An Adelaide-based business with a three-person team recently marked an achievement by generating US$24 million in revenue on its launch day. The muted response was due to the fact that this business, Team Cherry, is a video game studio, and its product was the highly anticipated game, Hollow Knight: Silksong. This event highlights the importance of recognizing the video game industry in Australia as a growing export sector.
The launch of Silksong was remarkable. In its first few days, the game sold between 2.09 and 2.12 million copies on Steam alone. At its peak, it had over 587,000 players online simultaneously, placing it among the top 20 most played games in Steam’s history. This level of success stands out, especially for a studio that started with a modest $57,000 Kickstarter campaign for the original Hollow Knight in 2017, a game that has sold over 15 million copies. The release of the sequel was extraordinary, as digital platforms like Steam, Nintendo, PlayStation, and Xbox all faced performance issues due to the enormous demand. The game also gained popularity on Twitch, attracting over 360,000 viewers and accumulating three million hours of watch time on its first day. Industry estimates indicate that total sales across all platforms exceeded one million units within 24 hours, resulting in an impressive revenue figure of US$24 million.
The NSW Independent Developer Survey 2025 highlighted that 95% of indie developers in New South Wales view funding as their top priority. The survey noted that the “Made in NSW” fund only offers $30,000 in seed funding per game, compared to up to $500,000 offered by VicScreen. This lack of resources has real effects, as many studios reported that their median development budget of $150,000 is nearly all spent on salaries and basic operating expenses. The report also pointed out the strong potential for growth, indicating that the number of registered game companies in NSW more than doubled after modest federal and state tax rebates were introduced.
The challenge facing Australia’s games industry is not a shortage of creativity or skill but rather a systemic issue. Less than 1% of Screen NSW funding goes to games, despite the industry’s revenue exceeding that of film and music combined. Australia’s policymakers often promote high-risk, high-reward startups, which describes indie game studios perfectly. Although founders desire to build their businesses at home, they currently do not have the support needed to compete with counterparts from other states or countries. To take full advantage of this potential, government strategies must change to provide equal funding with other states and increase the visibility and accessibility of support programs. It is also essential to encourage more private investment from venture capital and other sources. The tremendous success of Hollow Knight: Silksong serves as a strong reminder that the story of these games goes beyond entertainment; it represents business growth, job creation, skill development, and the future of Australia’s creative and digital export economy.
