The Australian Gaming Market: An Overview

  • In 2024, Australia’s total population is about 26.72 million, representing just 0.3% of the global population but accounting for 1.7% of the world economy. From 2019 to 2024, Australia’s economy is expected to rise at an average annual growth rate of 11.1%, above the developed economies’ average growth of 7.8%.
  • The gaming industry also has been greatly impacted by this steady economic growth, and consumer spending on video games, online games, and esports keeps increasing as well. 
  • According to the Australia Play 2023 survey, 9.4 million of Australia’s 10 million households, representing 94% of all, enjoy gaming.
  • Of these 9.4 million gaming households,51% have three or more gaming devices, and 15% have five or more.
  • Among these devices, consoles are the most common (81%), followed by smartphones (70%), PCs (59%), and tablets (43%). Portable gaming devices (Nintendo Switch, PlayStation Portable, XBOX Cloud) make up 6% of the total, and VR gaming devices 5%.
  • Recent research by PwC indicates that the Australian gaming market reached USD 3.663 billion (about KRW 4.845 trillion) in 2023 and is expected to rise by 7.3% to USD 3.929 billion (about KRW 5.193 trillion) in 2024. Additionally, the market’s compound annual growth rate (CAGR) is 3.9%, predicted to reach USD 4.587 billion (about KRW 6.063 trillion) by 2028.
  • The Interactive Games & Entertainment Association (IGEA) reported positive data: Australians spent a total of AUD 4.4 billion (about KRW 3.948 trillion) on video games in 2023, a 5% increase over the previous year.

The Current State of the Australian Gaming Market

1. Current State of Developers

  • According to IGEA’s 2023 “Australian Game Development Survey,” Australia’s local game developers have recorded a CAGR of 25% over the past five years (2019-2023), and total revenue reached AUD 345.5 million (about KRW 310 billion) in 2023, a 21% increase over the previous year.
  • After the pandemic, in the last 5 years, the Australian gaming industry has changed, with a drop in sales of smaller companies and takeover of independent studios by major companies, leading to a decrease in the number of local game developers. However, the total number of employees has steadily increased, with at least 2,458 individuals working at local game developers in 2023.
  • 71% of Australian game developers have established their headquarters in the three states of Victoria, New South Wales, and Queensland, which offer plentiful tax benefits and subsidy programs from state governments. 
  • In 2023, Summerfall Studios, an independent Australian game developer, has garnered attention for its “Stray Gods: The Roleplaying Musical”, which was the first Australian videogame to be nominated for the 2024 Grammy Award.

2. Current State of User Base

  • According to IGEA’s 2023 survey, the average age of Australian gamers is 35 years, with males making up 52% and females 48% of the gaming population. The age distribution is: 18-64 (69%), 1-17 (21%), and 65 and older (10%).
  • A 2023 Australia Play report indicates that the most popular genres for Australians are puzzle games (36%) and the rest are as follows: Action/adventure games (32%), strategy and sports games (21%), shooting games (19%), board/card and RPG games (18% each), racing games (17%), online multiplayer games (16%), fighting and simulation games (11% each), and arcade games (10%).
  • According to Statista, the top-selling games in Australia as of June 2024 are <Elden Ring: Shadow of The Ertree>, followed by <, and Grand Theft Auto V>at 2nd, and <EA Sports FC 24> in third place.

3. Console/PC Games and Esports

  • Australia’s traditional gaming sectors, console and PC games, generated USD 1.415 billion (about KRW 1.871 trillion) in 2023, and are projected to increase at a rate of 6.8% increase to USD 1.511 billion (about KRW 1.998 trillion) in 2024. This growth is expected to maintain a steady CAGR of 3% from 2024 to 2026.
  • The Australian Esports market was valued at USD 15 million (about KRW 19.8 billion) in 2023 and is projected to grow at a CAGR of 10.1%, reaching USD 25 million (about KRW 33 billion) by 2028.
  • Esports in Australia are gaining popularity with a wide range of consumers. As the fandom grows, views and the value of broadcasting rights are predicted to increase, leading to a rise in media rights revenue.

Australian Gaming Industry: Outlook

  • KOCCA anticipates that the use of AI (Artificial Intelligence) in the Australian gaming industry will enhance the efficiency of game development and strengthen the capabilities of small studios. However, there are still worries about potential legal issues that AI might bring, such as copyright infringement. 
  • According to KOCCA’s report, while AI offers useful tools for game development, there are fears that AI could replace human designers and negatively impact the creativity of games. 
  • The Australian developer Mighty Kingdom Ltd., a prominent independent game studio which makes effective use of AI, released over 50 games, and is well known for its collaborations with renowned brands like LEGO and Disney.
  • In April 2021, Mighty Kingdom was listed on the Australian Securities Exchange (ASX) and collaborated with the Australian Institute for Machine Learning (AIML) to develop an AI-based software tool called “blob out tool.” According to them, this tool reduces game development time and helps AI to enhance human creativity.
  • When entering the Australian market, Korean game developers need to devise flexible strategies, effectively utilizing innovative technologies such as AI and considering the growth of mobile games and Esports.