Annual Report of the German Games Industry 2023
Download PDFAnnual Report
of the German
Games Industry
2023
years of game
Content 3
Welcome address from
Robert Habeck 4
Editorial 6
01 Video game players in Germany 10
02 German market for computer
and video games 16
03 The games industry in Germany 28
.1 Employees and companies
.2 Games funding
.3 Skilled workers
.4 The ten demands of the games industry
04esports player foundation 44
05 gamescom and devcom 46
06 German Computer Game Awards 50
07 Entertainment Software Self-
Regulation Body (USK) 52
08 Foundation for Digital
Games Culture 54
09 About game – The German Games
Industry Association 56
10 Development of the German games
market since 1995 62
Publisher
game – The German Games
Industry Association
Friedrichstraße 165
10117 Berlin
Design
Bureau Ole Gehling
www.olegehling.de
1UP Management
2nd Wave
2tainment
4-Real Intermedia
505 Games
A MAZE
Acid Mines Software
Activision Blizzard Deutschland
ADVANT Beiten
Rechtsanwaltsgesellschaft
Aerosoft
Aesir Interactive
Ahoiii Entertainment
Airborn Studios
ak tronic Software & Services
Altagram
Altigi
Andarion Games
Anderie Management
AnotherWorld VR
Application Systems Heidelberg
articy Software
Assemble Entertainment
astragon Entertainment
Audiencly
AudioCreatures
Awesome Prototype
AWS Amazon Web Services EMEA
SARL
Baker McKenzie Rechtsanwaltsgesell –
schaft mbH von Rechtsanwälten und
Steuerberatern
Bandai Namco Entertainment
Germany
Barrel Roll Games
Bäumer, Berger, Nikutta
BeamNG
Bedenk Design
Benjamin Lochmann New Media /
Pixel Maniacs
BenQ Deutschland
Bigpoint
bildundtonfabrik btf – Berlin
Binary Impact
b-interaktive
Bippinbits
Birnchen Interactive
bitComposer Interactive
Black Forest Games
Black Screen Records
Blankhans
bm – gesellschaft für bildung
in medienberufen mbh -School of
Games-
Boehmert und Boehmert Anwalts-
partnerschaft
Booster Space Events und Consulting
Bootcamp Bros.
Boxelware
Brehm und v. Moers Rechtsanwälte
BUNTSPECHT Film & Digitales
BXDXO Marketing Services
ByteRockers Games
Bytro Labs
Caipirinha Games
Capcom Entertainment
Germany
Capcy Europe
celrage
Centigrade
Chasing Carrots
Chimera Entertainment
Chronos North
CipSoft
Cloud Imperium Games Limited
CMS Hasche Sigle
ColdFire Games
Cologne Institute for Information
Systems
Com2uS Europe
ComboStrike
Crayon Games
CrazyBunch
Creative Exhibitions Promotions
Crit Crew
Crunchy Leaf Games
Crytek
Cubidoo Entertainment
Curvature Games
Cyber Manatee
DACS Labs
Daedalic Entertainment
DaRa Innovations Deck 13 Interactive
Designakademie Rostock
devcom
Dico Deutschland
DigiTales Interactive
DIPLOMA Hochschule
Ditter Network
DOTW
EGOSOFT
Electronic Arts
ELEET GAMES
Elysium Game Studio
Emergo Entertainment
Encurio
Endava
ENREVO
Envision Entertainment
ESBD – eSport-Bund Deutschland
ESL Gaming
European Games Group
Evil Grog Games
Exit Games
Facebook Germany
FAKT Software
Fantastic Foe
Farbspiel Interactive
FDG Entertainment
Fein Games
Fiery Things
Filmakademie Baden-Württemberg
FISHLABS
fivefingergames
Flow Fire Games
Flying Sheep Studios
Follow – Agentur für Social Media FSM
Food for Thought Media
Force of Disruption
Freaks 4U Gaming
Funatics Software
Fusion Campus Games Kompetenz –
zentrum
FusionPlay
gaertner pr
GALLAFILZ – Agentur für Kommunika-
tion und Fundraising
Game Art Brain – Creation and
Consulting
Game Farm
Game Seer Venture Partners
gamearea-HESSEN
Gamebook Studio HQ
GameDuell
GameExPro
GameFlow Studios
Gameforge
gamelab.berlin-Humbolt-Universität
Gameloft
GamerGrid
Games & XR Mitteldeutschland
GAMES ACADEMY
Games Forest Club g
Games Foundation
Games Industry Network GAIN UG
games.nrw
GamesCoin Group
GameUp! Software- und Gamesforum
Rheinland-Pfalz
Gamify Now!
