Annual Report of the German Games Industry 2025
Download PDFAnnual Report
of the German
Games Industry
2025
Content 3
Publisher
game – The German Games
Industry Association
Friedrichstraße 165
10117 Berlin
Gestaltung
Bureau Ole Gehling
www.olegehling.de
Find the digital annual report here!
Editorial 4
01 Video game players in Germany 8
02 German video games market 14
03 The games industry in Germany 26
.1 Companies and employment figures
.2 Games funding
.3 The ten demands of the German
games industry
04 gamescom and devcom 46
05 German Computer Game Awards 52
06 Entertainment Software
Self-Regulation Body (USK) 54
Interview: Sandra Winterberg on the
International Computer Game Collection
07 Foundation for Digital
Games Culture 58
Interview: Nandita Wegehaupt on the games
scholarship
08 esports player foundation 62
Interview: Julius Althoff on the Esports Team
Berlin and Olympic Esport Games
09 About game – The German
Games Industry Association 66
10 Development of the German
games market since 1995 74
4 EditorialEditorial 5
Dear readers,
From the perspective of the German games
industry, 2024 can certainly be described as
bumpy. Although the wave of consolidation in
the international games sector slowed last year,
projects continued to be cancelled, employees
laid off and studios closed worldwide. These
developments pose a challenge for the German
games industry in particular, which is dominated by
small and medium-sized studios that rely to a large
extent on international publishers and partners to
realise their projects. This is especially true when,
as in 2024, an absence of reliable long-term games
funding in Germany brings cost disadvantages of
30 per cent compared to relevant international
locations.
However, particularly in the second half of the
year, there was also good news. On the occasion
of gamescom, the new funding guidelines of the
then responsible Ministry for Economic Affairs
and Climate Action were announced. While these
guidelines in part worsened the situation for many
companies, they also clarified the conditions
that are to apply when the government resumes
acceptance of funding applications. And the
33 million euros made available by the German Bundestag to the Minister of State for Culture and
the Media one year earlier for the promotion of
game development were implemented in exciting
form: the Press Start: Games Founding Grant, the
first programme to provide targeted support to
game developers over a period of a year and a half
for realisation of their projects. The overwhelming
demand demonstrates that there continues to be a
huge desire to develop games and take the leap into
entrepreneurship in Germany.
In the midst of this back and forth on games
funding, Germany’s governing coalition of the SPD,
Bündnis 90/Die Grünen and FDP also collapsed. The
budget for 2025 had not been resolved up to that
point. This in particular brought added challenges
for games companies. As became apparent
shortly before the end of 2024, when funding
applications could once again be submitted, this
uncertainty gave rise to tight restrictions that
the practical reality of game development makes
virtually impossible for applicants to comply
with. As a result, despite the resumption of the
funding application process at the end of 2024,
many games companies lack the necessary
internationally competitive framework conditions.
Our game industry barometer showed at the start
of 2025 just how negatively companies assess
Germany’s international competitiveness.
The development in the number of employees and
companies in the sector clearly shows the impact
of the difficult conditions on Germany as a game
production location: after years of strong growth
in some areas, both figures are now declining. The
launch of the Federal funding for video games in
2020 was largely responsible for the subsequent
boom in start-ups, which in turn led to a significant
increase in the number of employees in the
industry. Meanwhile, the challenging conditions
internationally and the unreliable and unpredictable
funding situation in Germany have put an end to
this development for the time being.
6 EditorialEditorial 7
Against this backdrop, the coalition agreement
between the CDU, CSU and SPD following the
federal election at beginning of 2025 gives
cause for hope. The new governing coalition of
Christian Democrats and Social Democrats not
only recognises the huge cultural, economic and
technological potential of the games industry and
its role as a pacesetting driver of innovation, but has
also announced the introduction of additional tax
breaks for game development in Germany. And less
than 50 days after taking office, the new federal
government, most notably the federal minister
responsible for research and games, Dorothee Bär,
followed up on the coalition’s pledge to increase
support for the industry by designating 88 million
euros for games funding in the budget proposal
for 2025 and 125 million euros from 2026 onwards.
This gives companies significantly greater planning
security as well as the breathing space they need
until the additional tax breaks announced in the
coalition agreement are implemented.
The importance of this not only for German games
companies, but also for Germany as a business
location and even for federal revenue as a whole, is
demonstrated by a study, conducted by Goldmedia
on our behalf, on the leverage effects of tax breaks
for games. The results are striking: every euro in
funding generates an additional 3.40 euros in tax
revenues and social security contributions, 4.80
euros in additional investment and 8.70 euros in
additional gross value added. In other words, every
euro that goes into games funding multiplies,
generating new revenue for Germany.
Developments in the German games market were
mixed in 2024. After attaining completely new
heights in recent years, revenue from games, games
hardware and online gaming services dropped by
6 per cent, its first decline in a long time. Among
the reasons for this are that there were fewer major
game releases last year and that demand for
game consoles returned to normal. The greatest growth could be seen in online gaming services like
cloud gaming – which underscores the perpetual
dynamics and innovative strength of the games
industry. In combination with new game consoles and
blockbuster titles that have already been announced,
this promises renewed growth in the near future.
