German Games Industry Faces Uncertainty Amidst Mixed Prospects

The German games industry finds itself at a crossroads, wrestling with a sense of uncertainty as it navigates a shifting landscape.

Felix Falk, the Managing Director of game – The German Games Industry Association, notes that the industry’s outlook has taken a more cautious turn compared to the previous year. This shift in sentiment is a result of various factors impacting both the global games industry and Germany’s domestic gaming funding policy.

A Mixed Year for the Global Games Industry

The year 2023 witnessed a mixed bag of experiences for the international games industry. While it saw the release of numerous high-quality games, the sheer volume of releases sometimes led to titles struggling to gain the expected level of attention. Simultaneously, the industry grappled with economic challenges and a slowdown in investment, contributing to a somewhat gloomier business outlook.

Challenges Hit Home

Recent weeks and months have brought reports of layoffs and, in isolated cases, studio closures within the German games industry. These developments have cast a shadow on the sector’s prospects, as reflected in the annual industry barometer published by game – The German Games Industry Association.

Complex Industry Sentiments

The data from the industry barometer paints a nuanced picture: only 12% of German game companies anticipate a positive or somewhat positive development for the German games industry as a whole in the coming year. This figure marks a stark decline from the 48% who held a more optimistic view one year ago.

However, the mood brightens when game companies assess their individual situations. Fifty percent of these companies express optimism about their own business prospects for the near future. This contrast between industry-wide concerns and individual company optimism underscores the complexity of the current landscape.

Employment and Government Support

In the realm of employment, game companies are relatively more optimistic about their own workforce. Forty-one percent anticipate a positive or somewhat positive growth in the size of their workforce, while 37% expect a neutral trajectory.

Government support also divides companies in their assessment. Roughly 33% view it as rather positive, 31% as neutral, and 36% as somewhat or very negative.

The Path Forward

Felix Falk emphasizes the need for a robust gaming policy and internationally comparable conditions to bolster Germany’s competitiveness in the global media market. The industry’s position will be pivotal in navigating the international gaming landscape, which can vary in harshness from year to year. A stronger position, Falk notes, will enable Germany to capitalize on future growth opportunities. The German games industry stands at the threshold of change, where strategic decisions and policy shifts will shape its trajectory in the years to come.