Annual Report of the German Games Industry 2022

Annual Report
of the German
Games Industry
2022

Content 3
Editorial 4
01 Players in Germany 8
02 German market for computer
and video games 14
03 The games industry in Germany 26
.1 Employment figures and companies
.2 Games funding
.3 The ten demands of the games industry
04Esports 40
05 esports player foundation 42
06 gamescom and devcom 44
07 German Computer Games Awards 48
08 Entertainment Software
Self-Regulation Body (USK) 50
09 Foundation for Digital Games

Culture (Stiftung Digitale
Spielekultur) 52
10 About game – the German
Games Industry Association 54
11 Development of the German
games market since 1995 58
Publisher
game – Verband der
deutschen Games-Branche e. V.
Friedrichstraße 165
10117 Berlin
Germany
Design
Bureau Ole Gehling
www.olegehling.de

4 EditorialEditorial 5
Dear readers,
From the ongoing Covid-19 pandemic to
the parliamentary elections, 2021 was
an eventful year for the games industry
in Germany. Computer and video game
development initially continued on a positive
path as people began working from home at
the beginning of the pandemic, but as time
went on, the inability of teams to do their
creative work together in person presented
significant challenges, and growing numbers
of titles were delayed. At the same time,
many games industry events were either
cancelled or only took place online in 2021.
Consequently, all-important networking
and the search for publishers and investors
was still difficult for many companies,
particularly small ones. But alongside these challenges, there were
a number of highly positive developments:
for example, the German games market
managed to continue the impressively
strong growth from 2020. Sales revenue
from purchases of games and gaming
accessories grew by 17 per cent, to about 9.8
billion euros. One year earlier, the industry
experienced extremely high growth of 32
per cent. One of the primary reasons for
the sharp upsurge is the increased number
of players. Their numbers had already
grown by 5 per cent in 2020; in 2021, even
more players joined their ranks. During the
pandemic (both the first and second year),
computer and video games played entirely
to their strengths as a social medium – while
we all quickly tired of the endless video
calls, games offered a much more exciting
form of social interaction. App versions of
classic board games and card games, shared
experiences of epic adventures in online role-
playing games or even digital tournaments:
millions of Germans took advantage of the
incredible diversity of games to keep in touch
with friends and family and spend time
having fun together. Today, six out of every
ten Germans play games.
The central theme of gamescom 2021
was a perfect fit for this development:
Games: The New Normal . Once again, the
world’s biggest event for computer and
video games couldn’t be held on location in
Cologne, but that didn’t put a damper on
the community’s enjoyment of gamescom;

6 EditorialEditorial 7
people in more than 180 different countries
followed the events in 2021. The grand
opening show gamescom: Opening Night
Live reached around 5.8 million live viewers.
In all, 13 million people watched gamescom
shows in 2021 – an increase of 30 per cent
compared to the previous year.
2021 was also an important year for the
German games industry in political terms.
The German parliamentary elections in
September resulted in the formation of
the first governing coalition between the
political parties SPD, Bündnis 90/Die Grünen
and FDP. For the games industry, this
meant a move from the Federal Ministry of
Transport and Digital Infrastructure to the
Federal Ministry for Economic Affairs and
Climate Action, headed by Vice Chancellor
Robert Habeck. This change in leadership
also affects the government’s games
department, which was only just founded
in 2021 and worked in close consultation
with the games industry to develop the
federal government’s first games strategy.
All we have to do is take a look at the
games industry to see how important these
developments actually are. Along with the
introduction of games funding at the federal
level, these changes have made significant
improvements to the underlying situation
for games companies, and they are already
having a noticeable effect. For example,
after the 20 per cent jump in 2020, the
total number of games companies grew
by a further 5 per cent within a single year, to 786. At the same time, however, games
companies still rate Germany’s international
competitiveness in the industry as relatively
low, as our game industry barometer
indicated in mid-2021. As we can see: with
federal games funding, the government
games department, the games strategy
and numerous improvements at the state
level, we have made enormous progress in
the past few years in making Germany a
top location for the games industry. But
Germany still lags behind other games
locations – countries like France, Canada
and England already began providing
strategic support to their games industries
many years ago. If we want to tap the
full cultural, economic and technological
potential of the games industry in
Germany, we still have a lot of work ahead
of us. But the German games industry
expects good things to come of this new
federal government, as our game industry
barometer also indicates. Consequently, the
country is in a strong position for further
positive growth.
This annual report provides an overview
of the various developments in the games
industry in Germany.
I hope you find it to be an enjoyable read.
Felix Falk
Managing Director of game –
the German Games Industry Association

%
of Germans play
computer and
video games

\b–
years old
\b–
years old
\b–
years old
\b–
years old
\b–
years old
\b–
years old
–
years old
% % % % %
%
%
%
%
%
%
%
%
%
%
% %
%
%
%
%
%
%
%
%
%
%
% \b %
%
%
%
%
%
\b %