Gamigo Advertising
gamigo
Gaming Minds Studios
Gaming-Aid
Gamma Minus
Garlic Games
Gentle Troll Entertainment
Gentlymad Studios
Gen-Up
GIANTS Software Entertainment
Glome
Godewind
Google Germany
GoVersity
GRAEF Rechtsanwälte
Grimbart Tales
GvW Graf von Westphalen
GZM Cosplay Management
HafenCity Universität Hamburg
halbautomaten Kommunikationsdesign
Halycon Media
Hamburg Kreativ Gesellschaft
Hammer Labs
Happy Tuesday
HAW – Hochschule für Angewandte Wissenschaften Hamburg
Headup
High Passion Studios
Hochschule Augsburg
Hochschule Bonn-Rhein-Sieg
Hochschule Darmstadt Fachbereich
Media
Hochschule der Medien Stuttgart
Hochschule Harz
Hochschule Macromedia Campus Berlin
Hochschule Macromedia Campus
Leipzig Macromedia
Hochschule Macromedia Campus
Stuttgart
Hochschule Mittweida University of
Applied Sciences
Hochschule Neu-Ulm
Holocafe
HOLOGATE
holoride
HTW Berlin – Hochschule für Technik
und Wirtschaft Berlin- Hochschule
IHDE und Partner Rechtsanwälte
ILOVIT
IME – Interactive Media &
Entertainment
Improbable Germany
INBEX Systems
INDIE Hub
Initium
InnoGames
inSight gg
INSTINCT3
Intellivision Entertainment
Europe
INVR.SPACE
Ipsos
Irox Games
it Matters Games
IU Internationale Hochschule
Ivy Juice Games
Jan Wagner
JIW-Games
JMG Brands & Talents
Joindots
Jung von Matt NERD
Kai Rosenkranz
kaleidoscube
Kalypso Media Group
Keen Games
Key17 Games
keySquare Communications
KIDS Interactive
King Art
Kitto
Klang Games
Koelnmesse
Kolibri Games
Konami Digital Entertainment
Konsole Game Labs
Konsonautic Entertainment
Korion Interactive
kr3m media
Kreative Kraut
LAB132
Letsplay4Charity
Lifelight Entertainment
Limbic Entertainment
Lingoona
Linked Dimensions
Lionmoon
LITE Games
LootBoy
Lost The Game Studios
Lyrebird Game and Audio
Mad About Pandas
marbis
Marchsreiter Communications
Markt und Technik Verlag
Markus Wiemker Game Design &
Game Studies
Maschinen-Mensch
Massive Miniteam
maxupport
Mediadesign Hochschule für Design
und Informatik
Mediakraft Networks
medianet berlinbrandenburg
Mediatrust
MEDION
MegaDev
Megagon Industries
Meister Cody Metaboli SA
metricminds
Microsoft Deutschland
Midasplayer Vertriebs
Mimimi Games
MINKZ Gaming
Misc Games AS
mixed.world
Monokel
Monster Computer Technology
Mooneye
Moonlit Games
Mothership Talents
MSM.digital Communications
MYI Entertainment
Navel
Neomateria Games
Neox Studios
NERDIC
NerdStar
nesemann & grambeck Steuerbe –
ratungsgesellschaft
netmin games
NEW LINE Brand Communication
NeXR Technologies
NightinGames
Nimrod Rechtsanwälte
Nintendo of Europe
Nordemann Czychowski und Partner
nordmedia – Film- und Mediengesell –
schaft Niedersachsen und Bremen
Nukklear
NVIDIA
Off The Beaten Track
OneManOnMars Art and Games
Only Sound
Osborne Clarke Rechtsanwälte Steuer –
berater Partnerschaft
Osmotic Studios
Ostfalia Hochschule, Fakultät Verkehr-
Sport-Tourismus-Medien
OVH
Pabstein Games
Paintbucket Games
PandaBee Studios
Pangolin Park
Pfeffermind Consulting
Piranha Bytes
Pixelsplit
Pixeltown
PLAION
planetlan
Playata
Pockethost
PONG.Li Studios
Pro Gamers Group
Promotion Software
Pumpernickel Studio
Quantumfrog
Quinke Networks
Radical Fish Games
rain productions
Rappbit Games
Rat King Entertainment
Realmforge Studios
remote control productions
Resilient TechEd
RetroBrain R&D
Riot Games Services
Rocket Beans Entertainment
ROCKFISH Games
rokaplay
ROTxBLAU
Rubin-Games Studios
S4G School for Games
SAE Institute
Samsung Electronics
Sandbox Interactive
seal Media
Secret Item Games
Serious Brothers
SideQuest Studios
SilentFuture
Silver Seed Games
simulogics
SisyFox
Sky-E Red
Slow Bros
Snowprint Studios Germany
Soapbox Interactive
Soba Studios
Social Anvil
SOFTGAMES Mobile Entertainment Services
Sony Interactive Entertainment
Deutschland
Soulven
Spaceflower
Spellgarden Games
SpielFabrique 360°
Spiellabor der Hochschule Furtwangen
Spoonful Games
Square Enix
SRH Hochschule Heidelberg
Sticky Stone Studio
Stiftung Digitale Spielekultur
Storyyeller
Stratosphere Games
Striked
Studio Fizbin
Studio Seufz
Studio Sterneck
Super Crowd Entertainment
Suspicious Games
Take-Two Interactive
Taylor Wessing Partnerschaftsge –
sellschaft
TCI Rechtsanwälte Partnerschaft
Schmidt
TeamSpeak Systems
Technische Hochschule Köln – Cologne
Game Lab
Technische Universität Darmstadt,
Fachgebiet Multimedia Kommunika-
tion, Serious Games Gruppe
Telescope Game Studios
Tencent Games
the Good Evil
Thera Bytes
THREAKS
ThreeDee
Thunderful Publishing AB
Tikaro
TikTok Germany
Tiny Crocodile Studios
Tiny Roar
Tivola Games
ToLL Relations
Tom Putzki Consulting
toneworx
Toplitz Productions
Torpor Games
Totally Not Aliens
Toukana Interactive
tox² interactive
Trapped Predator
Travian Games
Treibrad Games
TriTrie Games
Trollgames
Trusted Events
Twin Drums
Twitch Interactive Germany
Ubisoft Blue Byte
Ubisoft
UKE BOSSE
UniGlow Entertainment
United Games Entertainment
University of Europe for Applied
Sciences
Unterhaltungssoftware
Selbstkontrolle (USK)
Upjers
Valve
Vest Games
Virtual Reality Berlin Brandenburg
Vogel und Partner Rechtsanwälte
Walking Tree Games
Warner Bros. Entertainment
Water
waza!
