game presents draft proposal for tax-based games funding in Germany, pointing to strong leverage effects

• Strong leverage effects proven: Games funding results in high investments, added value and tax revenues
• ‘The game industry can become a strong driver of innovation and growth in Germany and aims to do so. With a tax-based games funding, we can become competitive as a game location and finally unlock our tremendous long-term potential.’

Berlin, 9 April, 2025 – game – The German Games Industry Association today presented a draft proposal for the introduction of tax-based funding for games development in Germany. Here, as abroad, reliable and internationally competitive games funding is indispensable for leveraging the enormous economic, technological and cultural potential of video games. Due to the unreliable availability of the current games funding, however, the existing games funding programme in Germany doesn’t provide the necessary fair framework conditions. game therefore calls for a funding model that would adapt the existing funding programme and complement it with a tax-based funding of the kind that has long been the standard for success in other top game locations. The new model would strengthen Germany’s competitiveness as a game location and ensure permanent and reliable funding for games companies.

To achieve a level playing field internationally, the draft proposes the introduction of tax credits of 30 per cent and 35 per cent for small and medium-sized companies. This would serve to jump-start investment, tax revenue and value creation, as illustrated by new findings of the research and consulting firm Goldmedia on behalf of game. The analysis shows that every euro in tax incentives for games in Germany would trigger €4.80 in additional investment, yield €3.40 in new tax revenue and social security contributions and generate €8.70 in gross value added. The experts expect that the long-term implementation of such tax incentives would result in even greater benefits, as production capacities will be expanded, companies from abroad will be encouraged to settle in Germany and larger games will be developed in Germany for the global games market.

‘The games industry can become a strong driver of innovation and growth in Germany and aims to do so. With a tax-based games funding, we can become competitive as a game location and finally unlock our tremendous long-term potential. The newly determined strong leverage effects for additional investment and tax revenue are a striking illustration of what’s possible. Germany’s federal and state governments must now quickly begin implementation. To support this, we, the games industry, are presenting our draft proposal today. It’s a plan that will finally put Germany on a comparable and reliable international footing and end the flip-flopping we’ve seen in the last several years. We will then be able to catch up with the top game production locations worldwide.’ says Felix Falk, Managing Director of game – The German Games Industry Association.

Why does Germany need an additional tax-based games funding?

With around 9.4 billion euros in total sales revenue, Germany is the number one games market in Europe. Six out of every ten Germans play video and computer games, yet as a game production location, Germany continues to lag behind such successful countries as France, Canada and the United Kingdom. These and other top game locations have long employed tax incentives for game production. As a result, games companies in Germany are currently at a cost disadvantage of around 30 per cent.

While the existing funding programme had a strong impact especially at the beginning, it no longer offers the needed predictability and reliability to guarantee Germany’s sustained success as a production location. Because high demand wasn’t met with the adequate provision of resources, a funding application stop has already been imposed three times since the start of the Federal German Games Funding Programme. This has slowed Germany’s race to catch up with the world’s leading game locations and left untapped the enormous potential that games and the games industry hold for this country as an economic and digital location. The addition of a tax-based games funding, on the other hand, offers a solution for games companies that would create reliability, investment incentives and competitiveness in the international market. From an economic perspective, this funding offers not only especially strong leverage effects but also great practicality: the funding is only deducted from the company’s tax liability retrospectively – in other words, money is invested before the state funding is due.

The full form of the draft for the future games funding model in Germany as well as information on its leverage effects can be found here (German only).

About the data

The data on the leverage effects of the tax-based games funding in Germany is based on an analysis by the research and consulting company Goldmedia in 2025 on behalf of game.

game – the German Games Industry Association

We are the association of the German games industry. Our members represent the entire video game ecosystem, from development studios and publishers to esports event organisers, educational institutions and other related entities. We are co-organisers of gamescom, the world’s biggest event for video games. We are a shareholder in the Entertainment Software Self-Regulation Body (USK), the Foundation for Digital Games Culture, the esports player foundation, game events and the collecting society VHG, as well as co-host of the German Computer Game Awards. Serving as a central point of contact for media, as well as political and social institutions, we provide comprehensive expertise in areas including market development, game culture and media literacy, and address any inquiries or concerns. Together we are making Germany the heart of gaming worldwide. With games, we enrich the lives of all people.

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