Annual Report of the German Games Industry 2021

AnnualReport
of the
German
Games
Industry
2021

Content 3
Editorial 4
01 Players in Germany 8
02 German market for computer
and video games 14
03 The games industry in Germany 24
.1 Employment figures and companies
.2 Games from Germany
.3 Games funding
.4 The ten demands of the games industry
04gamescom 38
05 About game – the German
Games Industry Association 42
.1 Diversity initiative Hier spielt Vielfalt
.2 Environmental and climate protection in the
games industry
.3 Foundation for Digital Games Culture
.4 devcom
.5 Entertainment Software Self-Regulation Body
.6 esports player foundation
06 Development of the German
video games market since 1995 48
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,
Last year was an extremely challenging
one for all of us – and the games
industry was no exception. The Covid-19
pandemic left its mark on many aspects
of life in 2020. The highly complex
process of game development had to
be transitioned to a work-from-home
environment, and esports tournaments
that previously filled entire stadiums
were held without the presence of
spectators. The international games
industry’s most important events
either took place entirely online – like
gamescom or the GDC – or had to be
cancelled.
On the whole, however, the games
market was not affected as badly
as most other industries. Quite the
opposite: within a year, the revenue
generated by computer and video
games and related hardware actually
increased by 32 per cent in Germany –
even after setting records the previous
year. The more than 8.5 billion euros
generated are a new high. Another
hallmark of 2020, the year of the
pandemic, was the fact that lockdowns
and social distancing drove millions of Germans straight to their gamepads,
smartphones and other devices to
play games or simply to keep in touch
with family and friends. It’s hardly
surprising, then, that the number of
players rose significantly as well. Today,
more than 60 per cent of Germans play
video games – yet another new record.
However, games were more than just
a popular form of entertainment in
2020. In this age of remote learning –
which in Germany still all too often
means downloading and printing
out worksheets – serious games had
the chance to shine. They provided
valuable support to many parents
throughout the pandemic. And that’s
just one of many examples from last
year, in particular, that highlighted the
enormous potential games offer for
many different areas of society and the
economy.
Overall, 2020 was an eventful year
for the games industry in Germany.
On the one hand, this period was
characterised by the great interest in
games and the corresponding growth
in revenue, although 95 per cent of this
revenue continued to be generated
by games produced in other countries

6 EditorialEditorial 7
and consequently bypassed most
German studios. On the other hand,
the Covid-19 pandemic also resulted
in project delays, uncertainty and a
search for new financing possibilities.
The games industry nonetheless looks
toward the future with optimism,
as game’s industry barometer –
compiled for the first time this past
year – indicates. Despite a great deal
of unpredictability, 7 in 10 games
companies have a positive outlook on
the future, with nearly half of them
planning new hires. This optimism is
obvious in another area as well: many
new games companies were founded
in 2020. A 50 per cent increase in the
number of games studios underscores
the positive outlook. And there is good
reason for this optimism: after the
rush for games funding during the
pilot phase, the major EU-notified
funding guideline was finally launched
in late 2020. Just a few months on,
numerous games studios have received
official notification that they have been
granted funding – some of them in
amounts exceeding one million euros.
This is a first for Germany, which, later
than many other locations around the world, is only now making a systematic
effort to improve its competitiveness
in this industry. The high demand for
games funding demonstrates just how
necessary this move was. For the new
German federal government, which will
be elected in autumn 2021, it will be
an important endeavour to continue
to improve the conditions for game
development in Germany in order to
leverage the enormous potential of
games as a key technology in promoting
the country as a location for the digital
economy.
This annual report summarises all the
important developments in the games
industry in Germany. I wish
you enjoyable reading and
many interesting insights.
Felix Falk
Managing Director of game –
the German Games Industry
Association

48 % 52 %

Average age

8 Players in Germany Players in Germany 9
Players
in Germany
01
Germany is a country of video game players:
more than half of Germans play computer
and video games. Overall, 58 per cent of the
population between the ages of 6 and 69
reach for their PC, console or smartphone
to dive into digital worlds. And the genders
are essentially equal here: 48 per cent of
players are women and 52 per cent are men. Interest in games grew again in
2020, with the number of players
increasing by approximately
5 per cent. There are now more
people playing computer and
video games in Germany than
ever before!
This is partly a result of the contact restrictions during the
Covid-19 pandemic: particularly during the lockdown phases,
games were a source of variety and entertainment for millions
of people. They also helped people stay in touch with family and
friends and have fun together – even across great distances. The
50- to 59-year-old segment is the largest group of players, in
which about 1 in 5 currently plays computer and video games. This
group combined with players in the 60–69 age range make up one
third of all German video game players. These ‘silver gamers’ are
partly responsible for the continuous increase in the average age
of players in Germany over the last several years. At 37.4 years
currently, this is 2.5 years above than the 2016 average.
Source: calculations based on the GfK Consumer Panel
(2019/2020; n=25,000). Date: January 2021. © game 2021
Players are over 37 years old on average
Interest in games grew
again in 2020, with
the number of players
increasing by 5 per cent.

