Record-Breaking Year for Germany's Gaming Market, with Spending Reaching €9.8 Billion in 2021

In 2021, Germany's gaming market saw unprecedented spending, with total expenditures on video games, hardware, and accessories reaching €9.8 billion. This marks a 17% increase from the previous year, according to the 2022 annual report from Game, the trade association for Germany's gaming industry. As a result, Germany solidifies its position as the largest gaming market in Europe and the fifth-largest globally. The breakdown of spending includes €5.4 billion on software, a 19% year-on-year increase, €3.6 billion on hardware, up 18%, and €719 million on online and subscription services, which saw a 4% rise. Notably, software revenues remain the primary driver of spending, with most Germans opting for digital purchases, and six out of ten games sold in Germany being downloads. Key areas of growth include in-game and in-app purchases, which increased by 30% year-on-year, with mobile generating €2.76 billion, compared to €1.5 billion from PC and console titles. Mobile overall experienced a 22% growth, with revenues reaching €2.78 billion, while PC accessories also saw significant growth. Hardware revenues increased by 23% year-on-year, although this growth could have been higher without supply chain issues. Online and subscription services grew less than 5%, but library-style services such as Xbox Game Pass, Apple Arcade, and Google Play Pass saw revenues rise by over 21%. The report highlights the substantial growth of Germany's gaming software market since 1995, with total revenues increasing from around €2 billion in 2016 to €9.8 billion in 2021. Additionally, updated statistics on gaming demographics in Germany show that 59% of the population between the ages of six and 69 play video games, a 6% increase from 2019. The average age of gamers is 37.6, with 50 to 59-year-olds accounting for one in five German gamers. The number of companies in the gaming industry has risen to 786, a 5% increase, with the total number of employees reaching 28,650, also up 5%. Most companies are small, with 70% employing fewer than ten people, and 47% of games produced in Germany are exported. The total number of employees in the core industry, including development and publishing companies, is 11,242, a 3% increase from 2021. The extended market, which includes service providers, retailers, and educational establishments, has 17,048 employees, up 6% year-on-year. The industry also reports a higher percentage of female employees, at 25%, and 27% of employees without German citizenship. Game managing director Felix Falk emphasized the progress made in recent years in establishing Germany as a top location for the gaming industry, but noted that there is still work to be done to tap the full potential of the industry.