The New Zealand video game industry is in extremely good health with consumers showing greater demand than ever before.

The digital gaming market has seen the biggest leap, but there has also been growth in traditional retail and mobile gaming from 2022 to 2023 as revealed by IGEA (the Interactive Games and Entertainment Association).

The industry has benefitted from technological improvements as well as improving connectivity for customers, with other industries also exploiting the gamification of services.

Sports betting and casino expert Jeremy Olson uses the variety and quality of games offered by betting sites as one of the factors for reviewing them. Dedicated betting sites and apps provide players with great levels of convenience, with his list of the best mobile sites ranked here.

In the gambling industry, suppliers of components required to build gaming PCs, consoles, and mobile devices, as well as the entire supply chain network, also benefit from a successful gaming industry.

The Traditional retail sector has seen a 20% increase in figures from 2022, raking in over $173 million. This includes more than $40 million in game software and $106.4 million in hardware.

This is excellent news for the New Zealand economy with these sales driving retail employment and production, as well as increasing footfall in shopping areas.

The big winner in 2023 was the digital gaming sector which was worth $312.9 million, an increase of 31% from 2022. This figure can be broken down into three revenue streams with in-game purchases being the most valuable, generating revenue of $145 million.

Full-game revenue came in at $110.6 million, while subscription-based models earned $57.3 million. The mobile gaming industry could shower greater growth in 2024 thanks to improved connectivity as a result of the global 5G rollout. 

The New Zealand mobile gaming industry rose by 2% in 2023 to $229.8 million. Mobile and broadband company One NZ currently offers 5G and 4G connections to 98.5% of populated areas, and this will continue to grow.

Improved connectivity offers mobile gamers a far greater experience and allows them to enjoy lower latency while on the move. 5G connectivity combined with high-tech mobile devices means that game developers can now offer much better games without the fear of gameplay being compromised.

This is another way that the gambling industry has enjoyed a symbiotic relationship with gaming. Betting apps and crypto gambling sites can now provide consumers with immersive gaming experiences at home, at work, or on the move.

The year-on-year growth of 18% for the New Zealand gaming industry has been a big boost in a difficult financial period, and there are hopes that 2024 will top the $716 million total of 2023.

The ability for game developers to continue earning through in-game purchases means that revenue doesn’t end with the sale of physical or digital games. This is a key factor to how successful the industry has been, and it will be interesting to see whether consumers continue to spend on in-game extras, or if this bubble will burst.