IGEA has made a submission to the New Zealand Department of Internal Affairs consultation on the review of options for funding the classification framework under the Films, Videos, and Publications Classification Act, 1993.
In our submission, we have strongly urged caution against increasing the cost of submitting video games for classification in New Zealand for the following reasons:
- The market for physical (boxed) video games has steadily diminished over recent years, and the profitability of physical products are under increasing pressure.
- The cost of submitting video games for classification in New Zealand is far greater than the cost of submitting films, DVDs and online video, with our sector’s fees likely subsidising the classification framework’s other clients.
- New Zealand is already one of the most expensive markets for games businesses to submit content for classification, and potentially the most expensive in the world on a market size-adjusted basis.
- An increase in classification costs is likely to cause many games publishers and distributors to stop releasing physical video games, which will paradoxically lead to even less revenue for funding the classification framework.
Our submission can be downloaded here.
Further details on the New Zealand Government’s consultation, and a copy of the Department’s consultation paper can be found here.