NZ Government Doubles Funding for Game Development Startups Through CODE

New Zealand’s gaming industry is set to receive a major boost, with the Government announcing a significant expansion of support for early-stage game studios and startups. Science, Innovation and Technology Minister Dr Shane Reti confirmed that beginning in 2026, the Centre of Digital Excellence (CODE) will receive an additional $2.75 million annually, effectively doubling its current budget.

Backing Innovation in a Fast-Growing Industry

Dr Reti highlighted that game development is one of New Zealand’s fastest-growing creative and tech industries. “New Zealand’s game developers are creating world-class products and jobs while generating hundreds of millions in export earnings,” he said. “By doubling funding for CODE we’re backing our innovators to grow faster and reach global markets.”

The funding increase will expand CODE’s capacity to deliver prototype grants, production support, and international travel assistance. These measures are designed to help small studios bring their ideas to life and present them to international publishers.

Proven Success of CODE’s Support Model

One of the strongest arguments for increased investment is CODE’s track record. While the global gaming industry is notoriously competitive—with only around 1.6 percent of pitches securing publisher deals—CODE-supported studios have achieved an impressive 40 percent success rate.

This higher success rate has not only given young developers a foothold in international markets but also positioned New Zealand as a credible player in the global gaming ecosystem. However, demand has been outstripping resources, with CODE reporting that applications for support consistently outnumber funding capacity by a factor of two.

Industry Growth and Economic Potential

The announcement comes at a time when the industry is experiencing record growth. In 2024, New Zealand’s gaming sector generated $513 million in revenue, and projections suggest it will reach $750 million in 2025 and $1 billion by 2027. Remarkably, the vast majority of this revenue comes from exports, underscoring the international demand for New Zealand-made games.

Employment within the sector also surged by 29 percent last year, with 321 new jobs created. Larger studios such as Grinding Gear Games (makers of the globally successful Path of Exile) and PikPok continue to dominate, but smaller startups are increasingly breaking through thanks to CODE’s assistance.

Beyond Games: A High-Tech Economic Driver

Dr Reti stressed that the initiative is about more than entertainment. “This is about more than games – it’s about high-tech jobs, export growth, and putting New Zealand creativity on the world stage,” he said.

The Government sees the gaming sector as a strategic contributor to New Zealand’s digital economy, with the potential to rival traditional creative industries like film and television in both economic impact and global reach. By equipping startups with funding and pathways to international markets, the country is positioning itself as a hub for digital innovation.

Looking Forward

The doubling of CODE’s funding represents a strong signal of government confidence in the sector’s potential. With global demand for interactive entertainment rising, New Zealand’s investment in its developers could pave the way for a new era of digital exports and high-value creative employment.

As the sector pushes towards the projected billion-dollar milestone, CODE’s expanded support will play a pivotal role in ensuring that New Zealand’s developers not only compete but thrive in the global gaming arena.