The gaming sector is endeavoring to surmount the melancholic aftermath of the coronavirus pandemic.
The enthusiasm is substantial, yet the German market promotion for Gamescom 2024 is lackluster, summarizing the current situation. Despite the gaming industry generating substantial revenue, German-made games get only a small share. Globally, issues persist, as illustrated by the ongoing VR dilemma.
The famous annual computer games trade fair, Gamescom, welcomes tens of thousands of enthusiasts to Cologne exhibition halls. Kicking off with a show on Tuesday evening, industry professionals and gaming aficionados swarm the stands of over 1400 exhibitors, a 15% increase from last year. Visitors can play new games and interact with developers at the booths. Long queues form at zones like Microsoft Xbox, Ubisoft's "Star Wars Outlaws," and Capcom's "Monster Hunter Wilds."
The large visitor count is predicted to increase further in the following days, with Saturday already sold out. The event concludes on Sunday. In 2023, 320,000 individuals attended the industry convention. The gaming sector captivates millions of people yearly with its "significant innovative spirit and creative power," as expressed by Federal Minister of Digital Affairs Volker Wissing in a published statement. It develops "groundbreaking technology that finds diverse applications beyond games."
Tuesday evening marked the unofficial commencement with an opening show for industry experts and the media, where information regarding a new "Borderlands" series part and the next "Call of Duty" installment was unveiled. Major players in the industry like Microsoft and Tencent from China are present in Cologne, but Sony and Nintendo from Japan are absent – the reasons remain unclear.
Notably, numerous prominent US technology companies are represented, including the presentation of the "Secret Level" series, premiering on Amazon Prime in December and encompassing various gaming realms. The Netflix game "Squid Game: Unleashed" is also promoted at the fair.
VR Games Seek to Surpass the Niche
New releases are also emerging in the virtual reality sector: the action game "Batman: Arkham Shadow" is being marketed and is played exclusively using the VR headset Quest 3 from Meta, the Facebook parent company.
For a long time, it's been anticipated that this promising sector will escape its niche, but VR games have yet to become blockbusters. It's a sort of chicken-and-egg problem: there's little demand due to few applications, and there are few applications due to weak demand. However, VR headsets are now more affordable, potentially attracting a mass market. With the Batman game, a new endeavor is underway.
The Billion-Dollar Gaming Industry
The majority of Gamescom attendees are young. It's reminiscent of the "Civilization" stand, a strategy game from studio Firaxis. It’s the seventh edition, set for release soon. The first version of Civilization was released in 1991.
Computer and video games are a billion-dollar business: Germans spent around €9 billion on games, hardware, and online services last year. The industry, which saw a significant boost during the corona years, has faced recent weaknesses due to increased costs and decreased demand.
Gamescom is an international gathering, with German developers playing a minor role, accounting for only about 5% of the money spent on games in Germany. The industry association Game, a co-organizer of Gamescom with Koelnmesse, has advocated for more governmental support.
Employment in the Gaming Industry in Germany
Approximately 12,400 individuals work in the German gaming industry for around 950 mostly small enterprises. Among the domestic firms are Frankfurt-based Deck 13, employing around 90 people, Rockfish Games from Hamburg (with 35 employees), and Envision Entertainment from Ingelheim (Rhineland-Palatinate, with 18 employees).
According to the Game Association head, Lars Janssen, the industry has a promising future. Gaming interest is growing, says the association representative. Not only young people are playing on consoles, computers, or smartphones, but there are also more and more older individuals engaging in gaming. The diverse games produced by the industry can cater to various interests.
Federal Funding Policy under Debate
Janssen, who also heads Deck 13, shared that the company acquired almost €5 million in funding from the Federal Ministry of Economics for the development of a new action game. The funding will be disbursed in installments over several years, with the game – codenamed "Foxtrott" – set for release in 2027. The company was fortunate, as a funding application moratorium has been in place at the Federal Ministry of Economics since March 2023 – new applications cannot likely be submitted again until early 2025.
Felix Falk, CEO of Game, the German games industry association, highlighted disputes between the Ministry of Economics and Culture Minister Claudia Roth. As a result, applications still cannot be submitted. "This is particularly frustrating in the current challenging situation."
The current moratorium has impacted some studios, making them barely competitive internationally, said Falk. "The money has simply run out." Roth and her party colleague, Economics Minister Robert Habeck, must "urgently sit down and agree so that the companies can finally access the funds."
This dry spell is causing issues for the Game industry association, according to spokesperson Janssen. "This situation is hurting numerous businesses in Germany," Janssen remarks, advocating for a steady and dependable financing policy. Critics from the regional states, like Bavaria's Digital Minister Fabian Mehring, also raise concerns over the federal plan. On Wednesday evening, Federal Minister of Economics Robert Habeck is slated to kick off the trade fair, in company with North Rhine-Westphalia's President of the State Government, Hendrik Wüst, and the Mayor of Cologne, Henriette Reker.
After the opening show, industry experts and the media were excited about the unveiling of a new "Borderlands" series part and the next "Call of Duty" installment. Despite the lackluster German market promotion for Gamescom 2024, the famous annual event, with over 1400 exhibitors, continues to attract tens of thousands of enthusiasts, including millions of年ly visitors entranced by the "significant innovative spirit and creative power" of the gaming sector.