Webedia Gaming
well played bars
Werkmeister & Company
WhalesDontFly
Wild River Games
WOLFGANG WALK
Wolpertinger Games
Wooga
Xsolla Berlin
XYRALITY
Yager Development
Zeitland media and games
ZeniMax Germany
Z-Software
4 Welcome address from Robert Habeck Welcome address from Robert Habeck 5
Dear reader,
For five years now, the games industry has
been speaking with a united voice. Since it
was founded, game – The German Games
Industry Association – has succeeded in
making the concerns of its 400+ members
heard in the political arena.
The importance of the industry it represents
is also reflected in the structure of my
ministry: we have a special division for the
games industry at the Federal Ministry for
Economic Affairs and Climate Action as
the competent ‘games ministry’ now. After
all, it is important that the games industry
continues to grow as society has a lot to
gain from a strong games industry both in cultural and economic terms. Games
have long been recognised as drivers of
innovation. Competition in the games
industry spurs technical innovations such
as virtual reality, artificial intelligence
and 3D engines and boosts their further
development. Games combine cultural
expressions such as music, film, and
narrative formats. They spread into other
media, but also compete with them. As a
result, cross-media projects are emerging
that lead to spill-over effects in neighbouring
sectors.
The game association and my ministry
therefore share the same goal of making
Germany more attractive for the industry
and helping it to become an internationally
relevant lead market for the development of
digital games. The game association is and
remains an important contact for the work
towards achieving this goal.
I warmly congratulate the association on its
anniversary. Let’s continue to work together
to further develop Germany as a location for
the games industry – and let’s do so with the
kind of ‘playful seriousness’ this requires. I
now wish you all a stimulating read.
Sincerely yours,
Robert Habeck
6 EditorialEditorial 7
Dear reader,
While the perceived impacts of the Covid-19
pandemic steadily diminished over the course
of 2022, the year was an unpredictable one
for the German games industry. One of the
absolute highlights of 2022 was gamescom.
For the first time since 2019, the world’s
largest game event was held not just online,
but once again on-site in Cologne. In light
of the challenging conditions created by
the lingering pandemic and the resulting
uncertainty in the early planning phase, the
outcome was all the more gratifying. In total,
gamescom drew over 265,000 visitors to
the Cologne trade fair grounds. The overall
show programme generated more than 130
million views by the penultimate day of the
event. This spectacular comeback was made possible in particular by the exceptional
dedication of the many exhibitors, partners
and visitors who, as in years past, made
gamescom 2022 an unforgettable experience.
The positive aspects of 2022 also included
developments in the German games market.
At first glance, the registered market growth
of 1 per cent might not appear a great
success – especially when viewed against
the huge growth rates of 32 and 17 per cent,
respectively, in the two previous years. Given
the starting situation, however, the steady
development of the German games market is
surprising and encouraging in equal measure.
Declining playing times after the lifting of
pandemic restrictions, a high rate of inflation
and the postponement of a number of
major game releases had led to widespread
expectations of a shrinking games market.
In the USA, the UK and France, game
sales in fact dropped in 2022. Against this
backdrop, the stabilisation of the German
games market at the ten-billion-euro mark is
remarkable.
A similarly positive development could be
seen in German game companies. Significant
increases in the number of companies and
employees in 2021 were followed by a further
rise in both of these figures in 2022, with
the number of game companies in the core
market growing by an additional 15.5 per cent
in the last twelve months and the workforce
they employ by around 7 per cent. This wave
of company start-ups is good news with
8 EditorialEditorial 9
respect to Germany’s race to catch up with
the international competition as a games
location, and it is a result of the improved
underlying conditions for the development of
games. Many of the positive impacts of the
relatively new federal funding programme for
the games industry have yet to show up in
the statistics, as most games are the result
of a multi-year development process. But the
increase in both the number of companies
and their employees is already demonstrating
the industry’s confidence in a sustained
recovery, especially given that the federal
government’s game strategy is set to bring
policy adjustments that are necessary for this
upswing.
The news received by the games industry in
late October 2022 thus came as a particularly
bitter blow: the subsidies for 2022 and
also 2023 had been exhausted, and further
applications for federal funding would no
longer be accepted. From one day to the
next, as if caught in a time machine, the
German games industry was returned to
the funding conditions of 2018, before the
start of the federal funding programme.
This meant production costs more than 30
per cent higher than those in other games
locations such as France, the UK or Canada.
Fortunately, the problem was also recognised
in the German Bundestag. In the adjustment
session of the budget committee, total
federal game funding for 2023 was increased
to 70 million euros, thereby re-opening the
door for further funding applications. Because of the dynamic development of
the games industry in Germany, however,
the additional resources lasted for only a
few months. In response, a renewed funding
application stop for 2023 and 2024 was
imposed at the beginning of May 2023
– again slamming on the brakes in our
international race to catch up as a games
location and posing many game companies
in Germany with major, and in some cases
existential, challenges. Thus it is urgent that
the federal government further develop its
game funding programme if Germany is to
profit economically and culturally from the
opportunities for digital innovation that it
promises.
Not least with regard to this year’s fifth
anniversary of the unified game association,
we would have wished for a more positive
overall situation for game companies in
Germany in 2023. Nonetheless, as in our
many prior successes, the games industry
will, with a unified voice, continue to make
the case for internationally competitive
framework conditions in Germany.
