game Association Warns of Uncertainty for Games Companies as Government Coalition Ends

Germany is in the midst of a government crisis after the abrupt end of the federal government. The situation is causing uncertainty for German games companies in particular, as the game – the German Games Industry Association points out.

Following the collapse of the German government yesterday, Felix Falk, Managing Director of game - the German games industry association, issued a statement. He highlighted the uncertainty for games companies as the budget for 2025 has not yet been approved and interested companies should be able to submit new applications for games funding at the beginning of 2025. All this is now uncertain.

Felix Falk: "The end of the so-called 'traffic light coalition' between SPD, Greens and FDP is a problematic situation for the German games industry, especially with regard to the still undecided budget for 2025. It creates additional uncertainty in an already difficult situation. Without an approved federal budget, the promised and urgently needed €33 million in games funding in the budget of the Minister of State for Culture cannot be made available in the short term for 2025 and 2026. In this context, the new games funding guidelines of the Federal Ministry for Economic Affairs and Climate Action, which are to resume funding for games development next year, must not be affected by the lack of a federal budget. Otherwise, this would pose a major threat to the many games companies that are counting on the promised start at the beginning of 2025."

He also mentions the recently launched Germany-wide games funding for new studios (as recently reported by GamesMarkt), which should not be affected. Falk: "It is a good thing that the Games Scholarship, which has already been launched, does not seem to be affected by the current situation. In the current exceptional political situation, it is once again clear why the next federal government must finally ensure reliability, predictability and international competitiveness for games companies. Above all, this requires urgently needed tax incentives for games. With such comparable framework conditions, we as an industry can finally hold our own in international competition and catch up".

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