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Annual Report of the German Games Industry 2021

Lichtsang

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The Jahresreport der deutschen Games-Branche 2021 (Annual Report of the German Games Industry 2021) was published on August 24th on game.de the homepage of the Verband der deutschen Games-Branche (Association of the German Games Industry).
It's a bit late because of that, but I don't think many have this on their radar and I will try my best to show you it's contents and to translate it into English for your understanding.
I'm not a native English speaker, so if anything is unclear, just feel free to ask for clarification!

Without further ado:


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- On average, players are over 37 years old --> as you can see, this is a growing trend, although from 2020 to 2021 that age dipped a little bit by 0,1 year; would be interesting to see if that indicates a trend reversal or if it's just an exception (perhaps caused by the pandemic?).
- 48% of players are female, 52% of players are male
- data as of January 2021

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- 58% of Germans play video games at least occasionally, this is a growth of 5% in comparison to last year's report
- the biggest group are players in the age range from 50 to 69, the so-called "Silver Gamers", that make out roughly 1/3 of all players in Germany; those are also responsible for the growing average age of all players
- data as of January 2021

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- Smartphones continue to be the most popular gaming platform in Germany; this platform profited the most by the overall player growth of 5%
- They note that the growth in console gaming was shown by the lack of stock of Nintendo Switch, Playstation 5 and Xbox Series S/X
- calculations based on data from 2019/2020

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- They note that this chart is including physical and digital sales. We know that Nintendo doesn't share digital with NPD for example, so I don't know how accurate that is.

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- "German Games Market 2020 with a significant jump in sales", 32% in comparison to 2019
- top to bottom: 163m in subscription services
692m in fees for online services
1.169m in software sales
3.252m in in-app-purchases
3.255m in hardware sales (includes consoles, handhelds, gaming PCs, VR headsets and other accessories)
= 8.531m (growth of 32% in comparison to the 6.463m in 2019)

- with that Germany keep the position as the biggest gaming market in Europe and the 5th biggest in the world
- overall, gaming hardware saw the biggest demand ever in Germany
- this growth was driven by the pandemic
- most used the time during the pandemic to upgrade their PCs or buy consoles
- high demand for Nintendo Switch, as well as PS5 and Xbox Series S/X and new graphics cards led to this growth; all of those products were hard to get in 2020 and went out of stock quickly
- they name World of Warcraft and Final Fantasy XIV as examples for the growth of subscriptions
- the biggest growth, of 44%, we can see in in-app-purchases
- calculations based on data from 2019/2020

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- the trend continues: app-purchases decline (by 15% yoy), in-app-purchases grow (by 23% yoy), further showing that the F2P model is the way to go on smartphone & tablets

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- big jump of sales in online-gaming services
- cloud gaming services, gaming subscription services and online gaming subscription services all saw growth year over year
- calculations based on data from 2019/2020

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- "More than every second video game for PC and consoles was bought as a download in 2020."
- almost 6 out of 10 games were sold as downloads (58%), a clear continuation of the trend, just further accelerated by the pandemic
- 41% of money made by video game sales came from digital games
- calculations based on data from 2019/2020

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- good summary how the different kinds of sales are relocated (software sales, in-app-purchases, fees for subscription services)

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- "Number of employees in the core labor market (development studios & publishers) of the Games Industry is growing.", by 8%
- overall the number of employees in the gaming industry is declining 4% yoy, caused by the decline in the extended market (service providers, retail, educational institutions, media and in public sector related to the games industry) of 11%
- 27.021 people work in the games industry (10.906 in the core market and 16.115 in the extended market) as of May 2021
- data as of May 2021

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- 314 companies that solely develop games (+51% yoy)
- 32 companies that solely publish games (+7% yoy)
- 403 companies that both develop and publish games (+5% yoy)
- overall growth of 20%
- on average companies are 7 years old or younger
- every second company is 5 years or younger
- 7 out of 10 companies employed less than 10 people
- 8 out of 10 employees are subject to mandatory social insurance contributions
- 7 out of 10 employees work full-time
- 8 out of 10 employees are employed on a permanent basis
- 25% of employees are female; they note that this is way higher than in other areas of the digital industry
- 27% of employees don't have the German citizenship
- the locations for companies in the gaming sector are spread out all over Germany, it's a bit more concentrated in Berlin, Hamburg, Munich and Cologne though
- data as of May 2021

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- "The growth of the sales of German games companies is more slowly than the growth of the overall market."
- international productions have sales of 4.583m while German production only achieve sales of 191m, which is only 4.2% of the overall market
- the market for German game productions is growing, but very slowly and in no real comparison to the growth of international productions
- only in Germany produced mobile games saw growth in the German market (by 1,2%), in Germany produced PC and console games as well as mobile and browser games saw declines of 0,6% and 10,4% respectively

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- if you look at this map you can clearly see that Germany produced not a single game which won a sales award in 2020
- Japan led with 9 sales awards, the USA followed with 7, then Canada with 4, France with 2 and Great Britain and Poland both with 1 sales award in 2020

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You can find the full presentation with even more information and in-depth analysis here: https://www.game.de/publikationen/jahresreport-2021/
I provided the graphs and charts as visual aids and tried my best to summarize and translate important parts from the associated text passages for you.
This is the first time I'm doing this, so I'm very open to any sort of critisism and feedback!

