Gaming Sales Decline While Cloud-Based Services Show Growth
The German gaming market, which has experienced significant growth in recent years, saw a slowdown in 2024. According to game – The German Games Industry Association, total sales revenue from games, hardware, and online gaming services reached €9.4 billion, marking a 6% decline from the previous year. The drop was particularly evident in purchases of PC, console, and mobile games, as well as gaming hardware. However, online gaming services defied the trend, registering a 12% increase and generating €965 million.
Gaming Sales Face Decline
Sales revenue from video games for PCs, consoles, and mobile devices amounted to €6.5 billion in 2024, reflecting a 4% decrease. The most notable drop was in direct game purchases, which saw a 17% decline to €921 million. In contrast, the in-game and in-app purchases segment, which had previously been a key driver of growth, fell by 3% to around €4.6 billion. Despite the decline, these purchases remain a crucial source of revenue, offering players additional content such as skins, season passes, and expansions while helping developers offset rising production costs.
Gaming Hardware Market Faces a 10% Drop
The gaming hardware sector also struggled, with total revenue falling by 10% to approximately €2.9 billion. The biggest decline was in game console sales, which plummeted by 26% to €807 million. However, this drop follows an exceptionally strong year in 2023, when widespread availability of gaming consoles led to a surge in purchases. Even with the decline, revenue from game consoles in 2024 remained higher than in 2022, highlighting an overall strong market position.
While console sales declined, revenue from gaming accessories such as controllers and headsets increased by 5% to €391 million. Meanwhile, the gaming PC and laptop market remained relatively stable, with a minor 1% dip to €540 million. Accessories for gaming PCs, including high-performance graphics cards and specialised peripherals, suffered a 4% decrease, bringing total revenue to just under €1.2 billion.
Online Gaming Services Show Resilience
In contrast to the overall market downturn, online gaming services experienced significant growth, with revenue increasing by 12% to €965 million. This segment includes cloud gaming, subscription-based services that provide access to a library of games, and online multiplayer features. The rising demand for these services highlights the evolving nature of the gaming industry, with more players opting for flexible, on-demand gaming experiences.
Industry Experts Optimistic About the Future
Felix Falk, Managing Director of game, The German Games Industry Association, noted that the market correction was expected after years of strong expansion. “Following several years of rapid growth, the German games market took a breather in 2024. A slowdown in major game releases and normalisation in console demand contributed to the decline. However, the growing demand for online gaming services demonstrates the industry’s ability to innovate and adapt. With new game releases and next-generation consoles already on the horizon, we anticipate a return to growth in the near future.”
While 2024 presented challenges for the German gaming market, the continued rise of online gaming services and an expected rebound in game releases suggest that the industry remains strong. With ongoing advancements in cloud gaming and subscription-based models, the sector is poised for renewed expansion in the coming years.