German gaming industry secures financial support from the state for new games production - Additional games originating from Germany?
Germany Plans to Boost Video Game Industry with Tax Incentives
Germany is set to significantly enhance its support for the video game industry, with plans to more than double funding and establish tax incentives similar to those found in other countries. This move aims to boost Germany's global competitiveness as a gaming location and support growth in the domestic sector.
At the recent Gamescom 2025, Federal Minister Dorothee Bär emphasized the strategic importance of the gaming industry, highlighting its cultural, economic, and technological potential. The government is focused on using tax incentives to tap further into the digital games market.
The new government coalition agreement explicitly promises tax incentives for the domestic gaming industry, reflecting official policy direction. While specific tax incentive programs are still in the planning or early stages, industry leaders note that the German games sector currently lacks the kind of robust tax breaks that other countries offer, which are key to attracting investment and supporting development. Improved tax breaks are widely seen as essential for future growth.
Politicians from various factions and federal states have signaled their support for tax incentives for the German games industry. Green MP Andrea Lübcke views gaming as "one of the central innovation and growth industries of the 21st century." CDU MP Joachim Ebmeyer and SPD MP Holger Mann believe that the federal government can afford tax breaks for the games industry.
The federal government is expected to bolster its support for the games industry with direct subsidies totaling 88 million euros this year and 125 million euros planned for 2026. North Rhine-Westphalia, a leading region for game development, has tailored funding strategies to complement federal efforts and sustain a thriving games ecosystem.
If implemented, these tax incentives could lead to increased investment in game development studios, encouraging new and emerging projects. They could also result in growth in employment and creative output within the industry, strengthening Germany's position as a European and global hub for video game production and innovation.
The expanding consumer base, with over half the German population playing video games, could also benefit from these measures. Diverse platforms and genres are seeing growth, and leveraging this consumer base could further boost the industry.
Although exact details of the tax incentive plans, such as percent credits, eligible expenses, or startup support mechanisms, have not yet been fully unfolded publicly, the commitment and doubling of funding represent a major policy shift designed to stimulate the industry’s long-term growth and competitiveness.
Foreign development studios and producers could potentially come to Germany and create jobs if tax incentives are implemented. Countries like France, Canada, and the UK have had tax breaks for a long time, which has contributed to a stronger games industry in those countries. Industry expert Malte Behrmann argues that game companies that also tax their profits in Germany should be particularly favored in terms of tax incentives.
However, there are implications to consider. Bayern's Digital Minister Fabian Mehring suggests that the federal government would have to compensate for any losses in tax revenue for the states if tax incentives are implemented. NRW Minister of Culture Nathanael Liminski sees such a system as a promising investment in the games location Germany.
In summary, Germany is actively working to introduce and scale up tax incentives modeled after those in competing nations, with strong recent government backing and industry optimism about the positive impacts on domestic game production and international competitiveness.
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