Further cause for this positive outlook is delivered by
gamescom. The world’s largest games event broke
multiple records in 2024, including in the number
of exhibitors, the internationality and, above all,
international reach. As the annual highlight of the
global games industry, gamescom once again took a
huge leap forward, underscoring the positive future
outlook for games and the global games market.
This annual report offers an overview of these and
many other developments in the games industry in
Germany.
I wish you enjoyable reading and interesting insights.
Felix Falk
Managing Director of game – The German Games
Industry Association
% % % % % % % % % % %
% % % % % % %
–years old –years old –years old –years old –years old years old years old
%
of video game
playe\bs are
women
%
of video game players are at least
yea\bs old
.
is the ave\bage
age of video game
players
. m
Ge\bmans play
video games
8 Video game players in Germany Video game players in Germany 9
Video game
players in
Germany
01
Computer and video games are more
prevalent in Germany than ever before,
with 6 out of 10 Germans aged 6 to 69
now reaching for controller, mouse or
smartphone to play.
Across all age groups, around 37.5 million
Germans play games, and this diverse
community continues to grow. The number of
video game players has increased by 9 per cent
since 2020. Games are a popular pastime for
young and old alike. The development among
players over 60 is especially dynamic, with this
group having grown from 6.4 to 7.7 million in
2024. On the one hand, this is because many
people remain loyal video game players over
several decades. On the other, ever more older people are newly
discovering the joy of video games. Thus the trend of recent
years continues, with the average age of German players now
surpassing 39 for the first time – rising from 38.2 in 2023 to 39.5
in 2024. In total, 8 in 10 players in Germany are over 18 years old.
With regard to gender, the distribution of players is balanced, at
around 48 per cent women and 52 per cent men.
The diversity of video game players is also reflected in the use of
various gaming platforms. The most popular device for playing
computer and video games in Germany is the smartphone.
With around 22.9 million players in 2024, its year-long success
as a gaming platform remains unbroken. Game consoles are
also charting a successful course and are closing in on the top
spot among the most widely used platforms: some 20.5 million
Germans played on consoles in 2024, more than ever before,
and up from 18.7 million in 2023. In recent years, the console has
The number of players
over the age of 60 grew
from 6.4 million to
7.7 million in 2024.
Source: Calculations based on data provided by YouGov Shopper (2025; n = 25.000 Germans). © game 2025
A huge and diverse community:
Video game players in Germany
PC
Smartphone
Console
Tablet
m .\b
m .
m .
m .
m \b.
m .
m .
m
m .
m .
m .
m .
m .
m .
m .
m .
m .
m .
m
m .
m .
m .
m .
,
Video game players in Germany 11
10 Video game players in Germany shown strong overall development, with
the number of console players in Germany
having risen by 29 per cent since 2019. This
can be traced in significant part to the great
popularity of the current console generation
including Nintendo Switch, PlayStation
and Xbox, whose makers have all come out
with new, technically optimised versions or
matching accessories in the last few years. In
2024, the PC saw a drop in users in Germany,
to 13.1 million people, 400,000 fewer than in
2023. It thus continued its downward trend
of recent years, registering a decline of 20
per cent compared to 2019, when there were 16.3 million PC game
players. On the other hand, more people are playing on tablet
computers again. Their numbers have risen by 300,000, to a total
of 10.3 million. However, many Germans don’t limit their play to
just one device: about 19 million use two or more platforms.
The top 20 bestselling new games of 2024 in the official game
charts show which games and genres are particularly popular
among Germans. EA SPORTS FC 25 from Electronic Arts took
first place on PCs and consoles. The popular football simulation
has consistently held its spot at the top of the German monthly
charts since its release in late September 2024. Second place in
2024 went to the action-packed first-person shooter Call of Duty:
Black Ops 6 (Activision Blizzard) after a huge sales success. The
cooperative third-person shooter Helldivers 2 (Sony Interactive
Entertainment) came in third place among the year’s most
successful games. Fourth place in the annual charts went to the
new Farming Simulator 25 (GIANTS Software), in which players
can try their hand at idyllic yet challenging agricultural work. The
party game Super Mario Party Jamboree (Nintendo) rounded off
the top five most popular new game titles. From thrilling football
tournaments and action-packed team adventures to relaxed
farm work or colourful party games for the whole family, 2024
offered outstanding highlights for all video game players in
Germany.
Around 19 million
Germans play on two
or more platforms.
The most popular gaming platforms
in Germany: console and smartphone
attract ever more video game players
Source: Calculations based on YouGov Shopper (2024/2025, n=25.000).