%
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 %
10 Players in Germany Players in Germany 11
Among the various games platforms,
smartphones saw the greatest increase in
player numbers in Germany. Already the
most-used devices for gameplay in 2019,
with 19.5 million players, mobile phones
further strongly increased their lead last year
as 22.6 million people in Germany reached
for their smartphones to play. Games
consoles also won over more players in 2020,
registering a rise of 1.1 million users within
a year, to 17 million. A look at retail makes
clear just how popular games consoles were
in 2020: the two new models PlayStation
5 from Sony and Xbox Series X/S from
Microsoft, both released in late 2020, and even
Nintendo’s Switch, which has been available
since 2017, were sold out in many locations. Not every games
platform, however, benefitted equally from the games boom. The
PC lost around 1.1 million players in Germany, landing in just third
place with 15.2 million users. Tablet computers, too, were less
in demand, as only 9.9 million game players reached for the flat
touchscreens to play in 2020, down from 11.2 million in 2019.
The Covid-19 pandemic also left its mark on the charts of the
most successful PC and console games purchased in the form of
physical media and downloads. Computer and video games with an
online multiplayer mode were especially popular in 2020. The top
seller was EA SPORTS FIFA 21 (Electronic Arts). This new version
of the bestselling title of 2019 includes extensive online modes
that enable friends to play together. In second place was Animal
Crossing: New Horizons (Nintendo), in which players can design
their own island and then invite friends to visit it and have a good
time there together. The following spots in the German annual
charts for 2020 are likewise occupied by games featuring extensive
multiplayer components: Mario Kart 8 Deluxe (Nintendo) came in
third, Grand Theft Auto V (Rockstar Games) in fourth and Call of
Duty: Black Ops Cold War (Activision Blizzard) in fifth place.
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: calculations based on the GfK Consumer Panel (2019/2020; n=25,000). Date: January 2021. © game 2021
Silver gamers: this group
of players in the 50–69
age range makes up one
third of all German video
game players.

PC
Smartphone
Console
Tablet
.
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
12 Players in Germany Players in Germany 13
Source: Game Sales Data (GSD), ISFE.
List shows the German sales charts for PC platforms and stationary/portable games consoles.
The 20 best-selling PC and console games
in Germany in 2020
EA SPORTS FIFA 21 Electronic Arts
2Animal Crossing: New Horizons Nintendo
3Mario Kart 8 Deluxe Nintendo
4Grand Theft Auto V Rockstar Games
5Call of Duty: Black Ops Cold War Activision Blizzard
6The Last of Us Part II Sony Interactive
Entertainment
7 Super Mario 3D All-Stars Nintendo
8EA SPORTS FIFA 20 Electronic Arts
9Assassin’s Creed Valhalla Ubisoft
10 Red Dead Redemption 2 Rockstar Games
11Ring Fit Adventure Nintendo
12Call of Duty: Modern Warfare Activision Blizzard
13Super Mario Party Nintendo
14New Super Mario Bros. U Deluxe Nintendo
15Farming Simulator 19 Astragon/Focus Home
Interactive
16 Tom Clancy’s Rainbow Six Siege Ubisoft
17Minecraft: Nintendo Switch Edition Microsoft
18Cyberpunk 2077 CD Projekt/Bandai Namco
Entertainment
19 The Legend of Zelda: Breath of the Wild Nintendo
20Assassin’s Creed Odyssey Ubisoft
Smartphones remain
the most popular gaming

platform in Germany
Source: calculations based on the GfK Consumer Panel
(2019/2020; n=25,000). © game 2021

