Games companies can reapply for funding

After a 20-month dry spell, computer game studios can again apply for federal funding. The federal economics ministry has not accepted any funding applications since May 2023, but companies can submit applications again from Monday.

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Federal Ministry of Economics published A funding guideline including a funding call for this. However, severe restrictions apply, also due to provisional budget management after the breakdown of the traffic light coalition. That’s why industry representatives are reacting cautiously to the new rules.

Multi-year projects are only eligible if they cost between EUR 300,000 and EUR 900,000. Big projects have actually been excluded at the moment. Although funding can be applied for, projects must be completed by the end of 2025 – which the industry believes is unrealistic, as development of a game typically takes several years. Furthermore, a project can only be financed with a maximum of two million euros.

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In 2025, approximately 67.5 million euros in federal funding will be available to game companies operating in Germany. This is more than in 2024, when it was 50 million euros. However, it is unclear whether this money can be fully withdrawn – according to the Games Industry Association, a large portion of the funding budget is at risk of being seized due to the new restrictions.

criticism from the industry

GAME managing director Felix Falk is relieved that the federal government published a call for funding this year. However, he noted that many companies will not receive funding at all due to stringent conditions. “This means they have an additional 30 percent cost disadvantage compared to countries like France, Canada or Great Britain.”

Falk appealed to the ministry and the Bundestag Budget Committee to improve the situation. Following the federal election, the new federal government should also focus on tax incentives and ensure a competitive and credible framework.

The industry has had boom years

The computer and video game industry grew significantly during the Corona years – people were at home much more than before and therefore had more time to play. After this peak, demand weakened somewhat and studios came under pressure. “Recently the industry is looking a little more optimistic about the future – hopefully this gradual upward trend will continue,” says Falk.

Ubisoft is one of the largest game developers operating in Germany. The company develops strategy games such as “Anno 1800” and has studios in Berlin, Düsseldorf and Mainz. Ubisoft Germany boss Benedict Grindel criticizes that the funding is completely inappropriate for large and medium-sized projects. Big projects will take three to five years. “So the requirement to end in just one year is misleading.”

Grindell says national funding rules play a major role in the investment decisions of international sports companies. “Germany is not sending a good signal to the global industry – while other countries introduce reliability rules and promote them more, in Germany it’s back and forth, instead of reliability you get panic games.”

(hos)