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The New Zealand Game Developers Association is calling for the May Budget to address the video game industry's potential decline.
The industry has been facing difficulties keeping budding studios in the country with more appealing opportunities for them in Australia.
Currently our Tasmanian counterpart offers a 30 percent Digital Game Tax Offset as well as 10-15 percent state rebates.
For eligible expenditure, gaming studios in Australia effectively get a cash benefit of 45 cents in the dollar, drastically reducing costs.
The association has growing concerns over what it says is the government's continued inaction to provide more support and opportunity for the industry to grow.
Association chairperson Chelsea Rapp said they wanted to see a full commitment in the government's Budget for a 30 percent incentive for studios.
"Australia's scheme is built to attract big US subsidiaries to their shores, which is just not our goal here.
"Our goal is to ultimately support New Zealand grown businesses and IP that will pay tax here and help support the economy," she said.
Rapp said the tax was incredibly challenging to pass up if you were an independent gaming studio.
Around the world 25 countries have already implemented an incentive framework for the video game industry.
New Zealand offers a film industry incentive with The New Zealand Screen Production Grant (NZSPG) offer rebates up to 40 percent.
It was requirement for the film sector to have these schemes and the same was true for video games, Rapp said.
"We've had a really thriving game sector because for a long time Australia didn't really have them (the schemes).
"So, we haven't been competing with them for talent or investments but now they've stepped up they're able to take advantage of the talent we've spent decades cultivating," she said.
The impact of studios leaving New Zealand has potential to affect more than just the video game sectors.
"It'll affect everything not just games, if you look at VFX, animations are all powered by tech from the gaming industry.
"While a lot of jobs will be moving across the Tasman it's all these other sectors that will be affected by the loss of those skill sets.
"Architectural rendering, film sectors and advertising will be affected by these losses," she said.
The industry has become one of the fastest growing exports in New Zealand, growing on average 20 to 30 percent a year.
New Zealand was home to several studios that have released prolific video games into the market such as Grinding Gears' popular game Path of Exile.