%
%
%
%
%
%
%
8 Players in Germany Players in Germany 9
Players
in Germany
01
Games are more popular in Germany than
ever before: around six out of every ten
Germans play computer and video games.
59 per cent of the population between the
ages of 6 and 69 reach for their PC, console,
smartphone or tablet to dive into the digital
world of games.
Taken together, the past two years witnessed
a significant increase in player numbers, with
some 6 per cent more people playing games
than in 2019 – that’s a record-breaking number
of Germans playing games. And the genders are
essentially equal here: 48 per cent of players are
women and 52 per cent are men. The continuous
increase in the number of players demonstrates
that, even after the sharp spike during the
pandemic in 2020, millions of Germans are still
passionate about games.
50- to 59-year-olds continue to make up one of the largest groups
of gamers: approximately one fifth of German video game players
are in this age bracket. Along with the over-60s, they make up
nearly a third of the video game players in Germany. Many people
who played games in the 1980s and 1990s have stayed true to
games in old age. In recent years, this effect has led to a consistent
increase in the average age of video game players in Germany,
which rose from 37.4 in 2020 to 37.6 in 2021.
Players in Germany most frequently reach for mobile devices to
play games. Smartphones expanded their lead as the most-used
gaming platform, gaining an additional 900,000 new players last
year. Approximately 23.5 million gamers play on their smartphones.
The past two years
witnessed a significant
increase in player
numbers, with some 6 per
cent more people playing
games than in 2019.
Around 6 in 10 Germans play video games
Players who play at least occasionally
Please note: for better international demographic comparability, the age range taken as a basis for
determining the share of players in the overall population was adjusted to 6–69 years.
Source: GfK. © game 2022

48 % 52 %

Average age
.
.
.
.

.
.

10 Players in Germany Players in Germany 11
After dropping from 11.2 to 9.9 million players
in 2020, tablet computers also regained some
of their popularity. A total of 10.7 million
people in Germany used tablets as gaming
devices in 2021 – an increase of 800,000 new
players compared to the previous year. On
smartphones and tablets alike, mobile gaming
is extremely popular, with around 27.3 million
enthusiasts across Germany. Video game
consoles also gained ground, successfully
maintaining their 2020 ranking as the second-
most widely used platform: 17.8 million people
played on consoles such as the Nintendo
Switch, PlayStation or Xbox in 2021, 800,000
more than the previous year. PCs, however,
were once again in less demand among video game players. In
2021, there were just 14.3 million PC gamers instead of 15.2 million
– a further loss of 900,000 players.
game’s top 20 charts show which games and game genres players
in Germany love most: once again, the top spot of the bestselling
PC and console games in 2021 was taken by the latest edition of
the EA football simulator – EA SPORTS FIFA 22 (EA), followed by
the open-world game GTA V (Rockstar Games) in second place. In
third place was the racing game Mario Kart 8 Deluxe (Nintendo).
Fourth and fifth place were held by Farming Simulator 22 (Giants
Software) and Minecraft (Microsoft). This continues a trend from
the previous year: games with multiplayer modes that allow
players to play with or against one another were at the top of the
PC and console game charts once again in 2021. The games were
purchased both as physical media and as downloads.
Players in the 50–69 age
range makes up one third
of all German video game
players.
Source: GfK ©. game 2022
Players are over 37 years old on average

PC
Smartphone
Console
Tablet
m  .
m  .
m
.
m
.\b
m  .
m  .\b
m  . m  .
m  .
m  .
m  .
m  .
m  \b.
m  .
m  .
m  \b
m  \b.
m  .
m
m  .
m  .
m  .
m  .

m  .
12 Players in Germany Players in Germany 13
Source: Game Sales Data (GSD), ISFE
This chart lists the games most often sold, physically and digitally,
across platforms, for PCs and games consoles in Germany in 2021.
The 20 best-selling PC and console games
in Germany in 2021
EA SPORTS FIFA 22 Electronic Arts
2Grand Theft Auto V Rockstar Games
3Mario Kart 8 Deluxe Nintendo
4Farming Simulator 22 Giants Software
5Minecraft Microsoft
6Super Mario 3D World + Bowser’s Fury Nintendo
7EA SPORTS FIFA 21 Electronic Arts
8Mario Party Superstars Nintendo
9Ring Fit Adventure Nintendo
10 Call of Duty: Black Ops Cold War Activision Blizzard
11Call of Duty: Vanguard Activision Blizzard
12Pokémon Brilliant Diamond Nintendo
13Red Dead Redemption 2 Rockstar Games
14Far Cry 6 Ubisoft
15Battlefield 2042 Electronic Arts
16Assassin’s Creed Valhalla Ubisoft
17F1 2021 Electronic Arts
18Super Mario Party Nintendo
19Animal Crossing: New Horizons Nintendo
20New Super Mario Bros. U Deluxe Nintendo
Smartphones top the rankings
of the most widely used gaming
platforms in Germany
Source: GfK. © game 2022

Games
Once-only
purchases,
subscriptions,
in-game and
in-app purchases
Charges for
online services
Cloud, online and
subscription
ser\bices
Games hardware
Consoles,
gaming PCs and
accessories

