The German gaming industry experienced a period of significant structural adjustment between 2024 and mid-2025, characterized by a contraction in the number of core companies and a shift in market dynamics. Based on a survey of 343 companies conducted between April and June 2025, the industry saw the number of active developers and publishers decline by 5% from a 2024 peak of 948 to 897 by mid-2025. This downturn is attributed to heightened market competition, a retreat by investors, and reduced government support. Despite these challenges, the broader ecosystem remains active, with 1,700 total companies operating in the sector as of June 2025.
Revenue trends highlight an increasing reliance on international markets, which now account for 76% of total revenue for German gaming companies, up from 50% in 2018. While total market revenue reached €3.73 billion in 2024—a 22% increase since 2018—this growth lagged behind the 36% global market expansion. Furthermore, domestic products represent only a small fraction of local consumer spending, capturing just €300 million of the €5.5 billion total spent by German consumers in 2024. Financial instability is also rising, with 44% of companies reporting losses in 2024, compared to 21% in 2018.
Labor market data indicates a 20% growth in employment since 2018, reaching 14,800 workers by the end of 2024. The workforce has become more international, with 35% of employees being foreign nationals, and the share of women in the industry has risen to 30%. While technical and creative roles are expanding, average salaries in the gaming sector remain 14% lower than the German economy-wide average. Development focus has shifted heavily toward PC, which is now targeted by 79% of studios, while mobile development has seen a significant decline. Government funding remains a critical, albeit tightening, pillar of support, having provided €183 million to 363 projects between 2020 and 2025.