All figures refer to the number of video game players in Germany. © game 2025
Video game players in Germany 13
12 Video game players in Germany
1 Block Blast Adventure Master Hungry Studio
2Brawl Stars Tencent
3ROBLOX Roblox
4Royal Match Dream Games
5Offline Games – No Wifi Games JindoBlu
6Last War:Survival Game Onefun
7Pokémon TCG Pocket Pokemon
8Subway Surfers Tencent
9Pizza Ready Supercent
10 Whiteout Survival Zhejiang Century Huatong Group
11Zenless Zone Zero m i H oYo
12MONOPOLY GO! Scopely
13My Perfect Hotel SayGames
14Township Playrix
15Solo Leveling:ARISE Netmarble
16One Punch Man: World Sony
17Legend of Mushroom Joy Net Games
18PUBG MOBILE Tencent
19Charade explain, guess and win Michael Rothkegel
20Travel Town Moon Active
1EA SPORTS FC 25 Electronic Arts
2Call of Duty: Black Ops 6 Activision Blizzard
3Helldivers 2 Sony Interactive Entertainment
4Landwirtschafts-Simulator 25 GIANTS Software
5Super Mario Party Jamboree Nintendo
6Dragon Ball: Sparking! Zero Bandai Namco Entertainment
7The Last of Us Part II Remastered Sony Interactive Entertainment
8Dragon’s Dogma II Capcom
9EA SPORTS F1 24 Electronic Arts
10 Star Wars Outlaws Ubisoft
11Warhammer 40,000: Space Marine II Focus Entertainment
12 Final Fantasy VII Rebirth Square Enix
13Dragon Age: The Veilguard Electronic Arts
14The Legend of Zelda: Echoes of Wisdom Nintendo
15Astro Bot Sony Interactive Entertainment
16NBA 2K25 2K
17WWE 2K24 2K
18Tekken 8 Bandai Namco Entertainment
19Prince of Persia: The Lost Crown Ubisoft
20Skull and Bones Ubisoft
Source: Games Sales Data (GSD) and game – The German German Games Industry Association. The most frequently sold new games
in Germany in 2024 across all platforms, both physically and digitally for PC and games consoles, are shown. Digital sales of Ninten-
do titles from the Nintendo eShop are not included. As the publisher does not participate at GSD, the game Black Myth: Wukong is
not included. © game 2025
The top 20 most downloaded
mobile games in Germany in 2024
The top 20 newly released PC and
console games in Germany in 2024
Source: Ranking based on data.ai (a Sensor Tower Company). The list shows the 2024 most downloaded mobile
games for Android and iOS in Germany. © game 2024
%
– %
– %
– %
Online gaming
services
Network, cloud
and subscription
services
Games
One-only
purc\bases,
in-game and
in-app purc\bases
Gaming har\bware
Game consoles,
gaming PCs and
accessories
€ , m
m
, m
, m
€
, m
m
, m
, m
14
German video games market German video games market 15
German video
games market
02
Around 9.4 billion euros were spent on
games, games hardware and online
gaming services in the German video
games market in 2024. This represents
a decline of 6 per cent compared to the
previous year. The market thus experienced
a pause in growth. The slowdown in growth
in 2024 followed a period of strong overall
development: in total, revenue in the
German games market has increased by
over 50 per cent since 2019. This means that the German games
market has reached a
new level, with Germany
remaining the largest
market in Europe and the
fifth largest worldwide.
Games for PCs, consoles and mobile devices generated sales
revenue of 5.5 billion euros in 2024. This is 6 per cent less than
in the previous year. The decline was especially steep in game
purchases, which saw a 17 per cent drop in revenue, to 921 million
euros. One reason for this was that, compared to 2023, a year of
German games market 2024:
decline of 6 per cent
Source: Calculations based on data provided by YouGov Shopper (2025; n=25,000), Data.ai
(a Sensor Tower Company) and Nielsen IQ. © game 2025
The German games market
remains the largest in
Europe and ranks fifth
worldwide.
– %
– %
– % , m
, m
, m , m
, m
m
In-game and
in-a\b\b \burchases
Additional games content and
subscription fees for individual
online games
Game \burchases
Games purchased on ph\bsical media
and as downloads
%
%
%
%
%%% %% %% % %%
,
m
m
,
m
,
m
,
m
m
,
m
,
m
,
m
m
,
m
,
m
,
m
m
,
m
,
m
,
m
m
,
m
,
m
,
m
m
,
m
,
m
Online gaming
se\bvices
Network, cloud and\b
subscription services\b
Games
One\bonly
purchases,
in\bgame and
in\bapp purchases
Games ha\bdwa\be
Game consoles,
gaming PCs and
accessories
G\bowth
since 2019
Ove\ball ma\bket
German video games market 17
16 German video games market
6 per cent less revenue
from video games
Source: Calculations based on data provided by YouGov Shopper (2025; n=25,000),
Data.ai (a Sensor Tower Company) and Nielsen IQ. © game 2025
German games market up
around 50 percent since 2019
Source: Calculations based on data provided by YouGov Shopper (2025; n=25,000), Data.ai
(a Sensor Tower Company) and Nielsen IQ. © game 2025
%
%
%
%
%
%
%
% %
.
m
.
m
.
m
Game consoles
Smar\bphones/
\bable\bs PCs and lap\bops
Game purchases In-game-/in-app-purch\nases Online gaming service\ns
German video games market 19
18 German video games market
Consumer behavior varies greatly
between gaming platforms
Source: Calculations for 2024 based on data provided by YouGov Shopper (2025;
n=25,000), Data.ai (a Sensor Tower Company) and Nielsen IQ. © game 2025
numerous blockbuster releases, fewer major titles were released
in 2024. The submarket of in-game and in-app purchases
generated around 4.6 billion euros in revenue in Germany in
2024, a decline of just 3 per cent after strong overall growth
in the preceding years. Whether as free-to-play or full-price
games, ever more titles are offering additional content. This
takes wide-ranging forms – from ‘skins’, which can change the
appearance of a game character, to season passes providing
unlimited access to content over a period of weeks, to full
expansions with new campaigns or missions. In-game purchases
allow video game players to individualise or augment their game
experience. Additionally, this business model is an important
source of revenue for games companies, not least as it enables
them to reduce the economic risk brought on by the sharp rise
in development costs in recent years, and to develop further
projects.