+ %

+ \b %

+ %

+ %

€  ,  m
€  ,\b  m
€
,  m
€
\b  m

€
\b,  m
€  ,\b  m
€
,  m
€
\b  m
14
German market for computer and video games German market for computer and video games 15
German market
for computer
and video games
02
The German games market’s sales revenue
record in 2020 was immediately followed
by another record-breaking year in 2021.
The industry achieved total sales revenue
of approximately 9.8 billion euros from
computer and video games and associated
hardware, meaning that sales revenue grew
by 17 per cent within one year.
The demand for games hardware, particularly
for video game consoles (+23 per cent) and
accessories for gaming PCs (+22 per cent), as well
as in-game and in-app purchases (+30 per cent),
was the biggest driver of growth.
The German games market remains the largest
in Europe and the fifth-largest in the world by
global sales revenue. Games, games hardware
and charges for online services: all three market
segments posted growth once again.
Sales revenue from games hardware grew by 18
per cent overall to about 3.6 billion euros. Video
game consoles were in particular demand in
2021: although retailers were often sold out of some models, sales
revenue still managed to increase by 23 per cent to 808 million
euros. Without delivery bottlenecks, this growth likely would have
German games market enjoys another
growth spurt in sales revenue in 2021
Please note: the figures for sales revenue from games hardware in 2020 are different to
those communicated the previous year. This is because GfK has modified the definition.
Source: calculations based on the GfK Consumer Panel (2020/2021; n = 25,000), GfK
Entertainment, GfK POS Measurement and data.io. © game 2022
The German games
market remains the
largest in Europe and
the fifth-largest in the
world by global sales
revenue.

+ %

+ %

+ %

+ %

+ %

Games console
accessories
Gamepads,
steering wheels,
VR headsets
Gaming PCs
Desktop \bCs
and notebooks
Consoles
Stationary and
handheld
Gaming PC
accessories
Gaming input
devices, monitors, \V
graphics

€  ,\b  m
€
,  m
€
m
€
m
€
m

€  ,  m
€
,  m
€
m
€
m
€
m
16
German market for computer and video games German market for computer and video games 17
Sales revenue of games hardware
in Germany rising significantly
Please note: the figures for sales revenue from games hardware in 2020 are different to those communicated the previous year. This is because GfK has modified the definition. Source: calculations based on the GfK Consumer Panel (2020/2021; n = 25,000), GfK Entertainment and GfK POS Measurement. © game 2022
been even more significant. Approximately 1 billion euros were
generated from sales of gaming PCs – both desktops and laptops.
This is an increase of 10 per cent compared to the previous year.
More and more video game players are also investing in accessories
to make their experience even better. Demand for graphics cards,
keyboards, mice, monitors and VR headsets for gaming is especially
strong. Sales revenue from purchases of gaming PC accessories
grew by 22 per cent to about 1.5 billion euros. In this segment, too,
supply could not always match demand, particularly for graphics
cards. Many items were available for purchase, but the price was
generally far above the manufacturer’s suggested retail price.
Sales revenue from accessories for video game
consoles increased by 11 per cent to 306 million
euros in 2021.
In 2020, online services for gaming were
among the top drivers of growth in the overall
games market, with growth of 50 per cent.
This level remained consistent in 2021. Sales
revenue in this segment increased by a further
4 per cent to a total of 720 million euros.
Gaming subscription services such as the
Xbox Game Pass, EA Play and Ubisoft+ made
a key contribution to this growth, with their
sales revenue increasing by 22 per cent to 220
million euros. With these services, subscribers
pay a monthly fee for access to large libraries
of games that they can either download or
play as a stream without installing them,
depending on the service in question. Purely
cloud-based gaming services, on the other
hand, experienced a decline of 13 per cent to
63 million euros. One of the reasons for this
is the fact that some cloud gaming functions
have been integrated into other services free
of charge, meaning that no independent sales
revenues are generated for these functions.
On the whole, this relatively young market
sector still seems to be in flux. For example, there are significant
differences in the scope of services offered by the individual cloud
gaming providers. Some of them only provide gaming-capable
hardware in the cloud, whilst others serve as a platform where
games have to be purchased on an individual basis. Other services
in this sector are based on a subscriber model: for a fixed monthly
price, subscribers can access an extensive library of games. At
the moment, it’s impossible to predict if one of these models will
eventually outlast the others – and if so, which one. Other major
companies, on the other hand, are just getting started with cloud
gaming. Amazon, for example, launched Luna in early 2022; the
service is not yet available in Europe. Sales revenue from online
gaming services also fell by 2 million euros, to 437 million euros.
These services are frequently offered for various games consoles
and include – depending on the specific offer – free monthly
Video game consoles
were in particular
demand in 2021:
although retailers
were often sold out
of some models, sales
revenue still managed to
increase by 23 per cent
to 808 million euros.

