A new study of the German games industry reveals dynamic growth and significant potential. The industry has grown strongly and the Federal Games Funding Programme is having a positive impact on the public sector. The study concludes that tax incentives are required.
Despite facing multiple challenges, the German games industry experienced strong growth from 2018 to 2024, largely due to the introduction of Germany’s federal-level games funding programme. This is the conclusion drawn by game - The German Games Industry Association from the new study "Die Games-Branche in Deutschland 2025" (The Games Industry in Germany 2025), published today. During this period, the number of games companies in Germany increased from 524 to 948 (+81%). Company revenues also increased to €3.73 billion (+22%) during this period. In parallel, the total number of employees at games companies grew to 14,800 (+20%), and the proportion of women in the German games industry increased from 25% to 30%.
Although the share of the domestic market held by German video game productions remains small. For every €100 that consumers spend on video games in Germany, only €5.50 goes to German game companies. This is partly because Germany has been less competitive internationally for many years. According to the study, it is only since the introduction of Germany's Federal Games Funding Programme that the country has begun to catch up. The programme has clearly benefited the public sector too, with every euro of funding in 2023 generating around €6.50 of gross value added and €2.50 of taxes and social security contributions. Additional tax incentives for games, which are common practice internationally, were announced in the current coalition agreement and could provide a real boost for Germany as a location for the gaming industry: 87% of gaming companies expect these incentives to provide additional impetus for development, 67% anticipate growth in turnover and 63% expect improved competitiveness and job security.
"As the strong growth of the sector in the last several years strikingly shows, when the framework conditions are right, the games industry delivers," says Felix Falk, Managing Director of game. "The Federal Games Funding Programme pays off for Germany. But the actual turbo hasn't even been switched on yet. We can only tap Germany’s full potential as a games location through a reliable mix of games funding and tax incentives. By meeting this international standard, we can take our competitiveness to a new level, giving us the chance to catch up with the top locations worldwide."
The study was produced by Goldmedia as part of a project for game - the German Games Industry Association. It was co-financed by the Federal Ministry of Research, Technology and Space (BMFTR), which assumed responsibility for the area of games at the federal level in May 2025. A central component of the study was an online survey, which 343 German gaming companies participated in between 29 April and 15 June 2025. The complete study can be downloaded here (in German only).
