Posts Tagged ‘Australian game industry’

A couple of weeks ago Parker sent me a link to a video about the Canadian games industry (via VillageGamer). In the video someone explains that if you want to make a great movie you’re going to Hollywood, but if you want to make a great game you’re going to Canada.

Canada’s industry is impressive, some of the world’s biggest studios are located in development hotspots like Montreal or Toronto. Recent blockbusters like Assassin’s Creed Brotherhood were made in Canada.

In my new home of Australia, on the other hand, the industry experienced a downturn in the last years. The latest victim is Krome, the country’s largest developer, which went bust last month.

It’s an interesting development because Australia has some decisive advantages in terms of games development, a lot of which also apply to Canada.

Encouraged by the small domestic market, Australian studious successfully positioned themselves as international players.

Given the media history of Austrlia, the entry into the political economy of the game industry was facilitated by pre-existent patterns of a close integration into a globalised audio-visual trade. Australia was always very active in importing and exporting media.

The post-Fordist nature of game development and the industry behind it was reflected by the country’s long history of post-Fordist practices in other media fields. Post-Fordist in this case meaning a lean mode of organisation and contracting out work as well as creative freedom and the absence of any “localism”.

In addition, a tradition of a pronounced commercial awareness encouraged a mindset that was conducive in terms competitiveness and creating outside markets.

Australia’s socio-cultural traditions helped to facilitate the creation of content which by means of its accessibility had a wide appeal. Due to Australia’s egalitarian traditions, not only in terms of consumption but also in regard to production the priority was given to games which were comparatively easy to pick up and play.

This constituted an advantage on the crucial US market which, for example, shunned German games as too complicated. The more accessible titles of Australian game studios, on the other hand, stood closer to American sensibilities.

An important aspect in this regard is that Australia is an English-language production centre. This, in combination with its cultural alliances, made it easier for developers to take advantage of predispositions which appealed to important markets. Similar to other media, Australian studios could easily ‘play’ at being American and British.

Together with a small national market and the accompanying necessity to open markets abroad, this caused developers to not really see themselves as specifically Australian developers. Their standards were set by international criteria. They marketed themselves like game developers in the UK or the US.

Similar to previous media, this meant that locally produced content was not so much valued with reference to itself as with reference to imported product. Australian studios had to conform to international models and standards in order to succeed locally. While this posed a challenge it also meant that it was easier for them to internalise international best practice.

One could argue that Australia is geographically removed from the centres of Western game production. But this also gives it an advantage in terms of production schedules. Due to the time difference, by the end of the day Australian developers can send their work to other studios whose working day just started.

So why is Canada’s industry booming while Australia is facing problems?

One of the main reasons is that Australia’s work for hire model doesn’t work anymore.

In the current economic climate it is almost impossible to green light games, and the competition for ‘work-for-hire’ contracts is so fierce that studios are spending months on developing incredibly elaborate prototypes, yet are still not winning the tenders. Also, given many publishers are based in the US where the economic downtown has arguably hit hardest, their priority is to ensure their own internal studios have enough work.

This problem is further complicated by the strong Australian Dollar which makes outsourcing to Australia unattractive. Skill wise, Eastern European developers are catching up and are able to deliver their work at much cheaper rates.

While a lot of Australian developers were working on (often rushed) licensed titles they did not create original IP to base future operations on and improve their cash flow (which is also due to the absence of an Australian publisher who could support local development).

Compared to Australia, Canada also has the decisive advantage of offering generous tax breaks to game developers. So generous in fact that the UK government handed a complaint to the WTO as they believe it constitutes an unfair practice.

Australian developers have long called for similar tax breaks on a federal level; however, so far nothing happened. Australia, it seems, does not take the industry as seriously as Canada.

Tax incentives would certainly not be the white knight that rescues the industry. Yet they would help Australia to gain a competitive edge in the international political economy of game development (It is doubtful, though, that its industry will become as big as Canada’s in the next years).

It also needs to be pointed out that there areas of game development in Australia that are alive and well. Especially the development on iOS platforms is thriving. As was often the case, Australians were early adopters of new technologies and quickly made a considerable impact on the industry (not the least due to the reasons mentioned above).

Games by Halfbrick (Fruit Ninja, Raskulls) and Firemint (Flight Control, Real Racing) show that Australia is ready for the future. It is in a very good position to create great content of worldwide appeal. It just needs some help to fully realise its full potential.


Internet! Finally! But then again the opportunities of me contributing more to this blog remain marginally slim because I’m playing Bioshock, “the ultimate rarity: not only does it live up to its lofty promise, but exceeds it through simple, old fashioned talent and imagination – not to mention verve, style,class, wit, and sheer bloody-minded ambition. It takes the tired, worn-out FPS genre by the scruff of the neck, reinvents and bend it out of shape in such a breathtaking fashion that it’s going to take something very special to top this in the months and years ahead” (Eurogamer). Well that – and it skillfully disguises its linearity. It’s not only one of the best games of the year, or the last years for that matter, but also exactly what the Australian videogame industry needs. For the uninitiated: The studio responsible for the game, Irrational, is based in Boston and Canberra where the core technology team resides.

One of the problems of Australia’s games industry is that it’s mainly a work for hire industry. While this reduces the risk for the developers and can help to build infrastructure, respectively to enhance the skills base it goes together with a smaller revenue stream for the studios – and most of the profits are going abroad – the consequence being that this procedure doesn’t build value onto the business. Furthermore the question remains if this model is viable under a long term perspective. Regions in Eastern Europe skill-wise rapidly catch up but are able to deliver their work at much cheaper rates. Then there’re India and Asia which already provide reliable outsourcing services albeit still suffer from a cultural barrier that make their games not too appealing to the Western markets. But maybe it’s just a matter of time until this problem is overcome (which I doubt). Also: If you as a publisher are looking for a studio to work on your IP why not choose a country like Canada; it offers generous state incentives and, not matter where you’re operations are based, it’s closer than Australia.

The answer: Own creative IP. As Mark Fludder from Queensland Government explained to me in an interview: “We’re going to need to see local IP developed and again […] Otherwise: why not move it to the Czech Republic?… We need to be saying, well, you know… Pandemic’s Destroy All Humans is a really good example, it’s their own make and was all developed and scripted here. It was a big hit, so when whoever owns Pandemic at any given moment on the continuum is going to say: ‘Do we continue to invest in Australia? Well, hey… they’re making good games’. And I think that’s important, I think Australia is going to have to do that”.

Tom Crago of the GDAA holds a similar view (from the newsletter): ““To have such a high profile title come out of a local studio not only shows the world what our talent here is capable of, it also draws attention to the broader Australian industry, which is an extremely positive thing… [It] shows Government and the media that we really are on the cusp of becoming a global hub for game development” adding that “Australian-made games are mixing it with the very best in the world.”

So the potential is there – and with more incentives from federal government (which until now, for some reasons solely known to Peter Costello, only generously supports the indigenous movie industry) it indeed might elevate Australia into the first league of game development.


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