German games market slips into the red in the first half of 2024

• Revenue from games, games hardware and online gaming services falls by 6 per cent, to 4.3 billion euros, in the first half of 2024
• Over 16 million Germans have made friends through games
• More than 30 million Germans say that political institutions should make greater use of the potential of games
• Two thirds of Germans demand internationally comparable competitive conditions for game companies in Germany

Gamescom 2024 takes place in Cologne, Germany, from August 21 to 25

In the first half of 2024, after several years of strong growth, the German games market slipped into the red for the first time in a long period. From the beginning of January to the end of June, games, games hardware and online gaming services generated sales revenue of around 4.3 billion euros in Germany – a drop of 6 per cent compared to the same period last year. The sources of this data are the market research firm Consumer Panel Services GfK and data.ai (a sensor tower company). The sharpest drop in revenue, at 18 per cent, came in the area of games hardware. Revenue from computer and video games also fell, by 4 per cent. One reason for this was the considerably smaller number of top game releases in the first six months of 2024 compared to the unusually high number of top-rated blockbuster games published in the first half of last year. In contrast, online gaming services made a significant leap, with revenue from network, cloud and subscription services rising by 25 per cent over last year’s level, to 516 million euros.

‘For the first time in many years, sales revenue from games both in Germany and worldwide has declined,’ says Felix Falk, Managing Director of game – The German Games Industry Association. ‘This is due in part to the outstanding first half of 2023, which saw one of the highest release rates of video game blockbusters ever. In the first half of 2024, on the other hand, there were significantly fewer top releases. Consumers had also already caught up in their purchases of current game consoles, with the result that revenue driven by these sales has been normalising again. However, the games market won’t remain in decline for long. We can already see this as we look towards the upcoming gamescom, with its record number of exhibitors and the numerous games that have been announced.’

Video game players become friends

True to the theme of gamescom 2024 – ‘The biggest community in the world’ – a representative survey conducted by game in collaboration with the opinion research firm YouGov confirms that games are an extremely social medium. Over 16 million Germans say they have made friends with others through video games. This underscores yet again that games connect people in a unique way. And this effect isn’t limited to young people. While 60 per cent of 25- to 34-year-old players have made friends through games, around one third (32 per cent) of 45- to 54-year-olds have done so as well.

Games strengthen democracy

As democracies around the world come under pressure, more and more institutions are relying on games to convey democratic values. These include, in Germany, the Federal Agency for Civic Education, the Federal Foreign Office and the Federal Office for the Protection of the Constitution and, on an international level, the European Commission and Reporters Without Borders. It comes as no surprise, then, that one of the highlighted trends at this year’s gamescom is ‘Games protect democracy’. German citizens, too, see great potential here: more than 30 million say that political institutions should harness the social benefits of games even more. After all, the transfer of knowledge and expertise is seen as one of the strengths of games, with over three quarters (78 per cent) of Germans saying that games can help to convey an understanding of history. A similarly large number of Germans believe games can support social cooperation (77 per cent) and social cohesion (72 per cent). A majority also think that games can play a role in teaching basic democratic values (70 per cent) and in general political education (66 per cent).

Games are a key to economic development

The biggest companies in the world are investing heavily in the game sector. This hasn’t gone unnoticed in Germany. Accordingly, some two thirds of people in this country (67 per cent) say that Germany mustn’t stand idly by while some of the largest international companies make massive investments in games. Nearly seven in ten Germans (69 per cent) even go so far as to demand that Germany end its dependence on other countries for the development of games and their associated technologies. In keeping with one of the highlighted trends at gamescom, ‘Games – access to the future’, this gives rise to a clear expectation of policymakers: 67 per cent of Germans say that, in a global games market, it is important that game companies in Germany be able to operate under conditions that are internationally comparable and competitive.

About the data

The data used is based on an online survey by YouGov Deutschland GmbH. In the survey, conducted between 25 and 30 July 2024, 2,072 people were questioned. The results were weighted and are representative of the German population aged 18 and older.

Please note: the definition of game PCs and laptops has been fundamentally revised. The new definition has been applied not just to current figures, but also to those for the preceding year, resulting in retroactive changes to these sales figures.

The market data is based on statistics compiled by Consumer Panel Services GfK and data.ai (a sensor tower company). The methods used by CPS GfK to collect data on Germany’s video game market are unique in terms of both their quality and their global use. They include an ongoing survey of 25,000 consumers who are representative of the German population as a whole regarding their video game purchasing and usage habits, as well as a retail panel. The data collection methods provide a unique insight into the German market for computer and video games.

About gamescom

gamescom is the world’s largest event for computer and video games, as well as Europe’s largest business platform for the game industry. In 2024, gamescom was held from Wednesday, 21 August, to Sunday, 25 August, in Cologne and online. It oepen with the big ‘gamescom Opening Night Live’ show on the evening of 20 August. This is directly preceded by devcom, Europe’s largest developer conference funded by the developer community, which was held from 18 to 20 August. gamescom is jointly organised by Koelnmesse and game – The German Games Industry Association.

game – The German Games Industry Association

We are the association of the German games industry. Our members represent the entire video game ecosystem, from development studios and publishers to esports event organisers, educational institutions and other related entities. We are co-organisers of gamescom, the world’s biggest event for computer and video games. We are a shareholder in the Entertainment Software Self-Regulation Body (USK), the Foundation for Digital Games Culture, the esports player foundation, devcom and the collecting society VHG, as well as co-host of the German Computer Game Awards. Serving as a central point of contact for media, as well as political and social institutions, we provide comprehensive expertise in areas including market development, game culture and media literacy, and address any inquiries or concerns. Together we are making Germany the heart of gaming worldwide. With games, we enrich the lives of all people.