– %

+ %

+ %

+ %

+ %

+ %

+ %

+ %

+ %

In-app
purchases
on smart-
phon\bs and
tabl\bts
In-game
purchases
on PCs and
consol\bs

€
,  m
€   m
€
,  m

€
,  m
€ ,  m
€
,  m

€
,  m
€   m
€
,  m

€
,  m
€   m
€
,  m
18 German market for computer and video games German market for computer and video games 19
In-game and in-app purchases continue
to be key drivers of growth
Source: calculations based on the GfK Consumer Panel and data.io (2020/2021; n = 25,000). © game 2022
games, games discounts, the ability to play online, or even cloud
storage for saved games. Examples include PlayStation Plus from
Sony Interactive Entertainment, Nintendo Switch Online or Xbox
Live Gold from Microsoft.
Sales revenue from purchases of computer and video games
grew by 19 per cent to about 5.4 billion euros in 2021. However,
the individual segments of the sector developed very differently.
Sales revenue from one-off purchases of games, for example,
fell by 9 per cent to about 1.1 billion euros. Sales revenue from
monthly subscription charges for individual games – a model that
is common among online role-playing games such as World of
Warcraft from Activision Blizzard or Final Fantasy XIV from Square
Enix – also fell, by 11 per cent to 145 million euros. In-game and
in-app purchases, on the other hand, were once again among the
strongest growth drivers: sales revenue in this area grew by 30 per
cent to about 4.2 billion euros.
The growth in sales revenue from computer
and video games reflects a number of different
developments: for example, larger games
companies are publishing fewer titles in total,
not least because developing new AAA games
is much more expensive (as a result of the
significant technological investment required)
and, consequently, much riskier. However, for
successful games that already have a community
to build on, companies today tend to provide
updates and new content for much longer. Added
to that is the continuing trend towards free-to-
play games. If these titles are accepted by the
community, they also receive new content for
much longer periods of time; this content is sold within the game or
within the app. And this content is no longer mere cosmetic items
for a few euros. The sharp increase in sales revenue from in-game
and in-app purchases is a result of increasingly larger content
packages being sold within the titles. Examples of these content
packages include battle passes or season passes containing
numerous cosmetic items lasting for several months, or sometimes
even whole new single-player campaigns for hours of enjoyable
gameplay.
Mobile games also hold a particularly large share of the in-game
and in-app purchase submarket. Be it casual puzzle games,
familiar PC and console games adapted for mobile use, or location-
based games like Pokémon Go or Jurassic World Live, the popularity
of game apps is undiminished. Sales revenue from these games for
smartphones and tablets continued to grow in 2021, by 22 per cent
to approximately 2.8 billion euros. This growth is a continuation of
the impressive trend in recent years, as sales revenue in 2020 had
already risen by 23 per cent.
The sharp increase in sales
revenue from in-game
and in-app purchases is
a result of increasingly
larger content packages
being sold within the
titles.

€ ,  m
€
m
€ ,  m

€ ,  m
€
m
€ ,  m

€ ,  m
€
m
€ ,  m

€ ,  m
€
m
€ ,  m

€   m
€
,  m
€ ,  m
+ %

+ %

+ %

+ %

In-app
purcha\be\b
App
purcha\be\b
Sub\bcription
fee\b for
app\b
()
€  m
20 German market for computer and video games German market for computer and video games 21
German mobile games market
grows by 22 per cent
Sales revenue for app purchases, in-app purchases
and subscription fees for apps in Germany
Source: data.ai and GfK. © game 2022
In-app purchases continue to drive revenue growth in the mobile
games market, accounting for approximately 99 per cent of total
sales revenue in this segment in 2021. This submarket enjoyed yet
another year of significant growth, increasing by 22 per cent from
about 2.3 billion euros in 2020 to nearly 2.8 billion euros in 2021.
Sales revenue generated by game apps offered for purchase, on
the other hand, continued to decline, amounting to just 7 million
euros in 2021. Subscription fees for apps like the Apple Arcade
and Google Play Pass services generated 12 million euros in sales
revenue, an increase of 200 per cent compared to the previous
year. The success of in-app purchases in mobile games is largely
due to free-to-play games. The low barriers to entry make this
form of monetisation ideal for smartphones
and tablets – players can download and use
game apps at any time. And if the players
enjoy the game, they can buy additional
content such as extra levels and new skins for
their own avatars.
Another development that began during
the first year of the Covid-19 pandemic
stabilised during the following year: following
a sharp increase in 2020, the share of games
purchased as downloads remained essentially
the same in 2021. The share of all PC and
console games sold in Germany that were
purchased as downloads increased by just
one percentage point to 59 per cent. This
means that roughly 6 in 10 computer and
video games were once again purchased as
downloads last year.
There were major differences in the share of
downloads for different platforms and price
categories, with downloaded games making
up a particularly large percentage of the
lower-priced titles. Approximately 8 in 10 games priced up to 30
euros were purchased as downloads. Higher-priced titles were
more likely to have been purchased on physical media, with players
buying 68 per cent of all games costing over 30 euros on physical
media from online shops or bricks-and-mortar stores in 2021.
Players of PC games, in particular, again relied on downloads from
portals such as Origin or Steam. As a result, downloads accounted
for around 93 per cent of PC game sales. Nearly two thirds (64
per cent) of all games for video game consoles such as Nintendo
Switch, PlayStation and Xbox, on the other hand, were purchased
on physical media. Thanks to their excellent accessibility, download
purchases have largely established themselves as the preferred
choice of many players.
Another development that
began during the first year
of the Covid-19 pandemic
stabilised during the
following year: following a
sharp increase in 2020, the
share of games purchased
as downloads remained
essentially the same in 2021.

