Victorian schools will be the first in Australia to participate in a ground-breaking Microsoft coding program.

The Victorian Schools Coding Challenge will be open to all Victorian primary and secondary schools and will be run by Microsoft and the Department of Education and Training.

Students in grades six, eight and ten will have the opportunity to develop and pitch ideas for an app or game and compete against each other across the state.

The inaugural competition will start in Term Three with winners to showcase their designs during Melbourne International Games Week later this year. 

Melbourne is home to almost half of Australia's digital games industry including 103 game development studios and the Games Developers' Association of Australia, housed in the dedicated gaming co-working space The Arcade.

Victoria's tech industry now generates more than A$34 billion in annual revenue and employs more than 91,300 people across the state, with numbers set to grow with demand for tech skills higher than ever before.

Melbourne produces more ICT graduates than any other Australian city.  Victoria's ICT industry has over 8,000 companies, including many international firms such as IBMMicrosoft and Intel.