Digital game development has emerged as one of the sectors to defy the COVID-19 odds and increase exports by almost 60 percent to reach $324 million.
Digital Economic and Communications Minister David Clark has described the results as "fantastic", lauding the industry's "outstanding success" that "not even COVID-19 could slow down".
The results were announced by the NZ Game Developers Association following their annual survey. It shows the industry's export value has risen by 59 percent over the year to April, and that 96 percent of revenue was generated in the global market.
The figures come from the annual NZ Game Developers Industry Survey of 42 interactive, gaming, virtual reality, augmented reality and education technology companies.
The NZ Game Developers Association said the industry benefited both from being able to continue production during lockdowns as well as soaring demand as people around the world stayed home and played digital and online games.
"Games and interactive media have given so many people the opportunity to come together when lockdowns and border closures have kept them apart," said NZ Game Developers Association chair Chelsea Rapp.
"The games industry has proven itself particularly resilient during the COVID-19 pandemic, both here in New Zealand and around the world. We are uniquely positioned to contribute to our economic recovery with weightless digital exports, but that growth will depend heavily on our ability to support young and emerging enterprises."
The gaming sector has a goal of being a billion dollar sector as soon as 2025 and Dr Clark is optimistic about the intellectual property being generated in New Zealand, supporting cities like Dunedin which is home to the Centre of Digital Excellence.
"However, most of the growth was from well-established firms. The challenge for us and the sector is growing new competitive firms and helping them develop investment-ready products," Dr Clark said.
"I am confident that this industry will continue to help our economic recovery from COVID-19... I am excited to see this industry progress and look forward to working with it on the opportunities ahead."
Last year the NZ Game Developers Association recommended that the Government create an interactive innovation fund and industry development plan to grow the pipeline of new interactive firms.
The Government is currently consulting on the Digital Technologies Industry Transformation Plan (ITP), which will consolidate industry views on suggested changes to how the Government can support the digital economy.
A draft ITP will be released for public consultation before it is finalised and implemented.
Existing initiatives include the Government-backed $300 million Elevate NZ Venture Fund established in March, which matches public capital with that raised from private investors. It's looking to raise up to $60 million, which will then be used to invest in New Zealand-founded start-ups.
The Ministry of Business, Innovation and Employment (MBIE) has also supported independent market research commissioned by the AI Forum of New Zealand to better understand how the technology could be monetised.
Former Economic Development Minister Phil Twyford has previously talked about the Government helping the gaming industry grow and address its recruitment problem.
A previous survey done by the NZ Game Developers Association showed 47 percent of studios came back this year and said skills shortages were limiting their growth.
The industry employs 747 full time creative technologists, and expects to create another 142 new jobs this year. For the studios that reported skills shortages, 89 percent were seeking programmers, 33 percent 3D artists, and 33 percent game developers.
Gaming studios are spread around the country, with 40 percent in Auckland, 26 percent in Wellington, 14 percent in Otago, 10 percent in Canterbury, 5 percent in Waikato and 5 percent in Bay of Plenty.
New Zealand studios target audiences around the world, with 65 percent reporting significant income from North America, 41 percent from Europe and 21 percent from China.
The sector has 23 percent female representation.
