The gaming industry is tipped to be New Zealand’s next billion-dollar industry, with it already raking in a casual NZD$407 million annually, which is more revenue than wool.
However, the industry isn’t being valued in Aotearoa. Rising Kiwi stars in gaming are skipping the ditch, finding better pay and enticing tax incentives across the Tasman.
It’s proving to become a bigger problem with each day. Over the past two years, growth in New Zealand has stalled, despite NZ's sector being bigger than Australia’s.
Rocketwerkz is one of Auckland’s largest gaming developers. Its chief operating officer Stephen Knightly told Tova O'Brien until our Government makes some changes, this will continue to be the reality.
"Two years ago in [Australia's] budget, their number one economic development strategy they announced were incentives to attract video game students to Australia," Knightly said.
"As a New Zealand-run company, it's a crying shame, we'd far rather make those jobs here at home."
The 30 percent industry-wide tax offset that Australia offered was already a huge incentive - but some states have gone above and beyond by giving back 45 cents on every dollar.
This extra incentive, Stephen said, has become a major issue.
"We're Kiwi-grown, so the profits get brought back to New Zealand and the tax on the profits goes to the New Zealand government," he said.
"We're growing what we in the industry call intellectual property - the value of the company stays here - and that's why, for instance, the video game industry already pays more tax to the government, that rebate scheme will cost the taxpayer."
Knightly said at Rocketwerkz, they have lost "one or two" of their employees to Australian companies, describing it as "ridiculous".
"The three or four largest New Zealand game studios have stopped growing despite the fact that they would like to.
"There's just ridiculous poaching happening by Australian studios. It's just the reality for the last year or so."
Listen to the full interview between Stephen Knightly and Tova above.
You can also download the full interview on the Tova podcast, and listen on the go.
