- Bavaria advocates for heightened financial support from the federal government for the gaming sector.
At the start of Gamescom 2022, Bavaria's Digital Minister Fabian Mehring (Free Voters) pushed for the federal government to quickly disburse the promised €33 million in support for the German gaming industry. Speaking to dpa, Mehring expressed his desire for the funds to be released immediately, referring to a €33.3 million allocation for 2024 proposed by the Federal Commissioner for Culture and Media, Claudia Roth (Greens). This funds proposal was approved by the Bundestag's Budget Committee back in November, despite gaming funding typically falling under the responsibility of the Federal Ministry of Economics, which has earmarked €50 million for gaming support in 2024. Industry insiders argue that the Ministry of Economics' allocation should have been increased instead, given their expertise in the field.
However, seven months after the Budget Committee's vote, the BKM gaming funding has yet to be implemented. A spokesperson for the Federal Commissioner for Culture attributed the delay to complex issues requiring close coordination with the Ministry of Economics. They also mentioned that an announcement regarding the specifics of the cultural gaming funding is not imminent.
Mehring advocates for expedited implementation as numerous German gaming studios grapple with decreased demand and rising costs, leading some to close their doors, such as the Munich studio Mimimi. Others narrowly avoid closure.
Bavaria invests around €7 million annually in games, e-sports, and extended reality (XR), with Mehring viewing federal funds as crucial for further backing companies. He emphasizes the need for long-term planning security and government recognition for the industry, criticizing the unexpected removal of €33 million from the 2025 budget plan without explanation by the federal government.
The Budget Committee voted for a three-year, €100 million budget for new BKM gaming funding back in November. However, only the 2024 budget year was funded. The draft budget for the traffic light coalition in 2025 omits the second €33.3 million tranche. This frustrates Mehring, who expresses concern that inconsistent funding policies erode trust in the industry. He also calls for tax relief for studios.
However, there's a possibility that the Bundestag committee could reinvest the money into the federal budget during their fall budget session.
Gamescom 2022, running from Wednesday to Sunday, is the world's largest gaming industry event. Last year, around 320,000 visitors attended the convention to watch shows and try out new games. Over 1,400 exhibitors from 64 countries have registered for this year's event, potentially indicative of a thriving industry with continuously improving technological possibilities and growing demand, albeit operating at a moderate pace.
Despite the approved funding proposal for the gaming industry, the BKM gaming funding has not been implemented yet, causing concern among German gaming studios like Mimimi that are struggling with decreased demand and rising costs. Mehring, advocating for expedited implementation, emphasizes the importance of computer games in the industry and sees federal funds as crucial for supporting companies and ensuring long-term planning security.
