NSW budget adds digital games to $35 million Made in NSW Fund, but details remain vague

This week the NSW budget added ‘digital games’ to the $35 million that has been earmarked for the Made in NSW Fund. The fund will be maintained despite a restrained budget that predicted years of deficit in the state’s future. However, details regarding the distribution split have been scarce, leaving it unclear how much will go towards game-making versus film and television projects.

Officially rolling games into the Made in NSW Fund

The Made in NSW Fund was introduced in 2020 and consisted of $175 million across five years, wrapping up in 2025. It was originally created to support “the advancement of NSW as a production destination for feature films and major television drama programs”.

According to an announcement made by the Minister For Arts, John Graham, alongside the 2024-25  budget — digital games are now also being officially included in the recommitment of funds for the 2024-25 period.

“Screen and Digital Games: $35 million for the Made in NSW Fund, as well as ongoing investment to provide certainty for the Post-Production and Visual Effects rebate scheme,” the announcement reads.

Minister Graham elaborated on the budget inclusion further in an email to NSW Screen Industry stakeholders seen by SmartCompany.

According to Minister Graham, part of the $35 million will go towards the towards the Digital Games rebate which offers 10% to game studios in NSW with a qualifying expenditure of at least $500,000.

This is similar to the Post, Digital and Visual Effects (PDV) rebate which offers a 10% for qualifying screen projects.

The Made in NSW Fund will also continue to support the seed development funds for “Screen and Digital Games”.

For game makers, this fund was initially introduced back in March as the Digital Games Seed Development Program. It offers grants of up to $30,000 to small and medium digital game creators for “for early-stage game development”.

The applications were open between March 21 and April 18, 2024. It’s currently unclear how many studios have or will be successful in obtaining these grants. There is also no disclosure in the program documents regarding the total size of the grant pool.

Comparatively, the Screen NSW Development Fund which “supports writers and producers to develop fiction or unscripted (documentary) and online projects with distinctive ideas and ambitious stories” is for up to $50,000 and can be applied for at any time throughout the year.

The NSW government is also offering $5,000 travel grants currently available for “experienced NSW digital games practitioners” to attend Gamescom 2024 — a yearly gaming conference held in Germany.

According to the program documents, there is a total grant pool of $25,000 for the initiative — enough for five successful applicants.

“We currently have 22% of the digital games’ studios in Australia here in NSW, with the Digital Games rebate I know we can continue to grow that number,” Minister Graham said.

Minister Graham also revealed the department has been developing a three-year NSW Screen and Digital Games strategy that will be unveiled in the next few weeks.

It’s SmartCompany’s understanding that the $35 million Made For NSW Fund will be addressed in this strategy.

However, it remains unclear how the funding will be allocated across screen versus video game projects.

“The digital games industries are a vital part of the arts, culture and creative industries in NSW,” an NSW government spokesperson said in an email to SmartCompany.

“These rebates ensure stability and certainty for thousands of creative workers in NSW and will help continued growth for screen and digital games industries.”

Responses to digital games in the Made in NSW Fund

Members of the gaming industry have welcomed the news, particularly in a landscape where NSW has historically been behind states such as Victoria when it comes to funding video game creation.

“IGEA is always happy to see ongoing commitment to games funding, especially in NSW. We have not yet seen the detail[s] for the FY25 NSW State budget, however alongside our members we’ve continued conversations across government to reinforce the importance of having a thriving game development ecosystem and the role it can play in driving the NSW economy, both creatively and technically,” Ron Curry, CEO of Interactive Games and Entertainment Association (IGEA), said in an email to SmartCompany.

“Many of the other States have thrown their efforts behind the game development sector for many years and are reaping the rewards now.  With continued funding in NSW the future looks better for the local industry.”

Local indie game developers have also weighed in on the funding announcement.

“We are excited at the prospect of the NSW Government supporting the state’s thriving community of game developers,” Stephanie Salter, executive producer at Hojo Studio, said.

“Games are the world’s largest entertainment industry – creating economic growth and jobs across the globe. With $35 million on offer across both Games and Screen projects in NSW, there is a huge opportunity to cement games as an equal partner in the development of meaningful engagement and entertainment in 2024,” Salter said.

“Artists go where they’re supported. The game development talent in NSW has always been extraordinary, and the way to keep independent game studios here is to offer meaningful funding and incentives, like any other small business,” Rick Salter, creative director at Hojo Studio added.

“The odds of a million to one homegrown success increase dramatically when indies can eat.”

Disclosure: the author is a game developer at Hojo Studio.

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