+ %
+ %

+ %

€   m
€   m
€   m
€   m
Online gaming
servi\bes
e.g. PlayStation
Plus, Xbox Li\be
Gold, Nintendo
Switch Online
Subs\bription gaming
servi\bes
e.g. Xbox Game Pass,
EA Play (Pro), Ubiso\,ft+,
Apple Arcade, Google
Play Pass
Cloud gaming servi\bes
e.g. PlayStation N\,ow,
Google Stadia (Pro),
N\bidia GeForce Now
€   m
€
m
€
m

€   m
€
m
€
m

€   m
€
m
€
m

€   m
€
m
€
m
%
%

%
%
%

%
%
%

%
%
%

%
%
%

%
%
%

%
%
%

%
%
%

%
%
%

%
%

%
%
PC games
Total
Console games
22 German market for computer and video games German market for computer and video games 23
Online gaming services enjoy
modest year-on-year growth
Source: calculations based on the GfK Consumer Panel (2020/2021; n = 25,000). © game 2022
6 in 10 PC and console games sold
in 2021 in Germany were purchased
as downloads
Source: data.ai and GfK. © game 2022

– %

– %

+ %

+ %

Game
purchases
Subscripti\bns
In-game and
in-app
purchases

€  ,  m
€
,  m
€
,  m
€
  m

€  ,  m
€
,  m
€
,  m
€
  m
24
German market for computer and video games German market for computer and video games 25
Sales revenue from games in Germany
grows by 19 per cent
Source: calculations based on the GfK Consumer Panel and data.io (2020/2021; n = 25,000). © game 2022
The German games market added another
impressive chapter to its success story in
2021. After historically strong growth in
2020, an equally impressive 17 per cent
increase in sales revenue followed in 2021.
Once again, in-game and in-app purchases
were major drivers of growth in the games
market. The strong growth in games
hardware is a particularly encouraging trend.
No matter whether they are using video
game consoles or gaming PCs, Germany’s
video game players once again invested
considerable sums in their equipment to
ensure that they would be able to continue
enjoying their games in the best possible
quality in future. In fact, demand in some
cases exceeded supply, meaning that an even
greater increase in sales revenue would have
been theoretically possible.
The German games market
added another impressive
chapter to its success story
in 2021. After historically
strong growth in 2020,
an equally impressive 17
per cent increase in sales
revenue followed in 2021.

Core market
People employed by
developers and
publishers
Extended market
People employed by
service providers,
retailers, educatio\cnal
establishments, the
media and the publ\cic
sector in connection
with the games industry

– \b

–
\b

+
\b

,
,\b
,
,\b
\b,
,

\b

+\b
\b

+
\b

,
,
,\b
26
The games industry in Germany The games industry in Germany 27
The games
industry in
Germany
03
More players, more revenue – the impressive
upward trend of the games industry
continued in 2021, and signs point to further
growth in future. Yet in many different
segments of the games industry, the full
potential for innovation has yet to be
tapped. This demonstrates that the games
industry is once again fulfilling its role as
an important cultural asset, a driver of
economic growth and an agile innovation
factory.
The market researchers at Newzoo also predict
further international growth for 2022: the
number of game players around the world is
expected to increase by more than 4 per cent to
over 3 billion people. And the revenue generated
by games is set to rise by more than 5 per
cent to over 203 billion US dollars – cracking
the 200-billion-US-dollar mark for the first
time. This data underscores that the games
industry still boasts highly vibrant growth, not
just in Germany, but around the globe. And this
momentum is actually increasing, as evidenced by
a new record number of acquisitions. In 2021, the value of mergers
and acquisitions in the international games industry totalled
approximately 85 billion US dollars. And the next wave came right
at the beginning of 2022, when Microsoft made a takeover bid for
Activision Blizzard amounting to 68.7 billion US dollars. Take-Two
Interactive hopes to acquire mobile games provider Zynga for
around 12.7 billion US dollars, and Sony Interactive Entertainment
has its sights set on games developer Bungie for approximately
3.6 billion US dollars. This wave of acquisitions has continued in
Germany as well: British publisher Team17 acquired astragon
Number of people employed in
labour market of German games
industry grows
Source: projection based on industry observations (www.gamesmap.de). © game 2022
More than 3 billion
people around the
world are playing
computer and video
games.

