Germany Sees 15% Rise in Game Companies in 2022

Germany's game industry witnessed a significant 15.5% year-over-year growth in the number of game companies, with the total count reaching 908, as reported by the German Games Industry Association. This substantial increase marks a 46% rise compared to 2020, based on data compiled by Game in collaboration with Goldmedia from May 2022 to May 2023. The sector also saw a 7% increase in employment among developers and publishers, which Game attributes to the establishment of smaller studios. Over the past year, the German games industry and its extended labor market secured more than 30,000 jobs, encompassing employees from service providers, media, retail, education, and the public sector. According to Felix Falk, managing director of Game, the federal government's funding initiatives for the games sector are yielding positive results. The German Games Fund, which allows companies to reclaim up to 50% of development costs, has seen its funds increase to €70 million as of November 2022. Falk emphasized that while games funding is currently unreliable, the ongoing surge in game company start-ups underscores Germany's vast potential and justifies the implementation of improved parameters. He urged the federal government and the German Bundestag to reverse recent funding cuts and increase the allocation to €125 million to sustain the sector's growth. Furthermore, Falk suggested that the German government should consider adopting tax incentive-based games funding, a model that has proven successful in countries like Canada and France, to enable Germany to remain competitive internationally.