+ %

In-game
purchases
Charges for
online ser\bices
Hardware
Games consoles,
handhelds,
gaming PCs and
accessories
Subscriptions
Purchases
€ ,  m
€
,  m
€
,  m
€
  m
€
  m
€  ,  m
€ , ­  m
€
,  m
€
,­  m
€
  m
€
­  m
€  ,­  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 celebrated
a new revenue record in 2020 – even
after several years of growth. The
industry achieved total sales revenue
of approximately 8.5 billion euros from
computer and video games and associated
hardware. This is an increase of 32 per cent
compared to the previous year.
The German games market remains the largest
in Europe and the fifth-largest in the world. Sales
revenue in 2020 saw considerable growth in
the areas of both hardware and software, with
games consoles, gaming PCs and peripherals
achieving roughly 3.2 billion euros in sales. This is
an increase of 26 per cent compared to 2019. The
submarket for computer and video games saw
even stronger growth, with revenues of 5.2 billion
euros achieved through game purchases, in-game
and in-app purchases, subscriptions and charges
for online services. As a result, this segment of
the market managed to grow by 36 per cent
compared to the previous year.
All games hardware segments exhibited significant growth
in Germany in 2020. There was particularly high demand for
peripherals for gaming PCs, with sales of special gaming mice,
keyboards, monitors, graphics cards and virtual reality headsets
generating around 1.2 billion euros – approximately 46 per cent
more than in 2019. Sales of consoles and console accessories also
German games market experiences clear

surge in sales revenue in 2020
Please note: GfK has adjusted its definition of hardware designed for games, with the
result that the market size comes out higher. This is true also of the adjusted data for
2019, which accordingly differs from that reported last year.
Source: calculations based on the GfK Consumer Panel (2019/2020; n=25,000), GfK
Entertainment, GfK POS Measurement and App Annie. © game 2021. © game 2021
The sales increase of
some 8.5 billion euros
in 2020 represents
a 32 per cent jump –
which comes even
after several years of
sustained growth.

+
%
€   m
€
m
€
m
€
m
€  ,  m
€   m
€
,  m
€
,  m
€
m
€  ,  m
Gaming PCs
C\bns\bles
(stationary and
handheld)
Gaming PC
peripherals
Gaming input
devi\bes, monitors, \G
graphi\bs \bards,
VR headsets
C\bns\ble peripherals
Gamepads, steering \G
wheels, VR headset\Gs
16 German market for computer and video games German market for computer and video games 17
Sales of games hardware in Germany
rising fast
Note: GfK has adjusted its definition of hardware designed for games, which has increased the size of the market. This is true also of the adjusted data for 2019, which accordingly differs from that reported last year.
Source: calculations based on the GfK Consumer Panel (2019/2020; n=25,000). © game 2021
rose considerably last year. Stationary and handheld consoles
generated around 650 million euros, which was 25 per cent more
than in 2019. Console accessories such as gamepads and steering
wheels generated 275 million euros – an increase of 24 per cent.
Sales of gaming PCs also increased to around 1.1 billion euros,
which is about 10 per cent higher than in 2019.
Overall in 2020, games hardware was in higher demand in
Germany than ever before. Like the growth in player numbers
in Germany and the increase in sales revenue from games, this
reflects the strong interest in computer and video games during
the Covid-19 pandemic. Many people used this time to upgrade
their gaming PCs or purchase a new console, for example. In
addition to the strong demand for the Nintendo Switch, the launch
of the next-gen PlayStation 5 and Xbox Series X/S consoles and a
new generation of graphics cards also drove large sales volumes.
However, this growth could have been even greater: graphics
cards and consoles alike were repeatedly sold out or difficult for
consumers to obtain.
All of the submarkets of computer and video games grew, as
well: game purchases generated more than 1.1 billion euros in
revenue, 11 per cent more than in 2019. Subscriptions to individual
games, such as World of Warcraft or Final Fantasy XIV , resulted
in a 44 per cent increase in sales revenue. This market segment
consequently grew to 163 million euros. The strongest increase,
however, was posted in sales revenue for in-game and in-app
purchases, which grew by 44 per cent within a single year, achieving
total sales revenue of over 3.2 billion euros.
This submarket includes all revenue generated
within a game – for example, from the
purchase of enhancements to players’ avatars,
whole new missions or season passes. In-game
and in-app purchases are available in full-price
titles as well as in free-to-play games that
can be downloaded and played entirely free of
charge.
Approximately two thirds of the sales revenue
in this submarket is generated by in-app
purchases. They are the dominant business
model in game apps for smartphones and
tablets. The easy availability and increasing
variety of titles is resulting in a steady
rise in the number of players on mobile
devices, and sales revenue is also showing
considerable growth every year. The market
for game apps posted strong growth again
in 2020. In Germany, within a single year,
the sales revenue from games designed
for smartphones and tablets increased
by 23 per cent to roughly 2.3 billion euros.
This represented a continuation of the
VR headsets, graphics
cards and mice: sales of
accessories for gaming
PCs continued to grow
substantially in 2020
and the demand for
gaming hardware was
stronger than ever.

