The Impact of Major Acquisitions on Australia’s Gaming Tech Ecosystem

Australia’s gaming industry is burgeoning, but some aspects may cause concern across a wider range of people.

According to figures released by the Australian Game Developer Survey (AGDS) at the end of 2023, revenues for the industry are up a total of 21% in FY2022, increasing to $345.5 million for the year. At the same time, it was found that there were more Aussies employed in full-time roles for developers at home, with 2,458 (an increase of 17%) working for studios across the nation. It was also estimated that more than 200+ jobs would be created for FY2024.

It’s unsurprising, given that the country is known for its gaming culture. The nation has enjoyed all niches of this particular industry, with it being one of the world’s leaders in many of them. Whether it be playing video games, mobile games, or enjoying casino games, Australians have shown that they like this form of entertainment as one of their favored pastimes.

The iGaming industry is among those leaders, with the industry expected to enjoy its growth and revolution over the next few years. It comes as people continue to search for the sites that have the best Aussie pokies available to them, looking for titles that can provide them with the entertainment that they crave and continually demand. Indeed, when the industry is as large as it is, it is believed that around $5 billion (US) will be generated in revenues in 2024. Additionally, these platforms are helping players navigate this booming industry by offering comprehensive reviews and guides to the top online pokies available in Australia, ensuring that users find the most entertaining and rewarding gaming experiences.

With significant money being generated across many of the different niches industrywide, it’s hardly a shock that there have been many changes to its ecosystem. Acquisitions and mergers have taken place across the industry because of the growth that has been experienced across the sector. These have been positive in terms of the numbers that have been witnessed, but not all seem to be well with the industry.

Game journalism has taken a huge hit in recent years, with the individuals and newsrooms that report on the latest news regarding the world of gaming finding themselves being faced with a ‘Game Over’ like screen.

Many of the country’s biggest newsrooms have suffered in recent times (as they have globally), using cost-cutting exercises to try and keep themselves sustainable. When doing these exercises, the games journalism department appears to be one of the first to be placed on the chopping block. Former editor of Kotaku Australia (which was surprisingly axed by Nine Entertainment), Mark Serrels, stated:

“Games journalism is especially under threat because it can be hard to communicate its value in mainstream publications, and when cuts have to be made, it’s often the first to go.”

Unfortunately for Australia, it has been something that has happened gradually. There have been major publications that have stopped running their weekly reviews and issues, while some of the biggest outlets have simply been halted without any prior indication. One reason for this could be due to changes in marketing.

The Australian gaming industry has begun to use influencers as a form of marketing, thus reducing the need for journalistic reviews. Developers are using people who have large followings to play their games and advertise them to like-minded people. Content can be created to provide a realistic overview of what to expect while providing it in an immersive and engaging form. Written critical and analytical reviews are too long for people to consume, especially when they can see everything for themselves in a 30-second video.

With that said, there have been some positives that are clear to see, aside from the revenues that are being generated. As stated, the figures are encouraging regarding the expectations of those working within the industry and how much it can grow.

Investment opportunities are a natural byproduct of acquisitions and mergers, as more capital can be pumped into the business, as well as industry-specific knowledge and know-how. This may mean that game studios can get better and release improved titles, as they will have the resources and expertise that they may not have had initially. The economy will then benefit as more money is being generated, encouraging growth Down Under.

It can help encourage developers to look at acquiring assistance through government programs and incentives like the Digital Games Tax Offset (DGTO), where businesses can receive a refundable tax offset capped at $20 million up to 30%. While these incentives are in place to ‘revive’ the industry, the acquisitions that are experienced will help the industry move forward. At the same time, the industry should be able to compete with the biggest players around the world. This will shine a light on what the country can do, which may allow for them to increase their exports in this sector.