German Games Industry in 2025

The German games industry entered 2025 in a period of transition. After years of growth, the sector recorded a decline in both company numbers and overall revenue in 2024. For the first time in five years, the total number of gaming companies operating in Germany decreased, signaling a turning point for a market that had previously shown consistent expansion. While gaming remains a major part of German entertainment culture, the industry faces structural challenges in its business models, platform preferences, and government support.

Market Performance in 2024

In 2024, the German games market generated €9.405 billion, a 6% decline compared to 2023, when revenue stood at €9.969 billion. This contraction marked a pause in the long-term upward trend, despite overall growth of 58% since 2019.

Game sales accounted for €5.501 billion, reflecting a 6% year-on-year drop. Hardware sales fell even more sharply, declining by 10% to €2.939 billion. The only segment to expand significantly was cloud gaming and subscription services, which grew by 12% to €965 million, underlining a gradual shift toward service-based consumption.

Over the past five years, the strongest growth has come from online services, which have increased by 109%, followed by game sales at 61% and hardware at 43%. Yet the stagnation since 2021 suggests that the market is reaching a plateau in traditional revenue streams.

German Games Industry in 2025

Game Sales and Consumer Spending

Consumer spending in 2024 showed a mixed picture. Microtransactions and downloadable content (DLC) reached €4.58 billion, a 3% decline compared to 2023. Sales of full-price titles, both digital and physical, experienced a sharper downturn, falling by 16% to €921 million.

Spending patterns varied across platforms. On PC, microtransactions made up 70% of revenue, while full-price purchases contributed 18% and online services 13%. Mobile gaming, dominated by smartphones and tablets, relied heavily on microtransactions, which represented 98% of revenue. Cloud services and subscriptions contributed 2%, while full-price titles accounted for less than 1%. Consoles demonstrated the most balanced spending distribution, with 35% of revenue from game sales, 38% from online services, and 27% from in-game purchases.

German Games Industry in 2025

Hardware Market and Trends

The hardware segment also shifted in 2024. Gaming Windows PC accessories were the largest category, generating €1.201 billion, though this represented a 4% decline compared to 2023. Console sales suffered the steepest drop, falling by 26% to €807 million. Gaming PCs accounted for €540 million, a modest 1% decrease year-on-year.

The only hardware category to grow was console accessories, which reached €391 million, reflecting a 5% increase. This growth suggests that while console hardware sales declined, existing players continued to invest in enhancing their gaming experience.

German Games Industry in 2025

Digital vs. Physical Purchases

Digital distribution continued its upward trajectory. In 2024, 68% of games in Germany were purchased digitally. The share was particularly high on PC, where 99% of games were acquired in digital form. On consoles, physical editions remained more resilient, with digital purchases representing only 44% of the market.

The shift toward digital is strongly influenced by age demographics. Younger players overwhelmingly prefer digital purchases, while older players remain attached to physical editions. This generational divide continues to shape the structure of the market.

German Games Industry in 2025

Player Demographics and Platforms

Germany has a large and diverse gaming population. In 2024, 37.5 million people played games, with an average age of 39.5 years. Adults made up the majority, with 79% of players over the age of 18. Women represented 48% of the gaming population, highlighting the broad appeal of games across demographics.

The segment of older players is expanding. The number of gamers over 60 reached 7.7 million in 2024, reflecting the growing role of gaming in older age groups.

Smartphones remained the most popular platform with 22.9 million players, followed closely by consoles with 20.5 million users. Console gaming, in particular, showed strong growth, with a 29% increase in audience size since 2019. By contrast, PC gaming has steadily declined, with the player base shrinking from 13.5 million in 2023 to 13.1 million in 2024. Tablets maintained a stable audience of 10.3 million players, a figure largely unchanged for six years.

German Games Industry in 2025

Best-Selling Games in 2024

Consumer preferences were reflected in the best-selling titles of 2024. Among PC and console releases, EA Sports FC 25, Call of Duty: Black Ops 6, and Helldivers 2 were the most successful. In the mobile sector, Block Blast Adventure Master, Brawl Stars, and ROBLOX dominated download charts. These titles illustrate the split between blockbuster franchises in traditional gaming and highly accessible free-to-play models on mobile platforms.

Industry Structure and Employment

As of 2025, Germany is home to 910 gaming companies. Of these, 454 operate exclusively as publishers, 404 both develop and publish, and 52 are dedicated solely to development. The total number of companies declined for the first time since 2020, marking a notable shift in the industry landscape.

Employment figures also fell slightly. The German games industry now employs 12,134 people, a 2% decrease compared to 2024. The largest employers include Nintendo of Europe with 935 staff, Ubisoft with 660, and InnoGames with 350.

German Games Industry in 2025

Challenges and Government Support

Industry observers have criticized Germany’s approach to supporting its games sector. Compared to other countries, Germany is viewed as offering weaker support frameworks, making it less attractive as a competitive location for development. A survey of game companies found that 87% of respondents rated Germany poorly as a hub for game development.

This lack of competitiveness is seen as a key factor behind the recent stagnation in growth and the decline in company numbers. While Germany remains one of Europe’s largest gaming markets, the report suggests that structural reforms and stronger public policy support will be necessary for the country to remain competitive internationally.

German Games Industry in 2025

Final Thoughts

The German games industry in 2025 finds itself at a crossroads. Despite having a large and diverse player base and strong long-term growth since 2019, recent declines in company numbers, revenue, and employment raise concerns. Consumer spending patterns continue to shift toward digital purchases, subscriptions, and microtransactions, while traditional full-price titles and hardware sales struggle.

With growing demand for service-based gaming and a steadily expanding audience across age groups, the market retains strong potential. However, the industry’s ability to capitalize on these opportunities may depend on stronger institutional support and adaptation to changing consumer behavior. Without these adjustments, Germany risks losing ground as a competitive environment for game development. Here are all the games mentioned: