GamesMarkt revealed that Germany’s draft federal budget, presented on June 24, 2025, proposes a substantial boost to the federal games funding scheme: €88 million is earmarked for 2025, rising to € 125 million annually from 2026 onwards.
This move signals a strategic pivot toward consistent support for Germany’s game development ecosystem, setting the stage for growth until additional tax incentives come into effect.
Felix Falk, Managing Director of “game – the German Games Industry Association,” applauded the decision, stating that Minister of Research Dorothee Bär is “following up on its words with action.” Falk described it as an early landmark achievement by the new federal government, fulfilling promises made less than 50 days into office.
Why it matters
Germany’s gaming sector has long sought both stable funding and tax incentives to compete globally. This budgetary pledge provides predictability for developers, reducing financial uncertainty and encouraging long-term planning.
It’s a pivotal step in modernizing Germany’s digital entertainment industry and aligning public investment with broader economic recovery and innovation objectives.
Notable German games and studios
Germany has produced a number of internationally recognized games, such as Crysis by Crytek and Anno by Ubisoft Blue Byte.
Studios like YAGER (Spec Ops: The Line) and Mimimi Games (Desperados 3, Shadow Tactics) have also drawn acclaim for their narrative-driven and tactical gameplay experiences.
The new funding reinforces Germany’s ambition to remain competitive with countries like Canada, France, and the UK, all of which support their gaming sectors through a mix of grants and tax incentives.
