Video Games In Australia Could Be Worth Almost $5 Billion By 2025

COVID hit plenty of industries this year and last, but the most resilient of them all — even with all the delays — has been video games. And there’s more proof in the pudding of the sector’s strength in Australia, according to the latest findings from PwC.

PwC released the latest Australian Entertainment & Media Outlook this week, an annual report that looks at the overall revenue, consumption and trends across the ways Aussies like to stay entertained. For the last several years, the video game industry has been a part of that report with consistent year-on-year growth. Unsurprisingly, 2020 continued that trend, with the coronavirus unable to reverse the upswing in revenue from new console launches and a year with hugely anticipated titles (Doom Eternal, Animal Crossing: New Horizons, Final Fantasy 7 Remake, Cyberpunk 2077, Ghost of Tsushima, The Last of Us: Part Two, Demon’s Souls and so on).

© Provided by Kotaku Australia Image: PwC

The total revenue for video games in Australia for 2020 was $3.41 billion, a figure that’s expected to reach $4.9 billion in 2025 under the medium-term estimates. (It’s possible the figure could be even higher than that, particularly if supply issues with next-gen consoles rectify sooner than expected.) PwC estimates that microtransactions will become a large driver of this growth, especially once 5G starts to become more relevant in the Australian market.

“High smartphone ownership and an increasingly sophisticated range of software offerings have transformed Australia into a mobile-first games market, with globally popular titles such as PlayerUnknown’s Battlegrounds (PUBG) Mobile, Among Us and Pokémon GO all significant earners in 2020,” PwC said, although they didn’t disclose how much money each title made.

Australians are expected to spend over $1.5 billion on microtransactions by 2025, up from almost a billion dollars in 2020.

© Provided by Kotaku Australia Image: PwC

Esports is expected to enjoy more growth, although PwC believes it will still account for a small fraction of overall gaming revenue by 2025 — $16 million, up from around $6 million last year. Kotaku Australia understands that some parts of the local esports industry privately raised concerns with the projections, noting that all of the revenue and spend in the market isn’t fully accounted for. (It’s not known whether major events like Melbourne Esports Open or IEM Sydney, for instance, have their figures and expenses realised in the esports figures, or whether that data was supplied to PwC for the report.)

© Provided by Kotaku Australia Image: PwC

This year’s PwC report also included a special section on content consumption, looking to analyse any changes in Australians’ behaviour. There were some interesting takeaways:

  • 41 percent of those surveyed watched esports content spontaneously, while 38 percent planned to watch esports content;
  • Most gaming in Australia is spontaneous, as opposed to planned;
  • 40 percent of those who play games on console do so as part of a routine, compared to 36 percent who routinely play on a desktop PC and 32 percent who routinely play on a gaming laptop

Interestingly, physical console sales are expected to suffer a 7.1 percent drop in compound annual growth rate in Australia. The reduction is less related to the current shortage of silicon and supply chain constraints, but more the natural trend of consumers buying digitally versus physically. It’s worth adding that the competition among retailers is also contributing to this: while lower prices for a game launch at JB Hi-Fi or Amazon can be beneficial for the individual spending the money, it also means the overall console sales revenue is decreasing too.

But compared to other industries, Australians still spend — and are expected to continue doing so — more on video games than any other form of entertainment. Around 7.9 percent of all consumer spending in Australia for 2020 went towards video games in some form, a figure that’s expected to grow to 9.1 percent by 2025.

© Provided by Kotaku Australia Image: PwC
© Provided by Kotaku Australia Image: PwC

Mentioned in the report, but not factored into the figures, is what potential impact the Federal Government’s 30 percent tax offset for video game production. The tax offset hasn’t even been finalised and it’s not expected that studios will begin to start applying for it until the 2022-2023 financial year. One possibility, however, is that the offset could encourage more local video game developers to list on the stock market — like PlaySide and Mighty Kingdom have done. That might not necessarily grow the overall consumer spend for video games in Australia, but it would have a marked difference on the revenue generated by Australian-only developers.

For more info and detail on PwC’s projections for the entire Australian entertainment industry, read the full report on the PwC website here.

News Related

OTHER NEWS

Canada's tough canola harvest driving prices up for Aussie farmers

© Provided by ABC Business Canada on track for its smallest canola crop in over a decade. (Supplied: Danielle Wildfong) Australian canola prices have been historically high this year and increased again ... Read more »

Sydney racing selections: Randwick tips for Saturday, September 18

Breathe in that carnival air peeps, a massive day of A1 quality awaits at both Randwick and Caulfield, headed by the George Main up here and Rupert Clarke down there. ... Read more »

Not horsing about: Remote Victorian communities trot out for vaccines

© Provided by ABC Health It’s hard to draw comparisons between the big vaccination hubs of Melbourne and the sleepy, isolated valleys of far East Gippsland. It’s a solid six-hour ... Read more »

What the Packed to the Rafters cast are up to, 8 years after the iconic show ended.