+ %

+ %

+ %

+ %

+ %

+ %

– %
In-app
purchases on
s\bartphones
and tablets
In-ga\be
purchases on
PCs and
consoles
€  ,  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
Sales revenue from in-game purchases

showed strong growth in 2020
Source: calculations based on the GfK Consumer Panel (2019/2020; n=25,000) and App Annie. © game 2021
impressive growth exhibited by the market for game apps in the
previous years: sales revenue rose by 22 per cent in 2019, and by a
remarkable 31 per cent before that.
The year 2020 saw the continuation of another positive trend
from the previous years: the market growth is directly attributable
to in-app purchases. Sales revenue from such purchases grew
by 24 per cent to about 2.3 billion euros. Free-to-play games
are among the games that make use of in-app purchases. On
smartphones and tablets, the easy accessibility of this method
of distribution has made it particularly successful. The market
segment for game apps available for purchase, in contrast,
declined again. In 2020, sales revenue from such titles dropped by
15 per cent, to roughly 11 million euros.
The fees market for online games services for PCs, consoles and
smartphones also exhibited enormous growth in 2020, increasing
by 50 per cent to 692 million euros. Consequently, this segment
has become an important pillar of the entire German games
market within just a few years. These services allow video game
players worldwide to compete online against one another, access
cloud games services or use a large catalogue of games for a fixed
monthly price. The last several years have seen significant growth
not only in the variety of online games services, but also in players’
interest in them. Sales revenue generated by such services in
Germany has doubled from its 2018 level of 353 million euros.
Cloud games services showed the strongest
rise in sales revenue in this area: in just one year,
the segment grew by 67 per cent, to 72 million
euros. With cloud games services, players no
longer need high-performance hardware to
play titles with their full range of graphics. But
because the computing takes place in the cloud,
a correspondingly fast internet connection is
required. Among the services in this category are
GeForce Now from Nvidia, MagentaGaming from
Telekom, PlayStation Now from Sony and Stadia
Pro from Google. While sales revenue from online
games services grew somewhat more slowly, at 50 per cent, this
submarket is already considerably larger: services of this kind, such
as Nintendo Switch Online, PlayStation Plus from Sony and Xbox
Live Gold from Microsoft, generated 439 million euros in sales
revenue in 2020. In addition to game rebates and the ability to
save game progress in the cloud, these services allow customers
to play online via games consoles. Players also spent significantly
more on subscription games services in 2020: this submarket grew
by 44 per cent, to a total value of 181 million euros. For a fixed
monthly price, services like EA Play, the Xbox Game Pass from
Microsoft, Ubisoft+ and the smartphone services Apple Arcade and
Google Play Pass offer access to an extensive games library.
In-game purchases and
charges for online services
have developed into an
important pillar of the
games market within just
a few years.

+ %

+ %

± %
○
+ %

– %

+ %

€  ,  m
€ ,  m€
,  m€
,  m
€  ,  m
+ %

– %

+ %
App
purc\bases
In-app
purc\bases
€ ,  m
€
m €
m
€
m€
m
€  ,  m
€  ,  m
20 German market for computer and video games German market for computer and video games 21
Game apps continue their
strong growth trend
Sales revenue for app purchases and in-app
purchases in Germany
Source: App Annie. © game 2021
Purchases of computer and video games by
download, already a trend in previous years,
accelerated significantly during the Covid-19
pandemic of 2020. With retail businesses
shuttered, the only option open to many
game fans – alongside mail-order trade – was
to purchase downloads for PCs and games
consoles. As a result, within 12 months, the
share of PC and console game sales via
download jumped from 45 to 58 per cent, or
6 of every 10 game purchases made in 2020.
The share of sales revenue constituted by
downloads was somewhat lower, however,
amounting to about 4 in 10 euros’ worth of PC
and console game sales made in Germany in
2020, up from 33 per cent in 2019. As a general
rule, the cheaper the game is, the greater
the share of download purchases will be. Of
computer and video games costing 30 euros or
less, 8 in 10 are purchased as downloads.
There are major differences between PCs and consoles here.
For PC games, downloads make up a 94 per cent share of sales.
For games consoles like PlayStation, Switch and Xbox, on the
other hand, only about 1 in 3 games (35 per cent) is purchased
via download. However, this represents a considerable increase
compared to 2019, when the share was 24 per cent.
Overall, the German games market added an impressive chapter
to its success story in 2020. Every segment of the market grew –
including ones that had experienced very little dynamic growth in
recent years. The market also revealed clear trends for the future,
such as high revenue growth rates for online games services
and the steadily increasing share of purchases constituted by
downloads. And while the Covid-19 pandemic may have been
an exceptional factor that caused growth to disproportionately
skyrocket, the strong demand for games hardware indicates that
the outlook for the coming years will remain positive: millions of
Germans have invested in new graphics cards and games consoles,
and they are now ideally equipped to play all of the blockbuster
games to come.
Purchases of computer
and video games by
download, already a trend in
previous years, accelerated
significantly during the
Covid-19 pandemic of 2020.

