When you think of New Zealand, a wealth of different images may appear in your mind. It might be the sight of the iconic All Blacks performing the Haka before a game of rugby, or maybe a beautiful landscape of crystal-clear lakes and stunning mountains. For some, it could even be the image of two hobbits on a journey to save Middle-earth. What many people aren’t aware of, however, is New Zealand’s growing presence on the global tech scene, with several of the world’s most exciting tech startups and companies calling it home. Within this, it has also emerged that it is in fact the gaming industry that is leading the way, helping to shape the future of New Zealand’s growing tech market. So, what exactly has been simmering in this exciting Pacific nation?
An emerging tech hub
New Zealand’s tech sector has experienced impressive growth over the last twenty years, with the number of companies working within the sector nearly doubling and the annual revenues of its 200 biggest companies reaching a massive $17.95 billion. Much of this growth has come from high-tech manufacturing and ICT services; however, other sectors such as biotech, fintech, and gaming are now starting to make a real impact on the industry as it looks ahead. Notable members of this emerging tech hub include cloud-based accounting company Xero, who now employ over four thousand people and offers their services on an international scale, as well as innovative startup Halter, which is helping to bring agriculture methods to a new level with their virtual fencing and digital pasture management methods. Wherever you look in New Zealand, it appears as though talented and driven teams are finding opportunities for technological upheaval, bringing new ideas to the table and, importantly, creating products and services that people want.
Gaming industry driving growth
The gaming sector is one such area that has seen significant activity, quickly growing into one of the country’s fastest-growing creative industries. In fact, 2024 saw gaming revenues up a huge 26% on the previous year, reaching $548 million and highlighting the upward trajectory the industry appears to be following. This is made all the more impressive considering New Zealand’s turbulent economic position over the past year, which has seen the country dip into recession.
One of the key reasons behind the sector’s success lies in the multi-faceted nature of its output, with high-quality products emerging from every direction of the gaming sphere. Kiwi video games have been the main driver thanks to the success of recent releases from established developers like PikPok and Grinding Gear Games. And as the iconic Weta Workshop looks to release its Tales of the Shire game later this year, industry insiders are confident that video games will continue to provide a vital engine to the sector.
Elsewhere, New Zealand has experienced somewhat of an explosion in the popularity of online casino games in recent years, creating a new channel for investment and innovation. While Kiwis can already access many minimum deposit casinos at Casino.org, upcoming changes to New Zealand’s gambling laws will likely open up this sector even more, providing the chance for emerging startups to find their place in the market and allowing iGaming to provide a boost to the overall gaming sector.
The third area of gaming that has found impressive, and to some, maybe unexpected growth, is in traditional board and table games. This has been primarily influenced by the resounding success of Legendary Story Studios’ trading card game Flesh and Blood. Such a hit in fact that the developer was crowned the fastest growing business in New Zealand by Deloitte in 2022. Finding success in what is an increasingly niche market like board games truly highlights New Zealand’s unique ability to nurture gaming talent.
Why New Zealand
So, what is it about this small country in the South Pacific that makes it such a fertile breeding ground for emerging gaming companies?
Government support
Recognising the country’s impressive ability to punch above its weights in the gaming sector, in 2019 the government followed through with its promise to commit $10 million towards the establishment of the Centre for Digital Excellence (CODE) in Dunedin – a purpose-built hub ‘designed to support a sustainable and equitable expansion of New Zealand’s video game development industry.’ With such strong government support, emerging companies will feel confident that their industry is a priority and a key cog in government plans for economic growth.
A talented workforce
Without a worthwhile product to sell, it is impossible to find success in the gaming industry. Fortunately for New Zealand, it appears as though they have a high density of talent in their small gaming workforce. With little over 1,000 people working in gaming in the country (for context, US developer Activision Blizzard counts 13,000 on their books), the ability to produce such high-quality releases like Path of Exiles 2 highlights a unique ability to tap into what players actually want to play.
Global market focus
As a small nation, New Zealand’s tech industries operate with a global mindset from the get-go, aware that meaningful growth will ultimately come from exporting to larger markets. This means that companies think big, focusing on global trends and preferences while fostering international partnerships early on. This mindset is reflected in the country’s games industry, where thinking beyond borders is a necessary strategic decision.
As New Zealand’s tech market continues to develop, its importance to the country’s economy is becoming increasingly evident. Driven by sectors such as gaming, which are providing the blueprint for other areas to similarly expand and grow, New Zealand could soon see its tech companies become its largest and most valuable export. While there remain challenges ahead for these emerging sectors, most notably tackling the ongoing issue of skills shortages in key areas and competing with developing industries elsewhere, it is hoped that vital talent will continue to emerge.
