The Australian games industry has been on a wild ride, with a rollercoaster of success, failure, and resurgence over the past few decades. It's a story of talent, resilience, and the power of government support. But what makes this journey truly fascinating is the unexpected twist of an indie revolution, and the government's pivotal role in nurturing it. Let's dive into the story of how Australia's games industry has transformed, and the lessons we can learn from its rise and fall.
The Fall and the Rise of Australian Game Development
The story begins with the rise of Australian game development in the early 2000s. Studios like Pandemic, Krome, Blue Tongue, 2K Australia, and Team Bondi were making waves, and the country was buzzing with excitement. But then, the 2008 global financial crisis hit, and the industry was wiped out. Around 60% of Australia's game development sector disappeared over the course of four years, leaving talented developers without work and the industry in tatters. It was a dark time, and many thought the industry was dead.
However, amidst the chaos, a glimmer of hope emerged. Experienced developers who had been let go from big companies began forming their own studios, and the indie scene began to flourish. It was a time of creativity and innovation, and the indie scene became a powerhouse, producing global hits like Untitled Goose Game, Cult of the Lamb, and Hollow Knight. The government's support played a crucial role in nurturing this growth, with generous funding and tax incentives.
The Power of Government Support
The headline incentive is the federal-level Digital Games Tax Offset (DGTO), a 30% tax rebate that was passed into law in 2023, but backdated to June 2022. The qualifying expenditure rules for the DGTO are fairly broad, applying to new games, ports, and live ops, and taking in both Australian companies and foreign companies with an office in Australia. While the 30% rate might not be as generous as the UK's 34% rebate, the DGTO can be stacked on top of other incentives offered at the state level, making it a powerful tool for attracting investment.
In addition to the DGTO, there are various grants and funds to draw on across the different Australian states. Serge Zebian of Playwright Consulting has put together a handy cheat sheet for all the tax rebates and funds available, and he believes that the program has made Australia a genuinely attractive destination to bring work to. The government's support has been crucial in helping studios grow and thrive, and it has allowed companies like PlaySide and Big Ant Studios to expand their operations in Australia.
The Indie Revolution
The indie scene has become a powerhouse over the past decade, producing global hits like Untitled Goose Game, Cult of the Lamb, and Hollow Knight. The passionate developers involved would probably have made these games anyway, but the government's support has made life a lot easier. The funding from the government has de-risked the industry, giving studios the capability to thrive and allowing them to manage the challenges of game development.
The Future of Australian Game Development
The gradual reestablishment of Australia's games industry is helping to reverse the brain drain, and the arrival of bigger companies like Rockstar and Sledgehammer Games is a sign of the industry's growing strength. However, Australia is not immune to the shocks that have been reverberating through the global games industry over the past few years. Total revenue has grown sharply, but the number of people employed in the industry has remained almost unchanged over the past three years.
Despite the challenges, there is a sense of hope and optimism among Australian game developers. The industry is becoming more sustainable and self-sufficient, and the government's support has played a crucial role in nurturing the indie scene. The story of Australia's games industry is a testament to the power of resilience, innovation, and the importance of government support. It's a story that inspires us to think about the future of the industry, and the role that government can play in shaping it.
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