Video Games Market in Germany

After China, US, Japan and South Korea, Germany is the world's fifth largest gaming market. The country's gaming industry was reported to generate roughly USD 6 billion in revenue for year 2020, with 34 million players daily. In Germany, there are 651 gaming studios and publishers, as well as 128 colleges with game-related courses.
Observation/Opportunity

The annual Gamescom in Cologne is the world's largest video gaming expo in terms of attendance. Computer and video games are played by more than half of Germans. Between the ages of 6 and 69, 58% of the population uses a console, PC, or smartphone to immerse themselves in the digital world. Additionally, 5% more people in Germany began playing computer and video games in 2020.

COVID-19 had led to people staying at home and playing video games instead of going out. In 2020, the value of video games was reported to increase by 21%. The number of Virtual Reality (VR) headsets available continues to grow, with higher price points and better-quality entry-level devices. With a 13% value share in 2020, Nintendo of Europe GmbH continues in the lead. In 2024, the market for video games is predicted to grow to EUR4.7 billion.

In Germany, video games were expected to expand by double digit in value in 2021, mainly due to growth in console games (digital), mobile games and internet games, as well as AR/VR headsets. While the increased demand for online and mobile games can be attributed to the extra time spent at home as a result of the epidemic, it is also
attributed to the growing trend of consumers willing to spend on games.

The Way Forward

The German games industry is mainly concentrated in the country's major cities, with Hamburg and Berlin emerging as hotspots in recent years. Munich, Frankfurt, Cologne and Düsseldorf where most game creators and publishers are headquartered, are other economic centres for the games industry.

Sales of static consoles recorded an upward trend towards the end of 2020, contributed by new console releases from Sony and Microsoft, as well as increasing consumer demand over the holiday season. However, value sales were down due to temporary supply problems, but are expected to catch up in 2021.

When it comes to video game software, there is a trend in Germany to buy digital games. Video game software (physical) retained a considerable portion of the industry in 2020, but sales were significantly impacted by the pandemic because of store closures and consumers opting for digital forms.

For further information and enquiries, please contact MATRADE Frankfurt at [email protected].

Note 1:
This article is based on Market Alert (MA) prepared by MATRADE Frankfurt and the information is
correct at the time of the writing (25 November 2021).

Note 2:
The MA is available in MyExport which can be accessed at www.matrade.gov.my

Disclaimer
While every effort has been taken to ensure that the contents of the article (MATRADE’s Insight) are accurate and current, MATRADE cannot be held responsible for any inclusion, omission or error and is not liable for any loss or dispute arising from the use of the information provided.