This annual report offers an overview of these
and many other developments in the games
industry in Germany.
I wish you enjoyable reading.
Felix Falk
Managing Director of game – The German
Games Industry Association
%
of all video game players are at
least years old
.
is the average age
of video game players
%
of all video
game players
are female
\b %
of – to
-year-olds play
video games
10 Video game players in Germany Video game players in Germany 11
Video game
players in
Germany
01
In Germany, about 6 in 10 people between
6 and 69 years of age play computer and
video games. Following strong growth of
around 6 per cent in the number of video
game players since 2019, this development
has stabilised. People who began playing
computer and video games during the years
of the Covid-19 pandemic have continued
to enjoy them over the longer term.
There is also little difference according to gender,
with women making up 48 per cent of video
game players in Germany, and men 52 per cent.
As has been the case in recent years, the average
age rose slightly once again, to 37.9 years. In
2022 it was 37.6 and in 2021 just 37.4 years.
This continuous rise in the average age can be
attributed above all to the fact that many who
began playing video games in the 1980s and
1990s have remained devoted gamers as they age. Most video
game players in Germany are 50 or older. About one third are in the
50- to 69-year age group. And 78 per cent of German gamers are
at least 18 years old. This shows that games are a well-established
part of the everyday life of millions of Germans, independent of
age, gender or background.
The smartphone remains the most popular gaming platform in
Germany. But after rising continuously in recent years, the number
of people who reach for their smartphone to play declined in 2022
for the first time, with 22.8 million video game players using it as a
gaming platform, some 700,000 fewer than in the previous year.
The tablet computer saw a loss in users as well: following strong
growth in 2021, the number fell to 10.2 million in 2022 – a drop of
About one third of the
video game players are
in the 50- to 69-year
age group.
Video game players in Germany
Source: GfK. © game 2023
%
%
%
%
%
%
%
%
%
%
%
%
%
%
%
%
%
%
–
years old
–
years old
–
years old
–
years old
–
years old
–
years old
ø .
years
old
–
years old
12 Video game players in Germany Video game players in Germany 13
around a half million. Nonetheless, for a total of about 26.5 million
Germans, mobile games remain the preferred way to play. Game
consoles continue to rise in popularity, having gained a further 1.1
million new gamers in the past year and thus defended their place
as the second-most-used gaming platform. A total of 18.9 million
people in Germany play on consoles such as Nintendo Switch,
PlayStation or Xbox. In contrast, the gaming PC again registered a
clear decline in user numbers, losing about 1.4 million in 2022. There
are only 12.9 million PC gamers in Germany in total.
The diverse interests of video game players
in Germany are reflected in the most popular
games of 2022. From sport simulations
to huge open-world adventures to games
for the whole family – titles from widely
varying genres topped the official charts
of the most-purchased 2022 publications
for PC and console games in Germany. The
football simulation game EA SPORTS FIFA
23 (Electronic Arts) captured first place. The
role-playing game Pokémon Legends: Arceus
(Nintendo) for the Nintendo Switch booked
a major success as well, taking second place.
Third place in the German charts for 2022
was secured by the award-winning open-
world game ELDEN RING (Bandai Namco
Entertainment). Fourth place was claimed by
the first-person shooter Call of Duty: Modern
Warfare II (Activision Blizzard), and fifth
place by the action-adventure game LEGO
Star Wars: The Skywalker Saga (Warner Bros.
Interactive Entertainment).
The diverse interests of
video game players in
Germany are reflected
in the most popular
games of 2022. From
sport simulations to huge
open-world adventures
to games for the whole
family.
Source: GfK. © game 2023
How old are players in Germany?
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14 Video game players in Germany Video game players in Germany 15
Source: GfK. © game 2023
game annual charts
Newly published PC and console games
The most widely used gaming platforms in
Germany: smartphone leading, game console
gaining ground
Source: Game Sales Data (GSD), Video Games Europe
This chart shows the new game releases in 2022 that were most often sold in Germany physically and digitally, across
platforms, for PCs and game consoles. Digital sales of Nintendo titles from the Nintendo eShop are not included.
1 EA SPORTS FIFA 23 Electronic Arts
2 Pokémon Legends: Arceus Nintendo
3 ELDEN RING Bandai Namco Entertainment
4 Call of Duty: Modern Warfare II Activision Blizzard
5 LEGO Star Wars: The Skywalker Saga Warner Bros. Interactive
Entertainment
6 Gran Turismo 7 Sony Interactive
Entertainment
7 Nintendo Switch Sports Nintendo
8 Horizon Forbidden West Sony Interactive
Entertainment
9 Kirby and the Forgotten Land Nintendo
10 God of War Ragnarök Sony Interactive
Entertainment
11 Pokémon Violet Nintendo
12 EA SPORTS F1 22 Electronic Arts
13 Pokémon Scarlet Nintendo
14 Splatoon 3 Nintendo
15 WWE 2K22 2K
16 Need for Speed Unbound Electronic Arts
17 NBA 2K23 2K
18 Tiny Tina’s Wonderlands 2K
19 Mario Strikers: Battle League Football Nintendo
20 The Quarry 2K
+ %
+ %
%
%
One-only purchases\g,
in-game and in-app
purchases
Gaming har\bware
Consoles, gaming
PCs and accessories
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16 German market for computer and video games German market for computer and video games 17
German market
for computer
and video games
02
Following major increases in sales revenue
in both 2020 and 2021, the German games
market stabilised at a high level in 2022.
