NZ On Air gives nearly $22m in taxpayer rebates to game development studios

New Zealand On Air has handed out nearly $22m in taxpayer rebates to game development studios this year, down slightly on last year.

In total 43 studio received the Game Development Sector Rebate this year up three on the previous years, with the number of games in development also up by 24 to 194.

The Game Development Sector Rebate (GDSR) was a funding stream designed to foster the gaming industry in New Zealand and offered a 20 percent refund on approved expenses for eligible firms, with a cap of $3m.

NZ On Air said data from the 2026 GDSR recipients had shown combined studio revenue of $829m in 2025/26, up 17 percent on $710m the previous year.

Ninety-eight percent of revenue generated was export revenue.

Chantelle Cole, NZ On Air GDSR Programme said the sector was going from strength to strength.

"New Zealand's games sector is largely made up of small and medium-sized studios, and these results show just how important they are."

When it came to job creation in the sector it was a more mixed picture.

Total full-time equivalent employment across recipient studios decreased from 1288 to 1124 during the year.

However NZ on Air said despite ongoing global industry challenges and workforce reductions, many New Zealand game developers continued to invest in talent, with the average GDSR recipient studio growing its workforce by 14.

The strongest individual revenue growth, was seen among medium-sized studios, which reported a 44 percent increase in revenue compared with the previous year.

Small studios also performed strongly, recording revenue growth of 21 percent, while large studios reported growth of 10 percent.