Gaming creators are being bankrolled by a new Dunedin fund to dream up the next big video game.

The Government has given the city $10 million to set up the Centre of Digital Excellence and generous grants will help developers create and commercialise  prototypes.

Game Developers Association's Tim Ponting says the funding boost will help build a thriving gaming industry in an area hurting from Covid 19.

He told Kate Hawkesby a kickstart grant of $40,000 is for prototypes and up to $150,000 is available to commercialise them.

"Other rounds will go to companies to increase their ambition locally."

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