Revised Games Funding Still Lacks Comparability and Reliability, says game

game - The German Games Industry Association has commented on today's proposed changes to improve German games funding. Despite good starting points, the association does not believe that the proposed changes will achieve the overall goal of nationwide games funding.

At today's #gamechanger talk, Michael Kellner, Parliamentary State Secretary at the Ministry of Economics and Climate Protection (BMWK), spoke about the proposals for the revised games funding programme. Shortly afterwards, game - the German Games Industry Association commented on the key points presented. These principles are based, among other things, on the results of the evaluation of games funding, which was presented at the end of 2023, and will apply to games funding in the BMWK from 2025.

Some of the proposed key points are welcomed: "For example, there is the prospect of a complementary system of tax incentives for games, and the exclusion of gambling once again makes it clear that games are clearly separated from this area. The planned transparency regarding the availability of funds is also helpful." However, it is clear from other proposed changes that, from game's point of view, it was not so much the political goal of sustainably strengthening Germany as a games location that drove the proposed changes, but rather the fact that the funding provided is still too low. The funding rate, which is low by international standards and is set to be even lower in the future, would be a major step backwards, as would the exclusion of numerous games due to a significantly increased minimum project size, the ban on cumulation with regional funding or the uncertainty caused by unpredictable and changing funding calls. For these reasons, game does not believe that the proposed changes will achieve the ultimate goal of national games funding.

"It is important to regularly review the funding of games in order to constantly improve it and assess its success for Germany as a games location. However, the changes now proposed by the BMWK would not improve the general conditions for the location, but seem to adjust the funding to the insufficient amount of funds. We cannot compete internationally in this way. Successful funding that aims to create a level playing field must be simple, predictable, transparent and adequately funded. However, German games funding still lacks the comparability and reliability to catch up with the top locations for games development. I am therefore grateful that, as the voice of the games industry, our suggestions for improvement will be taken into account in the next step," says Felix Falk, Managing Director of game - the German Games Industry Association.

"Even with the additional funding provided by the German Bundestag for 2024, it is unfortunately still unclear when and how games companies will be able to access it. The Federal Government Commissioner for Culture and the Media and the Federal Ministry of Economics and Climate Protection need to find a solution quickly. Otherwise, the current cost disadvantage of around 30 per cent will continue to apply to new productions. As the largest games market in Europe and number five in the world, it should also be our clear goal to be one of the top locations for games development," says Falk.

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