A large proportion of sales revenue from
games in Germany in 2024 can be attributed
to mobile games for smartphones and
tablets. Last year, revenue from these apps
in Germany rose to 3 billion euros for the
first time. Gaming on smartphones and
tablets has thus reached a new high as it
continues its successful course of recent
years. Since 2019, the market for mobile
games in Germany has grown by 63 per
cent. In particular, the high accessibility and
variety of games have led to a sharp rise in
sales. Almost all mobile games are based
on the free-to-play principle, a model which
makes mobile games available to anyone at
no charge. Players may then opt to pay for
additional content, such as levels or cosmetic
features, in the form of in-app purchases.
The mobile games market also offers a wide selection of games
for casual and experienced players alike – from complex and
technically demanding games to esports titles.
Games for consoles generated around 1.9 billion euros in 2024,
making this the second largest category. At around 1.5 billion
euros, PC games form the third largest source of revenue. With
regard to the various business models, spending behaviour
differs across game platforms. For example, 98 per cent of
revenue from games for smartphones and tablets comes from in-
app purchases. By contrast, the largest share of console revenue,
at 38 per cent, is generated by online gaming services, which can
now be subscribed to on every console. Over one third of console
revenue comes from the purchase of individual games. Around
70 percent of PC game revenue is generated through in-game
purchases and slightly less than one fifth from the purchase of
games themselves.
A large proportion
of games revenue in
Germany in 2024 was
generated by mobile
games for smartphones
and tablets.
%
Online gaming serv\
ices
e. g. Nintendo Swi\atch Online, Nvidia GeForce NOW, \a\blayStation \blus, Xbox Game \bass
m
m
German video games market
21
20 German video games market The submarket for online gaming services grew to 965 million
euros in 2024 – an increase of 12 per cent over the previous year.
This segment includes categories such as paid subscription
services for PCs, game consoles and mobile devices – services
that provide access to a broad selection of games, or enable
cloud gaming or functions like online multiplayer gameplay and
the saving of game progress in the cloud. The growth in sales
over the past five years shows the huge interest in these online
services: revenue here has more than doubled from the 2019 level
of 461 million euros. Around one quarter of video game players in
Germany aged 16 and over already use one or more subscription services in parallel. For the majority, the reasons
include the opportunity to easily try new games.
About 8 in 10 players who use subscriptions say
that they try out games more often as a result.
For around 79 percent, subscription services
have also led to the discovery of games that
they would not have come across otherwise,
and some three quarters of subscription users
have purchased games that they previously
discovered through their subscriptions.
Sales revenue from games hardware decreased by 10 per cent
overall, to about 2.9 billion euros. The largest decline was in game
consoles. Here, sales amounted to €807 million, 26 percent less
than the year before. One reason for this is that many models of
the current console generation which had not been consistently
commercially available for several years became available on an
ongoing basis again for the first time in 2023. Players therefore
snapped them up, leading to a catch-up effect before demand
normalised in 2024. In a further demonstration of this effect,
sales revenue from accessories for game consoles rose by 6 per
cent, to 391 million euros. The market for gaming PCs and laptops
was stable, with revenue of 540 million euros, or just 1 per cent
less than in 2023. Accessories for gaming PCs – including special
input devices like gaming keyboards or mice, graphic cards, etc. –
didn’t fare quite so well, with revenue falling by 4 per cent, to just
under 1.2 billion euros.
Downloads account for 7 of 10 PC and console games purchased
in Germany. In 2024, the share of downloads jumped by 8
percentage points, from 60 to 68 per cent, a new record. Just
under one third of games in Germany are purchased on physical
media. Among PC players, especially, downloads have become
the preferred means of buying games: nearly all games for PCs,
around 99 per cent, were acquired digitally in 2024. Most console
games, on the other hand, were purchased on physical media.
While the share of download purchases rose in this category as
well, from 40 per cent in 2023 to 44 per cent last year, physical
media still accounted for over half of purchases of console
games (56 per cent). The strong growth in the share of downloads
can be attributed in part to the ‘digital only’ development of the
last several years. Ever more blockbuster titles are being released
Since 2019, revenue
from online gaming
services has more
than doubled.
