Western Australia’s video game industry is seeking to turn growing consumer demand into a larger share of a market worth more than $4.2 billion a year, as local studios attract international attention and public funding is expanded.
Australians spent more than $4.2 billion on video games and related products during 2025, a 12 per cent increase on the previous year. Digital sales exceeded $1.4 billion, while mobile gaming remained the biggest segment, generating more than $1.7 billion.
The figures underline how gaming has moved beyond its traditional image as a pastime for children and teenagers. Curtin University Dean of Learning Futures Jonathan Pillai said the spread of mobile and casual gaming had made the industry accessible to a much wider audience.
“When games got casual enough to be played on the phone, I think that was a big change,” he said. “That’s a big change because that means a game is for everyone, not just the kid in the room.”
Australian developers have also demonstrated their ability to compete globally. Adelaide studio Team Cherry’s Hollow Knight has sold more than 15 million copies, while its sequel, Hollow Knight: Silksong, passed seven million sales within its first three months.
Melbourne developer House House has enjoyed a similarly strong launch for Big Walk. The game, released on August 4, reached one million copies sold in six days, according to its publisher Panic.
Western Australia video game industry targets growth
Ron Curry, chief executive of the Interactive Games and Entertainment Association, said the introduction of the federal Digital Games Tax Offset had helped Australian studios compete with overseas rivals.
“It instantly made us 30 to 40 per cent more dear than anywhere else in the world,” he said of the period before government support was introduced. “What that did is it levelled the playing field for Australian developers in that we can now compete on price.”
Western Australia has emerged as one of the states attempting to build a stronger development base. The sector tripled in size in recent years, while the number of full-time games development employees based in the state rose by 217 per cent between 2020-21 and 2021-22. ([dlgsc.wa.gov.au](https://www.dlgsc.wa.gov.au/docs/default-source/culture-and-the-arts/western-australian-screen-industry-strategy-2024-2034.pdf?sfvrsn=e56aa163_6&utm_source=openai))
However, the state’s studios face competition from the mining industry, which can offer salaries that are difficult for small creative businesses to match.
“Although there’s some incredibly talented local people over there working on some great stuff, those studios are competing for talent that go into industries like mining,” Mr Curry said.
Screenwest, which administers state support for games makers, has set out plans to increase qualifying Western Australian expenditure on supported games from $2.2 million a year to $4 million by the end of 2029. It also aims to increase the number of games companies based in the state by 50 per cent and support at least six releases each year. ([screenwest.com.au](https://www.screenwest.com.au/news/latest-news/game-on-screenwest-launches-first-digital-games-strategy-as-production-surges-with-record-number-of-releases-in-january/?utm_source=openai))
The organisation supported 22 projects through its Digital Games Production Fund in 2024-25, with those projects expected to inject about $2.2 million into the Western Australian economy.
Anthony Sweet, Screenwest’s digital games manager, said the agency wanted to establish Western Australia as a place where games and the people who create them could thrive.
“We aim to accelerate the development of a vibrant, sustainable digital games sector that champions Western Australian stories, fosters bold talent and connects our creators with opportunities around the world,” he said.
Titles showcased at the Pixel Expo in Perth included Misc. A Tiny Tale, Lunars, Zodiac Mountain, Ghost Cam and Don’t Stop, Girly Pop!
Screenwest has also backed Perth developer Aaron Dark’s early work on HYPERDROP. The project was later taken to Melbourne International Games Week, where it was picked up by international independent publisher Devolver.
Mr Sweet said game development offered careers with applications well beyond entertainment, including banking, mining, healthcare and user-experience design.
“Game developers have transferable skills, often driving innovation in sectors including banking, mining, health care and UX design,” he said.
Screenwest’s strategy also points to the growing reach of gaming among older Australians. Research cited by the organisation found that 74 per cent of people aged 65 to 74 play video games, as do 58 per cent of those aged 75 to 84. ([screenwest.com.au](https://www.screenwest.com.au/news/latest-news/game-on-screenwest-launches-first-digital-games-strategy-as-production-surges-with-record-number-of-releases-in-january/?utm_source=openai))