+ %

+ %

€   m
€
m €   m
€
m
Online gaming services
e.g. PlayStation Plus, \,
Xbox Li\be Gold, Nintendo
Switch Online
\bubscription gaming
services
e.g. Xbox Game Pass
(Ultimate), EA Play (Pro),
Ubisoft+, Apple Arc\,ade,
Google Play Pass
Cloud gaming services
e.g. PlayStation Now,
Google Stadia (Pro),
N\bidia GeForce Now,
Telekom MagentaGaming
€   m
€   m
€
m €
m€
  m
€
  m
€   m
€   m
%

%
% %
%
%
%
%
%
%
%
%
%
%

%
%
%
%
In , nearly  in
games were purc\based \w
as downloads
In , downloads accounted
for  in  euros in sa\wles of
computer and video g\wames
22 German market for computer and video games German market for computer and video games 23
Repeat jump in sales through
online gaming services
Source: calculations based on the GfK Consumer Panel (2019/2020; n=25,000). © game 2021
More than 1 in 2 computer and video games
for PCs and consoles were purchased via
download in 2020
Source: calculations based on the GfK Consumer Panel (2019/2020; n=25,000). © game 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,
,

,

,
\b,

24
The games industry in Germany The games industry in Germany 25
The games
industry in
Germany
03
Rising sales revenue and new records
have almost become the norm for the
international games industry in recent years.
Every year, games markets around the world
continue to grow. This growth is driven by
new players and countless innovations.
According to projections from market research company Newzoo,
global sales revenue generated by games is expected to amount to
approximately 176 billion US dollars in 2021. At that point, nearly
one out of every three people will be a video game player! Few
other industries can boast figures like these. However, the most
surprising thing is that for the first time in a very long while, sales
revenue is expected to decrease by 1.1 per cent. The backdrop here
is that sales revenue from games increased sharply around the
world in 2020 – in Germany alone, figures spiked by more than
30 per cent. The impact of the Covid-19 pandemic was a primary
driving factor here. Games were in particularly high demand during
periods of lockdown. Not only did they keep people entertained;
they also gave them the opportunity to stay in touch and interact
with friends and family. This exceptional factor caused sales
revenue from games to increase so sharply in many countries that
we do not expect the industry to set a new record in 2021, although the very high level of demand achieved in 2020
is projected to remain essentially stable this
year. In that sense, we can already see that
the enormous spike in sales revenue last year
was not a one-off; rather, growing numbers of
people around the world became passionate
video game players who will remain loyal
to the medium in years to come, as well –
although naturally, many of them likely will not
play as intensely in future as they did during
lockdown!
Germany, in its role as a location for the games industry, also
has the potential to benefit from this steadily growing interest in
games, as the study Die Games-Branche in Deutschland 2018/19/20
(The Games Industry in Germany 2018/19/20) conducted by the
Number of people employed in
core labour market of games
industry grows
Source: projection based on industry observations; May 2021 (www.gamesmap.de). © game 2021
Forecasts suggest that
around a third of people
are now video game
players!

749
403
companies both
publish and develo\yp
32
companies
publish exclusivel\yy
314
companies
develop exclusivel\yy
26 The games industry in Germany The games industry in Germany 27
HMS Hamburg Media School and presented in late 2020 indicates:
the games industry in Germany is particularly young and dynamic –
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 stand-out: 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 highly globalized 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, 9 per cent
in the books market and 10 per cent in the music industry. One
distinctive feature of the German games industry is that, unlike in
many other countries such as England or France, games companies
are distributed throughout Germany. Of course, the concentrations of
games companies are somewhat higher in large cities such as Berlin,
Hamburg, Munich or Cologne, but on the whole, games companies
have offices in many different locations.
0 3 .1 Employment figures
and companies
The strong growth of the games market and the progress made in
the area of games funding, such as the launch of the major funding
guideline in late 2020, are also evident in the way employment
figures and company data have developed. The number of companies
developing and/or publishing computer and video games increased
once again – within a year, this number spiked by 20 per cent, to
a total of 749 companies. Game developers were responsible for
the lion’s share here. The number of active game developers rose
to 314 in 2021 – a significant increase of 51 per cent compared to
749 companies in Germany develop
and distribute games
Source: gamesmap.de; industry observations; projections. © game, May 2021
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.