Revenue from online gaming services
grows by 12 percent
Source: Calculations based on data provided by YouGov Shopper (2025; n=25,000). © game 2025
– %
– %
– %
– %
% % Game console
accessories
Gamepads,
steering wheels,
VR headsets
Gaming \bCs
Desktops P\bs,
handheld P\bs
and laptops
Game consoles
Stationary and
handheld
Gaming \bC
accessories
Gaming input
devices,
monitors,
graphics cards,
VR headsets
m
m
, m
m
m
m
, m
, m
, m
, m
Revenue from games hardware
declined by 10 per cent
Source: Calculations based on data provided by YouGov Shopper (2025; n=25,000) and Nielsen IQ. © game 2025
%
%
%
%
%
%
%
%
%
%
%
%
%
%
%
%
%
%
PC games
Total
Console games
German video games market 23
22 German video games market
7 out of 10 games in
Germany are purchased
as downloads
Source: Calculations based on YouGov Shopper (2024/2025; n=25.000).
The data refers to sales in Germany. © game 2025
%
%
%
%
%
%
%
%
%
%
%
%
%
%
Downloads
Share of download \m
purchases of games Physical \bedia
Share of games
purchases
Total
–
years
–
years
–
years
–
years
–
years
years
German video games market 25
24 German video games market initially or exclusively in digital-only versions,
and indie and early-access games are often
distributed almost exclusively digitally.
Players’ choice of game acquisition via
physical media or download isn’t just a
question of the gaming platform they use,
but also of their age. In Germany, download
purchases are particularly widespread
among the 20- to 29-year age group, who
buy more than three quarters of their games
for PCs or consoles digitally. Physical media,
in contrast, are popular for game purchases
above all among older players. In 2024,
players aged 50 to 59 bought nearly half
of their PC and console games on physical
media.
After years of strong growth, the German games market took
a breather in 2024. Individual market segments such as online
gaming services continue to develop very dynamically. This,
together with further impetus in the form of new game consoles
and blockbuster games announced for the near future, indicates
that the decline in sales revenue seen in 2024 is likely to be short-
lived.
Whether games are
purchased on physical
media or as downloads is
not only a question of the
gaming platform,
but also of the age of
the players.
Download purchases of games are
particularly popular among
20- to 29-year-olds
Source: Calculations based on YouGov Shopper (2024/2025; n=25.000).
The data refers to sales in Germany. © game 2025
% % % % – %
Companies
that develop
and publish
Companies
that only
publish
Companies that
only develop
The games industry in Germany 27
26 The games industry in Germany
The games
industry
in Germany
03
Last year was a challenging one for
the German games industry. The back
and forth around games funding and,
as a result, Germany’s compromised
international competitiveness collided with
the weakened yet ongoing consolidation
wave that has swept the global games
sector.
Accordingly, German games companies
were cautious heading into 2025: only 17 per
cent of them anticipated positive economic
development for the industry as a whole this
year. While this figure was slightly more positive
than that recorded for 2024 (12 per cent), it
remains far below the 48 per cent registered
two years ago. When asked to assess their
own business prospects for 2025, however,
companies were markedly more optimistic.
More than half, 52 per cent, expected a positive
or even strongly positive development in their
business operations this year – two percentage points higher
than one year ago. Only 15 per cent anticipated a negative
development, as compared to 19 per cent in 2024.
Despite the generally cautious outlook on the development
of the industry, a clearly positive tendency can be seen in
companies’ expectations for their own business development.
This is supported by sales trends worldwide. Market researchers
at Newzoo, for example, anticipate approximately 3.4 per cent
growth in the global games market in 2025, to around 189 billion
US dollars
1.
1 Global games market report & forecast Q2 2025 update
(https://newzoo.com/resources/blog/global-games-market-update-q2-2025). Source: Calculations based on gamesmap.de data from May 2025. © game 2025
Number of games companies
in Germany declined for the
first time in years
Only 17 percent of
games companies
in Germany expect
positive economic
development for the
entire industry in 2025.
% %
% % – %
%% %%% %% %% %%
\
\b
, ,
,
,
, ,
The games
industry in Germany 29
28 The games industry in Germany
03.1 Companies and
employment figures
The figures for the number of companies and employees in
the German games industry also show how challenging the
environment has been for games companies recently. After
years of growth, there has now been a decline for the first time.
According to the data, the number of companies in Germany
that develop and/or publish games has dropped by 4 per cent
since last year, to 910. The boom in start-ups in the games sector
that was set in motion by the introduction of
the federal funding for games in 2020 has
now completely subsided. Last year’s figures
already indicated a clear slowdown. The
decline can be attributed in particular to the
consolidation of the global games market as
well as the unreliable availability of federal
funding. Three times since 2020, there have
been months-long suspensions placed on
funding applications. Despite the newly
registered drop, the number of companies
has risen by 46 per cent overall since the
initial start of the games funding programme
in 2020. Of the 910 present companies, 454
work exclusively in game development and
52 exclusively as publishers. The remaining
404 companies are active in both the
development and publishing of games.
The number of employees at games companies in Germany has
also declined over the past year. Whereas game developers and
publishers employed 12,408 workers in 2024, the figure for 2025
stands at just 12,134 – a drop of 2 per cent. As with the number of
companies, the employee numbers had previously shown strong
growth since the introduction of the games funding programme
at the federal level: a rise of 23 per cent from 2020 to 2024.
