Video game market in Germany

The German games market is the largest in Europe and fifth largest in the world by global sales revenue (9.8 billion EUR in 2022).

All market segments (games, games hardware, and in-game/in-app purchases) have posted continuous growth in recent years. Around 6 in 10 Germans play video games and players are evenly split based on gender.

Smartphones are the most widely used gaming platform, followed by console and PC.

Key opportunities for Canadian video game companies in Germany

• Publishers - In contrast to Canada, Germany has a high number of companies that publish games, with big players like PLAION, Gameforge, Gamigo, and Daedalic
• Gamescom – The world’s biggest games event and Europe’s largest video games trade show
• Brand Canada – Canada is seen as an industry leader and Canadian games companies are well regarded as partners
• German developers are not as competitive as Canadian developers – less funding, less available talent, less infrastructure

Notable challenges for Canadian video game companies in Germany

• Most German games companies are young and small – 50% are less than 5 years old and 70% employ fewer than 10 people
• German publishers are highly sought after and can therefore be very selective in the projects that they take on and the conditions of the partnership
• Trend of German publishers to be acquired by major international companies – they are also less likely to make their own acquisitions
• While the games industry is more casual, German business culture is still important – there is an expectation of a certain etiquette and formality in business interactions

Germany business landscape

While the German games market and industry show continued growth, the country remains less competitive as a location for the games industry. Overall, the German games industry lags behind in international competitiveness with games companies rating it as “rather poor” or “poor”.

Canada is seen as the example of a successful games industry to which Germany aspires.

To combat the high cost of producing games and lack of specialized talent in Germany, there now exists funding programs at the federal and regional levels that provide over 80 million euros per year to games companies. A national games strategy has also been established with an aim of turning Germany into a globally competitive location for the games industry. There is even a games department in the Federal Ministry of Economic Affairs!

Summary

Germany is an attractive market for Canadian games companies, in particular for video game developers seeking a publisher, with Canadian developers have a competitive advantage over their German counterparts.

The German video game market is quickly growing and presents attractive opportunities for Canadian companies.

For more information on video games in the Germany market, please contact deutschland.commerce@international.gc.ca.