The Adelaide state government has announced a $2 million fund to help build a "world leading" games development hub in Southern Australia.
This investment is expected to create up to 500 new local jobs in the games industry.
The hub will be operated by Game Plus, a collaborate workplace for game developers and tech start-ups, with $450,000 being used to fit-out an office space.
Remaining funds will be focused on assisting the production and marketing of Adelaide-made games, and channelled towards skills development and education programs.
The establishment of the Game Plus Hub is hoped to encourage more game developers to move into South Australia and will serve as the headquarters for well-established mobile developer Mighty Kingdom.
In a statement, Mighty Kingdom founder and director Phil Mayes said that the announcement is a "game changer for the industry" in the region.
He added: "This game development hub in Adelaide will serve as a focal point for local industry collaboration and investment, creating even more jobs."
This news follows from another initiative aimed at rebuilding the once flourishing Australian games industry. In a recent announcement, the Victoria state government pledged $140,000 to encourage more women into the games industry.