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Australian Games Industry Earned Nearly $3 Billion In 2016

Marching ever-forward into the digital future.

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According to a release from the Interactive Games and Entertainment Association (IGEA) today, the Australian game development industry has generated AUD$2.958 billion in 2016, a four percent increase over 2015.

This number comes from $1.065b in retail sales, and $1.893b in digital and mobile sales.

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Digital sales increased in Australia during 2016 by 19 percent compared to the previous year, according to research commissioned by the IGEA from analyst firm Telsyte. Mobile games generated the most digital revenue, raking in $988 million. The largest field of growth came from downloads (full games and expansions/DLC), which were up 26 percent.

Retail sales have decreased a whopping 16 percent compared to 2015, across both software and hardware, according to market data from NPD Australia. Despite this, the increase in overall revenue paints a fairly clear picture that consumers are becoming increasingly comfortable with digital purchase as time goes on.

"Consumers have once again shown they are receptive to the latest technologies, with virtual and augmented reality games making the move into living rooms and onto mobile devices," said IGEA CEO Ron Curry in the release."

"Australian consumers are increasingly comfortable buying games and DLC via digital storefonts," said Telsyte's managing director Foad Fadaghi, "with this trend set to continue as more devices get connected via high speed mobile and fixed networks."

Key highlights from Telsyte:

  • Video and computer games generated $1.893 billion in digital sales in 2016, a 19% increase on 2015
  • While mobile is still the largest part of the digital pie (up 14%), the biggest growth is coming from downloads of full games and additional content (up 26%)
  • Downloadable content (DLC) is a popular way to extend the life of a game and experienced 31% growth on 2015 sales

Key highlights from the NPD Group Australia:

  • Video and computer games generated $1.065 billion in traditional retail sales in 2016, a 16% decrease on 2015 sales
  • The primary area for growth in retail sales was in accessories for current generation consoles PS4 and Xbox One, which was up 25% on 2015
  • Games classified MA15+ sold the highest number of units in 2016, reflecting the 33-year-old average age of Australian game players
  • 55% of games sold received an unrestricted classification (G, PG or M)

In other Aussie game development news, the Australian government has still failed to respond to a report from the senate recommending huge federal support for the industry.

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