German Games Market Grows by 27 Per Cent in the First Six Months of 2020

Key insights

6 takeaways

01
The German games market generated 3.7 billion euros in total revenue during the first half of 2020, representing a 27 per cent increase compared to the same period in 2019.
02
Revenue from in-game purchases grew by 35 per cent, rising from approximately 1.1 billion euros in the first half of 2019 to nearly 1.5 billion euros in the first six months of 2020.
03
Games hardware revenue in Germany increased by 21 per cent, reaching 1.3 billion euros in the first half of 2020 compared to 1.1 billion euros during the same period in 2019.
04
Growth in the hardware sector was driven by increases across all four market segments, with particularly significant gains in gaming PC peripherals such as specialized mice, keyboards, monitors, and graphics cards.
05
Approximately 35 per cent of German players reported playing more than usual during the COVID-19 pandemic, while 27 per cent played more frequently with friends and family.
06
The market growth was driven by data collected by GfK and App Annie, reflecting a surge in interest during the height of pandemic-related contact restrictions.

Summary

The German games market experienced significant growth during the first half of 2020, driven largely by the social and behavioral shifts associated with the COVID-19 pandemic. Total revenue for games and gaming hardware reached 3.7 billion euros, representing a 27 percent increase compared to the same period in the previous year. This surge highlights the role of digital entertainment as a primary coping mechanism for consumers during periods of restricted social contact.

Revenue growth was particularly pronounced in in-game purchases, which rose by 35 percent to reach nearly 1.5 billion euros. Additionally, the hardware sector saw a 21 percent increase, generating 1.3 billion euros. This growth in hardware was notable given that the market typically experiences a decline in anticipation of new console generations. Consumer behavior data supports these financial findings, with 35 percent of players reporting increased playtime and 28 percent stating that gaming helped them navigate the challenges of the pandemic.

The analysis relies on data from the GfK Consumer Panel, which tracks the habits of 25,000 representative German consumers, and App Annie. Supplementary insights regarding player behavior were derived from a YouGov survey of 2,027 participants conducted between late July and early August 2020. These findings underscore a period of exceptional market expansion, cementing the importance of the games industry within the broader German economy during the health crisis.