Why is the game industry getting bigger?

The German games market grew by 32 percent in the Corona year

  • Sales in the German games industry increased significantly in 2020
  • Games, in-game and hardware purchases as well as subscriptions achieved growth
  • According to the industry association Game, this shows how important games were for many in the pandemic year

As announced by the Association of the German Games Industry, the games market saw significant growth in 2020. Revenue for games and related hardware increased a whopping 32% overall.

While the Corona year 2020 meant extreme losses for many, the games market in Germany flourished as an ideal lockdown occupation. That same year, significantly more software and of course the necessary hardware were sold, as the industry association Game announced.

"Overall, a turnover of around 8.5 billion euros was achieved with computer and video games and the associated hardware," says the official report on the association's website. The figures indicate an approximate increase of 32% compared to 2019 and are based on market research results from GfK and App Annie. Among other things, the numbers come from a survey of 25,000 people about their game purchases.

These sums can still be broken down a bit. The hardware alone, such as consoles, game PCs and the like, achieved around 3.2 billion euros (26% more than in 2019). In contrast, a full 5.2 billion euros came from game sales, in-game purchases, subscriptions and online services (36% more than in 2019).

Cloud service providers or game subscriptions in particular are winners in the curious year 2020. Game names, for example, Nintendo Switch Online, Xbox Game Pass or PlayStation Plus as winners.

In-game or in-app purchases also increased by 44%, although one could perhaps take a critical look at them: In the difficult situation of the pandemic, there is also the risk of sinking too deeply into microtransactions. However, subscriptions to online games, regardless of in-game purchases, also gained 44% in sales last year. An example would be World of WarCraft, where the big new expansion Shadowlands came at just the right time.

For all enthusiastic gamblers, this increase is probably no wonder. Many would surely agree that playing, regardless of whether it was a single-player escape from the world or a fun round with friends, was a small lifeline for many in lockdown. In addition, 2020 was also the year of the next-gen consoles, which should also have caused a stir about new game equipment.

Game managing director Felix Falk also sees the positive aspects and importance of video games: "The extraordinarily strong growth in the games sector shows how important games were in the Corona year 2020. They brought millions of people together, players strangers despite the lack of travel opportunities Let worlds be discovered, supported with homeschooling or simply provided good entertainment despite the pandemic. "

For some, however, this need for games was greater than the technology at home allowed. Therefore, for many, it was called upgrading, explains Falk even further. The hardware therefore achieved an increase of 26% in 2020. The year 2020 was more fertile than terrible, at least for the games industry.