Reportgame – Verband der deutschen Games-Branche e. V.
German Games Industry: 2025
1 Jan 202539 pages~109 min full read
The German games market contracted by 6% in 2024, resulting in total revenue of €9.4 billion and the first recorded decline in industry employment and active companies.
See it on page 8Federal funding is set to increase to €125 million annually by 2026, supported by new competitive tax incentives designed to improve Germany's international market standing.
See it on page 22Germany remains Europe's largest games market and the fifth largest globally, supported by a robust player base of 37.5 million people with an average age of 39.5.
See it on page 5Market instability in 2024 was primarily driven by a downturn in mobile revenue and console hardware sales, alongside restrictive federal funding guidelines and project application freezes.
See it on page 8The industry is prioritizing long-term growth through a hybrid funding model, the creation of a dedicated 'Games University,' and the AI-driven archiving of over 40,000 titles.
See it on page 23The *game* association, representing over 500 members, is leading professionalization efforts by integrating esports, sustainability initiatives, and structured career pathways into the national ecosystem.
See it on page 36The German games industry navigated a period of significant contraction in 2024, with total market revenue falling 6% to €9.4 billion. This downturn, driven by a decline in mobile revenue and console hardware sales, resulted in the first recorded reduction in the number of active companies and industry employees in recent years. Despite these headwinds, Germany maintains its status as the largest games market in Europe and the fifth largest globally. The domestic player base remains robust and increasingly diverse, encompassing 37.5 million individuals with an average age of 39.5 years, reflecting the deep integration of gaming into the national cultural fabric.
Strategic instability during this period stemmed largely from restrictive federal funding guidelines and project application freezes, which disproportionately impacted smaller studios. However, the outlook for 2025 is increasingly positive, anchored by a new coalition agreement that pledges to increase federal funding to €125 million annually by 2026 and introduce competitive tax incentives. These policy shifts aim to bolster Germany’s international standing, which industry leaders currently view as suboptimal despite the nation’s strong infrastructure, academic training programs, and successful startup initiatives like the "Press Start" grant.
To secure long-term growth, the industry is prioritizing a hybrid funding model, the establishment of a dedicated "Games University," and the expansion of digital cultural heritage projects, such as the AI-driven archiving of over 40,000 titles. Professionalization efforts continue through the *game* association, which represents over 500 members and manages critical networking platforms like gamescom. By integrating esports development, sustainability commitments, and structured career pathways, the German ecosystem is positioning itself to transition from a period of market correction toward a more resilient and internationally competitive future.
