Report of the German Games Industry: 2026

The "Report of the German Games Industry: 2026" provides a comprehensive overview of the German games market and industry, highlighting its significant growth, key revenue drivers, and persistent challenges, while also detailing efforts in cultural promotion, youth protection, and industry representation. The central thesis is that while Germany is a major global market for games, its domestic industry captures a disproportionately small share of this revenue, necessitating continued strategic investment and support to enhance its international competitiveness and foster sustainable growth.

In 2025, the German games market expanded by 4% to €9.4 billion. This growth was primarily fueled by a 12% surge in gaming hardware sales, particularly new consoles, and a 7% increase in online gaming services, which exceeded €1 billion. In-game and in-app purchases emerged as a critical revenue stream, growing 1% to €4.1 billion, with mobile gaming contributing €2.7 billion, almost entirely from in-app transactions. Despite overall market growth, the domestic industry faces a significant challenge: only 5.5% of every €100 spent on games in Germany benefits German companies. However, federal funding has demonstrated a positive impact, generating €6.50 in gross value added and €2.50 in taxes for every euro invested, with proposed additional tax-based funding expected to further boost development and employment.

The German games industry, encompassing developers, publishers, and service providers, saw its revenue reach €3.7 billion in 2024, employing 14,800 people. It remains highly fragmented, with over three-quarters of companies having fewer than ten employees. While PC games are predominantly digital (99%), console games still see a majority (58%) purchased on physical media. Beyond economic indicators, the industry prioritizes youth protection through the USK age-rating system, cultural development via the Foundation for Digital Games Culture, and the promotion of esports through initiatives like the esports player foundation. The industry association, game, representing over 500 members, actively promotes diversity, sustainability, and co-organizes gamescom, the world's largest games event. The report covers the German market and industry, providing data primarily for 2024 and 2025, with historical context dating back to 1995.