Annual Report of the German Games Industry 2025
Germany’s video‑game sector generated €5.84 billion in 2024, ranking fifth globally but declining 6 % year‑on‑year. The contraction was most pronounced in game purchases, which fell 17 %, while online gaming and subscription services surged 43 % to €3.26 billion, underscoring a decisive shift toward digital and cloud‑based play. In‑game and in‑app purchases accounted for €4.6 billion, a modest 3 % drop, yet mobile gaming alone grew 63 % since 2019 to €3 billion. Console and PC revenues were €1.9 billion and €1.5 billion, respectively, while hardware sales fell 10 %, with consoles down 26 %. The workforce expanded to 37.5 million players, nearly half women and with an average age of 39.5 years, indicating broader demographic penetration.
Policy analysis reveals that restrictive federal and state funding schemes have limited access for start‑ups, contributing to an 87 % negative perception of Germany’s international competitiveness. The 2025 coalition agreement introduces tax breaks and a €2 750/month “Press Start” grant for new studios, signalling a shift toward a hybrid funding model. A projected €125 million annual increase from 2026, with each tax‑credit euro expected to generate €4.80 in economic spill‑overs, is coupled with calls for university programmes, incubators, and a dedicated “Games University” to supply skilled talent. Without these reforms, Germany risks falling behind global leaders.
The industry’s ecosystem has expanded through high‑profile events such as devcom and gamescom, which attracted record attendance and showcased international diversity. Initiatives like the Press Start: Games Founding Grant, esports talent pipelines, and the Equal Esports Cup demonstrate a coordinated effort to build inclusive professional pathways. The German Games Association, through gamescom and sustainability initiatives such as “Playing for the Planet,” positions Germany as a climate‑friendly, diverse hub. Market data confirm that 60 % of Germans play video games, with mobile gaming dominating at 37.9 %, while over 90 % of households have internet access, underscoring a mature, multi‑platform market poised for continued growth across consoles, PC and mobile channels.