Grand Theft Auto 5 was the bestselling title at retail in Australia last year, according to NPD.
While digital sales aren't tracked by NPD, the company estimates that $899 million was made in digital sales during 2013 in Australia.
With digital estimates included, the Australian games industry was worth over $2 billion in 2013.
IGEA CEO Ron Curry said the results proved that physical retail still has hope in the coming years.
"The data from NPD Group is encouraging and shows that bricks and mortar retailers have maintained their fundamental role in providing hardware, software, digital content and merchandise to consumers," he said.
The top ten bestselling software titles:
1. Grand Theft Auto 5
2. Call Of Duty: Ghosts
3. Assassin's Creed 4: Black Flag
4. Battlefield 4
5. FIFA 14
6. Call of Duty: Black Ops 2
7. The Last of Us
8. Skylanders SWAP Force
9. Battlefield 3
10. Tomb Raider