Whereas the Covid-19 pandemic and other
factors had previously resulted in annual
growth of 32 per cent and 17 per cent
respectively, in 2022 sales revenue generated
by games, gaming hardware and charges
for online services rose by an additional 1 per
cent, to 9.87 billion euros. The development
of the individual market segments varied
significantly. Overall, however, the German
games market again led among European countries in sales revenue and
ranked fifth worldwide.
Following the strong growth over the course of
the Covid-19 pandemic, and in light of special
factors such as the high inflation of 2022 and
numerous delays in the release of eagerly
anticipated video games, a decline in sales
revenue was widely expected. While declines were
registered in 2022 in a number of other games
markets, such as the USA, the UK and France, the
German games market demonstrated surprising
stability despite multiple challenges.
Source: Calculations based on the GfK Consumer Panel (2022/2023; n = 25.000),
GfK Entertainment, GfK POS Measurement and Data.ai. © game 2023
The German games market stabilises
at a high level
Overall the German
games market again
led among European
countries in sales
revenue and ranked
fifth worldwide.
–%
–%
+ %
– %
–%
€ , m
Game console
accessor\bes
Gamepads,
steering wheels,
VR headsets
Gam\bng PCs
Deskt\bp PCs and
n\bteb\b\bks
Consoles
stati\bnary and
handheld
Gam\bng PC
accessor\bes
Gaming input
devices, m\bnit\brs,
graphics cards, VR \l
headsets
€ , m
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18 German market for computer and video games German market for computer and video games 19
As with the market overall, the market segment devoted to
games for PCs, game consoles and mobile devices remained
stable. Sales revenue figures were similar to the previous year’s
for computer and video games (−1 per cent to approximately 1.1
billion euros) as well as in-game and in-app purchases (+2 per cent
to approximately 4.5 billion euros). The latter include, for example,
season passes, additional levels, in-game items (for example skins)
and subscription fees for individual online games. In total, sales
revenue from games for PCs, game consoles and mobile devices
grew by roughly 1 per cent to 5.5 billion euros in 2022.
Games for smartphones and tablets account
for an especially large portion of sales revenue
with games. One reason for the size of this
submarket: the smartphone and tablet as
platforms have long offered a wide selection
of games for all tastes and are steadily
improving in technical terms. In addition,
mobile devices are more widespread in the
population than are other gaming platforms.
In 2020 and 2021, sales revenue with game
apps showed a total increase of some 50 per
cent. After the volatile development in the
first two years of the Covid-19 pandemic, the
market grew by a further 1 per cent in 2022, to
around 2.81 billion euros, thereby stabilising at
a high level.
Among the various gaming platforms,
smartphones and tablets thus take the top
position with regard to sales revenue. The
second-largest revenue volume – about
two billion euros – is earned with games
for consoles. PCs and laptops follow, at about 1.6 billion euros.
What is particularly striking here is how strongly the platforms
differ with regard to their respective favoured business models.
In-app purchases account for around 99 per cent of sales revenue
on mobile devices. Free-to-play games have dominated in this
segment for several years now. The possibility of spontaneously
trying out a new game seems to appeal especially to users of
mobile platforms. On game consoles, on the other hand, the
greatest revenue is generated through the purchase of games.
Online gaming services, which are now offered on all consoles,
account for just under one third of this sales revenue. On PCs and
laptops, the majority – 70 per cent – of revenue can be attributed
to in-game purchases, with popular multiplayer and esports
titles like Counter-Strike or League of Legends clearly making a
significant contribution.
Across all platforms, online gaming services as a market segment
experienced another year of strong growth, with sales revenue
from these services increasing by 20 per cent, to 866 million euros.
The categories in this segment include fee-based subscription
Among the various
gaming platforms,
smartphones and
tablets take the top
position with regard to
sales revenue.
Gaming hardware market segment
declines slightly in 2022
Source: Calculations based on the GfK Consumer Panel (2022/2023; n = 25.000),
GfK Entertainment, GfK POS Measurement and Data.ai. © game 2023
+ %
– %
+ %
Game purchases
Games purchased
on physical media
and as downloads
In-game and
in-app purchases
Additional games
content and
subscription \bees
\bor individual
online games
€ \b, m
€ ,\b m
€ ,\b m € \b,\b m
€
,\b m
€
, m
€
, m
€
, m
€
, m
€
, m
€
,\b m
€
,\b m
+ %
+ %
+ %
+%
In-app
purchases
App purchases
App
subscription
fees (from
)
€ \b m €
\b m
€
m
€
m
€
\b m
€
m
€
\b m
€ m
€
m
€ \b m
un m
€
m
€ \b m € \b m€ \b m€ \b m
€ \b m
20 German market for computer and video games German market for computer and video games 21
Sales revenue from games grew
slightly compared to 2021
Source: Calculations based on the GfK Consumer Panel (2022/2023; n = 25.000),
GfK Entertainment, GfK POS Measurement and Data.ai. © game 2023
Source: data.ai and GfK. © game 2023
Market for game apps in Germany grows
by a further per cent in 2022
Sales revenue in Germany from app and in-app
purchases as well as app subscription fees
%
%
% %
%
%
%
€ , m
€
, m
Smartphones\b tablets
PCs and laptops
< %
€ , m
Game consoles
Game purchases
In-game and in-app \hpurchases
Online gaming service\hs
%
22 German market for computer and video games German market for computer and video games 23
services that provide access to a large selection of games, cloud-
based games, online multiplayer functions and the ability to save
game progress in the cloud. This market segment has enjoyed
particularly dynamic growth – demonstrated not only by the large
increase in sales revenue, but also by the wide range of games and
services on offer. Even though some large providers discontinued
certain services last year, other offerings were expanded and
revamped, or even relaunched. As a result, numerous online
game services have offered a range of
functions for some time now – thereby
rendering former distinctions between
online gaming services, subscription
gaming services and cloud gaming
services obsolete. Examples of such
services include EA Play, Nintendo
Switch Online, PlayStation Plus,
Ubisoft+ and Xbox Game Pass.
