Aust government makes AU$20M video-games investment

Aust government makes AU$20M video-games investment

Summary: The Australian government is finally taking the local video-games industry seriously, injecting AU$20 million into the sector to make it more competitive in a global market.

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The Australian government has committed AU$20 million to kick off an Australian Interactive Games Fund to support the local video-games industry.

Arts Minister Simon Crean, who made the announcement at the Screen Producers Association of Australia National Conference in Melbourne, said that the funding will give Australia's interactive entertainment industry a leg up in the global market.

In 2011, PricewaterhouseCoopers estimated that the global video-gaming market would be worth US$90.1 billion (PDF) by 2015.

The fund will begin in 2012-13, with AU$5 million to be released every year for the next two years. That figure will jump to AU$10 million in 2014-15.

"Australian games studios are recognised internationally for their skill and originality in developing interactive games played all over the world, but the local industry is coming under increased pressure in the midst of a major market shift," Crean said in a statement."This fund will assist the sector to reclaim their competitive advantage and support the development of games in Australia, investing in the intellectual property of our creative businesses to give them a stronger position internationally."

He also noted that the interactive games industry is a major employer in Australia, specifically highlighting companies such as Brisbane-based Halfbrick, the progenitor of the popular mobile-device game Fruit Ninja.

Australia is rather late in its efforts to provide monetary support for the burgeoning video-games sector in Australia. As far back as 2009, the Canadian government has provided funding to make the country a thriving metropolis for video-game developers.

Canada has successfully lured big names such as THQ, Rockstar, and Ubisoft into setting up major studios in the country.

Screen Australia will be consulting with the video-games sector to set out guidelines to award funding from the Australian government.

Game Developers' Association CEO Tony Reed lauded the announcement of the Australian gaming fund for recognising the games industry as a legitimate sector for growth.

Topics: Mobile OS, Government, Government AU, Australia

Spandas Lui

About Spandas Lui

Spandas forayed into tech journalism in 2009 as a fresh university graduate spurring her passion for all things tech. Based in Australia, Spandas covers enterprise and business IT.

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  • Nice one

    Great to see our government finally supporting the locals...hopefully they don't just leave it at that and look at other ways they can support/encourage new innovative businesses and start-ups (especially as more folks get on board the NBN).
    Tinman_au