In a study commissioned by the industry association Game, Goldmedia is looking into the development of the German video game industry. As Goldmedia’s report shows, the number of new companies in the games sector collapsed massively in 2023.
In order to make Germany an internationally competitive location, the German government launched extensive funding at the federal level in 2020. At the time, this led to a veritable wave of start-ups in the games industry in Germany.
Since the launch of the funding, the number of companies in Germany that earn money from computer and video games has increased by 52 percent to 948. According to a study conducted by Game, the association of the German games industry, commissioned study It is clear that new business start-ups in Germany have recently lost considerable momentum.
Compared to 2020, when the funding started, the number of new companies founded in the German games industry fell by 65 percent in 2023, from 93 to 33.
Insolvencies at a manageable level
Despite the economically turbulent times of recent years, bankruptcies in the German games industry have recently remained at a manageable level. Since the start of games funding in Germany in 2020, 6.6 percent of local games companies have filed for bankruptcy.
It is noticeable that new founders in Germany prefer certain federal states. Bavaria (62), Berlin (57) and North Rhine-Westphalia (38), for example, occupy the top positions. By comparison: in Schleswig-Holstein only three games companies were founded. In Thuringia there was only one.
“In relation to their previous size, however, some smaller locations such as Brandenburg, Saxony or Rhineland-Palatinate were able to benefit even more from the growth in percentage terms than the largest locations,” the report continues.
Number of employees and female managers increased in 2023
Unsurprisingly, the number of people employed in the local games industry also benefited from the new companies being founded in Germany. The number of employees in development studios and publishers rose to 12,408 in the last twelve months, around 3.5 percent more than the previous year’s figure of 11,992.
Furthermore, the number of female managers and founders increased in 2023. “Compared to the games companies that have been in existence for a long time in Germany, the new companies are more often managed by women. Around 18 percent of the development studios and publishers founded since 2020 are managed by female managing directors,” the study continues.
“This value is five percentage points higher than that of the older games companies.”
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