2017 2018
Games
developed
in Germany
Games
developed
worldwide
2019 2020
€ .
m
€
m
%
€ \b.

m
€
\b   m
,\b %
€ \b.
m
€

m
, %
€ .
\b  m
€

m
, %
28 The games industry in Germany The games industry in Germany 29
Revenue growth of German games
companies lags behind overall pace
in domestic market
Source: calculations based on the GfK Consumer Panel,
GfK Entertainment, App Annie, surveys and projections. © game 2021
the previous year. A further 403 companies in Germany are
active in both development and publishing. The number of these
companies rose by 5 per cent compared to 2020. And companies
that focus on game publishing, meaning that they fund the
development of games and handle marketing and distribution,
increased by 7 per cent, to 32. The number of games companies
already increased during the previous year. The majority of these
companies may only employ a few people, but the high level of
optimism regarding the launch of the games funding programme
is evident here. In order to properly leverage this potential for
Germany as a location for games, the conditions Germany offers
to the industry will need to be good and remain internationally
competitive over the long term.
A look at the number of employees in the core
market indicates that most newly founded
companies are microenterprises and small
companies – employee numbers have also
grown, but much more slowly than the number
of companies. In 2021, 10,906 people are
employed in the development and marketing
of computer and video games. That number
marks an increase of just 8 per cent within a
year. However, we can already see the positive
impact of the wave of new companies here;
after all, during the previous year, the number
of employees in this field declined. In the larger
labour market, employee numbers have seen a
less positive trend. Whilst employee numbers
grew by 5 per cent a year ago, there has been
a significant decline recently. The games
industry’s extended labour market includes
people employed by service providers, retailers,
educational establishments, the media and
the public sector – sectors that experienced at least some negative
impacts of the Covid-19 pandemic. The decline of 11 per cent, to
16,115 employees, is therefore correspondingly stark. The games
industry in Germany provides a total of 27,021 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 27,700
people, or nearly three times as many as the sector in Germany. If
these numbers are extrapolated to apply to Germany, 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 (20,430) working in computer and video
game development and distribution.
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 600
game developers and publishers, 900
media, technical and financial service
providers and some 120 educational
establishments that offer courses
relevant to the games industry.
www.gamesmap.de

German-developedgames in

. %
= €
m
of €

,\b  m
total

.
%
= €    m
of €
,
\b  m
total
Overall market

. % = €  \b.  m
of €
,\b  m
total

.

% = €
.\b  m
of €
,  m
total
PC and console game\
s
(purchase on physic\nal media and by do\bnload)

. % = €
m
of €
,\b  m
total

.

% = €  \b
.\b  m
of €
,
m
total
Mobile games
(purchases and
in-game purchases)

. % = €  .  m
of €
,\b  m
total

.
% = €

.  m
of €
\b  m
total
Online/browser gam\
es (subscriptions and
in-game purchases)
30 The games industry in Germany The games industry in Germany 31
In record year, share of German-developed
games in home market declines slightly
Source: calculations based on the GfK Consumer Panel,
GfK Entertainment, App Annie, surveys and projections. © game 2021
03.2 Games from Germany
The total sales revenue generated by German game developers
failed to keep pace with the strong growth of the games market in
Germany in 2020: whilst games from Germany did generate more
sales revenue than previously, the rate of growth was much weaker
than that of games developed in other countries. The result is a
further slight decline in the market share of German-developed
games in the domestic market. Whereas German game developers
captured €4.93 of every hundred euros spent on games in Germany
in 2019, their corresponding share in 2020 was just €4.17.
A closer view shows significant differences
in the performance of the individual market
segments. The market share of game apps for
smartphones and tablets rose from about 3
to nearly 4.1 per cent, whilst the revenue share
of German-developed games in the strongly
blockbuster-driven submarket of games for
PCs and consoles dropped from around 1.9
to 1.3 per cent within one year. Online and
browser-based games registered a much
sharper decline, with their domestic market
share plummeting by more than half – from
17.6 to 7.2 per cent. The inability of German-
developed games to benefit more strongly
from the 2020 boom in many segments is in
large part due to underlying market conditions
in Germany that remain more difficult than
those in other countries. The games funding programme launched
just a few months ago by the federal government is a key step
in enabling Germany to catch up with more successful locations.
However, the effects of the new policy won’t be felt immediately.
In addition, the games market is strongly blockbuster-driven and
the number of highly successful games has an outsized impact
on total revenue. The larger and more diverse the German game
development landscape becomes in the future, the less influence
individual studios or titles will have on the development of sales
revenue overall.
The total sales revenue
generated by German game
developers failed to keep
pace with the strong growth
of the games market in
Germany in 2020.