© Getty Images What the Packed to the Rafters cast are up to, 8 years after the iconic show ended. It’s been eight years since Packed to the Rafters ended, but ... Read more »

Gov't reconsiders 2nd Jeju airport project

A panoramic view of the site for a new international airport on Jeju Island / Korea Times file By Jun Ji-hye The government has taken a step backward in its ... Read more »

Coalition plans to scrap recovery plans for 200 endangered species and habitats

The Morrison government has proposed scrapping recovery plans for almost 200 endangered species and habitats including the Tasmanian devil, the whale shark and the endangered glossy-black cockatoo populations on Kangaroo ... Read more »

Millions of websites are about to get a significant speed boost

As part of its Speed Week 2021 event, Cloudflare has announced that it is the first CDN provider to implement server support at scale for a new internet standard called ... Read more »

Terry McGinnis avenges the murder of Bruce Wayne in Batman Beyond: Neo Year

© Provided by GamesRadar cover of Batman Beyond: Neo Year #1 Terry McGinnis, the Batman of the future, is returning in his own title that channels a classic Batman story ... Read more »

Experts warn COVID-19 could send Closing the Gap targets backwards with data on Indigenous boarding school attendance 'unclear'

© Provided by ABC Health For 11-year-old Nadine Kenny, who comes from Indulkana in South Australia’s remote Anangu Pitjantjatjara Yankunytjatjara (APY) Lands, going to boarding school is a chance to ... Read more »

Teenager fatally stabbed and a second hospitalised after stabbing

© AAP Image/Joel Carrett One teenager has died and another has been taken to hospital in a serious condition after an alleged stabbing at the New South Wales‘ Hunter region. ... Read more »

Olympian Ariarne Titmus receives the key to the City of Launceston

© Provided by Daily Mail MailOnline logo Swimming’s new golden girl Ariarne Titmus had an incredible run at the Tokyo Olympics last month.  And this week, the 21-year-old celebrated getting ... Read more »

Multimillionaire real estate heir Robert Durst convicted of murder

By Daniel Trotta © Reuters/POOL Closing arguments in the Robert Durst murder trial (Reuters) – A California jury on Friday found multimillionaire real estate heir Robert Durst guilty of murdering ... Read more »

Prince Andrew: Photo of legal papers being posted to the duke released by lawyers for Virginia Giuffre

Photographs showing papers notifying Prince Andrew about a civil sexual assault case against him in the US have been released by lawyers for his accuser Virginia Giuffre. Among the photos ... Read more »

Fortnite adds another virtual influencer to its battle royale

Last season, one of the more curious additions to Fortnite was Guggimon, a terrifying-looking rabbit creature that also happened to be a virtual influencer with millions of followers on platforms ... Read more »

Victoria could end lockdown early if Pfizer dose window is halved

© Provided by Daily Mail MailOnline logo Victoria has recorded 535 new Covid-19 cases and one death amid hopes the state could end lockdown as soon as Melbourne Cup day if ... Read more »

Victoria records 535 new local COVID-19 cases and one death

© Provided by ABC Health Victoria has recorded 535 new locally acquired COVID-19 cases and one further death as the state wakes to a slight easing of restrictions. It is ... Read more »

Victoria records one death, 535 new COVID cases as picnics and protests return to Melbourne

© Getty Up to five fully vaccinated Melburnians from a maximum of two households can have picnics together from Saturday, however alcohol remains banned. There was one death and 535 ... Read more »

Lockdowns could remain at 70 per cent double-dose vaccinations

© 9News Dr Omar Khorshid said health authorities need to get testing, contact tracing and quarantine programs perfect before reopening. Lockdowns in local government areas of concern could remain in ... Read more »

ABC cameraman recalls covering 9/11 attacks and eight hours in a Washington bunker

© Provided by ABC NEWS David McMeekin (far right) with Australian media colleagues filming at the White House on September 10, 2001. (Supplied: David McMeekin) On the evening of September 10, ... Read more »

Marion Cotillard and Penélope Cruz at San Sebastian Film Festival

© Provided by Daily Mail MailOnline logo She is famed for her award-winning performances in numerous critically acclaimed films, including Inception, Nine, and Rust and Bone.  And Marion Cotillard was ... Read more »

Random: I played Sea of Thieves via Xbox Cloud Gaming on a pirate ship IRL

© Windows Central Ocean Trip Jez 2021 There once was a ship that put to sea… I recently went on vacation to the Baltic Sea in North Germany. You’d think ... Read more »

Fake meat inquiry heats up as vegan groups claim 'protectionist', 'anti-competitive behaviour'

© Provided by ABC NEWS Plant-based meat alternatives is an emerging industry. (ABC Rural) The third public hearing of an Australian parliamentary inquiry into the definitions of meat and other ... Read more »

