For a long time, the Australian games industry has been heavily centered on the East Coast, with Melbourne and Sydney serving as the primary hubs for development. However, a massive shift is underway. Screenwest, the premier screen funding and development agency for Western Australia, has officially launched its first-ever dedicated Digital Games Strategy (2026-2029).
Backed by a $4 million funding commitment, this strategy is designed to transform WA from a boutique development scene into a global powerhouse. The goal is clear: increase the annual economic impact of Western Australian games from $2.2 million to over $4 million by 2029.
Investing in Local Talent: The Core of the WA Digital Games Strategy
The heart of this new initiative is the support of local Western Australian game developers. Unlike previous funding models that were bundled with film and television, this strategy recognizes digital games as a distinct and vital pillar of the WA creative economy.
The $4 million pool will be utilized to provide grants for various stages of development, including:
- Prototype Funding: Small grants to help independent developers get their “vertical slice” ready for publishers.
- Production Support: Scalable funding for studios moving into full-scale development.
- Marketing and Travel: Assisting WA developers in attending global events like GDC and Gamescom to secure international deals.
Perth as a Global Tech Hub: The Future of WA Game Studios
A key component of the strategy is the establishment of a dedicated Perth Creative Hub. This physical space will serve as an incubator for startups and a collaborative workspace for established studios like Black Lab Games and newcomers like the creators of Omi Oh My AI.
By fostering a central community, Screenwest aims to prevent “brain drain” – where talented developers flee to the East Coast or overseas for work. Instead, the strategy focuses on creating sustainable, long-term employment within the state.
“Western Australia has always had the talent, but now we finally have the infrastructure,” said a Screenwest spokesperson. “With this $4 million injection, we are signaling to the world that WA is open for business in the digital space.”
Capitalizing on a Record-Breaking Year for WA Games
The timing of this strategy couldn’t be better. January 2026 was a record-breaking month for the state, with four major WA-supported titles hitting digital storefronts: Lunars, Finch and Archie, Omi Oh My AI, and the viral hit Don’t Stop Girlypop!.
The success of these titles has proven that WA developers have a unique voice in the indie scene. The new Digital Games Strategy seeks to replicate this success on a larger scale, encouraging more diverse projects ranging from VR experiences to high-fidelity PC adventures.
How the Digital Games Tax Offset (DGTO) Plays a Role
The state-level funding will work in tandem with the Federal Government’s Digital Games Tax Offset (DGTO), which provides a 30% refundable tax offset for eligible games. This “double-dip” of funding makes Western Australia one of the most attractive places in the Southern Hemisphere for game production.
As we look toward 2027 and beyond, the message is clear: the “Wild West” of gaming is no longer a frontier – it’s the new destination. Stay tuned to GamesHub as we track the first projects to be greenlit under this historic new funding model.