Bremen
€  m North Rhine-WestphaliaFilm- und Medien-stiftung NRW
€ .
m Hesse
HessenFilm
und Medien
€ .\b
m Rhineland-Palatinate  (Funding to begin in  \bnd half of \b\b)
€ .\b  m Saarland
Saarland Medien € .  m Baden-Württemberg Medien- und Film- gesellschaft
Baden-Württemberg
€ .
m Saxony, Saxony-Anhalt  and Thuringia
Mitteldeutsche
Medienförderung
€ .€  m Lower Saxony nordmedia
€ .
m Hamburg
Gamecity Hamburg
€
.
m Berlin and
Brandenburg
Medienboard
Berlin-Brandenburg
Mecklenburg-
West Pomerania
Schleswig-
Holstein
€
.  m Bavaria
FilmFernsehFonds  Bayern
32 The games industry in Germany The games industry in Germany 33
Regional games funding in Germany
Note: There is no regional funding for computer and video games in the federal states of
Schleswig-Holstein, Mecklenburg-Vorpommern or Bremen. As of: June 2021
03.3 Games funding
For many years, the debate over computer and video games in
Germany centred on the alleged dangers of the relatively new
medium. Other countries, by contrast, recognised the potential
of the medium and the games industry at an early stage and
provided targeted support to domestic games companies. As a
result, a number of countries have gained a significant competitive
advantage in the world’s largest media-based market over the
years. Other locations, like Germany, were increasingly behind the
curve. There were enormous differences in the area of financing
for game development, in particular. Targeted funding for
development processes, such as straightforward tax breaks with
no red tape, made the production of new games much cheaper
in certain countries. Consequently, game developers in Germany
faced costs that were up to 30 per cent higher, putting them at a
significant disadvantage.
Even the government recognised that this lack
of a level playing field was putting Germany’s
competitive position as a location for game
development at serious risk. Consequently, in
2017, Germany’s governing political parties –
the CDU, CSU and SPD – agreed to provide
stronger support for the domestic games
industry as part of their political platform.
As a result, a budget of 50 million euros
was made available for games funding on
the federal level for the first time in 2019 –
this was a first for Germany, and the policy
received cross-party support.
The German Federal Ministry of Transport and Digital
Infrastructure – which was tasked with implementing the games
funding policy – launched a pilot phase in June 2019; it received
380 funding applications, indicating enormous demand from
within the games industry. The large-scale funding programme
was subsequently launched at gamescom 2020. At the opening
of gamescom, Andreas Scheuer, Federal Minister of Transport
and Digital Infrastructure, announced that the games funding
programme would launch in late summer. And he was as good
as his word: the first applications for the large-volume funding
programme were accepted beginning in September, and applicants
began receiving official notification that they had been granted
funding as soon as early December. Some of the applications
approved included more costly productions, such as Munich-based
studio Mimimi Games’ upcoming project, Codename Süßkartoffel ,
which received approximately 2 million euros in funding. Such large
sums of funding would have been impossible in Germany before
this programme. In the months that followed, numerous other
game development projects received the green light for funding.
gamescom 2020 saw
the official kick-off of
the extensive games
funding programme.

