Game Development Sector Rebate in 2025-26

Aotearoa's game development sector continued its strong growth in 2025-2026, highlighting increasing commercial maturity, export success and a growing pipeline of world-class games.

Hatch Dragons Hero Image 2
Hatch Dragons, Runaway

Another strong year for New Zealand’s games industry

Following the successful third round of the GDSR, 43 studios received a combined $21.9 million through the programme, up from 40 recipients in 2025.

In another exceptional year for the sector, GDSR recipient studios reported a combined $829million in annual revenue – a 17% increase on the previous year, almost triple the global games industry’s growth rate of 6.1% in the same period. Almost all revenue (98.3%) was earned from international markets, reinforcing game development's role as one of New Zealand’s fastest-growing export industries.

Programme participation continued to grow, with more studios reaching the scale required to qualify for the rebate, while the number of eligible games currently in development increased from 170 to 194, highlighting a healthy pipeline of future releases.

By the numbers

$21.9m

distributed in 2026 GDSR

17%

increase in annual revenue growth

98.3%

of revenue generated internationally

43

no. of recipient studios, up 7.5% on 2025

90%

of recipients are SMEs

194

eligible games in development

2026 NZ On Air GDSR Infographic

Building a resilient export industry

Small and medium-sized studios remain the backbone of New Zealand's games industrty, representing 90% of all GDSR recipients. Revenue growth was recorded across studios of every size, with medium-sized studios leading the way with 44% year-on-year growth.

New Zealand studios continued to stand out internationally, expanding their commercial performance while improving productivity. Revenue generated per eligible employee increased by 34%, reflecting a sector becoming increasingly efficient, commercially mature and internationally competitive.

The year’s results also attracted significant media attention both in New Zealand and internationally helping to raise the profile of New Zealand-made games while showcasing the country's growing reputation as a destination for world-class game development.

Success Stories

Bento Blocks

Bento Blocks, Sometimes Limited

Sometimes Limited

Tāmaki Makaurau studio Sometimes Limited achieved both commercial and critical success with its puzzle game Bento Blocks, released in January. The game received an overwhelmingly positive response from players globally, with more than 98% positive reviews.

Bento Blocks also attracted significant international attention, generating more than 50 million views across social media and earning official selections at major industry events, including Gamescom in Germany, BitSummit in Japan, and SXSW Sydney.

GDSR recipient 2026

MOUSE P.I. For Hire - Key Art 16x9

Mouse: P.I. For Hire, PlaySide Studios

PlaySide Studios

New Zealand-based developers at PlaySide Studios contributed to one of 2026’s standout independent game releases with MOUSE: P.I. For Hire, working alongside Warsaw-based independent developer Fumi Games.

The fast-paced action game draws inspiration from classic 1930s cartoons, combining distinctive black-and-white visuals, frame-by-frame hand-drawn animation and an original big-band soundtrack.

PlaySide Studios, an Australian video game developer and publisher with remote staff across Australia and New Zealand, supported the title across publishing and development, collaborating with Fumi Games to bring the game to audiences around the world and help grow MOUSE into an emerging global entertainment brand.

GDSR recipient 2025 and 2026

Hatch Dragons Hero Image

Hatch Dragons, Runaway

Runaway

Ōtepoti Dunedin-based studio Runaway celebrated a remarkable launch in 2026 with its latest mobile game, Hatch Dragons.

Runaway has been creating nature-inspired games for more than 15 years. This cosy collection game inspired by the natural world, invites players to hatch and nurture hundreds of dragons, while bringing life back to an enchanted forest.

Hatch Dragons found an immediate global audience, achieving more than one million downloads on its first day. It also reached #1 in simulation games in the US and went on to surpass four million downloads, with a 4.8-star rating across more than 80,000 reviews.

That success has also been recognised by the games industry. Hatch Dragons has earned four NYX Game Awards while at the 2026 Pocket Gamer Mobile Games Awards in Cologne, Runaway received an Honourable Mention for Best Indie Developer. The game also received an Honourable Mention for Audio Visual Excellence and was named a finalist for Game of the Year.

GDSR recipient 2024, 2025 and 2026

007FirstLight

First Light, Floating Rock

Floating Rock

Te Whanganui-a-Tara Wellington-based studio Floating Rock brought its creative expertise to one of the world’s most iconic entertainment franchises in 2026, contributing to the in-game cinematics for 007 First Light.

Floating Rock was founded in 2020 by a team of experienced artists, and works across game development, animation, and VFX. Its contribution to 007 First Light adds to a growing portfolio of international work and showcases world-class creative talent.

Developed and published by IO Interactive, First Light introduces an original James Bond origin story, following a young Bond on his journey towards becoming a 00 agent.

The game sold three million units in its first week alone and earned a high 88 on Metacritic for Playstation 5.

GDSR recipient 2025 and 2026

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