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Germany on the rise with 46% growth in games companies since 2020

Germany's gaming industry is experiencing significant growth, making it an exciting time for game developers in the country. The German Games Industry Association (GAME) recently reported a 15.5% year-on-year increase in the total number of games companies. This growth trend has been consistent, with a remarkable 46% increase since 2020.

Currently, Germany is home to a total of 908 games companies, and the number of employees in development studios has reached 11,992, resulting in an overall industry employment rise of almost 7%. When considering the extended games labor market, which includes media and service providers, the German games industry supports over 30,000 jobs.

The emergence of numerous new companies in the industry bodes well for Germany's role and future in the gaming market. Previously, Poland had overtaken Germany for third place in workforce size in Europe, but the recent surge in growth suggests Germany has bounced back from that setback.

GAME's data, collected between May 2022 and May 2023, highlights that the majority of gaming companies in Germany are developers, accounting for 861 out of the total 908 companies. Additionally, 411 of them are publishers, while the remaining 47 specialize in game marketing.

The rise in new company growth signifies the significant presence of smaller startup studios. The success of the federal government's funding of games has contributed to this positive trend. However, GAME's managing director, Felix Falk, emphasized the importance of the coalition government's continued support to help Germany compete with other top gaming locations globally. Reversing recent games funding cuts and increasing funding to €125 million is seen as a crucial step to further facilitate positive growth in the industry.

As a co-organizer of Gamescom, GAME is gearing up for the event taking place in Cologne, Germany, in August. The event is expected to attract up to 3,000 industry professionals.

Source: Aaron Astle, Staff Writer at PocketGamer

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