Thriving once more: recovery of the gaming sector's downfall
The German gaming market is gearing up for an exciting second half of the year, with several factors contributing to its expected growth.
Factors Contributing to Growth
Mobile gaming has been a significant driver of growth, reaching a record revenue of €3 billion in 2024, up from €2.9 billion in 2023. This success is largely due to the accessibility and variety of mobile games, making smartphones the most used gaming platform in Germany.
There has also been a notable shift towards service-based gaming, with cloud gaming and subscription services seeing a 12% increase in revenue to €965 million in 2024. This trend is expected to continue, contributing to overall market growth.
The first half of 2025 saw a slight increase in online services revenue, with €621 million reported. This indicates a positive trend that could continue into the second half of the year.
Expected Growth in the Second Half of 2025
The German games market is projected to reach $13.14 billion USD in 2025, suggesting a potential increase from the €9.405 billion generated in 2024. This projection indicates that despite some stagnation, the market is expected to grow.
The German games market saw a 4% increase in the first half of 2025, signaling a return to growth. This upward trend is expected to continue, with mobile gaming and service-based models remaining key drivers.
However, challenges such as declining company numbers and the need for stronger government support could impact the industry's long-term competitiveness.
Challenges Facing the Industry
The German government's support for the gaming industry has been criticized, with many companies feeling that it lacks the strong frameworks found in other countries.
The industry needs to adapt to changing consumer behavior, such as the shift towards free-to-play models and subscription services, to maintain growth.
Upcoming Events
The Gamescom, scheduled to take place next week in Cologne under the theme "Games - Perfect Entertainment", is expected to set a new record, with over 1,500 exhibitors from 72 countries. Last year, 335,000 people attended the event, and many cosplayers dressed as game characters. This year is expected to be just as colorful.
Demographics
The average age of gamers in Germany is 39.5 years, an increase of 1.3 years compared to the previous year. Despite this, 52% of the surveyed respondents in Germany stated they occasionally or frequently play video or computer games.
The proportion of gamers in Germany has increased compared to 2015 (42%). 58% of gamers play less than two hours a day, while 7% play more than five hours a day.
Popular Games
Game CEO Felix Falk states that the gaming industry promotes games as something for the whole family, with examples including Mario Party and Doom. Sales of gaming hardware increased by 17% to around 1.2 billion euros, primarily due to the launch of the Nintendo Switch 2 console.
However, sales of computer and video games decreased by 2% to 2.7 billion euros, attributed to a lack of blockbuster releases.
In conclusion, the German gaming market is forecasted to continue its growth trajectory in the second half of 2025, driven by mobile gaming and service-based models. However, challenges such as government support and adapting to changing consumer behavior remain key issues for the industry.
- The retail sector of smart-home-devices might experience an uptick in sales, given the increasing preference for cloud gaming and subscription services in Germany.
- The finance industry could potentially benefit from the projected growth of the German games market, as revenue growth often indicates a healthier financial landscape.
- Sports fans indulging in social media might find more content about hockey, golf, sports-betting, basketball, racing, or tennis, as these are popular sports in Germany.
- The entertainment industry, including movie and music producers, might explore creative collaborations with game developers, given the increasing overlap between gaming and other forms of entertainment.
- Retail stores dealing in gadgets may experience a boom in demand due to the growing popularity of mobile games and smart-home devices in Germany.
- Mixed-martial-arts (MMA) enthusiasts might find heightened interest in the sport through social media channels, as the gaming industry becomes more inclusive and diverse.
- Technology companies focusing on streaming and networking solutions could capitalize on the surge in cloud gaming and the increasing number of online gamers in Germany.
- The retail industry selling video and computer games might need to adapt to free-to-play models and subscription services to stay competitive in the growing German games market.
