What the Federal Government's New Games Funding Looks Like

At the opening of gamescom 2024, Vice Chancellor Robert Habeck announced the key points of the German government's games funding programme. If all goes to plan, it should be in place by the start of 2025.

Robert Habeck, Federal Minister for Economic Affairs and Climate Action, gave the opening speech at gamescom in the evening, emphasising the ministry's commitment to the German games industry. In his speech, he also outlined the new funding guideline "Games Funding by the Federal Government". Despite the tight budget situation, the funding level remains constant and funding for the industry can be stabilised. The funding guideline is currently being coordinated within the Federal Government and must then be approved by the EU Commission. The new funding is expected to start at the beginning of 2025.

Basically, the aim is to preserve the diverse cultural landscape, create an economically healthy ecosystem for small, medium and large companies, build up or secure expertise (specialists) and contribute to strengthening the audiovisual sector in Europe.

The purpose of the funding is the development of digital computer games, i.e. the development and production of prototypes, i.e. the development of a game, a port or an expansion. The funding rate (partial financing of personnel and material costs) should be based on the size of the company, according to the EU definition of SMEs: - Large companies: max. 25 per cent (basic funding rate) - SMEs (not start-ups): max. 45 per cent (basic rate plus 20 per cent SME bonus) - SMEs & start-ups (up to 3 years): max. 50 per cent (SME plus 5 per cent start-up bonus)

In addition, a mandatory cultural test must be passed. Games must be labelled according to the age classification system of the German Protection of Young Persons Act, and games that glorify or trivialise violence are excluded from funding. Gambling and its simulation are excluded from funding, as are games that use overly manipulative designs or processes (dark patterns) and games in which gambling is a central element of the game.

Applications will be processed in the order in which they are received. At this stage, two calls for funding are planned each year (no fixed deadlines, but rather a "submission window") in order to clarify the funding guidelines and to adapt the procedure. Funding will be provided in the form of non-repayable grants. A "funding radar" will be used to improve the transparency of the availability of funds. Projects eligible for federal funding should have a minimum size of 300,000 Euros. It will not be possible to combine federal and state funding.

The Ministry writes: "The development of the new funding guidelines took place in a transparent process involving industry. Important suggestions from the industry have been incorporated into the new guidelines. The new funding guidelines also take into account the criticism of the Federal Court of Auditors (Bundesrechnungshof), which, among other things, called for a stronger demarcation from the funding of the federal states."