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The aggressive incentives Australia used to entice New Zealand digital video game makers across the Tasman are beginning to bear fruit.
Over 60 New Zealand video game developers went Melbourne International Game Week earlier this month to present their work to buyers, publishers, and investors. In order to propose incentives to create jobs abroad rather than domestically, several people also meet with Australian government organizations.
Australia’s 30% tax cut on digital games, which several states can combine with 10-15% rebates, is one of the country’s major economic growth measures. A44 Games, a Wellington-based game studio, will establish its Australian headquarters in Melbourne, Victoria’s minister for the creative industries. Tim Pallas, the economic development minister for Victoria, stated: “We are helping game studios like A44 to come to Victoria because it creates jobs, increases the potential of our local talent, and strengthens our culture of innovation.”
Although A44 will keep its employees in Lower Hutt, the incentives suggest that any new jobs should be produced in Melbourne. “A44 sees great potential in Australia, and we are excited to announce our expansion to Melbourne. We are excited to expand our workforce in Victoria and feel tremendously welcomed and supported in Melbourne. A44 is not the only New Zealand company planning to grow or possibly completely relocate to Australia, Chairperson of the New Zealand Game Developers Association (NZGDA).
“For every $1 million of qualified spending, NZ companies who shift resources to Australia rather than New Zealand might benefit financially by $400,000 per year. Since every dollar goes so much further, this is especially appealing to startups and businesses investing in expansion. “Just as the gaming business in New Zealand has experienced expansion and has been successful in luring investment, competitive risks will materialize. These jobs could be produced by us.
With this investment, Digital Confectioners will have the option of growing their staff both domestically and internationally. James Tan, a director, has stated that while he would prefer to remain in New Zealand, he is also tempted by Australia’s offer. “Previous achievements have given us access to the door. Since then, Dread Hunger has demonstrated our potential. You can look into the expansion and development of the business. Rapp urged the New Zealand government to quickly adjust its policies in order to maintain and expand the sector.
The biggest gaming investor in the world, Tencent Games, just acquired a private minority share in Christchurch’s Digital Confectioners. With sales of 1.4 million copies in just four months, Digital Confectioner’s most recent title, Dread Hunger, propelled him to number two on Steam’s Global PC Games Top Sellers list this year.