I hope this data is insightful for you and I'm here for any questions.
 
thanks a lot, really interesting stuff. A friend of mine moved to Germany aprox 5 years ago and since then he has become more interested in videogames.
 
Thank you for your hard work! Quite interesting data. And wow at the average age of German players being 37 years. Super interesting breakdown of demographic and older than what I would have thought.
 
Thank you for your hard work! Quite interesting data. And wow at the average age of German players being 37 years. Super interesting breakdown of demographic and older than what I would have thought.

Totally! I didn't expect that to be honest. My guess is that those older players, mainly the ones 50-69 year old, are into mobile gaming, with exceptions of course. Very low barrier of entry and readily available to them. Also many very simple games like puzzle games that are really easy to learn and can be quite addicting.
 
The obvious thing would be older gamers and the options in terms of casual gaming, in addition to that PC gaming has always been massive in Germany and that audience usually is older than what we used to see on traditional gaming systems.
 
Totally! I didn't expect that to be honest. My guess is that those older players, mainly the ones 50-69 year old, are into mobile gaming, with exceptions of course. Very low barrier of entry and readily available to them. Also many very simple games like puzzle games that are really easy to learn and can be quite addicting.
Ah, could be. Still though, it's nice to think that people who grow up with NES/SNES era or even earlier are still playing games. Has a heartwarming feel.
 
The obvious thing would be older gamers and the options in terms of casual gaming, in addition to that PC gaming has always been massive in Germany and that audience usually is older than what we used to see on traditional gaming systems.

That is true! Many that grew up with those old PC engines like Commodore or Amiga continued to be invested in PC gaming.
 
I honestly love these types of macro reports, thanks for sharing. It's really interesting to see how the video game industry morphs over time. 58% digital in 2020 according to GfK which is fascinating, especially given its meteoric rise from 45% in 2019. It really emphasizes the universality of digital-first marketplace and it gives us another recent metric that can be useful later on.

Also interesting to see how the German dev market is skyrocketing (51% YOY), particularly due to a large part of immigrants without German citizenship. They can't find enough local talent? Or is this just related to the freedom of being in the EU?

What has fueled the spike in the market & dev activity the past year? Seems like a lot of it is general COVID-19 related demand, but is there anything specific to the German VG market itself which could compel the growth as well? Like a culture shift or something? I'm not privy to anything in Germany so I wouldn't know the details about market dynamics.
 
Also interesting to see how the German dev market is skyrocketing (51% YOY), particularly due to a large part of immigrants without German citizenship. They can't find enough local talent? Or is this just related to the freedom of being in the EU?

There was a part in the documents about it:

Zu den Gründen hierzu zählt unter anderem, dass der Bedarf an hoch spezialisierten Fachkräften teilweise mit Experten aus dem Ausland gedeckt werden muss. Auch die vornehmlich internationale Ausrichtung der Games-Unternehmen spielt hierbei eine Rolle.
"One of the reasons is that the need for highly specialized skilled workers has to be met partially with experts from abroad. The predominantly international orientation of the games companies also plays a role here."

So you pretty much nailed it. We don't have enough talent in Germany for some of the more specialized jobs.
And it certainly helps that we have freedom of movement in the EU, for sure.

What has fueled the spike in the market & dev activity the past year? Seems like a lot of it is general COVID-19 related demand, but is there anything specific to the German VG market itself which could compel the growth as well? Like a culture shift or something? I'm not privy to anything in Germany so I wouldn't know the details about market dynamics.

The report names two reasons connected to it:
- the growth of the number of gamers in Germany over the past years
- the optimism for the subsidies that are planned to help the gaming sector of Germany to further growth
 
Thank you, Lichtsang! I really like these GAME reports.
I honestly love these types of macro reports, thanks for sharing. It's really interesting to see how the video game industry morphs over time. 58% digital in 2020 according to GfK which is fascinating, especially given its meteoric rise from 45% in 2019. It really emphasizes the universality of digital-first marketplace and it gives us another recent metric that can be useful later on.

