Growth of the games market flattens out

As can be seen from a recent report by Game, the industry association of the German video game industry, the economic development of recent months also affected the local market. Its growth declined noticeably compared to previous years.

Germany: Growth of the games market flattens - Strong growth in ingame purchases

After the German market for also benefited from the exit restrictions of the COVID 19 pandemic in the last two years, issues such as the Ukraine crisis and inflation increasingly determined the purchasing behavior of German gamers in recent months.

A development that, according to a recent report by Game, the trade association of the German video game industry, also had an impact on the local games market. While the market grew by an impressive 22 percent in the first half of last year, growth fell to two percent in the first half of 2022.

In the first six months of the current calendar year 2022, sales of corresponding hardware and software totaled 4.5 billion euros in .

Sales of games apps declined

According to Game, the declining growth in the first half of 2022 is due in part to the fact that revenues generated with game apps, which were among the growth drivers of the German market in recent years, have recently declined. Thus, in the first half of the year, EUR 1.3 billion was generated with game apps, which corresponds to a minus of seven percent compared to the same period of the previous year.

By contrast, revenue from in-game purchases in PC and console titles grew noticeably, rising to 705 million euros in the first half of this year – an increase of 24 percent. “Subscriptions for individual games (+19 percent to 85 million euros) and fees for online services (+10 percent to 416 million euros) also made up for revenue losses from other areas,” the report added.

Further reports on the German games market:

Due to the ongoing supply bottlenecks in the PS5 and Xbox Series X segments, only the PC market grew noticeably in the first half of the year. The smartphone has once again emerged as the number one platform so far this year, with around 38 percent of German gamers using it for gaming according to a study.

 


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