Eric Crampton on 1 News
Budget 2023 included a 20 per cent rebate for game development studios that meet a minimum $250,000 expenditure threshold per year. Individual studios will be able to receive up to $3 million per year in rebate funding, and the $160m scheme will be backdated to April 1, 2023.
While the video game industry were elated with the scheme, support for a gaming rebate wasn’t universal. The NZ Initiative’s Eric Crampton said New Zealand should not get into a bidding war with a deeper-pocketed country - but rather lobby Australia to drop its game industry subsidy.
“New Zealand taxpayers will be on the hook for subsidies to the video game sector, like the international film sector, forever, barring a miracle,” the economist said.
“The only winning move in international subsidy games is not to play.”