The New Zealand video games industry continues to surge ahead, growing 7% year-on-year to $452.3 million in 2017.
According to data from The NPD Group, overall physical retail sales dropped 4% but was offset by an increase in sales volume – up by the same amount. Home console hardware and accessories sales also increased last year. Kiwis embraced both new and retro consoles. PlayStation 4 continued to dominate the hardware sector with Xbox One bolstering category growth with the introduction of Xbox One X. The Nintendo Switch also entered the market, performing well alongside the Nintendo Classic Mini: SNES and Nintendo Classic Mini: NES.
Research from Telsyte shows total digital sales were strong, up 12%t in 2017. Digital downloads, including full game downloads and digital extras, increased by 20% last year. Subscription revenue also continued to grow, up 22% year-on-year. Mobile game sales retained the majority share of the digital games market at $175 million.
“The New Zealand video and computer games industry is in great shape, evidenced by the latest sales figures that show consumer spending is headed towards half a billion dollars,” said Ron Curry, CEO of IGEA.
“New Zealanders are more than happy to access their games content in a variety of ways, both physically and digitally. Sales for the current generation of consoles – PS4, Xbox One and Nintendo Switch – remain strong. At the same time, we’re seeing impressive growth in subscription revenue, mobile game sales, and downloads of digital games and extras.”
Foad Fadaghi, Telsyte Managing Director, said: “With greater than 70% of households having access to the ultra-fast broadband (UFB), New Zealand’s gamers continue to increase their spending on digital games and extras at a rapid rate.”
Here are some key findings and the annual infographic.
- Overall digital sales were strong, hitting $334 million in 2017, up 12% on the previous year.
- Full digital game downloads were up 21% on 2016 sales. Digital extras also increased 17% year-on-year.
- Home console hardware and accessories sales both experienced growth, up 10% and six% respectively.