In Tenth Year of the iPhone, Game App Market Grows by 26 Per Cent: Germany

Key insights

7 takeaways

01
In the first half of 2017, the German game app market grew by 26% year-on-year, reaching 262 million euros in total sales revenue.
02
In-app purchases for virtual goods and additional content accounted for 254 million euros of the total game app revenue, representing a growth of approximately 28%.
03
The purchase of game apps themselves accounted for only 8 million euros, or 3%, of total game app sales revenue in the first half of 2017.
04
The overall German computer and video games market, including PC, console, and mobile platforms, grew by 11% to approximately 1.08 billion euros in the first half of 2017.
05
Revenue from online network fees, such as PlayStation Plus, Xbox Live Gold, and EA Access, increased from 51 million euros to 78 million euros year-on-year.
06
Sales revenue from virtual goods and additional content across all gaming platforms rose by 26% to 400 million euros in the first half of 2017.
07
Game subscription revenue grew by nearly 10% to 90 million euros during the first six months of 2017.

Summary

The German games industry experienced significant growth in the first half of 2017, driven largely by the continued expansion of the mobile gaming market. Ten years after the introduction of the iPhone, mobile game apps have become a dominant force, with revenue in Germany reaching 262 million euros during the first six months of 2017. This represents a 26 percent increase compared to the same period in 2016. The vast majority of this revenue, totaling 254 million euros, was generated through in-app purchases of virtual goods and additional content, while direct app purchases accounted for only 8 million euros.

The broader German computer and video games market also demonstrated strong performance, with total revenue rising 11 percent to approximately 1.08 billion euros in the first half of 2017. Beyond mobile apps, growth was observed across several segments, including a 26 percent increase in revenue from virtual goods and additional content, which reached 400 million euros. Furthermore, revenue from online network fees—such as those for PlayStation Plus, Xbox Live Gold, and EA Access—grew from 51 million to 78 million euros year-on-year, while subscription services saw a 10 percent increase to 90 million euros.

These findings are based on data compiled by the market research institute GfK, utilizing a consumer panel and an ongoing survey of 25,000 individuals representative of the German population. The analysis highlights a shift in consumer behavior toward digital content and ongoing engagement models, confirming that mobile gaming has become a standard, high-quality entertainment medium for a growing number of users. The data serves as a key indicator of the industry's health and its ongoing evolution within the German market.