Experts say better marketing may help the Australian video games industry thrive. 

Australia's video game development industry is facing a critical juncture as it seeks to leverage the nation's significant $3.9 billion in annual gaming expenditure. 

A recent study conducted by the University of the Sunshine Coast (UniSC) has highlighted the industry's need for improved marketing to avoid the kind of large-scale staff layoffs that have plagued major global gaming companies over the past year.

Despite generating $284 million in 2022, Australia's game development sector, which is renowned for producing high-quality and innovative games, struggles to capture a more significant share of the domestic market. 

Australian games have received international acclaim, with titles like Unpacking winning BAFTAs and Stray Gods receiving a Grammy nomination. 

However, the sheer volume of games released annually on various platforms creates intense competition, making effective marketing crucial for visibility and success.

A study, published in the Creative Industries Journal, is believed to be the first to analyse marketing practices across the video game industries in Australia and New Zealand. 

It reveals that many local game developers lack comprehensive marketing knowledge, with resources being particularly scarce. 

“Good marketing is crucial for these developers so they can build relationships with potential consumers on multiple platforms while enhancing brand awareness and generating sales,” says lead author, UniSC Lecturer in International Business Dr Jacqueline Burgess.

She said educational resources and mentoring could be immediate steps towards improvement.

While the global trend of layoffs might benefit Australia's small studios by providing opportunities for startups or grant-supported ventures, these studios still face significant challenges in the absence of robust marketing strategies. 

The UniSC study, co-authored by academics Dr Anthony Grace, Dr Alexander Muscat (also a video game developer), and Professor of Interactive Media Christian Jones, underscores the importance of addressing this gap to ensure the sustainability and growth of the Australian video game development industry.