German game companies saw a 4% decline in their numbers over the past year, following a period marked by "years of growth"

Recent findings indicate a decline in both the number of companies and employees within Germany's gaming sector, following a period of steady growth. This information was disclosed by The German Games Industry Association on July 23, 2025, utilizing statistics from gamesmap.de and Goldmedia.

The data highlights a 4% reduction in game publishers and developers located in Germany over the past year, bringing the count to 910. Among these, 454 are strictly developers, 52 serve as publishers, and the remaining 404 engage in both sectors.

Moreover, employment within the German gaming sector has dropped by 2%, decreasing from 12,408 in 2024 to 12,134 as of May 12, 2025.

This downturn comes on the heels of consistent growth invigorated by the launch of the German Federal Games Funding Programme in 2020, which spurred substantial increases in start-up activities.

Despite the recent decline, from 2020 onwards, the number of gaming companies grew by 46%, and the workforce increased by 23% up to 2024. However, according to game, this growth wave "has now completely subsided," as evidenced by 2024's statistics.

The report attributes this reduction primarily to global market consolidation and inconsistent gaming financial support within Germany. Notably, there have been "months-long suspensions" of funding applications three distinct times since 2020, forum game revealed.

The unpredictable support environment severely affects industry employment opportunities, as reiterated in the game press release.

"Germany's position in global gaming has weakened due to persistent fluctuations in game funding, coinciding with global market consolidations," wrote Felix Falk, game’s managing director, in the release.

Nevertheless, efforts are underway to reverse these downward trends and create fairer competition conditions. Falk mentioned future budget increases in funding to align with actual industry needs, allowing applications starting in August.

He noted that enhanced financing will not only supply companies with greater planning certainty but also enable the introduction of additional gaming tax incentives, as agreed upon by the coalition of CDU, CSU, and SPD.

Falk concluded with optimism, expressing that these improved conditions should soon foster start-ups and lead to a rise in job creation.