Also interesting to see how the German dev market is skyrocketing (51% YOY), particularly due to a large part of immigrants without German citizenship. They can't find enough local talent? Or is this just related to the freedom of being in the EU?

What has fueled the spike in the market & dev activity the past year? Seems like a lot of it is general COVID-19 related demand, but is there anything specific to the German VG market itself which could compel the growth as well? Like a culture shift or something? I'm not privy to anything in Germany so I wouldn't know the details about market dynamics.
I‘m not sure how much it‘s contributing to the high effect, but it certainly helped that SPD/Union finally agreed on an official video game strategy (with the aim to strengthen game development in Germany), leading to the Computerspieleförderung des Bundes by Bundesministerium für Verkehr und digitale Infrastruktur in 2019. Many projects have already been supported by this funding programme. An overview, if you are interested, can be found here:
https://www.bmvi.de/DE/Themen/Digit...rojekte/computerspielfoerderung-projekte.html. There you can also regularly find some unannounced projects, like Railway Empire 2, Dungeons 4, Codename Süßkartoffel (by Mimimi Games) and Projekt Laubenheim (by Ubisoft Mainz, very likely a new Anno game).

GAME is lobbying very succesfully, constantly telling politicians about these statistics and that Germany, as Europe‘s largest video game market, makes too little use of the economic potential. It‘s also an occasional topic in Germany’s television news (for example Tagesschau) thanks to GAME.
 
Amazing info thanks for sharing. I really wish we could have something similar for latam. Our region is a huge black spot with no info at all.
 
...

That would have saved me so much work.
Next year I will know this, lol. Thank you!
I'm sorry. If I had knew this, I'd had told you.
But your work is appreciated nontheless.
Will you provide the monthly updates/charts aswell?
 
I'm sorry. If I had knew this, I'd had told you.
But your work is appreciated nontheless.
Will you provide the monthly updates/charts aswell?

I would love to provide the Game Sales Awards and Top 20 charts of Germany each month! The ones for September should arrive in a few weeks. But I don't know if someone is already planning to do so. So we'll probably see when they are published.

Edit: @MarcoP90 do you plan to do that? Would be totally fine, I just thought I ask because you are providing the other European charts as well.
 
I would love to provide the Game Sales Awards and Top 20 charts of Germany each month! The ones for September should arrive in a few weeks. But I don't know if someone is already planning to do so. So we'll probably see when they are published.

Edit: @MarcoP90 do you plan to do that? Would be totally fine, I just thought I ask because you are providing the other European charts as well.
I host the sales awards archive on ResetEra. I'll move it onto here in the next couple of days.
https://www.resetera.com/threads/germany-video-game-sales-archive.185619/
 
Very interesting information, thank you for compiling and reporting it like this!
 
I was interested in learning more about the importance of subscription services on consoles in Germany. As you can see in the report, the German game industry achieved a total sales revenue of about 8.5 billion € in 2020, of which 163 million € are due to Subscriptions, 692 million € due to Charges for Online Services and about 1.17 billion € due to Purchases (the remaining huge part is In-game purchases and Hardware). According to GAME, the game industry’s total sales revenue in Germany was the highest in Europe, so this data is pretty interesting/relevant.

GAME released some new info, which are apparently not translated into English. The total sales revenue is presented for mobile gaming, console gaming and PC gaming separately (which I was interested in). Combining the info with the report, of the 855 million € of overall Charges for Online Services and Subscriptions, the following can be attributed to console gaming: 551 million € (for comparison: mobile only 4 million €). That is a staggering 32 % of the total sales revenue in the console segment! More precisely, the new info says that for console gaming total sales revenue, purchases of games contributed with 894 million € (52 %), and in-game purchases with 278 million € (16 %).

Not sure whether I‘m the only one who finds the ratio interesting — and with the risk to bore you, here are some additional info for understanding what the categories above contain:
The 692 million € (called Charges for Online Services) can be split into:
439 million € for Online Gaming Services, mainly Nintendo, PlayStation and XBOX online gaming services
— 181 million € for subscription gaming services like Xbox Game Pass, EA Play, Apple Arcade etc.,
— 72 million € for cloud gaming services.
The 163 million € (called Subscriptions) are about game-specific subscription services like World of Warcraft or Final Fantasy XIV.

Summary: Online gaming services on consoles seem to be very successful and lucrative in Germany, contributing with nearly 32 % (we would need to subtract the unknown Subscriptions category contribution for consoles, but this category is obviously not very relevant on consoles). Actual game purchases for consoles, i.e. physical and digital versions (without in-game purchases) contribute with 52 %.
(And if we think about earnings generated by the categories, the relevance of online gaming services on consoles in Germany seems to be extremely high.)
 
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