The recent decline indicates that the conditions, which afford
little plannability, in combination with the repeated funding
application stops are impacting the job market. A year ago,
there were still more companies with ongoing projects that were
internationally competitive thanks to federal funding. Despite
the international consolidation wave and the uncertainty around
funding for the industry here, this had stabilised Germany’s
games sector. The games industry secures a total of over
30,000 jobs in Germany. In addition to jobs in development
and publishing, these include, for example, skilled professionals
in educational institutions, the media and the public and
commercial sectors.
Source: Calculations based on gamesmap.de data from May 2025. © game 2025
German games industry employs
fewer people than last year
The boom in start-ups
in the German games
industry triggered by the
introduction of the federal
funding for games in
2020 has now completely
subsided.
30 The games industry in Germany The games industry in Germany 31
03.2 Games funding
The unreliability of games funding at the federal level has
unfortunately continued in recent years. The freeze on funding
applications that was put in place in May 2023 extended into
2024. In July 2024, more bad news followed from the Federal
Ministry for Economic Affairs and Climate Action: the previously
independent department responsible for digital games was
merged with the department for cultural and creative industries.
Although existing projects such as the Federal German Games
Funding Programme and the German Computer Game Awards
were continued, this new lack of independence significantly
reduced the visibility of this area and its capacity to act. Seeking
to promote the games industry’s profile and scope of action,
the German Bundestag had allocated funds in the 2021 federal
budget for the establishment of a games department in the then
Federal Ministry of Transport and Digital Infrastructure. This
allowed for the ongoing, centralised handling of all games-related
policy issues. It also placed games on an equal footing with other
sectors with dedicated independent departments in the federal
government, such as music, literature, film, visual arts, theatre,
microelectronics, bioeconomics, AI and many more.
On the other hand, the Initiative for Growth – new economic
dynamism for Germany launched by the previous governing
coalition brought hope for significant improvement in the
competitive conditions for games companies in Germany. As
stated in the initiative, the objective of strengthening the country
as a location for game production shows the high relevance the
former government – consisting of the SPD, Bündnis 90/Die Grünen
and FDP – attributed to the games industry for Germany’s future
viability in economic and technological terms. Never before had
all three coalition partners spoken out so clearly in favour of the
speedy introduction of tax breaks for the development of games.
However, the key points of the new funding guidelines presented
by Germany’s then Vice Chancellor and Economic Minister Robert
Habeck at the political opening of gamescom 2024 gave rise
to considerable controversy. From the perspective of games
companies, they worsened the situation with respect to certain
important criteria. Specific funding amounts remained unclear
and therefore unreliable. At the same time, only prototypes
and projects with a significantly increased minimum volume of
300,000 euros are to be eligible for future funding. Given that
the German games industry is comprised largely of start-ups,
this will exclude numerous companies from federal games
funding. In addition, combining federal and state funding, an
important option for small and medium-sized games companies
and standard practice in, for example, the area of film industry
financing, will no longer be permitted. And the fact that
applications can no longer be submitted on an ongoing basis, but
only in response to a maximum of two calls from the ministry per
year, will also make planning more difficult.
The largest games companies in Germany
1 Nintendo of Europe Hesse 935
2 UbisoftBerlin, NRW, Rhineland-Palatinate 660
3 InnoGamesHamburg 350
4 CrytekHesse 340
5 woogaBerlin 325
6 GAMEFORGE 4DBaden-Württemberg 300
7 gamigoHamburg 253
8 Stillfront GermanyHamburg 185
9 PLAIONBavaria 152
10
Kalypso Media GroupRhineland-Palatinate
150 Electronic ArtsNorth Rhine-Westphalia
12 GameDuellBerlin 130
13 Kolibri GamesBerlin 115
14
BigpointHamburg
110 KING ArtBremen
16
Travian GamesBavaria
107 upjersBavaria
18
astragon EntertainmentNorth Rhine-Westphalia
104 weltenbauer. Software EntwicklungHesse
20
YAGER DevelopmentBerlin
100
CipSoftBavaria
Klang Games Berlin
Sandbox Interactive Berlin
Source: gamesmap.de. Figures include employees subject to social security contributions and marginally employed persons.
Number of employees
in Germany
32 The games industry in Germany The games industry in Germany 33
The commitment of the German political sphere to the games
industry received only slightly better marks, with 7 out of 10
games companies (71 per cent) rating government support for
the domestic conditions as rather poor or very poor. A strong
majority of companies rated government funding of games
as poor: about two thirds, or 65 per cent, with respect to big-
budget AAA games and 62 per cent in the case of indie games.
By contrast, when it comes to the training of young professionals,
companies are significantly more positive. Just under two thirds,
or 63 per cent, view Germany as a rather good or even a very
good location. The social climate towards games is perceived
similarly, with a total positive rating of 66 per cent. The further
infrastructure for games companies, such as hubs and networks,
is seen the most favourably, with 78 per cent of companies rating
it as rather good or very good.
Despite these challenging conditions, the desire to develop
games in Germany remains strong. This is demonstrated by
the Press Start: Games Founding Grant, a funding programme
launched in mid-October 2024 by then Federal Government
Commissioner for Culture and the Media
Claudia Roth to support the establishment of
new game development studios in Germany.
