03 The games industry in Germany

Last year brought a mix of both light and shade in the international game sector. While a remarkably large number of high-quality games were released, this also prevented some of these titles from attracting the expected level of attention. At the same time, a generally overcast economy and a slowdown in investment made for a worsened business outlook.

As a result, the industry saw a rise in lay-offs and, in isolated cases, even studio closures over a several-month period. These increasingly difficult economic circumstances, in combination with the uncertainty surrounding federal-level games funding, pose a challenge for German games companies as well. This is reflected by game’s industry barometer, which shows that only 12 per cent of games companies expect a very positive or somewhat positive development in the German games industry in 2024, as compared to 48 per cent one year ago. Companies are significantly more optimistic when it comes to their own prospects, however: one in two games companies (50 per cent) anticipate a positive or somewhat positive development in their own business.

Overall, the medium-term economic outlook is good. After sales revenue from games dropped off in some markets in 2022 – Germany, in contrast, registered a slight increase -, the worldwide games market subsequently picked up again, growing by 0.5 per cent in 2023 according to the market research company Newzoo.[1] The global games market is expected to grow from 183.9 billion US dollars in 2023 to 207 billion US dollars by 2027.

[1] Last looks: Our final 2023 games market estimates and forecasts (newzoo.com)