Games Funding Increase: What We Know so Far

A 33,3 million euros increase in federal games funding will not come from the Ministry of Economic Affairs but from the Commissioner for Culture and Media, Claudia Roth. This raises questions about the future of the funding. The application process for studios is also unclear. We summarised the current state of knowledge.

Since applications for games funding from the Federal Ministry of Economics and Climate Protection (BMWK) in Germany were halted at the beginning of the year, the current concept of federal funding has been criticised by both the industry and the political opposition. Now something has been done in the review committee for the 2024 federal budget, which took place on 16 November 2023: 33,3 million euros more funding is to be provided in each of the next three years.

It was initially unclear whether this was actually an annual increase or whether it would only apply for 2024. Now it is at least known that, apart from 2024, the increase is also valid for 2025 and 2026.

More money for three years

In concrete terms, this means that for 2024, the Federal Commissioner for Culture and Media (BKM), currently Claudia Roth, will have an additional 33.3 million euros for games funding. The BKM also has 66.6 million euros in so-called commitment appropriations, i.e. money that can be carried over for the coming years. In simple terms: 33.3 million euros for 2025, 33.3 million euros for 2026. However, the statement also makes it clear that this is by no means a general, recurring increase in funding. Instead, the money will be allocated from the current budget over the next three years, and initially as a one-off. From 2027, these funds will therefore initially be cancelled again, unless they are renewed in the budget meeting for that year.

One or two application processes?

It is also unclear to what extent the two pots - the previous regular funding from the BMWK, and the new funding from the BKM - are interlinked in the application process. It is therefore uncertain whether the money that is now additionally available for 2024 will be used to process outstanding applications to the BMWK or whether a new application channel will be set up for 2024 and beyond, through which studios will submit applications directly to the Federal Commissioner for Culture and Media. Should the latter be the case, the BKM, which has a film funding team, but currently does not have a suitable games funding department, would first have to work out funding guidelines for games. This also applies to the following two years, as part of the funding in 2025 and 2026 will also come from the BMWK and part from the BKM.

Whether this division is only a first step towards a complete transfer of games funding to the BKM or of the BKM will hold a second, long-term funding program that has a different focus from the current BMWK funding is unclear.

Different players in the German funding landscape have already spoken out about the current confusing state of funding. NRW's Media Minister Nathanael Liminski, whose state is responsible for one of the largest state funding programmes in Germany, criticised the unclear situation with the now two possible contacts for studios seeking federal funding in a statement provided to GamesMarkt: "It's right that the federal government is making more funding available for the games industry. However, the aim must be to ensure that these funds reach the companies in an unbureaucratic and targeted manner. Parallel structures do not create predictability, but rather uncertainty. It is therefore all the more important that the federal government quickly realises what goals it is pursuing with its games funding and develops a coordinated and internationally competitive funding structure together with the federal states."