Germany’s video game industry has witnessed an impressive 81% increase in the number of companies between 2018 and 2024, signaling a robust expansion in the European gaming market. This significant growth, from 594 to 948 studios, is largely attributed to the introduction of a federal-level games funding program.
The German Games Industry Association (Game) highlighted this substantial development in a recent report, emphasizing how strategic government support has revitalized the sector. This surge reflects a broader trend of national investment bolstering creative industries, positioning Germany as a rising player in global game development.
Federal funding fuels German game industry expansion
A key catalyst for this remarkable expansion is Germany’s federal games funding program, which allocates an annual pot of €125 million to support local developers. This initiative has not only fostered new company creation but also strengthened existing studios, as detailed by gamesindustry.biz on January 15, 2026. The program’s success is a testament to Germany’s federal government initiatives in fostering innovation.
The impact of this financial backing is evident in industry sentiment. An overwhelming 87% of studios anticipate the funding will provide crucial support for development projects, while 67% expect significant turnover growth. Furthermore, 63% believe it will enhance their competitiveness and secure employment opportunities within the sector.
Beyond companies: Broader economic and workforce gains
The growth extends beyond just the number of firms. Between 2018 and 2024, company revenues in the German game industry climbed by 22% to €3.78 billion. Simultaneously, the workforce expanded by 20%, reaching 14,800 employees. This indicates a healthy ecosystem where increasing company numbers translate into tangible economic benefits and job creation across the European game development landscape.
Moreover, the industry is becoming more inclusive. The proportion of women in the German games industry increased from 25% to 30% during this period, a positive step towards greater diversity. Felix Falk, managing director of Game, commented on these developments: “When the framework conditions are right, the game industry delivers.”
Falk underscored the potential for Germany to further solidify its position as a global games location. He advocates for a “reliable mix of games funding and tax incentives” to match international standards, believing this strategy can elevate Germany’s competitiveness and help it catch up with top worldwide development hubs.
Germany’s strategic investment in its game industry is clearly yielding substantial returns, fostering an environment ripe for innovation and economic contribution. As the sector continues to mature, sustained support through both direct funding and tax incentives will be crucial for Germany to fully realize its potential and emerge as a dominant force in the global interactive entertainment landscape.
