Grinding Gear Games
New Zealand video-game developer best known for the Path of Exile action role-playing game series.
Last updated October 31, 2026
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Overview
Grinding Gear Games is a New Zealand video-game development studio headquartered in Auckland. Founded in 2006 by Chris Wilson and Jonathan Rogers, who met while studying computer science at the University of Auckland, the company began as an independent startup operating from Wilson's garage in New Lynn. Swedish designer and gamer Erik Olofsson joined the founders soon afterward, having met Wilson online and later moved to New Zealand to work with the studio. The company moved into office premises in Titirangi in 2008 and had grown to 18 employees by 2012. The studio's central creative and commercial achievement is Path of Exile, a free-to-play online action role-playing game influenced by the long-running Diablo tradition but designed around extensive character customization, itemization, skill systems, and persistent online content. Grinding Gear Games used an unusual funding model during development: players could support the project by purchasing optional in-game microtransactions before the formal launch. This approach raised more than US$245,000 during the first six days of the crowdfunding campaign and helped the independent studio continue development without relying on a conventional publisher-led premium release model. Path of Exile entered worldwide open beta in January 2013 and reached version 1.0 on 23 October 2013. The game attracted a substantial early audience and became the foundation of the company's business. Grinding Gear Games subsequently expanded the title across platforms and regions while emphasizing cosmetic and convenience-oriented purchases rather than selling direct gameplay power. The studio's continuing-release model, built around updates and new content, supported a global community and established the company as one of New Zealand's most prominent game developers. By 2017, it had moved to premises in Henderson and employed more than 100 people. Tencent published Path of Exile in China in 2017. In May 2018, the Chinese technology company acquired a majority stake of 86.67 percent in Grinding Gear Games. The remaining shares were initially held by the three co-founders, while the board included founder representatives and directors appointed by Tencent. Tencent's ownership rose to approximately 93 percent by December 2023, and in March 2024 the co-founders sold their remaining shares, making Tencent the sole owner. The transaction preserved Grinding Gear Games as a distinct development studio while giving Tencent full ownership of the business. The company expanded its franchise with Path of Exile 2, a sequel intended to build on the original game's systems and audience. As of the latest available reference material, Path of Exile and Path of Exile 2 are the studio's two developed games. The company's workforce was reported at approximately 180 employees in New Zealand in April 2024 and approximately 240 employees by July 2025. In 2025, the company was also reported to have paid nearly NZ$100 million in dividends to Tencent. Its importance extends beyond its products: the studio is frequently cited as a leading example of New Zealand's ability to produce globally successful online games.
History
Grinding Gear Games was established in Auckland in 2006 by Chris Wilson and Jonathan Rogers, friends who met while studying computer science at the University of Auckland. The founders initially worked from Wilson's garage in New Lynn while developing the concept and technology that would become Path of Exile. They were later joined by Erik Olofsson, a Swedish designer and gamer whom Wilson had met online. Olofsson moved to New Zealand a few months after the company was founded, completing the original founding group. The studio moved to offices in Titirangi in 2008. Its early development process was conducted with a small team and without the resources of a major publisher. Rather than adopting a conventional boxed-game funding structure, Grinding Gear Games supported development through a player-funding model in which users could purchase optional microtransactions before the game's commercial launch. The campaign raised more than US$245,000 in its first six days, providing an important source of financing for the independent studio. Path of Exile entered worldwide open beta in January 2013. More than 46,000 people participated between the beginning of the open beta and the game's version 1.0 release on 23 October 2013. The title was distributed as a free-to-play online action role-playing game and built its revenue model around optional purchases, particularly cosmetic items. Its complex skill system, extensive item economy, and continuing updates helped it develop a durable international audience. In 2013, Wilson was a finalist for The New Zealand Herald's Business Leader of the Year, reflecting the company's growing profile outside the game industry. After the launch of Path of Exile, Grinding Gear Games concentrated on extending the game to additional platforms and regions, creating new content, and strengthening its live-service operations. By 2017, the company had relocated to Henderson and employed more than 100 people. That year Tencent published Path of Exile in China, giving the game a major partner in one of the world's largest game markets. Tencent acquired 86.67 percent of Grinding Gear Games' shares in May 2018. The founders retained a minority stake at first, and the board included both founder representatives and directors appointed by Tencent. The arrangement allowed the Auckland studio to continue operating under its own identity while benefiting from Tencent's ownership and publishing relationships. Tencent's stake increased to about 93 percent by December 2023. In March 2024, the three co-founders sold their remaining shares, making Tencent the company's sole owner. Grinding Gear Games developed Path of Exile 2 as a sequel and second major game. The sequel extends the studio's focus on online action role-playing, character development, combat, and long-term content. The company remained an important New Zealand technology and creative employer, with reported staffing of about 180 people in New Zealand in April 2024 and about 240 by July 2025. In 2025, it was reported to have paid nearly NZ$100 million in dividends to Tencent. The company has also been associated with a 2025 STEM-focused private-school project funded by co-founder Jonathan Rogers in collaboration with academic Tristan O'Hanlon, which received resource consent. Grinding Gear Games is regarded as one of New Zealand's most prominent video-game developers and as an example of a locally founded studio achieving a substantial global audience.
