German Game Offerings Expand
In a significant move for the German gaming industry, politicians from various factions have signaled their approval for negotiations aimed at providing stronger state support. This support, which could include both direct funding and tax incentives, is intended to help German game developers compete on a global scale.
The federal government is set to increase its support for domestic game developers, with direct subsidies of 88 million euros this year and 125 million euros by 2026. This boost in funds is seen as a positive step by industry experts, with Hendrik Lesser of Munich's Remote Control Productions noting that the topic is being taken more seriously in this legislative period than ever before.
Green Bundestag MP Andrea Lübcke views gaming as a "central innovation and growth industry of the 21st century" and a "significant cultural asset". NRW Minister of Culture Nathanael Liminski (CDU) sees such a system as a promising investment in the games location Germany, potentially attracting foreign developer studios and creating jobs.
Malte Behrmann, an industry expert, sees the federal government's plans as fundamentally positive but calls for a different orientation of support policy in the future. Behrmann suggests that game companies that tax their profits in Germany should be particularly supported in terms of taxation, with those who do this receiving strong support and those who do not receiving weak support.
The goal is to create a system where game developers can claim certain costs and pay less tax, aiming to stimulate investments. Successful games from Germany include "Anno 1800" by Ubisoft, "Enshrouded" by Keen Games, and "Hunt Showdown" by Crytek. However, German game developers currently have a cost disadvantage of around 30 percent compared to their international counterparts.
Countries like France, Canada, and Britain have had such tax relief for a long time, which has resulted in a stronger gaming industry compared to Germany. CDU Bundestag MP Joachim Ebmeyer and SPD coalition colleague Holger Mann believe the federal government can afford tax breaks, stating that investments today will benefit the German economy in the long run.
However, the Federal Minister responsible for developing the system of tax exemptions for the German game development industry is not explicitly named in the results. Despite this, the search results mainly identify Karin Prien as the Federal Minister for Education, Family, Senior Citizens, Women and Youth since May 2025, and Stefanie Hubig as Federal Minister of Justice and Consumer Protection since May 2025, but neither is specifically linked to tax exemptions for game development.
Bavaria's Digital Minister Fabian Mehring (Free Voters) suggests that the federal government would have to compensate for the corresponding losses in tax revenue for the states, as the short-term impact of such a system would likely lead to less tax revenue for the federal and state governments. Despite this, less than five percent of the money spent on games in Germany goes to games from the Federal Republic.
In conclusion, the proposed tax incentives for the German gaming industry are a significant step towards levelling the playing field for domestic game developers. As the industry continues to grow in the digital age, with visual possibilities improving thanks to new technology, this support could potentially attract foreign developer studios, create jobs, and boost the German economy in the long run.
