Australia's interactive entertainment sector posted a 23 per cent fall in traditional retail sales last year to $1.16bn
The games industry is among the early winners of next week's Federal Budget, which will include a 30 per cent Digital Games Tax Offset.
The Interactive Games and Entertainment Association is lobbying the government to establish a direct funding program similar to the now-defunct Australian Interactive Games Fund in order to support independent game developers.
Screen Australia will commit $6 million over two years to support small to medium independent game studios with projects with budgets below $500,000.
Queensland-based games projects will now be able to access up to $90,000 in funding as part of the state government's new Games Grants program.
The Western Australian government has announced $2 million in pilot funding for the state's digital games and interactive sector to support supporting content development, capability development, and strategic industry-building opportunities.
Screen Queensland will support seven games projects from the state with more than $1 million in development funding while also helping nine studios attend this week's Gamescom digital games conference in Cologne, Germany.
Rogue-like action-adventure game 'Cult of the Lamb' from Melbourne/UK indie studio Massive Monster herded its way to four wins at the Interactive Games and Entertainment Association Australian Game Developer Awards, including Game of The Year.