- 2025
The studio is reported to have approximately 240 employees
[1]Available reporting places the company's workforce at about 240 employees by July.
- 2024
Tencent becomes sole owner
[1]The three co-founders sell their remaining shares to Tencent in March.
- 2023
Tencent's ownership reaches approximately 93 percent
[1]Tencent's interest in the studio is reported to have increased to approximately 93 percent by December.
- 2018
Tencent acquires a majority stake
[1]Tencent acquires 86.67 percent of Grinding Gear Games.
- 2017
Path of Exile launches in China through Tencent
[1]Tencent publishes the game in China, preceding its later investment in the developer.
- 2013
Path of Exile enters open beta
[1]The game launches worldwide in open beta in January, before its version 1.0 release later that year.
- 2013
Path of Exile reaches version 1.0
[1]The game's formal version 1.0 release takes place on 23 October.
- 2012
The company reaches 18 employees
[1]Grinding Gear Games has expanded to a team of 18 during development of Path of Exile.
- 2008
The studio moves to offices in Titirangi
[1]After beginning operations from Wilson's garage, the company moves into dedicated office premises.
- 2006
Grinding Gear Games is founded in Auckland
[1]Chris Wilson and Jonathan Rogers establish the studio, with Erik Olofsson joining the founding team soon afterward.
Products and positioning
A specialist developer of deep, free-to-play online action role-playing games, distinguished by complex progression systems, long-term content support, and cosmetic-focused monetization.
Online action role-playing game · 2013
Path of Exile
Grinding Gear Games' debut and defining title, Path of Exile is a free-to-play online action role-playing game built around extensive character customization, equipment collection, skill interactions, and recurring content updates. It entered worldwide open beta in January 2013 and released in version 1.0 on 23 October 2013. The game uses optional in-game purchases, with the studio placing particular emphasis on cosmetic items. Its long-running live-service structure and detailed progression systems made it the foundation of the company's global business.
Online action role-playing game
Path of Exile 2
Path of Exile 2 is the studio's sequel and second developed game. It continues Grinding Gear Games' focus on online action role-playing, deep character progression, combat, equipment, and persistent post-launch content. The sequel is positioned as an expansion of the Path of Exile formula rather than a departure from the studio's specialization in complex, long-term online RPG systems.
Controversies
2021
Grinding Gear Games responds to criticism over streamer priority access
Grinding Gear Games responded to criticism after streamers received priority access to Path of Exile's Ultimatum expansion while regular players faced long login queues. Lead developer Chris Wilson called the decision a mistake and said the company would not allow streamers to bypass the queue in the future.
Marketing campaigns
- 2012Path of Exile player-funded development campaign
Global
Before Path of Exile's launch, the studio allowed players to pre-purchase optional in-game microtransactions to help finance development. The campaign raised more than US$245,000 in its first six days.
Outcome. The funding helped the independent studio continue development and supported the free-to-play launch model.
Brand decisions
2024
Complete Tencent ownershipM&ABackground
Tencent's ownership had risen to approximately 93 percent by December 2023, with the founders retaining the remaining shares.
Action taken
The three co-founders sold their remaining interests to Tencent in March 2024.
Aftermath
Tencent became the sole owner of Grinding Gear Games.
2018
Tencent acquires a majority stakeM&ABackground
Tencent had already published Path of Exile in China and became the studio's strategic corporate partner.
Action taken
Tencent acquired 86.67 percent of Grinding Gear Games' shares, while the three co-founders initially retained a minority interest.
Aftermath
The studio continued operating as Grinding Gear Games while becoming majority-owned by Tencent.
2017
Enter the Chinese market through TencentStrategyBackground
Path of Exile had established an international audience, while China represented a major market requiring a local publishing partner.
Action taken
Grinding Gear Games partnered with Tencent to publish Path of Exile in China.
Aftermath
The publishing relationship preceded Tencent's acquisition of a majority stake in the studio in 2018.
2013
Release Path of Exile as a free-to-play online gameProduct launchBackground
Grinding Gear Games needed a sustainable commercial model for its first major title while operating as an independent developer.
Action taken
The studio launched Path of Exile with optional in-game purchases, emphasizing cosmetic content rather than a conventional premium purchase.
Aftermath
The model supported continuing development and helped the game build a durable global audience.
Recent events
- 2025
Grinding Gear Games reports nearly NZ$100 million in dividends to Tencent[1]
Other
The studio was reported to have paid almost NZ$100 million in dividends to its parent company, Tencent.
- 2024
Grinding Gear Games founders sell remaining shares to Tencent[1]
M&A · Leadership change
The three co-founders sold their remaining interests, leaving Tencent as the studio's sole owner.
- 2018
Tencent becomes majority owner of Grinding Gear Games[1]
M&A
Tencent acquired 86.67 percent of Grinding Gear Games after publishing Path of Exile in China the previous year.
Sources3 sources
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