FACT SHEETThe Gaming
E-Commerce
Industry
MarketinGermanyin Germany

ISSUE 2022

Germany’s games market is the largest in Europe andthe fifth largest internationally. The sector generated
record turnover of EUR 8.5 billion in 2020. Covid-19 lockdown and social distancing restrictions helped increasedemand – with almost 60 percent of the population
being active gamers.
Germany is home to Europe’s biggest gaming market. The
Covid-19 crisis had a seemingly propitious effect on industry
fortunes in 2020, driving demand to record levels as the population came to terms with strict contact and lockdown restrictions. Total computer and video games and related hardware
turnover grew 32 percent to a record EUR 8.5 billion according
to game – the German Games Industry Association. Sales ofgames hardware increased 26 percent to around EUR 3.2 billion, with the computer and video games segment growing to
EUR 5.2 billion – equivalent to annual growth of 36 percent.

Germany’s Gaming Marketin Numbers
Number 1
games market in Europe

EUR 8.5 billion
games and gaming hardware turnover

32 percent market growth
games and gaming hardware

Silver gamers the biggest player group
Fifty-eight percent of the population – between six and 69years of age – play video games. According to game, player
numbers grew by five percent in 2020, with near gender parity between male and female players (52 percent and 48 percent respectively). “Silver gamers” – players in the 50-59 yearsof age and 60-69 years of age categories – account for one
third of all domestic video game players. The preponderanceof older gamers in the country is responsible for an increase inaverage player age to 37.4 years.
Games “made in Germany”
Germany is currently home to 749 companies that develop
and distribute games. Of this number, 403 companies publish
and develop, 314 companies develop exclusively and 32
companies publish exclusively. Turnover growth of German
games companies currently lags behind the overall pace inthe domestic market according to game, with significant
potential available to new market entrants who tap into thepotential for games made in Germany.

749 companies
develop and distribute games in Germany

52 percent increasein number of games studios active in Germany

60 percent plusof the population play video games→ Visit our website for more gaming
market information: www.gtai.com/gaming
Source: game 2021

MARKET OPPORTUNITIESGermany’s Changing Games Market
Germany’s highly diversified computer and video game market provides excellent opportunities for international investors in a number of segments including online games, in-app
purchases and games hardware.
Covid-19 drives demand for hardware and accessories
Demand for games hardware and accessories sharply
increased in 2020 as gamers responded to the pandemic yearwith an enhanced interest in computer and video games.
Interest in consoles increased, with many consumers upgrading or buying new consoles. Hardware (consoles, gaming PCsand accessories) turnover recorded an annual increase of 26
percent in 2020, taking turnover to approximately EUR 3.2billion. Next generation consoles and graphics cards drove
high sales levels, with supply chain bottlenecks unable tomeet consumer demand in many instances. Germany’s games
industry has come out of the ongoing Covid-19 pandemic
with renewed confidence. A survey of game members showedthat seven out of ten companies expected their businessprospects to improve in 2021.
Mobile devices, free-to-play games and in-app purchases
Smartphones have become an essential part of daily life inGermany, with almost 61 million users in 2020. High mobiledevice penetration levels have simultaneously resulted ina steady increase in the number of mobile device gamers.
Smartphone and tablet gaming apps generated around EUR
2.3 billion in revenue in 2020 – equivalent to a 23 percent
increase on 2019 turnover levels. Combined in-game andin-app turnover for the same period was more than EUR 3.2billion – equivalent to year-on-year growth of 44 percent.
According to game, in-app purchases constitute the dominantbusiness model in the mobile games segment. The easy accessibility of free-to-play games provides game developers withan attractive access point from which to promote in-app purchases to players.
Online game services
Demand for PC, console and smartphone game online services
that allow gamers to compete online and access cloud services doubled in size in 2020. According to game, the fees
market for online games services for PCs, consoles and smartphones also exhibited enormous growth in 2020, increasing
by 50 percent to EUR 692 million. According to game, cloudgames services that require high-speed internet connections –popular because users no longer have to own high-performance hardware – grew by 67 percent to EUR 72 million in2020. Online games services of the kind provided by companies including Nintendo, PlayStation, Sony, and Xbox generated revenue of EUR 439 million during the same period.
Monthly subscription games services – of the kind offered byEA Play, Xbox Game Pass , Ubisoft+, and Apple Arcade – thatprovide players with unlimited access to an extensive libraryof games grew by 44 percent to EUR 181 million in 2020.