Over a period of 18 months, company founders
receive a grant of 2,750 euros per month
to help them focus their efforts during the
start-up phase and further the development
of their own games. Grant recipients also
benefit from a comprehensive education
and networking programme along with
accompanying coaching, to provide them with
optimal support for their start in the games
industry. The promotional programme met with
overwhelming interest. The 24-member expert
jury worked through over 1,000 applications,
ultimately selecting 132 grant recipients.
Further positive news came after the federal elections and the
subsequent coalition negotiations between the CDU, CSU and
SPD in early 2025. The coalition agreement takes up central
demands of the games industry that are intended to make
Germany a strong and internationally competitive game
development location in the coming years. The governing
coalition of Christian Democrats and Social Democrats
acknowledges the great cultural, economic and technological
potential of the games industry and its leading role as a
pacesetter and innovation driver. A key step forward is the
planned introduction of new tax breaks for games in Germany,
which are designed to reliably offset the country’s current 30
per cent cost disadvantage compared to other game locations
worldwide. The coalition agreement additionally accords esports
clubs non-profit status. While this was also part of previous
coalition agreements, it had yet to be implemented. For the first
The expert jury at
Press Start had to work
through a total of over
1,000 submissions.
The degradation of the funding guidelines was poorly received in
the games industry also because the evaluation of the previous
guidelines by the auditing firm PwC on behalf of the Federal
Ministry for Economic Affairs and Climate Action in late 2023 had
highlighted many strongly positive effects of the games funding
programme. For example, 72 per cent of the games developed in
Germany would not have been realised without the funding, and the
funds enabled 34 per cent of games to be implemented on a much
larger scale than they would have been otherwise. A large majority
of games companies that received funding were able to create
significantly more jobs than those that did not in the same period.
Because funds had been insufficient up to that point – resulting in
two application freezes since the start of the funding programme
in 2020 – a significant increase in funding was recommended. The
evaluation by the Federal Economic Ministry had revealed that,
on a per capita basis, Germany provides only one quarter of the
budget that other game production locations do.
At the end of 2024, the 18-month freeze on funding
applications was finally lifted. This was good news
for games companies in Germany and, given the
collapse of the governing coalition shortly before
that, in November, it also marked a small success.
It didn’t give rise to any real spirit of optimism,
however, as the stricter conditions imposed by the
new guidelines excluded many game development
studios, in particular smaller ones, from federal
funding. In addition, the failed coalition hadn’t
yet passed a budget for 2025, which resulted in
significant additional restrictions on the funding
programme. For example, after the call for funding, funds were
initially available to multi-year game development projects only if
their total budget didn’t exceed 900,000 euros. Funding for larger
projects and prototypes could initially only be approved if these
were to be completed by the end of 2025 – a serious hurdle given
that it usually takes several years to develop a game. In addition,
the call for funding reduced the maximum project funding amount
to 2 million euros. With these heavy restrictions, games funding only
truly helped a few companies in practice.
The continuing uncertainty surrounding games funding may also
have contributed to the comparatively poor results of game’s
industry barometer. There are areas in which German games
companies view the country as an advantageous location, such
as in the training of young talent and the social climate with
regard to games. However, a large majority of companies evaluate
Germany’s international competitiveness as a game development
location as rather poor or very poor. This total negative rating of 87
per cent comprises 72 per cent, or almost three quarters, that say
Germany’s international competitiveness is rather poor, plus 15 per
cent that assess it as very poor. Just 13 per cent rate the framework
conditions for the games industry in Germany as rather good, and
not a single company assesses these as very good.
72 percent of new
games in Germany
would not have been
developed without
the federal funding
for games.
Game
Companies
Employees
Funding measures Tax credits\b
Funding rate
Guaranteed funding
(if eligible for funding)
,
,
Tax credit
,
,
,
Tax credit
,
,
Tax credit
–
,
Tax credit
,
Tax credit
,
Direct funding Tax credit
%
unlimited
unlimited %
%
unlimited .–.%
unlimited
%
unlimited
unlimited %
.% %
m N \bA France
/
Australia
United Kingdom
USA
Te x a s
Ireland
/
Canada
Germany
Quebec British
Columbia Ontario
Cap on
annual funding
34 The games industry in Germany The games industry in Germany 35
International comparison
of games funding models
Source: Nordicity in cooperation with Goldmedia on behalf of game –
The German Games Industry Association. © game 2025
1 The annual budget for federal games funding in Germany was increased to
70 million euros for 2023 only.
2 The French government budgeted 31 million euros for the video game tax credit
in 2023. However, there is no specified annual cap and the estimated amount
returned to companies through the tax credit varies strongly from year to year.
% % % %
% % % %
% % % %
% % % %
% % % %
% % % %
% % % %
Competitiveness of
Germany as a game \i
development locatio\in
Government \bommitment\n
to the games indust\iry
Game funding for AAA
games
Game funding for indie
games
Education and traini\ing
of young talents
So\bial \blimate regarding
games
Other infrastru\bture for
game companies (e\bg\b\i
hubs, networks, etc\i\b)
Very poor Rather poor Rather good Very good
.
Fiscal and social \tsecurity leverage fa\tctor\b 3.4
in additional tax revenue and
social security contributions
.
Investment leverage \tfactor\b 4,8
in additional investment in
tax-incentivised game projects
.
