From Fed Square to final boss: Victoria’s games industry powers up

We’ve come a long way since Pac‑Man and Space Invaders. But even if you missed the early days, you’re likely part of the 82% of Australians gaming today.

From small startups to big creators, Victoria hosts the majority of Australia’s game studio businesses, with Melbourne holding the controller.

Victoria’s gaming scene and culture

At the centre of Victoria’s gaming boom is VicScreen, the state’s creative and screen agency. Its Games and Interactive team (led by industry veterans like Paul Callaghan) acts as an incubator of talent, helping teams large and small prepare for the world stage.

'At VicScreen, we focus on discovering and supporting the next big thing in gaming, helping Victoria’s talent bring it to life.'

Beyond the high scores, Paul explains what makes Victoria special. ‘What excites me is the blend of creativity and community,’ he says. ‘It’s the people that make this industry extraordinary. That willingness to mentor, to collaborate and to support new voices.’

Over the past two decades, businesses in Victoria’s games sector have developed what Paul calls a rare mix of resilience and maturity. 'We’ve got studios at every scale, from Firemonkeys part of EA (The Sims for mobile), to PlaySide working on licensed IP (The Walking Dead). Toot Games (My Arms Are Longer Now) and Massive Monster (Cult of the Lamb) showcase Melbourne's creative edge while staying true to the city’s indie spirit.'

Many of Victoria’s indie studios are startups and small businesses, combining savvy planning with creative drive to turn local ideas into global hits. With Victorian Government program support and incentives like the Victorian Screen Rebate, digital games businesses have every reason to set up shop here.

What is being released this summer

Mixtape - Beethoven & Dinosaur

Beethoven & Dinosaur’s Mixtape follows three friends on their last night of high school. It’s set to an iconic soundtrack featuring The Smashing Pumpkins, Joy Division and more. Players joystick their way through a whimsical, coming-of-age adventure which was featured at Tribeca and set for a summer release, with support from VicScreen.

'VicScreen's Production Fund and Talent Placement have been integral to us. Not only have they helped us create and develop Mixtape itself but grow and mature as a studio and team.'

The video game Mixtape.

Letters to Arralla - Little Pink Clouds

With a hint of cheekiness, indie studio Little Pink Clouds’ debut, Letters to Arralla, follows a whimsical turnip as he works to deliver mail around an outback-esque landscape. With support from VicScreen, this feel-good indie game was showcased at Wholesome Games Direct (an online showcase for feel-good indie games).

'VicScreen has been instrumental in bringing Letters to Arralla to life. From funding our first Vertical Slice in 2021 to backing us towards our September release, our journey as a team and studio wouldn’t have been possible without their incredible support.'

'VicScreen’s contributions to the industry are profound, helping us not only develop our first title, but also take part in Play Now, where we pitched to worldwide publishers for the very first time.'

The video game Letters To Arralla.

My Arms are Longer Now - Toot Games

Ever wished your arm was, longer? In Toot Games’ upcoming debut, My Arms Are Longer Now, you control a stretchy disembodied arm in a delightfully surreal world. With support from VicScreen, this stealth comedy, full of Melbournisms, earned laughs at Day of the Devs in San Francisco.

'VicScreen has supported us at every stage of our growth, not just with investment but with guidance, advice, and opportunity. Many of the documents we created using their templates are still part of our planning today. Being invited to pitch at Play Now was pivotal, helping us connect with funding partners we would never have reached otherwise.'

The video game My Arms Are Longer Now.

Events and opportunities: Play Now Melbourne and Melbourne International Games Week

Melbourne first booted up as a digital games hub in the 1990s and it hasn’t looked back. Each year, Melbourne International Games Week (MIGW) turns the city into a playable map, linking players, creators and publishers.

More than 125,000 people are expected to attend MIGW this October. There will be activities to suit everyone, from online events and regional activations to Big Games Night Out, live music, roving entertainment and competitions.

One of VicScreen’s flagship events, Play Now Melbourne, is a high-impact day where Aussie developers have the chance to pitch their projects to some of the world’s top publishers, platform partners and investors. Last year alone, the event hosted 165 meetings between 19 publishers and 55 projects.

‘Our role is to set the stage for the developers, in a curated environment,' says Paul. 'Whether you're pitching a polished title or an untested prototype, events like Play Now and PAX offer an entry point for everyone. There’s no single path, just plenty of ways to get connected and be seen.'

Diversity, scale and global recognition

Victoria’s gaming industry is more than a rising star, contributing $339.1 million (FY2024) to Australia’s video game sector. 'We’re lucky to see such a range of voices and stories emerging,' says Paul.

'It’s a creatively culturally fearless space. You can be working on a blockbuster title or team up with like-minded people to develop your own creative, artistic projects.'

Kajoo yannaga, an immersive experience by Wiradjuri-Scottish artist April Phillips, was featured at the 2024 Games for Change Asia Pacific Festival (ACMI). Blending cinematic storytelling with gamified interaction, it took participants on a First Nations–inspired journey through the spirit realm.

The video game Kajoo Yannaga.

The Artful Escape, by Melbourne-based Beethoven and Dinosaur, was hailed by Forbes as 'the most beautiful indie game of 2021' and went on to win a BAFTA Award. House House’s Untitled Goose Game also claimed a BAFTA Games Award in 2020.

Kajoo yannaga, by Wiradjuri-Scottish artist April Phillips, was presented at ACMI during Now or Never and MIFF 2024. The immersive experience blends storytelling with gamified interaction, taking participants on a First Nations–inspired journey through the spirit realm.

The video game Untitled Goose.

According to Paul, Victorian games carry a signature vibe. 'Even in projects that tackle darker themes like Stray Gods: The Roleplaying Musical, there’s still a very playful and generous approach to design.'

Stray Gods, created by Melbourne-based small business Summerfall Studios, embodies this vibe, scoring a 2024 Grammy nomination and becoming the first Australian-made game to receive the honour.

Beyond entertainment: gamification in action

More than just entertainment, Victoria’s games industry is powering change through gamification, transforming how we learn, heal and connect.

'It’s not about turning everything into a game,' says Paul. 'It’s about using what games do well (motivation, feedback and interaction) to make experiences more engaging.'

That spirit will take centre stage at Games for Change Asia-Pacific Festival (G4C APAC), part of MIGW. Over three days, developers will showcase games addressing issues including mental health, neurodiversity, environmental action and reproductive rights.

Explore games like Bubble Tea Shop Simulator which explores research-backed mental health benefits and Shopping Trolley Revolution developed in partnership with Clean Up Australia.

Where passion powers play

Victoria’s gaming industry is a dynamic playground for businesses navigating an ever-evolving sector, but at its heart, the developers, designers and musicians keep the creativity and passion alive.

'It’s always the people. You see someone deeply invested in a project, taking risks and bringing new ideas to life. That magic often comes from unexpected collaborations with musicians, galleries and creative spaces. That’s what makes Victoria’s games scene so exciting.' — Paul Callaghan, Head of Games and Interactive, VicScreen.

Mark your calendar

Support and funding for creators, businesses and startups

Screen Australia – Games Production Fund

Australian Taxation Office – Digital games tax offset

Screen Australia – Funding programs

Learn more about gaming in Victoria

VicScreen – Digital Games Funding & Support

VicScreen – Victorian Production Fund

Creative Victoria – Funding Opportunities