Game industry hotspot springs up inMiddle EarthWe’ve created a white paperthat details the unparalleledgrowth of New Zealand’s (NZ)games industry — a productionhot spot that punches wellabove its weight.… We know all about it because Media Design School has been fuelling theravenous industry with talented game programmers and artists since 2004.The school is recognized amongst the world’s best training providers for thegames industry and is the only place in NZ (one of two in Australasia) wherestudents can learn how to develop for the PlayStation platforms.Fast-forward to 2014, and NZ’s technology sectors and creativeindustries are booming, with some game companies experiencing yearon-year revenue growth of more than 250%.Here’s the secret to NZ’s success…Eager adoption of digital distributionKiwis were early adopters of digital distribution allowing the industry tomatch global demand for online and social games. According to datafrom the New Zealand Game Developers Association (NZGDA), theindustry grew by 86% in 2013 alone.Another key factor in the success of the industry comes from original IP,which means higher margins and sustained audience growth.A great relationship with international brandsNZ has established an international reputation for producing games.Dreamworks, Disney, BBC, Lionsgate and Hasbro have all worked withKiwi studios to produce smartphone games over the last year.  One of those companies is Christchurch-based Cerebral Fix, which hasenjoyed revenue growth of 250% year-on-year (for five years) throughinternational contract work.Quality of lifeA high quality of life, comparatively low taxes and a ready supply ofskilled workers are all major draw-cards for large gaming studios thathave set up shop in NZ.Gameloft International turned to Middle Earth in 2010 when itneeded to set up a new shop. The Auckland-based studio hasgone on to produce well-known games such as My Little Pony—Friendship is Magic, Littlest Pet Shop and Wonder Zoo - AnimalRescue. Combined, these three games have exceeded 25 milliondownloads worldwide.Award-winning gamesIn 2013, five NZ games were ranked amongst the best in the world.Path of Exile by Grinding Gear Games won GameSpot’s PC Game ofthe Year Award. Since it’s launch in October 2013, Path of Exile hasaccumulated more than 4 million registered users, making it one of themost popular RPG games in the world. Grinding Gear has also teamedup with US company Razer, a market leader in gaming hardware andsoftware, to enhance the user experience.Turbo Racing League by PikPok was runner-up for Apple’s Game ofthe Year and a finalist for Google Play’s Best Game Based on a Movie.It marks the Wellington-based company’s fifth collaboration withDreamworks and has been downloaded more than 30 million times.Meantime, indie developer Michael Brough was named one of the Top10 Game Developers of 2013 by Gamasutra and was a finalist in theIndependent Games Festivals’ Innovation Award. Brough is a prolific andhighly-regarded experimental developer famed for his breakout hits suchas 868-HACK and Vesper.5.The Blockheads by Majic Jungle also featured in Apple’s Best of 2013. Thesandbox has more than seven million downloads.And then there’s the famous Bloons Tower Defence 5 by NinjaKiwi, whichhit #2 on iTunes (just behind Angry Birds) and was recognized in Apple’sBest of 2013. Ninja Kiwi’s Bloons TD series now has more than 1 billionplays on web and mobile devices and Bloons TD 4 has sat in the top 100of all apps in the US App Store for over two years.The Facts• The retail value of NZ’s interactive games industry is NZD$300 million• NZ-made mobile games were downloaded over 130 million times last year• NZ industry earnings grew 86% to NZD$36.3 million• Video games are now one of New Zealand’s largest creative IP exports• 100% of games made in NZ are digitally distributed• 18% of NZ studios produce games for international film or TV studios• Selling advertising space in games now makes up 32% of revenue• Game development jobs grew 18% last year and there are now 448 full-timedevelopersSourcesInteractive Games and Entertainment Association,New Zealand Game Developers AssociationGames for goodNZ developers are also forging a reputation for games that extend beyondentertainment and into education, medicine, science and workplacetraining. A great example is Project Autismus, an open-source projectoperating out of New Zealand, that develops games for children withAutism and Asperger Syndrome. Meantime, Metia Interactive has wonmultiple awards for its games that combat depression in young people.So what’s next?“The investments in skills and jobs reported in previousyears’ surveys is now paying off in real profits andinternational recognition. Gaming is now firmlyestablished as one of the core sectors of NZ’s creativeeconomy. NZ studios are demonstrating sustainablegrowth and winning huge audiences globally in a highlycompetitive market.”— Stephen Knightly, NZGDA“I think Kiwi games will continue to grow as it becomeseasier to create indie games and the bootstrap attitudeof the Kiwis allow them to respond to the marketplacewell and to adapt quickly. New Zealand is a test marketfor many larger markets. Using that knowledge I thinkthere will be more innovation coming from NZ.”— Mike Porter, Media Design School“I think it’s an easy bet that the NZ games industry willcontinue to grow during 2014. Most of this growth willbe in mobile and web based gaming. Every time I goto the Auckland Game Developer’s Meet-up there arenew mobile-based companies doing awesome work andlooking to hire talent. There’s also a huge community ofindie developers that are making games and releasingthem by themselves on their own websites. I only see thisgetting larger in 2014.” — Blake Dwan, Grinding Gear Games.We hoped you enjoyed this look into the growing game industry of Middle Earth.Discover more about how we contribute through games education atmediadesignschool.com.ABOUT USMedia Design School in Auckland, New Zealand is internationally acclaimed for itsspecialized qualifications for emerging creative industries including 3D animationand visual effects; game art and game programming; and interactive online andmedia design. It is also home to the award-winning AdSchool for creative advertising.Media Design School is distinguished by its high-profile industry collaborations,immersive learning environment and award-winning student work. Part of theLaureate University Network, the world’s largest group of private tertiary providers,Media Design School provides access to international education opportunities. Formore information visit: www.mediadesignschool.comJOIN THE INDUSTRY IN MIDDLE EARTH.mediadesignschool.com