Value-added levera\tge factor\b 8,7
in additional gross value added
Tax incentives
The games industry in Germany 37
36 The games industry in Germany
9 out of 10 gaming companies
see an urgent need for action to
improve Germany’s international
competitiveness Leverage from tax breaks
for games in Germany
Source: Online survey conducted by game – The German Games Industry Association – between
November 6 and November 18, 2024, in which 187 member companies of game participated,
including developers and publishers in particular. © game 2025 Source: Calculations by Goldmedia on behalf of game (2025). © game 2025
. m Baden-WürttembergMedien- und
Filmgesellschaft
Baden-Württem\berg m\bH
. m Bavaria
FilmFernsehFonds Bayern
.
m \bhineland-Palatinate\vMedienförderung Rheinland-Pfalz
. m* Saxony, Saxony-Anhal\vt and Thuringia
Mitteldeutsche
Medienförderung
*No fixed \budget for games
. m HesseWIBank
Hessen Film & Medien
. m North \bhine-Westpha\vliaFilm- und Medien-stiftung NRW
. m Lower Saxonynordmedia
. m Hamburg
Gamecity Ham\burg
. m Berlin and
Brandenburg
Medien\board
Berlin-Branden\burg
*No fixed \budget for games
€ . m* Schleswig-Holstein
WTSH Wirtschaftsförderu\eng und Techno\bogietransfer Sch\beswig-Ho\bstein
*new Start July
,\t million until
€ . m* Bremen *announced, start in \t
Mecklenburg-Western
Pomerania
Saarland
The games industry in Germany 39
38 The games industry in Germany time, the new federal government has assigned games to the
Federal Ministry of Research, Technology and Space. This puts
them under the responsibility of Dorothee Bär, who has a track
record of commitment to the medium and the games industry.
During her first appearance as the new ‘games minister’ at the
German Computer Game Awards 2025, she announced the
establishment of an independent games department within her
ministry.
At the beginning of 2025, game presented its
proposal for the additional tax-based funding
of games development, as included in the
government coalition agreement, to enable
Germany to catch up with the world’s top
game development locations. It called for the
introduction of tax credits of 30 or 35 per cent
for small and medium-sized companies. This
would jump-start investment and sharply boost
tax revenues and value creation, as underscored
by findings of the research and consulting firm
Goldmedia on behalf of game. The analysis
shows that every euro in tax credits for games in
Germany would trigger 4.80 euros in additional
investment, yield 3.40 euros in new tax revenue
and social security contributions and generate
8.70 euros in gross value added. Long-term implementation of
such tax breaks would result in even greater benefits, according
to the experts, as it would spur German enterprises to expand
production capacity, encourage foreign companies to establish
locations in Germany and incentivise the domestic development
of major games for the global market. Combining internationally
competitive tax breaks with funding aimed especially at young
companies helps games companies of all sizes and has proven
a successful model in the top international game development
locations worldwide.
The budget plans announced by the federal government in late
June 2025 bolstered German games companies’ confidence
with regard to the near future. They provide for the long-sought
increase in the budget for games funding. The draft budget
specifies a total of 88 million euros for 2025 and sets an annual
funding level of 125 million euros from 2026 onwards. This is in
line with game’s calculations of the financing that is required until
the implementation of additional tax breaks in line with global
standards, as called for in the coalition agreement.
Which federal states are pursuing good game development
policy from the perspective of German companies can be seen in
the results of game’s industry barometer. They show Bavaria to
be the best location for game production in Germany. The battle
for first place nonetheless remains a head-to-head race. North
Rhine-Westphalia, which finished first in the previous rankings
in 2023, holds second place in the current rankings. Berlin takes
The German
government’s draft
budget includes an
increase in funding for
games to a total of 88
million euros in 2025 and
125 million euros annually
from 2026 onwards.
Regional games funding programs
in Germany
. Bavaria (3 )
. North Rhine-Westphalia (1)
. Berlin (2 )
. Hamburg (2 )
. Ba\ben-Württemberg (4 )
. Bran\benburg (5 )
. Rhinelan\b-Palatinate (7)
. Saarlan\b (8 )
. Lower Saxony (6 )
. Saxony (12 )
. Schleswig-Holstein (8 )
. Thuringia (12 )
. Bremen ( 9 )
. Saxony-Anhalt (11 )
. Mecklenburg-Western Pomerania (12 )
. Hesse (10 )
The games industry in Germany 41
40 The games industry in Germany third place, just ahead of Hamburg, after the two shared the
second-place spot two years ago. Movement was also seen at
the bottom of the rankings. Hesse, which ranked tenth out of
twelve in 2023, brings up the rear this time, behind Saxony-Anhalt
in 14th and Mecklenburg-Western Pomerania in 15th place.
There has been positive news recently from several federal
states. Baden-Württemberg, Bavaria, Hamburg and Hesse have
all slightly increased their budgets for games funding. Bavaria,
Berlin together with Brandenburg, and North Rhine-Westphalia
continue to be the federal states with the most extensive
programs to support game development. Although Berlin and
Brandenburg are now below the record funding amount of
2023 at 3.6 million euros, the Berlin Senate is supporting the
est
