The German gaming industry is projected to decline by 6% in 2024, with market value falling to €9.4 billion

In 2024, the German video game market shrank by 6% year-over-year, amounting to €9.4 billion. Sales for premium video games saw a sharper decline of 17%, falling to €921 million from €1.1 billion the prior year.

This data was disclosed by the German Games Industry Association (Game), with statistics gathered by YouGov Shopper, Nielsen IQ, and Data.ai.

The total sales of video games, including premium games and in-app purchases, fell by 6% to €5.5 million.

In-app and in-game purchases faced a minor dip of 3%, reaching €4.6 million. Game emphasized the significance of this segment as a crucial revenue stream, compensating for heightened development expenses and mitigating economic risks.

On the hardware front, earnings diminished by 10% to €2.9 million in 2024. Console sales experienced the most significant decline with a 26% decrease, totaling €807 million last year.

Game pointed out that 2023 was unprecedented regarding console sales due to the previous lack of consistent availability of certain models, leading to a compensatory surge. Nevertheless, the figures for 2024 surpassed those from 2022.

The market for online gaming services saw a rise, with an increase of 12% to €965 million in 2024, compared to €860 million in the preceding year.

"The German games market saw a pause in its usual robust growth in 2024," stated Felix Falk, the managing director of Game. "This slowdown was partly due to fewer popular game releases and the stabilization in demand for gaming consoles."

Falk noted a significant increase in online gaming services such as cloud gaming, which highlights the gaming industry's continuous innovation and vigor. He added that upcoming new consoles and major game releases should stimulate market growth again soon.