One of the most significant growth
drivers in recent years has been gaming
hardware, including gaming PCs,
game consoles and the corresponding
accessories. Following huge leaps in
growth of 30 and 18 per cent in the
previous two years, 2022 saw this
market segment decline slightly, by
around 3 per cent, to 3.5 billion euros.
Reasons for this drop in revenues
include the fact that game consoles
like PlayStation 5 and Xbox Series X
as well as the latest graphic cards were not universally available.
Accordingly, like gaming PC accessories, the game console and
console accessories market segments shrank. Only sales revenue
with gaming PCs and laptops grew, showing an increase of 14 per
cent. However, the strong growth of the previous two years also
shows that many players already own the latest game hardware.
Buying PC and console games as downloads has become the most
popular way to purchase games for many gamers in Germany:
Germans buy 6 out of 10 video games as downloads. The share
of download purchases in 2022 thus remained stable for a third
consecutive year, at about 59 per cent, after a large jump in 2020,
the first year of the Covid-19 pandemic. There are big differences
between the gaming platforms, however: the majority of gamers
in Germany obtain console games not as downloads, but rather on
physical media such as discs through online or in-store purchase. In
2022, nearly 2 out of 3 console games (63 per cent) were purchased
as physical copies – a share comparable to that in the two previous
years. An even clearer development can be seen in PC games,
which are now acquired almost exclusively as downloads. The
download share of games for the PC has even shown continued
growth, reaching 97 per cent in 2022 – 4 percentage points higher
than in 2021.
Big differences in consumer behaviour
between gaming platforms
Source: calculations based on the GfK Consumer
Panel (2022/2023; n = 25,000), GfK Entertainment,
GfK POS Measurement and data.ai. © game 2023
Buying PC and console
games as downloads has
become the most popular
way to purchase games for
many video game players
in Germany.
+ %
\
e. g. Nintendo Switch O\Vnline,
NVIDIA Ge\borce NOW,
PlayStation Plus,\V Xbox Game Pass
€
m
€
m €
m
€
m
24
German market for computer and video games German market for computer and video games 25
There are significant differences in game purchases between
the generations as well: younger video game players in Germany
more often buy games by download, while older players prefer to
purchase them on physical media. Accordingly, across all platforms,
20- to 29-year-olds acquire around 3 out of
4 of their games as downloads (72 per cent).
The purchase of games on physical media, on
the other hand, is especially popular among
players 50 years and older: 50- to 59-year-old
players obtain more than half of their games
(53 per cent) as physical copies. This tendency
is even more pronounced among those over
60 years old, who purchase 2 out of 3 games
(65 per cent) on physical media.
Revenues from online gaming services
experienced yet another year of strong
growth
Source: Calculations based on the GfK Consumer Panel (2022/2023; n = 25.000),
GfK Entertainment, GfK POS Measurement and Data.ai. © game 2023
The purchase of games
on physical media is
especially popular
among players 50
years and older: 50- to
59-year-old players
obtain more than half of
their games as physical
copies.
% %
%
%
% %
%
%
%
%
%
%
%
%
%
%
%
%
%
%
% % %
%
%
%
%
%
%
%
PC games
Total
Console games
% %
% %
% %
% %
% %
% %
Downloads
–
year old
–
year old
–
year old
–
year old
+
year old
–
year old
Phys\bcal med\ba
26 German market for computer and video games German market for computer and video games 27
6 in 10 PC and console games sold
in 2022 in Germany were purchased
as downloads Big differences in game purchases
between age groups
Source: data.ai and GfK. © game 2023 Source: data.ai and GfK. © game 2023
+ %
+ %
+ %
+ %
Companies that
publish and d\bv\blop
Companies that
\bxclusiv\bly d\bv\blop
Companies that
\bxclusiv\bly publish
28 The games industry in Germany The games industry in Germany 29
The games
industry in
Germany
03
Both in Germany and worldwide, the games
market has shown impressive development
in recent years. Never before have so many
people played computer and video games.
In Germany, about 6 in 10 people between
6 and 69 years of age play video games, and
around the world, the number of gamers
has now reached some 3 billion. On the one
hand, these are very impressive figures. On
the other, given a world population of about
8 billion people, they show how great the
potential for further growth is.
That said, 2022 was an extremely variable year
for the international games industry. Following
the strong bursts of growth in the years of the
Covid-19 pandemic, sales revenue from games
decreased slightly in many markets. The USA
and the UK, for instance, registered declines
of 5 and 5.6 per cent respectively. The reasons
for this are wide-ranging. In part because of
delays in development during the pandemic,
the release of many blockbuster games had
to be postponed until 2023. The Legend of
Zelda: Tears of the Kingdom, Starfield and
Hogwarts Legacy are just three prominent
examples. Overall, after the lifting of many Covid-19 restrictions, a
slight decline could also be observed in playing times. In addition to
this, many countries faced a significantly more difficult economic
situation due to increasing inflation driven by Russia’s war of
aggression against Ukraine.
