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German government approves €50 million funding for games development

Hundreds of proposals already in the works as investment is approved for 2020 budget

The German games industry will be given a welcome boost next year after the government approved plans to pour €50 million into funding local games studios.

The Finance Committee of the German Bundestag agreed to introduce this funding into the federal budget for 2020 "and the upcoming years", which will help promote the games development industry in the region.

The hope is the new funding will "reduce Germany's major competitive disadvantages," according to local trade body Game. The organisation cites France, Great Britain and Canada as examples of countries that have already assigned government funding to grow the games industry, with Germany reportedly 30% more expensive to develop in by comparison.

This has led to decline in the German development scene, despite growth in the overall market. Game reports that for every €100 spent on video games in the country, only €4.30 goes to local developers.

This funding was actually agreed last year at a federal level in an agreement between three government parties, with a budget of €50 million allocated to the Federal Ministry of Transport and Digital Infrastructure for this purpose. The Ministry has already received 380 project proposals during the pilot phase.

"The securing of games funding is a clear signal for Germany as a games location," said Game's managing director Felix Falk. "The Finance Committee of the German Bundestag provides the important planning security by fixing the budget for the coming years.

"The decision as well as the broad consensus display the intent across party lines to make Germany a more vital player internationally in the field of computer game development. Now we are awaiting the successful notification of the funding directive by the European Union so that the numerous new projects in Germany can be put into action."

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