Games Market Turnover Development by Segment

In-App and In-Game Market Revenue Development

in EUR million

in EUR million

3,250

In-game purchases on PCs and consoles

1,491
1049

113

692

461
Purchases

3255
1,831

3252

1169

1,137

1,170

2,250

2254

1169

1049

2,265

2586

3252

2254

In-gamepurchases

In-app purchases on smartphones and tablets

3255

2586

1,050
Hardware2020

Charges for
Subscriptions
online services

Source: game 2021
*calculations based on the GfK Consumer Panel (2019/2020; n=25,000),
GfK Entertainment, GfK POS Measurement and App Annie

987

163

3,250
2,590

2019

383

458

423

2017

2018

2019

Source: game 2021

2020

Gaming Clusters in Germany
Developer and publisher gaming hubs are continuously
growing in and around Germany’s major cities. All clusters
include developer, publisher and supplier companies as wellas training and education facilities specialized in gaming. The
individual clusters organize major industry events (such as theinternationally recognized trade fair gamescom in Cologne)
and locally oriented networking events. All regional clusters
provide a wide range of monetary incentives, interest-reducedloans, equity capital/financing, consulting/expertise, guarantees, and access to regional funding.

SchleswigHolsteinMecklenburg
Western-Pomerania

HAMBURG
900.52 m

Niedersachsen

1Hamburg

Brandenburg

NIEDERSACHSENHanover27

BERLIN AND BRANDENBURG
Berlin

0.6 m

2130

2.2 m

3
Saxony-Anhalt

NORTH RHINEWESTPHALIA
110

North RhineWestphalia

3m

SAXONY, SAXONY-ANHALTAND THURINGIA
28

Rhine-Ruhr region

0.02 mHessen5Thuringia

HESSEN36

Saxony0,2 m

RHINELAND-PALATINATE
140.125 m

6Frankfurt

Game developers and publishersBavaria

SAARLAND
6

Amount of funding available

RhinelandPalatinate
BAVARIA

0.18 mBaden-Württemberg

163

2.5 m

7BADEN-WÜRTTEMBERG
65

Source: game 2021

0.9 m

Munich4

1 Hamburg
Hamburg is one of Germany’s most dense and active gaming
clusters. The city is home to companies drawn from across thecomplete gaming value chain with all major ­specializations –including gaming law – represented. A number of inter­national companies (such as Square Enix and Warner Bros.
Entertainment) as well as domestic successes (Bigpoint, Innogames and Fishlabs) are part of the local gaming ecosystem.
In recent years Hamburg has developed to become an international hub for browser-based games. Since 2009, a master’s
degree program in Sound, Vision, Games has been available atthe local University of Applied Sciences.
www.gamecity-hamburg.de

5 Rhine-Ruhr region
The Rhine-Ruhr region is not only one of Germany’s mostdensely populated urban centers; it is also a hot spot of theGerman gaming scene. Game companies based in the RhineRuhr area range from major international players like EA
and Ubisoft to a raft of local start-ups active in the region.
Gaming-specific education and training facilities such as
Mediadesign College in Düsseldorf (MD.H), Games Academy,and Cologne Game Lab (CGL) attract fresh young talent to thecities in the Rhine/Ruhr region. International gaming professionals and consumers alike come together annually at theinternationally renowned gamescom trade fair in Cologne.
www.medien.nrw.de2 Berlin

6 Frankfurt

Berlin is one of the world’s start-up hot spots, while its nearneighbor Potsdam (the capital of the state of Brandenburg) isa major center of international film production activity. Thiswinning combination helps make the Berlin/Brandenburg
region an important location for the gaming industry. The twolocations are major frontrunners in the field of online gaming.
German companies like Wooga, Yager and GameDuell are allbased in Berlin, with the number of international companies(e.g. Aeria Games, Wargaming and Epic Games) resident in
the capital also growing. Berlin also excels in terms of gaming
education and training: Games Academy, the Hochschule fürTechnik und Wirtschaft (HTW), and the Universität der Künste
(UdK – “University of the Arts”) train potential employees forthe gaming industry.
www.medienboard.de

Frankfurt is home to more than just Germany’s financial
center and largest international airport. Today it also counts
as a Mecca for the gaming industry. Many international
companies (including Nintendo, Sony Interactive Entertainment and ­Bandai Namco Entertainment) have their German
representation in Frankfurt. Germany’s world famous Crytek
also has its roots here, and remains very much a vital part ofthe local gaming ecosystem. The region also provides accessto a wealth of talent in the form of students matriculated
on a range of game-related courses of study including Game
Design, Digital Art and Game ­Programming.
www.gamearea-frm.de

3 Hanover
The Greater Hanover region may not be one of Germany’s
major metropolitan areas but it is nevertheless home to an
active and vibrant gaming scene. One example is the Game
Forum Germany, which brings companies from across Germany together. The bi-annual Serious Games Conference also
takes place in the city. Hanover is still very much an insider’s
tip for gaming, so competition for talent remains moderate.
www.nordmedia.de
4 MunichMunich has been one of the most important German gaming
clusters for some years. This is due in large part to the unique
combination of local success stories (e.g. Mimimi Productions
UG, Travian Games, European Games Group ) and the presence of big international gaming companies (such as Activision Blizzard, Koch Media, and Take 2). Another importantpart of the ecosystem is the German Computer Games Award
which is held every alternate year in Munich and Berlin.
www.games-bavaria.com