392
companies
both publish  and develop
36
companies
publish exclusivel\yy
358
companies
develop exclusivel\yy
28 The games industry in Germany The games industry in Germany 29
Entertainment for 100 million euros, and French publisher Nacon
bought Daedalic Entertainment for 53 million euros. And those are
just a few examples of the numerous mergers and acquisitions that
have taken place recently. Whilst in other countries, local companies
are both buying and being bought, the situation in Germany is
relatively one-sided: companies tend to get acquired rather than make
their own acquisitions.
At the same time, however, the German
games industry is relatively young, agile and
on the rise, as the results of the study Die
Games-Branche in Deutschland 2018/19/20
(The games industry in Germany 2018/19/20)
conducted by the HMS Hamburg Media
School indicate. The average games company
in Germany is just 7 years old, and half of
games companies are less than 5 years
old. Consequently, most companies are
correspondingly small: 7 out of 10 employ less
than 10 people. Despite the large number of
small and relatively new companies, however,
employment in the games industry is much
more stable than in other creative and
cultural industries. For example, 8 out of 10
employees hold positions that are subject to
social insurance contributions, 7 out of 10 are
employed full time, and 8 out of 10 are on
unlimited contracts. Additionally, the games
industry is particularly diverse. The percentage
of women in the industry still needs to grow,
but at 25 per cent, it is already much higher
than in other sectors of the digital economy. The high percentage of
employees without German citizenship is another positive standout:
whilst in other sectors of the cultural and creative industry this
figure is only 17 per cent, it is an impressive 27 per cent in the games
industry. One reason for this is the fact that the industry has to meet
some of its demand for highly specialised employees by hiring experts
from abroad. The particularly globalised nature of games companies
also plays a role here. 47 per cent of games are exported – far more
than the 7 per cent export ratio in film and television production,
approximately 9 per cent in the books market and 10 per cent in the
music industry.
03.1 Employment figures and
companies
The German games industry is exhibiting a strong upward trend.
Significant increases in the number of German games companies and
employees in 2021 are being followed up by further growth in both
figures in 2022. This positive trend in the industry is partly due to the
strong overall growth in the market. At the same time, however, we
786 companies in Germany develop
and distribute Games
Source: gamesmap.de; industry observations; projections. © game 2022
The export quota of German
games companies at 47 per
cent is significantly higher
than the 7 per cent of the
cinema and TV production
industry, the 9 per cent of
the book market and the
10 per cent of the music
industry.

30 The games industry in Germany The games industry in Germany 31
are also seeing the first effects of games funding. We are not yet
seeing its full impact, as the Germany-wide funding scheme has
only been in place since 2019, and the development of complex
computer and video games itself often takes several years.
However, the improved conditions in Germany have changed the
mood in the industry, leading to a strong increase in the number
of companies. There are currently approximately 786 companies
in Germany that are involved in the development and marketing
of computer and video games or are active in one of these two
areas. This is about 5 per cent more than in 2021 and represents
an increase of approximately 26 per cent in the number of games
companies in Germany within the last two years. A majority of these companies (392, down by 3 per cent) are
active in both development and publishing.
358 games studios focus solely on the
development of games for PCs, video game
consoles and mobile devices. The number
of these companies increased significantly,
rising by 14 per cent compared to the previous
year. The number of companies active solely
as publishers is significantly lower, with just
36 such companies in Germany (up by 13 per
cent).
The positive trend in the number of employees
has also continued, as the previous year’s
8 per cent growth has been followed up by
approximately 3 per cent growth in the core
market. This brings the total number of people
employed in the development and marketing
of games in Germany to 11,242. Differences
in the growth rates underscore the degree
to which the establishment of numerous
smaller companies is driving the current growth trend in the
German games industry: the number of employees has increased
by about 12 per cent over the past two years, whilst the number
of games companies grew by 26 per cent during this same time
span. Following a decline in the previous year, the games industry’s
extended labour market also recovered somewhat: the estimated
number of people employed here increased by nearly 6 per cent to
17,048. This extended labour market includes people employed by
service providers, retailers, educational establishments, the media
and the public sector in connection with the games industry. In
total, the German games industry currently secures more than
28,000 jobs.
However, a look at current employment figures also indicates
how much potential for growth Germany still offers. Canada,
for instance, has only half the population of Germany and has
been providing significant funding to its domestic games industry
for several years – the Canadian games industry employs about
32,300 people, or nearly three times as many as the sector in
Germany. If these numbers are extrapolated to apply to Germany,
gamesmap.de
game – the German Games Industry
Association launched its online
directory of the games industry with
gamesmap.de. gamesmap.de uses an
interactive map to visualise over 1,600
entries, including more than 750 game
developers and publishers, 700 media,
technical and financial service providers
and some 150 educational institutions
that offer courses relevant to the
games industry.
www.gamesmap.de
Very good Rather good Rather poor Poor
Overall competitiveness
Games funding
Training for young professionals
Other infrastructure
for games companies
A\bailability of skilled employees
Legal framework
Image as a location
for the games industry
Digital education
Internet connection
How games companies assess Germany’s
international competitiveness
Source: game member survey (5/2021). © game 2022

USA
6 awards Japan
9 awards
Poland
1 award Sweden
1 award
Austria
2 awards
Spain
1 award
United
Kingdom
1 award
Germany
0 awards
\banada
5 awards
France
2 awards
Switzerland
1 award
1 Japan 9 ⭒
2 USA 6 ⭒
3 Canada 5 ⭒
4 France 2 ⭒
Austria 2 ⭒
5 United Kingdom 1 ⭒
Poland 1 ⭒
Switzerland 1 ⭒
Sweden 1 ⭒
Spain 1 ⭒
32 The games industry in Germany The games industry in Germany 33
Development locations of the most successful
computer and video games of 2021
Where were the winning titles of the
game Sales Awards 2021 developed?
Source: Berechnungen auf Grundlage der game Sales Awards. © game 2022