The games industry in Germany 35
34 The games industry in Germany But the federal government was not the only body delivering good
news on games funding – many of the individual German states
continue to actively support their regional games companies.
Hamburg introduced games funding in 2020, supporting the
development of prototypes, among other things. The northern
German city-state made 520,000 euros available for this purpose.
Rhineland-Palatinate is set to launch a regional games funding
programme amounting to 125,000 euros in late 2021; that funding
volume is scheduled to increase to 250,000 euros in 2022. In
2020, federal states such as Berlin and Brandenburg, Baden-
Württemberg, Lower Saxony and Saarland also increased their
funding for computer and video games.
The funding programme Kreativ-Transfer
(Creative Transfer), which helps German game
studios with international networking and
improved visibility, even managed to continue
throughout the Covid-19 pandemic. In total,
seven game studios received support during
the current funding period from 1 January
to 30 April 2021. As nearly all of the games
industry’s most important events were either
cancelled or took place entirely online due to
the pandemic, companies were also granted
support 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.
For more information on the regional
initiative, go to www.game.de/games-
branche-in-deutschland/regionale-
strukturen/
The German games
industry during the
Covid-19 pandemic
Overall, the German games industry
weathered the Covid-19 pandemic very well.
The majority of game members started the
year 2021 with confidence, as the first survey
conducted in late 2020 as part of the game
industry barometer indicated. According to
the survey, 7 out of 10 companies expected
their businesses to improve financially in
2021.
1 in 5 companies (19 per cent) expected to
maintain a steady course at the current level;
just 1 in 10 companies (10 per cent) anticipated
a business downturn. The confidence of the
German games industry is also reflected in the
area of personnel planning, with 45 per cent
of the surveyed companies intending to hire
new employees in 2021 and just 6 per cent
anticipating having to make lay-offs. Overall,
half of companies expected to maintain
steady personnel numbers.
A look at the current development among
games companies in Germany explains this
confidence. More than 1 in 4 companies
surveyed (28 per cent) say they are coping
with the ongoing pandemic very well, while
a further 67 per cent state that they are
coping well. Just 5 per cent of companies say that they are
currently coping rather poorly with the crisis. However, the
Covid-19 pandemic is having significantly greater effects on games
companies than might be expected from a first glance at the
positive data. Every third company surveyed (33 per cent) has had
to postpone projects or game releases because of the pandemic.
Nearly 1 company in 5 (18 per cent) has also deferred investments
due to the pandemic. Furthermore, nearly one fifth of the
companies surveyed (19 per cent) have been forced to seek other
means of funding in response to the pandemic.
7 out of 10 companies
anticipate positive
economic development
for their own business
operations in 2021.

36 The games industry in Germany The games industry in Germany 37
1
Promoting 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 and games that
are Made in Germany need to be visible,
with networking required both within
Germany and internationally. The games
strategy of the German Federal Ministry of
Transport and Digital Infrastructure 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
advantage of the opportunities offered
by computer 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 promoted and advanced in a
targeted manner. Media literacy and
programming knowledge 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
professionals. Given this scarcity in
Germany, the training situation must be
improved and it must be made easier for
these professionals to move here from
abroad.
4
Digital infrastructure
for all
As a games location, Germany must have
blanket gigabit capability to ensure the
successful development of games and to
serve the millions of video game players
in the country. This relates to high-
performance broadband connections and a
strong 5G network: Germany needs to catch
up quickly across all distribution channels
and must ensure that a 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
opportunities for regional economic
locations. They promote communication
between games companies and
cooperation with other sectors who
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 and depend to a great extent on their
trust. New digital business models need
scope, 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 confident users must take precedence
over new regulation.
5
Youth protection legis-
lation: modern, conver-
gent and internationally
compatible
The responsibilities of the German federal
and state governments need to be put to
the acid test to enable a modern German
system for the protection of young people.
Only in this way can standardised, modern
and convergent statutory youth protection
provisions be created that are aligned
with the media reality of children and
young people and guarantee international
compatibility. A host of contemporary
protection systems and technical features
from the games sector may serve as
models here.
8
No space for haters,
trolls and pirates:
also bringing security

authorities up to speed
digitally
As the games sector, we advocate diversity
and tolerance each and every day. All
actors in the sector must come together
to robustly confront hate speech as well as
immoral and sometimes illegal behaviour in
our digital society. The existing laws must
also be applied in the digital world and
the digital competences of the authorities
expanded to create flexible and targeted
solutions.
9
Making Germany
the best location for
esports
We want to make Germany the best
location for esports. Given the major
societal, cultural and economic significance
of esports, the best possible conditions
need to be created. Young talent needs to
be supported and promoted. In particular,
the valuable work of the organisations
that offer esports should not be further
disadvantaged, but rather promoted. These
organisations thus need to be recognised as
being not-for-profit in tax legislation.
10
Gamification –
helping through play
Computer and video games are more than
entertainment. They can support people in
nearly all spheres of our society – in care
homes, at places of memorial, in the fire
service and much more. They open up new
worlds of experience and serve to enhance
performance in many areas, they are easily
accessible and often cost-effective. The
use of computer and video games should
therefore be promoted in all areas of life,
especially in the digital health sector.
03.4 The ten demands of the
games industry
game