German Game Industry Sees 4% Decline in Companies Over the Past Year

A recent report reveals a 4% decrease in the number of game companies in Germany, with the total number dropping to 910, comprising 454 developers, 52 publishers, and 404 companies involved in both areas. The number of employees has also seen a 2% decline, falling from 12,408 in 2024 to 12,134 as of May 12, 2025. This downturn comes after several years of growth, fueled by the introduction of the German Federal Games Funding Programme in 2020, which led to a 46% increase in game companies and a 23% rise in workers from 2020 to 2024. However, the industry has now experienced a slowdown, with the German Games Industry Association citing the consolidation of the global games market and unreliable funding as key factors. The association's managing director, Felix Falk, notes that the ongoing changes in games funding policy have further decreased Germany's international competitiveness. Despite this, measures are being taken to address the decline, including an increased funding budget and the introduction of tax breaks for games companies, which are expected to provide a much-needed boost to the industry.