Country Reports·Updated Apr 8, 2026 by game
Report · January 1, 2025
Published by game
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.
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 54 Self-Regulation Body (USK) Interview: Sandra Winterberg on the International Computer Game Collection 07 Foundation for Digital 58 Games Culture Interview: Nandita Wegehaupt on the games scholarship Find the digital 08 esports player foundation 62 annual report Interview: Julius Althoff on the Esports Team here! Berlin and Olympic Esport Games Publisher 09 About game – The German 66 game – The German Games Games Industry Association Industry Association Friedrichstraße 165 10117 Berlin Gestaltung 10 Development of the German 74 Bureau Ole Gehling games market since 1995 www.olegehling.de
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 Dear readers, for games companies. As became apparent From the perspective of the German games shortly before the end of 2024, when funding industry, 2024 can certainly be described as applications could once again be submitted, this bumpy. Although the wave of consolidation in uncertainty gave rise to tight restrictions that the international games sector slowed last year, the practical reality of game development makes projects continued to be cancelled, employees virtually impossible for applicants to comply laid off and studios closed worldwide. These with. As a result, despite the resumption of the developments pose a challenge for the German funding application process at the end of 2024, games industry in particular, which is dominated by many games companies lack the necessary small and medium-sized studios that rely to a large internationally competitive framework conditions. extent on international publishers and partners to Our game industry barometer showed at the start realise their projects.
particular, which is dominated by many games companies lack the necessary small and medium-sized studios that rely to a large internationally competitive framework conditions. extent on international publishers and partners to Our game industry barometer showed at the start realise their projects. This is especially true when, of 2025 just how negatively companies assess as in 2024, an absence of reliable long-term games Germany’s international competitiveness. funding in Germany brings cost disadvantages of The development in the number of employees and 30 per cent compared to relevant international companies in the sector clearly shows the impact locations. of the difficult conditions on Germany as a game 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 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.
ction 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.
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. 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.
iple 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 The importance of this not only for German games Managing Director of game – The German Games companies, but also for Germany as a business Industry Association 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.
The 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.
The European video games industry represents a high-growth strategic sector that generated €26.8 billion in revenue in 2024, with digital channels accounting for 90% of all sales. This robust economic activity supports over 116,000 skilled professionals across 6,000 studios and serves a diverse player base comprising 54% of the European population. Mobile gaming remains the dominant platform, utilized by 71% of the region's 127 million players. To manage this vast ecosystem, the industry relies on the PEGI age-rating system across 40 countries, ensuring a standardized approach to consumer protection and responsible gameplay. Central to the industry’s operational integrity is a rigorous regulatory framework focused on monetization transparency and online safety. Updated standards mandate the disclosure of loot box probabilities and strictly prohibit the exchange of virtual items for real-world currency. Safety protocols are reinforced by comprehensive parental controls, currently adopted by 67% of parents, alongside mandatory age-verification tools and reporting mechanisms for harmful content. Compliance is maintained through a tiered enforcement system, where severe violations of age-rating or safety standards can result in financial penalties of up to €500,000. Beyond economic and regulatory concerns, the sector is increasingly defined by its commitment to social and environmental responsibility. Major regional initiatives across Spain, the United Kingdom, and Germany are driving diversity and inclusion through measurable policy changes and scholarships aimed at increasing female participation. Simultaneously, the industry is pursuing aggressive decarbonization through the Playing for the Planet Alliance and voluntary agreements that have already yielded significant energy savings in hardware manufacturing. These efforts are complemented by the integration of environmental themes into gameplay and the development of carbon calculators to assist studios in achieving long-term sustainability goals.
The European video games industry is a significant cultural and economic driver, characterized by steady growth and a commitment to responsible gameplay. In 2023, the European market reached €25.7 billion in revenue, a 5% year-on-year increase. The sector employs approximately 115,000 people across Europe, with 90,000 based in the EU. This growth is supported by a diverse player base; 53% of the European population aged 6-64 plays video games, with an average player age of 31.4 years. Notably, 75% of players are adults, and women make up 43.5% of the total gaming population. The industry emphasizes a robust framework for minor protection and consumer transparency through the Pan European Game Information (PEGI) system. Celebrating its 20th anniversary, PEGI has issued nearly 40,000 age rating licenses across 40 countries. Awareness of these labels is high, with 79% of parents whose children play games recognizing the system. Furthermore, the industry actively promotes diversity and inclusion through various regional initiatives and addresses environmental sustainability via the Games Consoles Voluntary Agreement and the Playing for the Planet Alliance. To maintain global competitiveness, the industry advocates for a strategic EU policy framework. Key priorities include recognizing video games as unique creative works distinct from the audiovisual sector, addressing the digital skills gap through education and STEAM programs, and maintaining a fair regulatory environment that supports small and medium-sized enterprises. The data for these findings is derived from GameTrack and Games Sales Data (GSD) surveys conducted by Ipsos, involving a sample of 60,000 individuals across major European markets to ensure national representation.
This analysis provides a comprehensive overview of the European video game sector in 2023, detailing market health, player demographics, and regulatory priorities. The industry demonstrated resilience with annual revenues reaching €25.7 billion, representing a 5% year-on-year increase. Employment also saw significant growth, with the workforce expanding by nearly 7% to reach approximately 115,000 people across Europe. The data reveals that video games are a mainstream cultural fixture, with 53% of the European population aged 6–64 identifying as players. Contrary to youth-centric stereotypes, the average player age is 31.4 years, and 75% of the gaming population are adults. Women represent 43.5% of the total player base, averaging 6.7 hours of play per week. While smartphones remain the most popular platform (68%), consoles (56%) and PCs (46%) maintain significant engagement. Despite the rise of digital media, average weekly playtime has remained stable for over a decade at approximately 8.9 hours. A central thesis of the findings is the industry’s commitment to social responsibility and self-regulation. The Pan European Game Information (PEGI) system celebrated 20 years of operation, with 79% of parents aware of its ratings and 62% actively using parental tools to manage gameplay. Furthermore, the industry is increasingly focused on sustainability and diversity, noting that 44% of new hires in regions like Sweden are women and highlighting energy-saving agreements that have saved 54 TWh of electricity over the lifetime of major consoles. The geographic scope covers the European Union and broader European markets, utilizing data from Ipsos, GameTrack, and Games Sales Data (GSD). Methodology includes online polling of 60,000 individuals across major markets, calibrated by nationally representative face-to-face surveys. Looking forward, the industry advocates for EU policy that recognizes video games as unique creative works, supports a robust talent pipeline through STEAM education, and maintains a fair regulatory framework that avoids distorting the single market.