Increase of more than 15 per cent in
a year in number of game companies
in Germany
Around the world,
the number of gamers
has now reached over
3 billion.
Source: Calculations based on www.gamesmap.de data; May 2023. © game 2023
+ %
+ %
+ %
+ %
,
,
,
,
People employed
by develope\bs and
publishe\bs
30 The games industry in Germany The games industry in Germany 31
Despite these circumstances, the medium-term prospects for the
international games market continue to be positive. The auditing
firm PricewaterhouseCoopers expects the international games
market to grow by an average of 7.9 percent a year to USD 312
billion by 2027. This is a clear indication that the games industry will
in the future remain a fast-growing economic sector and an agile
driver of innovation. The importance of this sector is underscored by
developments outside the games market: from artificial intelligence
to the metaverse, many of the leading current trends in the digital
economy are hardly conceivable without the technologies and
innovations of the games industry.
03.1 Employees and companies
We are witnessing a sustained upswing in the German games
industry. After the substantial jump in the number of game companies
and employees in 2021 and 2022, the development in 2023 has
continued upwards. The overall number of game companies has risen
by a very strong 46 per cent in the last three years, with the number of
employees growing by 19 per cent. Here, initial successes of Germany’s
nationwide funding programme can be seen. Through the federal
game funds, the framework conditions have improved so markedly
that more and more young game developers are venturing the step
of founding studios. At the same time, the funding support has made
existing companies in Germany more attractive to international
partners. Accordingly, there have been – at least until the stop in
funding applications – more, and larger, German game projects
underway or in the planning stage than there were previously. The
ongoing increase in the number of companies and employees in the
industry is a result of this.
The number of companies in Germany that
develop and/or market computer and video
games grew to 908 in 2022, an increase
of 15.5 per cent over 2021. The majority
of these companies are involved in the
development of games. A total of 411 of
them are active in both development and
publishing, and a further 450 are engaged
solely in game development. An additional
47 companies are specialised exclusively in
game publishing.
The positive employment trend in the
German games industry continues as well,
with the number of employees of game
development studios and publishers having
risen to 11,992 – nearly 7 per cent higher
than in 2022. The difference in the speed
of this growth trend between the employee and company figures
indicates that many smaller studios are being established; as in the
previous two years, the growth rate in new start-ups is significantly
Increase in number of people employed by
developers and publishers in Germany to
around 12,000
The overall number of game
companies has risen by a very
strong 46 per cent in the last
three years, with the number
of employees growing by 19
per cent.
Source: Calculations based on www.gamesmap.de data; May 2023. © game 2023
BremenLaunch planned
€ . m North Rhine-WestphaliaFilm- und Medien-stiftung NR\b
€
. m Rhinelan\b-PalatinateMedienförderung Rheinland-Pfalz
€
. m Saarlan\b
Saarland Medien € . m Ba\ben-Württemberg Medien- und
Filmgesellschaft
Baden-\bürttemberg mbH
€
. m* Saxony, Saxony-Anhal\pt an\b Thuringia
Mitteldeutsche
Medienförderung
*No fixed budget for games
€
. m* Lower Saxonynordmedia
*No fixed
budget for games.
€
. m Hamburg
Gamecity Hamburg
€ . m Berlin an\b
Bran\benburg
Medienboard
Berlin-Brandenburg
€ . m Bavaria
FilmFernsehFonds Bayern
€
. m Hesse
\bIBank
(HESSEN serious GAME) Mecklenburg-Western
Pomerania
€ m
Schleswig-Holstein
\bTSH \birtschaftsförderung und Technologietransfer Schleswig-Holstein
32 The games industry in Germany The games industry in Germany 33
higher than that in the number of employees. Together with the
extended games labour market, which includes the employees
of service providers, retailers, educational establishments, the
media and the public sector, the German games industry currently
provides around 32,000 jobs. In contrast to many digital companies
which in recent months have cut jobs, some on a large scale, many
game companies have actually increased their employment rolls.
Despite this solid progress, a global look shows how far Germany
still has to go to catch up with other successful game locations.
Canada, for instance, with a population just under half that of
Germany, has since the mid-1990s made substantial funding
available to its domestic games industry, which now employs
about 32,300 people, nearly three times as many as the sector in
Germany. Extrapolated to apply to Germany, these figures indicate
a potential of up to 60,000 jobs in the core labour market of the
German games industry, or five times the actual current figure of
12,000.
03.2 Games funding
The year 2022 and the first half of 2023
were eventful times for Germany’s still quite
young games funding programme. It is
still too early to be able to draw an interim
conclusion as to its success. After all, the
national programme has existed only since
2019, when a pilot phase was begun with a
per-company funding cap of 200,000 euros.
The 380 funding applications submitted
showed the game development studios’
great need for federal support even then.
In late 2020, the final funding programme
notified by the EU Commission went into effect, which allows
funding levels of more than 200,000 euros. This simultaneously
served as the starting pistol for Germany’s race to catch up with
the international competition and become one of the world’s top
locations for game production. And the initial effects can already
be clearly observed, with a true spirit of optimism having arisen
among game developers. This can be seen especially with a view
to German game companies, the number of which rose by 26 per
cent within the first two years of the federal funding programme.
In the third year of the programme, further growth of 15.5 per cent
was registered. In the number of employees, too, the trend since
the start of the programme has been entirely in one direction:
upwards. Since 2020, the number of jobs at game development
studios and publishers has grown by 19 per cent. The gap yet to
be closed between Germany and top international locations like
Canada, France and the UK is large. The reason for this is that
many countries introduced targeted funding schemes for their
domestic games industries as much as 30 years ago. This brought
advantages that led to numerous companies opening branches in Together with the
extended games labour
market the German
games industry currently
provides around 32,000
jobs.
