But the MD of trade body Game, Felix Falk, says that this figure will need to grow to keep up with the sector's ambitions

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Germany's games industry is receiving €125 million in annual government funding starting January 2026, up from €50 million in 2024. This increased support, driven by a new federal government, aims to make Germany competitive with other major game development hubs. Research shows each €1 in government support triggers €4.80 in additional investment. While 29% of German game companies expect 2026 to be better than 2025, industry leaders say funding needs to grow further and transition to tax breaks for long-term sustainability and to attract international studios.

With €125m in annual government support, the German games industry is feeling good about 2026