- The nation has no intention of enhancing financial support for video games.
Despite a request from the Federal Ministry of Finance, the state of Baden-Württemberg isn't planning to enhance its financial backing for video game development. Since 2021, the state administration has boosted the funding from 600,000 euros annually to 1.2 million euros this year, as reported by the science ministry to dpa after an inquiry.
At present, there aren't many signs of a further increase. "Given the exceedingly tight financial situation the states are in, it's not expected that the federal funding for the upcoming years will see any additional boost," the ministry in Stuttgart mentioned.
Some other federal states put more money into game promotion, with Bavaria allocating roughly 7 million euros per year to the sectors of games, e-sports, and extended reality (XR), as mentioned by the state's digital ministry. Elsewhere, less funding is available than in Baden-Württemberg.
The state government views the gaming industry as a forward-thinking, culturally and economically significant sector for Baden-Württemberg's location, and a catalyst for innovation in technologies like augmented reality, virtual reality, and artificial intelligence. From Wednesday to Sunday, the computer games trade fair Gamescom is taking place in Cologne, with Baden-Württemberg representing itself with its own stand.
Last year, the federal government supported the emerging industry with 70 million euros, but this year, it's only 50 million euros. Since the high demand, the Federal Ministry of Finance has halted the acceptance of funding applications since May 2023: They are only taking in funds to satisfy long-ago granted funding obligations - the money for game development is disbursed gradually over a multi-year period.
From the viewpoint of the industry association Game, federal financing is inadequate, and they advocate for substantially more funds to keep pace with international competition. So far, the costs of creating a computer game in Germany are around a third higher than in countries like France.
In spring 2024, the responsible state secretary in the Federal Ministry of Finance, Michael Kellner (Greens), proposed new funding regulations. According to the paper, the federal government plans to withdraw from funding small projects and leave it to the states. Based on his statement, the new funding money could potentially result in more money entering the system, as the states would now have to contribute more. However, the statement from Baden-Württemberg's science ministry suggests this isn't likely to happen.
Gamescom is the largest computer games trade fair worldwide, drawing around 320,000 visitors last year. This year, over 1,400 exhibitors from 64 countries have registered. The industry has bright prospects in the digital age, as technical possibilities constantly improve, and demand is forecasted to rise.
However, business is currently a mix, with the turnover from games and related hardware and online services in Germany decreasing by six percent to 4.3 billion euros in the first half of 2024 after years of growth. Around 12,400 people work in the roughly 950 studios and publishers in Germany. Many companies will present new games and technological innovations at the Gamescom, which concludes on Sunday.
E-sports, being a segment within the gaming industry, receives significant funding in some federal states, such as Bavaria, which allocates 7 million euros annually for games, e-sports, and extended reality (XR). Despite the federal government's decrease in support from 70 million euros last year to 50 million euros this year, the gaming industry continues to view adequate funding as crucial to stay competitive internationally.
