German Gaming Industry Faces Challenges Amid Growth and Competition
Germany's gaming sector experiences growth but faces challenges, including increased foreign competition and reduced government support.
As of June 2025, Germany's gaming industry comprised 1,700 active companies, including 1,200 developers, publishers, and service providers. This marks a significant increase from 619 product companies in 2018. However, the number of core companies—developers and publishers—peaked at 948 in 2024 before declining to 897 by mid-2025, a 5% decrease attributed to intensified competition, investor retreat, and reduced government support.
Foreign-owned companies now generate 88% of the industry's total revenue, up from 65% in 2018. While the German market's total revenue grew to €3.73 billion in 2024, a 22% increase since 2018, this growth lags behind the global market's 36% expansion over the same period. Notably, 76% of German gaming companies' revenue comes from international markets, rising from approximately 50% in 2018.
In 2024, German consumers spent €5.5 billion on games, yet products from German companies accounted for only 5.5% (€300 million) of that expenditure. Additionally, 44% of companies reported losses in 2024, up from 21% in 2018. Despite these challenges, 51% of companies anticipate revenue growth in 2025/26, though only 23% are optimistic about the market's overall outlook.
Employment in the industry reached 14,800 by the end of 2024, a 20% increase from 2018. The proportion of women in gaming companies grew from 25% in 2018 to 30% in 2024, aligning with the broader German IT sector. Technical and creative roles now constitute 37% and 35% of the workforce, respectively, while commercial and marketing roles have declined to 22%.
The average industry salary in 2024 was €53,251, 14% below the national average of €62,235. Median salaries are closer, with approximately €50,000 in the gaming sector compared to €52,159 nationally.
PC remains the primary platform for German developers, with 79% of studios targeting it, up from 60% in 2015. Console development interest remains stable, while mobile development has declined from 65% in 2015 to 37% in 2024. Notably, AR/VR development has increased from 3% in 2018 to 16% in 2024.
Projects with budgets exceeding €500,000 have grown from 17% to 23%, yet 65% of titles still cost under €300,000 to develop. As of 2025, projects under €300,000 are no longer eligible for government funding. Between August 2020 and June 2025, the federal funding program approved financing for 363 games from 252 companies, totaling €183 million. Notably, 57% of individual grants were under €300,000.
In 2023, every euro invested by the government generated €6.50 in added value and €2.50 in taxes and social contributions, indicating effective use of funds. The largest individual funding recipients included Anno 117 (€5.7 million in government funding out of a €22.8 million budget), Foxtrott (€5 million out of €20 million), and TMNT: The Last Ronin (€3.2 million out of €12.6 million).
