German Gaming Market Experiences Contraction in 2024

Mar 25, 2025 at 12:00 AM

The gaming landscape in Germany witnessed a downturn last year, with overall revenue figures showing a notable decline. Financial data reveals that the industry's total earnings contracted by six percent to reach €9.4 billion. This reduction was driven by several factors, including a decrease in both software and hardware sales. The segment encompassing premium games as well as in-game and in-app purchases experienced a dip, contributing significantly to the overall drop.

Another key area of concern was the hardware sector, where revenues fell sharply by ten percent to €2.9 billion. Notably, console sales were hit the hardest, plummeting by 26 percent year-on-year to €807 million. However, it is worth mentioning that this figure remains higher than the levels recorded in 2022. Industry experts attribute part of this decline to the normalization of demand following an unusual spike in 2023 when previously scarce consoles became more readily available, creating what has been termed a "catch-up effect."

Despite these setbacks, there are signs of resilience within the German gaming market. Online gaming services, for instance, showed robust growth, increasing their revenue by 13 percent to €965 million. According to Felix Falk, managing director of the German Games Industry Association, while the market paused its rapid expansion in 2024, this pause can be attributed to fewer blockbuster releases and stabilized console demand. Looking ahead, emerging trends such as cloud gaming and anticipated new console launches promise to reinvigorate the sector, suggesting a positive outlook for future growth.