7 Baden-Württemberg

The federal state in the southwest is home to global player
Gameforge but is, for the most part, largely dominated by asignificant number of small and medium-sized gaming companies. Baden-Württemberg is also home to numerous simulation and serious games developers including B-alive, Korion
Simulation-Software and TriCAT. The region has a strong tradition in engineering and entrepreneurship – two factors thatare of benefit to gaming companies seeking highly educatedemployees, many of whom have studied at Gamelab which isa part of Karlsruhe’s University of Arts and Design.
www.innovation.mfg.de

INVESTMENT CLIMATESupporting Business Success
Germany is providing funding of EUR 50 million to video gamedevelopers active in Germany to consolidate the country'sposition as a global hub for game production. Innovative
start-ups are also identifying the country as preferred location
thanks to a winning combination of moderate costs, excellent
infrastructure and access to an international talent pool.
International Trade Events
Major international games industry events like gamescom
and regional platforms attract thousands of gaming professionals each year, making Germany a focal point for the European and international gaming business communities.
Creative Europe“Creative Europe” is the European Commission's flagshipinitiative to support the culture and audiovisual sectors inEurope. The “Support for the Development of European VideoGames” subprogram has been allocated a budget of EUR 3.8
million for the development of highly innovative and creative
narrative storytelling video game concepts and projects
designed for commercial release.

Strategy for Germany as a Games Hub
Germany’s Federal Ministry of Transport and Digital Infrastructure (BMVI) has launched a new initiative to bolster
the country’s status as a games development hub, drive it
forward and enhance its international visibility. Drawn up inclose cooperation with industry stakeholders and the generalpublic, the “Strategy for Germany as a Games Hub” is a complementary strategy to two existing instruments to support
the computer and video games industry: the “German Video
Game Awards – DCP” (established in 2009 to raise industryprofile) and the “Federal German Games Funding Programme”
which was launched in 2019. The strategy forms the basis foran ongoing dialogue with all relevant stakeholders within thefederal government, the federal states, business, culture, andscience to establish Germany as a leading international games
location. Additional measures including the restructuring of
the BMVI division responsible for video games have also beentaken to address current structural challenges. The restructuring will underpin a holistic approach to supporting gamingin Germany that goes above and beyond the provision offinancial instruments and support.

Federal German Games Funding Programme
The “Federal German Games Funding Programme” provides
annual funding of EUR 50 million to computer and video
game developer activities in Germany. The funding initiative provides support to games developers in order to establish the country as an important international games
development location. Funding is provided as a non-repayable grant to prototype and development projects that satisfy program eligibility criteria. Prototype development costs
must be between EUR 30,000 and EUR 400,000 while production development costs must be at least EUR 100,000.

Germany Trade & Invest – A Strong Partner
Germany Trade & Invest provides direct access to all of therelevant actors in the German gaming industry. As the hub fora far-reaching network at both home and abroad, GTAI maintains close relations with all clusters, networks and research
institutions. Our industry experts support you in finding
project partners for your project. Germany Trade & Invest also
helps identify relevant funding incentives options for yourproject in Germany.

Around 190 projects are currently being implemented or about
to begin as part of the Federal German Games Funding Programme, with a further 110 or so projects already completed.
In the pilot phase, approximately EUR 27 million in budgetaryfunds were committed to 230 funding projects – 99 percentof which was paid to small and medium-sized enterprises (afurther 87 percent of this number consisted of start-ups with
10 or fewer employees). Budgeted development costs forprojects already approved range from EUR 35,000 to EUR 10million.

game – Verband der deutschen GamesBranche e.V.

Federal State Level Funding
The individual federal states also provide funding for theirrespective gaming industries. Funding levels and eligibility
conditions vary according to the individual funding organization. Funds are typically made available to developer andproject activities taking place at local federal state level.

game is the association of the German games industry. Its approximately 340 members include developers, publishers and many other games industry actors
including e-sports companies, institutions and service
providers. The association is also a shareholder in theGerman Entertainment Software Self-Regulationbody (USK), the Digital Games Culture Foundation,
the e-sports player foundation, and devcom, the official game developer conference of gamescom. As wellas this, game is also the co-organizer of gamescom,
the world’s biggest computer and video games industry event.

Our Support for Your Business in Germany
Germany Trade & Invest (GTAI) is the foreign trade and inward
investment agency of the Federal Republic of Germany. Weadvise and support foreign companies planning to expandinto the German market and assist German companies seeking to enter global markets.

All investment-related services are provided entirely freeof charge and all enquiries are treated with the utmost
confidentiality.

Investor Consulting
Our Investor Consulting division of specialist industry teams
provide international investors in all sectors with comprehensive consultancy services specific to each individual investment project. Services include:

Oliver Wilken
Digital & Service Industries
oliver.wilken@gtai.com

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