in 2010 when it
needed to set up a new shop. The Auckland-based studio has
gone on to produce well-known games such as My Little Pony—
Friendship is Magic, Littlest Pet Shop and Wonder Zoo - Animal
Rescue. Combined, these three games have exceeded 25 million
downloads worldwide.
Award-winning games
In 2013, five NZ games were ranked amongst the best in the world.
Path of Exile by Grinding Gear Games won GameSpot’s PC Game of
the Year Award. Since it’s launch in October 2013, Path of Exile has
accumulated more than 4 million registered users, making it one of the
most popular RPG games in the world. Grinding Gear has also teamed
up with US company Razer, a market leader in gaming hardware and
software, to enhance the user experience.
Turbo Racing League by PikPok was runner-up for Apple’s Game of
the Year and a finalist for Google Play’s Best Game Based on a Movie.
It marks the Wellington-based company’s fifth collaboration with
Dreamworks and has been downloaded more than 30 million times.
Meantime, indie developer Michael Brough was named one of the Top
10 Game Developers of 2013 by Gamasutra and was a finalist in the
Independent Games Festivals’ Innovation Award. Brough is a prolific and
highly-regarded experimental developer famed for his breakout hits such
as 868-HACK and Vesper.5.
The Blockheads by Majic Jungle also featured in Apple’s Best of 2013. The
sandbox has more than seven million downloads.
And then there’s the famous Bloons Tower Defence 5 by NinjaKiwi, which
hit #2 on iTunes (just behind Angry Birds) and was recognized in Apple’s
Best of 2013. Ninja Kiwi’s Bloons TD series now has more than 1 billion
plays on web and mobile devices and Bloons TD 4 has sat in the top 100
of all apps in the US App Store for over two years.
The Facts
• The retail value of NZ’s interactive games industry is NZD$300 million
• NZ-made mobile games were downloaded over 130 million times last year
• NZ industry earnings grew 86% to NZD$36.3 million
• Video games are now one of New Zealand’s largest creative IP exports
• 100% of games made in NZ are digitally distributed
• 18% of NZ studios produce games for international film or TV studios
• Selling advertising space in games now makes up 32% of revenue
• Game development jobs grew 18% last year and there are now 448 full-time
developers
Sources
Interactive Games and Entertainment Association,
New Zealand Game Developers Association
Games for good
NZ developers are also forging a reputation for games that extend beyond
entertainment and into education, medicine, science and workplace
training. A great example is Project Autismus, an open-source project
operating out of New Zealand, that develops games for children with
Autism and Asperger Syndrome. Meantime, Metia Interactive has won
multiple awards for its games that combat depression in young people.
So what’s next?
“The investments in skills and jobs reported in previous
years’ surveys is now paying off in real profits and
international recognition. Gaming is now firmly
established as one of the core sectors of NZ’s creative
economy. NZ studios are demonstrating sustainable
growth and winning huge audiences globally in a highly
competitive market.”— Stephen Knightly, NZGDA
“I think Kiwi games will continue to grow as it becomes
easier to create indie games and the bootstrap attitude
of the Kiwis allow them to respond to the marketplace
well and to adapt quickly. New Zealand is a test market
for many larger markets. Using that knowledge I think
there will be more innovation coming from NZ.”
— Mike Porter, Media Design School
“I think it’s an easy bet that the NZ games industry will
continue to grow during 2014. Most of this growth will
be in mobile and web based gaming. Every time I go
to the Auckland Game Developer’s Meet-up there are
new mobile-based companies doing awesome work and
looking to hire talent. There’s also a huge community of
indie developers that are making games and releasing
them by themselves on their own websites. I only see this
getting larger in 2014.” — Blake Dwan, Grinding Gear Games.
We hoped you enjoyed this look into the growing game industry of Middle Earth.
Discover more about how we contribute through games education at
mediadesignschool.com.
ABOUT US
Media Design School in Auckland, New Zealand is internationally acclaimed for its
specialized qualifications for emerging creative industries including 3D animation
and visual effects; game art and game programming; and interactive online and
media design. It is also home to the award-winning AdSchool for creative advertising.
Media Design School is distinguished by its high-profile industry collaborations,
immersive learning environment and award-winning student work. Part of the
Laureate University Network, the world’s largest group of private tertiary providers,
Media Design School provides access to international education opportunities. For
more information visit: www.mediadesignschool.com
JOIN THE INDUSTRY IN MIDDLE EARTH.
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