Germany's video game market grew by 6% in 2023 and reached 10.8 billion euros. The overall value of the video game market in Europe in 2022 was estimated at about 24 billion euros (equivalent to 26 billion dollars). Germany accounted for roughly 40 percent of Europe's market at that time and became one of the largest companies in Europe's games industry. Even so, the German government's investment efforts in the video game industry did not stop, and the value of the video game market in Germany in 2023, with 6 percent growth, reached about 10 billion euros. Also, revenue from mobile games, which had been estimated at 1.5 billion euros in 2018, nearly doubled and rose to 2.9 billion euros in 2023.
2022, a turning point for the video game industry in Germany
In 2022 the German games industry association announced that Germany's video game market in 2022, with 1 percent growth, reached 9.87 billion euros.
Germany's video game market in 2022, despite various challenges, was surprisingly stable. After the substantial growth that followed the COVID-19 pandemic, many expected revenues to decline in 2022; especially because of the high inflation rate throughout the year, a reduction in the time people spent playing, and delays in the release of new games that were evident in other countries. The 1 percent growth in 2022 is another sign of this industry's success, as the German games market was able to stabilize its revenues close to the 10 billion euro mark.
Also, the online game services segment such as Xbox Game Pass, PlayStation Now, Nintendo Switch Online, and Nvidia GeForce Now experienced the strongest growth, with a 20 percent year-on-year increase, a figure that came after a 4 percent increase in their annual profit in 2021.
Despite limited growth in the global game industry markets in 2022, Germany's games industry performed better than many of its large rivals; so that large German game companies such as InnoGames reduced game consumers' spending in the United States by 5 percent and in China by 10 percent.
The prominent role of mobile games and in-app purchases in the success of the games market in Germany
The video game industry in Germany has grown dramatically over the past ten years. This growth has been due not only to an increase in the number of game companies, but also to government support, technological advances, and methods of generating revenue. The number of German game companies along this path of progress from 2013 to 2023 has reached 908, a figure that indicates 15.5 percent growth relative to the previous period. Also, the number of people employed in this industry has increased and reached about 12,000.
The CEO of the German video games association, Felix Falk, stated:
"Despite more than a decade and a half having passed since the uninterrupted growth of smartphones, this segment of the games market continues to grow. Mobile games often attract people who have little experience with video games, or none at all."
The remarks of the CEO of the German video games association indicate the impact of the "in-app purchases" lever alongside sales of game consoles and their accessories in 2023. 98% of mobile game revenue has been obtained through in-app purchases, while online game services have generated 43 million euros in revenue, and sales of standalone games account for less than 1% of total revenue, equivalent to 5 million euros.
Support for making games in Germany and the importance of attention to technology
One of the important reasons for the growth of the video game industry in Germany has been government support. The German federal government has launched numerous support programs for the development of this industry. Among these programs, one can point to allocating budget for startups and reducing taxes, measures that have attracted more investment from game companies.
The impact of applying technology and innovation in the development of the video game industry is also undeniable. German companies such as Crytek and InnoGames have taken important steps in building new technologies such as virtual reality and cloud gaming. In addition to conventional video games designed for leisure, complex games and even esports titles are now well established in the German games market.
Demographics of German gamers
In Germany 48 percent of players are women and 52 percent are men. As in recent years, the average age of players has risen slightly and reached 37.9 years. In 2022 this average was 37.6, and in 2021 it was only 37.4 years. This increase in average age is because many of the people who began experiencing video games in the 1980s and 1990s have, over time, remained loyal to this pastime. That is why the narrative style of games in titles released by German game companies has a structure similar to works of the fifth generation of video games.
Most gamers in Germany are 50 years old or older, and about one-third of them are in the 50 to 69 age group. 78 percent of German players are at least 18 years of age or older. These figures show that video games have become a major part of the everyday life of millions of Germans regardless of their age and gender. In Germany, out of every 10 people, approximately 6 between the ages of 6 and 69 are playing video games. After 6 percent growth in the number of players from 2019, this trend had stabilized, and people who had started playing computer and video games during the COVID-19 pandemic have played an effective role in Germany's video game market.
Germany's most successful game companies in 2023
In recent years German game companies have achieved substantial growth in this industry. The games industry in this country has grown in terms of the number of companies and employees and is competing with other advanced countries in this field. Crytek is one of the oldest German game companies, known for developing successful game series such as Crysis and Hunt: Showdown. Because of its innovative technologies in game engines, this company is considered one of the world's top game companies in 2023.
Also, Deck13 Interactive, with the release of action role-playing games such as The Surge and Lords of the Fallen, InnoGames with the making of online strategy games such as Forge of Empires and Elvenar, and Wooga with the making of mobile titles and earning revenue through in-app purchases, play an important role in this country's video game economy. Government investments have also had an effective role in the development of this industry.
Final word
The value of the video game market at the global level in 2023 was estimated at about 184.4 billion dollars, and it is forecast that by 2025 this figure will reach 211 billion dollars. Germany's share of the global market is about 5.8 percent, which indicates its high importance in this industry; a country that made the most of the thick of the 2022 games industry economic downturns to develop its video game market. This substantial share has made Germany one of the leading video game markets in Europe and the world, which, with its continuous growth and development over the past ten years, has proven that video games in Germany have become one of this country's most important economic sectors.
Namafar invites you to read the world's best game development companies.
Machine-translated from Persian by Namafar; the Persian original is authoritative. Read the original in Persian