Regional games funding programmes
in Germany
Note: There is no regional funding for computer and video games in the federal states of
Mecklenburg-Vorpommern or Bremen. Last updated: July 2022. © game 2022
34 The games industry in Germany The games industry in Germany 35
those locations, resulting in extremely vibrant game ecosystems.
But a start has been made in creating a strong game ecosystem in
Germany as well.
While successfully begun, the race to catch up unfortunately came
to an abrupt halt when on 31 October 2022 – Halloween, fittingly
enough – the responsible Federal Ministry for Economic Affairs
and Climate Action (BMWK) announced an immediate application
stop for games funding for 2022 and 2023. Overnight, this re-
imposed the framework conditions that had existed up to 2018,
which were hardly internationally competitive. The bottom line:
producing a game in Germany was more than 30 per cent more
expensive than in countries such as Canada or France. Costs for
developing a game at the international level can quickly range
into the tens of millions of euros; this throws into stark relief the effect of the application stop, especially on
game development studios that for months
had been in the midst of planning their next
project but hadn’t yet submitted a funding
application. These circumstances were further
exacerbated in cases where international
partners had already been found for an
upcoming project – incentivised not least by
the funding programme that had been in place.
With funding applications no longer possible,
such collaborations were suddenly rendered
untenable. A situation rapidly arose that
threatened the existence of, in particular, many
small game studios.
The magnitude of the impact of the application stop on Germany
as a game location was also recognised by the members of the
German Bundestag. In the budget committee’s adjustment session
on 10 November 2022, an additional 20 million euros was allocated
to the federal game funding programme. This averted the stop
in applications for funding for 2023. Yet with the growth of the
industry, as had been desired, the number of applications rose
accordingly and the individual projects became more extensive,
bringing an increase in the funds granted. As a consequence, a
second funding application stop was announced in early May 2023
– and not just for 2023, but for 2024 as well.
The renewed application stop exposes the great weakness of the
otherwise successful funding programme: its failure to orient
funding levels automatically to the actual needs of the sector,
as is practised in other countries. In combination with a lack of
transparency as to the proportion of funds already distributed, this
undermines the reliability and predictability of the current funding
programme. To make matters worse, the second application stop
within a few months was also noticed abroad. This flip-flopping
further weakened Germany’s international competitiveness, as
it sent the signal that the location conditions here aren’t reliable.
It is therefore important to increase the funding to 125 million
euros annually. To avoid the ongoing danger of an application stop, however, the games funding programme must be developed
beyond this. If not, Germany will fail to reap the full and sustained
economic and cultural benefits of the digital innovation that
a strong games industry helps to drive. In the medium term,
alongside the current funding programme, a transition is called
for, to a strategy of promoting game development through tax
breaks. This structure is a well-established standard internationally
and has been successfully implemented for many years by
locations such as France, the UK and Canada. Tax deductions for
game production offer a number of decisive advantages. They
would introduce a predictability that is currently lacking, and the
level of support would be automatically oriented to the actual
need. Games funding in the form of tax deductions offers policy
advantages as well. The corresponding resources wouldn’t have
to be appropriated specially in the budget, but would instead
come in the form of reduced tax liability due to investments made
– meaning that game companies would have to invest before
receiving the support. Such framework conditions would lead to
more investment, the creation of high-quality jobs and increased
tax revenue.
In contrast to the federal government,
the constituent German states have
again made numerous improvements
for game companies. The trend of the
preceding years, in which ever more
states have introduced or expanded
their own funding programmes, has
continued in recent months. Schleswig-
Holstein, for example, has implemented
a games funding programme for the
first time, in which 4 million euros are to
be made available to game development
studios in the state by 2027. Baden-
Württemberg has raised the volume
of its state funding programme to the
level of 1.1 million euros. Bremen’s plan
for game companies to be able to take
part in a state funding programme
in the future fills in another previous blank spot on the funding
map. Meanwhile, Berlin and Brandenburg have allocated funds
totalling 3.6 million euros, more than ever before. Berlin’s new state
government, a coalition of the political parties CDU and SPD, also
plans to reinforce numerous additional areas – from the House
of Games to the Computerspielemuseum and the International
Computer Game Collection (ICS). The coalition agreement
between the political parties CDU and Bündnis 90/Die Grünen in
North Rhine-Westphalia takes a similar approach, calling for the
increased use of games in schools and in vocational training, and
for the further strengthening of the Fusion Campus in Düsseldorf
and the esports player foundation. And Bavaria has responded to
the federal funding application stop by appropriating remaining
funds of 1 million euros above the existing level for the games
industry from mid-2023.
To avoid the risk of
further application
stops, games funding
must be further
developed.
The trend of the preceding
years, in which ever more
states have introduced or
expanded their own funding
programmes, has continued
in recent months.
. North Rhine-Westphalia
. Hambur\b
, Berlin
. Bavaria
. Baden-Württember\b
. Brandenbur\b
. Lower Saxony
. Rhineland-Palatinate
. Saarland
,
Schleswi\b-Holstein )
. Bremen
. Hesse
. Saxony-Anhalt
. Thurin\bia (),
Mecklenbur\b-Vorpommern (),
Saxony ()
36 The games industry in Germany The games industry in Germany 37
One way to secure
more skilled workers for
Germany as a games
location in the medium
to long term is through
a strengthening of
research and