34 The games industry in Germany The games industry in Germany 35
they indicate up to 60,000 potential jobs in the core labour market
of the German games industry. Likewise, the United Kingdom,
which has approximately 15 million fewer residents than Germany,
has nearly twice as many people (about 20,870) working in
computer and video game development and distribution.
Despite these positive developments in the number of games
companies and employees in the industry in Germany, the country
remains less competitive as a location for the games industry in
relative terms. On the whole, the German games industry lags
behind in international competitiveness; games companies rate it
as rather poor. 56 per cent of companies say that Germany’s global
competitiveness is rather poor, and 14 per cent even rate it as
poor. 31 per cent considered it rather good . None of the companies
surveyed for game’s industry barometer 2021 rated the German
games industry’s competitiveness as very good.
The most positively rated aspect of the current situation was
games funding. Here, it can be seen that the current federal
government’s efforts are beginning to pay off now that the
Germany-wide funding scheme providing more than 50 million
euros per year has launched. Training for young professionals was
also rated as rather good overall. A contributing factor here is
that the number of study programmes in the field of games has
increased at both public and private universities in recent years.
The games industry in Germany sees digital education and internet
infrastructure as the areas where the country needs to improve
most.
03.2 Games funding
Games funding at the federal level has been
in place in Germany since 2019, when the
pilot phase of the scheme began. Despite the
limited funding amounts, which were capped
at 200,000 euros per company, interest in
the scheme was enormous, with 380 funding
applications submitted. The major funding
scheme ratified by the EU Commission that
offers funding amounts over 200,000 euros
subsequently launched in late 2020. The
conditions for the games industry in Germany
have improved significantly, and many games
companies are taking the opportunity to
develop new projects. However, as the development of such
projects generally takes several years, Germany still has a long
way to go before it becomes a top international location for game
development. Growing numbers of companies and employees in
the German games industry are an early indicator that the games
industry funding scheme is having an impact, but the gap between
Germany and top global games industry locations such as Canada,
France and the United Kingdom is still large. The reason is that
The conditions for the
games industry in Germany
have improved significantly,
and many games companies
are taking the opportunity
to develop new projects.
many countries introduced targeted funding schemes for their
domestic games industries years ago. The resulting advantages
in those locations led to numerous companies opening branches
there, creating extremely vibrant games ecosystems. At the same
time, the cost of producing games in Germany was up to 30 per
cent higher. Politicians finally took notice of these disadvantages,
which had arisen over the course of years, and they introduced the
games funding scheme as a result.
Other improvements for the games industry have been
implemented in addition to the funding scheme. For example,
in early 2021, the federal government began working on its first
games strategy. It coordinated closely with the games industry as
well – the publication of a position paper as a basis for discussion
was followed by a workshop. The end result of the process was
the first German federal games strategy – a brilliant premiere!
The strategy includes many further steps that will be required to
make Germany into a globally competitive location for the games
industry. The subjects covered range from establishing a structured
approach to marketing Germany as a games location, updating the
German Computer Games Awards and training industry employees
in game development to making better use of serious games and
supporting esports. As 2021 went on, it became clear who would
handle the implementation of the strategy: a specially convened
games department in the Federal Ministry of
Transport and Digital Infrastructure. This was
the first time that clear responsibility for games
had been assigned to a government body at the
federal level. With the games funding scheme,
games strategy and games department, there
are now three central components intended to
strengthen Germany’s position as a location for
the games industry.
The German parliamentary elections in
September 2021 not only resulted in the
formation of the first federal governing
coalition between the political parties SPD,
Bündnis 90/Die Grünen and FDP with Olaf
Scholz as the new German chancellor; they
also resulted in the responsibility for games
being reassigned within the new government. Instead of the
Federal Ministry of Transport and Digital Infrastructure, the
Federal Ministry for Economic Affairs and Climate Action took
on responsibility for games in late 2021. Consequently, the games
department is now under the auspices of Vice Chancellor and
Federal Minister for Economic Affairs Robert Habeck. In their
coalition agreement, the three governing parties stated their aim
to further bolster Germany as a location for the games industry.
This also includes a continuation of games funding anchored in the
agreement. The government agenda additionally provides official
recognition of the non-profit status of esports associations. In that
sense, from a games industry perspective the coalition agreement
From a games industry
perspective the coalition
agreement lays a strong
foundation for successful
games policies going
forward.