Meet the Australians stuck waiting for mental healthcare as the pandemic takes its toll

© ABC Zena Burgess says a shortage of psychologists is most obvious in regional Australia. When Andrea* needed to see a psychiatrist earlier this year she was placed on a ... Read more »

Amazon says it's permanently banned 600 Chinese brands for review fraud

Remember when gadget vendors Aukey, Mpow, RavPower, Vava, TaoTronics and Choetech started mysteriously disappearing from Amazon’s online storefront, and it turned out Amazon had intentionally yanked them while vaguely gesturing ... Read more »

‘China's Lehman Brothers moment': Evergrande crisis rattles economy

The crisis engulfing Evergrande, China’s second-biggest property company, is the greatest test yet of President Xi Jinping’s effort to reform the debt-ridden behemoths of the Chinese economy. It could also ... Read more »

Dilapidated grave a source of inspiration

At a time when wage inequality and women’s safety must dishearteningly remain a hot topic in Australia, a long-forgotten, partially-sunken grave might prove a timely source of inspiration for perseverance. ... Read more »

‘A forgotten disaster': earthquake-hit Haitians left to fend for themselves

David Nazaire, a 45-year-old coffee farmer from Beaumont, a small village in rural southern Haiti, was getting ready to harvest when an earthquake struck his home and livelihood. Much of ... Read more »

Independent hopeful to push carbon zero

The former CEO of two high profile charities will push for more action on climate in a contest for the federal seat of North Sydney against Liberal MP Trent Zimmerman. ... Read more »

Questions over Liberals' use of Premier's Discretionary Grants fund prior to Tasmanian state election

© Provided by ABC NEWS Several Liberal MPs accessed a community grants fund in the period before the state election was called.  (ABC News: Luke Bowden) Tasmanian Liberal Party MPs ramped up ... Read more »

Swimmer Shayna Jack's 'nightmare finally over' but what will it mean for sport's anti-doping regulation?

© Provided by ABC News Swimmer Shayna Jack’s doping case was dismissed by the Court of Arbitration on Thursday. (Instagram: Shayna Jack) Shayna Jack has returned to the pool and ... Read more »

SpaceX's first private crew shows what they've been up to in orbit

It was a brief orbital talent show. “Hayley is a champ at spinning,” Sian Proctor, one of the four private citizens currently orbiting Earth inside SpaceX’s Crew Dragon capsule, said ... Read more »

Tasmanian student Erin Bok's mission to save the rare forty-spotted pardalote bird

© Provided by ABC NEWS University of Tasmania student Erin Bok wants to learn more about the forty-spotted pardalote’s relationship to its food.  (ABC News: Alexandra Alvaro) Hearing the forty-spotted pardalote’s ... Read more »

Sculptors defy lockdown for sandy show

One of Australia’s biggest outdoor art shows has managed to defy COVID-19 despite the enforced absence of some star exhibitors. © Darren England/AAP PHOTOS This year’s Swell festival is showcasing ... Read more »

Growing up in Afghanistan, Rahila's parents dressed her as a boy to give her the same rights as her brothers

© Provided by ABC NEWS Ms Haidari’s parents dressed her as a boy whenever she was in public for much of her childhood. (Supplied: Rahila Haidari) At the age of ... Read more »

A teenager who beat an 82-year-old man to death will be released from jail within two years

© Provided by ABC NEWS The youth who can’t be named because he was only 17 at the time, pleaded guilty and was jailed last year for 15 years. (ABC ... Read more »

Diane Kruger wows in red bathing suit while filming Out Of The Blue

© Provided by Daily Mail MailOnline logo Diane Kruger made a splash as she filmed her upcoming film Out Of The Blue rocking a red retro style bathing suit.  The ... Read more »

Sadie Robertson's Daughter Honey Is Battling RSV: It's 'Heartbreaking'

© Provided by US Weekly Sadie Robertsons 4 Month Old Daughter Honey Is Battling RSV Its Heartbreaking Under the weather. Sadie Robertson shared the ups and downs of her daughter ... Read more »

City slickers who moved to outback Australia on a coin flip urge young people to embrace the 'land of opportunity'

© Provided by ABC NEWS Annette and Tim Moes initially planned on staying in rural Queensland temporarily. They’re leaving 32 years later. (Supplied: Annette Moes) A coin toss in 1989 ... Read more »

Universal Credit: 'I can't afford to live without cutting back on food'

Step Change have warned cuts to Universal Credit and the end of the furlough scheme could leave people homeless. (PA Images) Hundreds of thousands of private tenants face a gruelling ... Read more »

Older people and men ‘more likely to suffer' with Covid even after two jabs

Older people, men and those from ethnic backgrounds are more likely to end up in hospital or die even after they have been double-vaccinated against Covid-19, researchers say. Scientists used ... Read more »