The Australian gaming market has established itself as a key player in the global gaming industry, with a strong presence in both digital and physical gaming. As of 2024, the market is valued at USD 2.37 billion, reflecting a growing interest in gaming across various platforms, including consoles, PC, and mobile. The Australian gaming community is diverse, with players spanning all age groups, from casual mobile gamers to serious console and PC enthusiasts.
Key drivers of the Australian gaming market include advancements in gaming technology, the growing popularity of esports, and the increasing accessibility of games through digital distribution platforms. As Australians embrace gaming as a form of entertainment, there is a growing focus on immersive experiences and high-quality game content, further shaping the industry’s trajectory.
Australia Gaming Market Size
The Australian gaming market was valued at USD 2.37 billion in 2024. It is projected to grow at a modest compound annual growth rate (CAGR) of 0.80% from 2025 to 2034, reaching a market value of approximately USD 2.57 billion by 2034. This growth, while slower than some other sectors, reflects the stability of the gaming market in Australia, where gaming has become an integral part of the entertainment landscape.
The relatively slow growth is attributed to a mature gaming market, where the major market segments have already reached a significant level of penetration. However, despite the slower growth rate, the market continues to see steady demand, driven by the launch of new games, platforms, and ongoing consumer engagement with existing gaming ecosystems.
Australia Gaming Market Trends
Several trends are shaping the future of the Australian gaming market:
- Rise of Digital and Subscription-based Gaming: With the increasing popularity of online gaming platforms such as Steam, Xbox Game Pass, and PlayStation Plus, digital distribution is becoming the primary way Australians purchase and access games. Subscription services are also on the rise, as they offer gamers access to a wide library of games for a fixed monthly fee.
- Mobile Gaming Surge: Mobile gaming continues to dominate the Australian gaming market, with millions of Australians playing games on their smartphones and tablets. Games like PUBG Mobile, Fortnite, and various casual games have gained significant traction, making mobile gaming a major contributor to the overall market.
- Esports Growth: Esports in Australia has gained considerable momentum, with an increasing number of esports tournaments, sponsorships, and professional leagues. Australian gamers are participating in international esports competitions, while the country’s esports infrastructure continues to improve, fostering greater investment and viewership in competitive gaming.
- Cloud Gaming: Cloud gaming services, such as Google Stadia and NVIDIA GeForce Now, are making their way into the Australian market. While still in the early stages, cloud gaming is expected to grow in popularity, allowing gamers to play high-quality games without the need for expensive hardware.
- Virtual Reality (VR) and Augmented Reality (AR): VR and AR are gradually making their mark in the Australian gaming market. With the increasing availability of affordable VR headsets and more immersive gaming experiences, these technologies are expected to gain greater adoption in the coming years.
- Focus on Diversity and Inclusion: Australian gaming companies are focusing on creating more inclusive content that appeals to diverse audiences, with an emphasis on representation of different genders, cultures, and abilities in games. This trend is helping broaden the appeal of gaming to a wider demographic.
Australia Gaming Market Growth
The Australian gaming market is experiencing steady growth, with key factors contributing to its development:
- Technological Advancements: Ongoing innovations in gaming technology, including the release of next-generation consoles such as the PlayStation 5 and Xbox Series X, are encouraging consumers to upgrade their gaming setups, thus driving market demand.
- Increased Investment in Esports and Competitive Gaming: The rapid growth of esports in Australia, alongside investments in esports infrastructure, is contributing to market growth. As more gamers and viewers engage in competitive gaming, the market is expanding in terms of both audience and revenue.
- The Rise of Gaming as a Social Activity: Online multiplayer gaming and gaming communities continue to grow, with players forming lasting social connections through platforms like Discord and Twitch. The increasing social aspect of gaming encourages longer engagement and more frequent spending on in-game purchases and subscriptions.
- Adoption of Subscription Services: Subscription services, such as Xbox Game Pass and PlayStation Plus, are becoming increasingly popular in Australia. These services allow players to access a wide range of games for a monthly fee, helping to drive ongoing consumer spending in the gaming sector.
- Increased Focus on Mobile Gaming: The growing mobile gaming sector, with easy access to games on smartphones and tablets, continues to attract a wide audience. The rise of free-to-play mobile games with in-app purchases is also boosting the market.
Australia Gaming Market Segmentation
Breakup by Type
- Social Games
- Puzzles
- Simulation
- Adventure/Role Playing Games
- Strategy
- Others
Breakup by Device Type
- Mobiles and Tablets
- Computers
- Consoles
Breakup by Platform
- Online
- Offline
Breakup by Age Group
- Adult
- Children
Breakup by Revenue Type
- Box/CD Game Purchase
- Freeware
- Advertising
- Shareware
- In-Game Purchase
Breakup by End Use
- Female
- Male
Australia Gaming Market Forecast
The Australian gaming market is projected to grow at a CAGR of 0.80% from 2025 to 2034, reaching USD 2.57 billion by 2034. While the growth rate is slower compared to other regions, the market remains stable and continues to evolve with advancements in technology, increasing mobile gaming popularity, and growing esports participation.
The expansion of cloud gaming, the rise of VR and AR, and the shift toward digital and subscription-based gaming will further drive market expansion. Although the market faces challenges such as the saturation of the console gaming segment, the continuous evolution of gaming trends and the increasing focus on interactive, immersive experiences will sustain growth.
Competitive Analysis
The Australian gaming market is highly competitive, with both global and local companies contributing to the dynamic landscape. Some of the key players in the market include:
Sony Australia Limited: As a leading gaming hardware and software provider, Sony’s PlayStation consoles continue to dominate the Australian market. Sony also plays a significant role in the distribution of digital gaming content via the PlayStation Store and PlayStation Plus subscriptions.
Microsoft Corporation: Microsoft, with its Xbox consoles and Xbox Game Pass service, is a key player in the Australian gaming market. Xbox Game Pass offers access to a vast library of games, contributing to the growing trend of subscription-based gaming.
Apple Inc.: Apple’s entry into the gaming market through the App Store and Apple Arcade has made it a major player in mobile and subscription-based gaming. The company’s influence in the mobile gaming sector is significant, with millions of Australians playing games on iOS devices.
Electronic Arts Inc.: A major publisher in the Australian gaming market, Electronic Arts (EA) produces some of the most popular game franchises, including FIFA, The Sims, and Battlefield, which continue to have a strong presence in Australia.
Nintendo Australia Pty Ltd.: Known for its iconic gaming consoles like the Nintendo Switch, Nintendo is a significant player in the Australian gaming market. The company’s family-friendly games and strong brand loyalty contribute to its ongoing success.
Others: Other notable companies in the Australian gaming market include Activision Blizzard, Ubisoft, Epic Games, and Bethesda Softworks, all of which provide popular game titles and services that contribute to the ongoing growth of the industry.