Bremen
€  m North Rhine-Westph\laliaFilm- und Medien-stiftung NRW
€ .
m Rhinelan\b-Palatinate\lMedienförderung Rheinland-\bfalz
€ .  m Saarlan\b
Saarland Medien € .  m Ba\ben-Württemberg Medien- und Film- gesellschaft
Baden-Württemberg
€ .  m* Saxony, Saxony-Anhalt  an\b Thuringia
Mitteldeutsche
Medienförderung
*No fixed budget  for games.
€ .­  m  Lower Saxonynordmedia
€ .
m  Hamburg
Gamecity Hamburg
€
.  m* Berlin an\b
Bran\benburg
Medienboard
Berlin-Brandenburg
*No fixed budget  for games.
Mecklenburg-Vorpommern
Schleswig-
Holstein
Launch planned  for €‚€€
€
.  m Bavaria
FilmFernsehFonds  Bayern
€ .
m Hesse
WI Bank
(Hessen serious  Game)
36 The games industry in Germany The games industry in Germany 37
Regional games funding 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
lays a strong foundation for successful games policies going
forward. Assigning responsibility for games to another ministry
was also a positive step from an industry perspective. Robert
Habeck’s decision to take charge of games was welcomed as a
vote of confidence, and the industry was pleased that the Minister
for Economic Affairs shares its ambition to continue strengthening
Germany as a games location.
But the new federal policies regarding games were not the only
good news in 2021 – the positive developments of recent years
continued at the state level as well. Growing numbers of German
states began providing support for their local games companies,
for example through funding schemes, helping them build networks
and other support measures. Hamburg relaunched its funding
scheme back in 2020; this scheme also covers the development
of prototypes. The northern German city-state makes 520,000
euros available for this purpose annually. Federal states such as
Berlin and Brandenburg, Baden-Württemberg, Lower Saxony
and Saarland also increased their funding in 2020. Rhineland- Palatinate launched its first regional media
and games funding scheme in October 2021,
providing project funding and a scholarship
programme totalling 250,000 euros annually.
Late 2021 also brought good news for local
games companies in northern Germany.
The new state government of Mecklenburg-
Vorpommern – a coalition of the political
parties SPD and Die Linke – took games
into account in its coalition agreement for
the first time ever. Additionally, the new
governing coalition in Schleswig-Holstein laid
the groundwork for launching its own regional
games funding scheme.
The funding programme Kreativ-Transfer
(Creative transfer), which helps German
games studios with international networking
and improved visibility, was continued
throughout the second year of the Covid-19
pandemic. A total of 24 games studio projects
were considered during the current funding
period (since June 2021). As many of the
games industry’s most important events were
still either cancelled or took place entirely
online due to the pandemic, companies were
also granted support – in addition to the
funding originally intended to cover travel
expenses – to help them optimise their online
presence, purchase streaming equipment and
participate in fee-based online events, among
other things.
Regional offices of
the games industry
The games industry is very active in
the German federal states through
its dedicated regional offices, which
are supported by game. The objective
is to advocate better framework
conditions in the regions by taking
clear positions and offering dedicated
points of contact. The regional offices
include game Schleswig-Holstein,
game Norddeutschland, game
Hamburg, game Berlin-Brandenburg,
game Rheinland-Pfalz, game Baden-
Württemberg and game Saarland. In
Saxony, Saxony-Anhalt and Thuringia
(Games & XR Mitteldeutschland) as
well as in North Rhine-Westphalia
(games.nrw), Hesse (gamearea-
HESSEN) and Bavaria (Games Bavaria
Munich), game works closely with
existing regional offices connected to
the games industry.

38 The games industry in Germany The games industry in Germany 39
1
Promoting and
strengthening Germany
as a games location for
the long term
For Germany as a games location to be
able to compete on the international stage,
the German government must promote
the games industry in an unbureaucratic,
predictable and transparent manner with a
long-term focus. Germany as a location for
developers, as well as games that are Made
in Germany, need to be visible, with net –
working required both within Germany and
internationally. The games strategy of the
federal government is a key foundation for
the ongoing development of the location.
2
Games to enhance
learning, in school and
throughout life
Our education system must take advan-
tage of the opportunities offered by com-
puter and video games for digital education
in schools, vocational schools, universities
and continuing education, and for lifelong
learning. The development of games for use
in educational instruction must be promo –
ted and advanced in a targeted manner.
Media literacy and programming knowled-
ge are fundamental for school pupils in the
digital age and must be a compulsory area
of school curricula.
3
Greater commitment to
games specialists
The German games industry is lacking in
highly specialised, experienced professio –
nals. Given this scarcity in Germany, the
training situation must be improved and it
must be made easier for these professio –
nals to move here from abroad.
4
Digital infrastructure
for all
As a games location, Germany must have
blanket gigabit capability to ensure the suc –
cessful development of games and to serve
the millions of video game players in the
country. This applies to high-performance
broadband internet connections as well as
to a strong 5G network: Germany needs
to catch up quickly across all distribution
channels and must ensure that future-
proof digital infrastructure is accessible to
all.
6
Infrastructures for
games development
Games hubs with incubator and accelerator
programmes are an important corporate
home for start-ups and provide opportuni-
ties for regional economic locations. They
promote communication between games
companies and cooperation with other sec –
tors that wish to benefit from the potential
of games development. These economic
and innovation-linked effects demand high
levels of commitment and the support of
the federal states and local authorities.
7
Providing investment
certainty, creating value
As the games sector, we have developed
innovative business models that are based
first and foremost on the needs of the
users, that are focused on feasibility and
that treat users’ trust in our products as
vital to our success. New digital business
models need scope to grow and operate, so
a fair balance of interests must be found
between consumers’ rights and corporate
freedom in the digital world, like elsewhere.
Strengthening the empowered and confi –
dent users must take precedence over new
regulation.
5
Y