Only 12% of German games companies expect industry growth in 2024
But 50% expect their own business to grow, and only 22% expect to downsize their headcount
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German developers and publishers largely have a negative outlook when it comes to the year ahead for the country's video games industry.
That's according to the annual industry barometer survey conducted by German trade body Game.
This study of 125 member companies shows that only 12% of respondents expect a positive economic development for Germany's games industry in 2024 – significantly lower than the 48% of companies that were optimistic about 2023.
Meanwhile, 54% of respondents were very or rather negative about the outlook for this year, compared to just 17% last year.
However, German games professionals are much more upbeat about the prospects for their individual businesses. 50% expect their company to develop positively in 2024, vs 19% who have a negative outlook.
This still shows a drop in optimism, as 64% of companies expected a good year for their business in 2023, compared to 9% who expected a negative one.
And, despite the widespread layoffs throught the industry, 40% of German games companies expect their headcount to grow in 2024 - a little lower than the 52% that said the same last year.
22% of German game companies expect they will have to downsize, up from 6% of respondents last year.
"Game companies in Germany are looking to the future with significantly less optimism than at this time last year," said Game managing director Felix Falk. "This is due to the strain in the global games industry and the inconsistency in the domestic games funding policy. It's clear that Germany needs a rigorous games policy as well as reliable, internationally comparable conditions to be competitive in one of the world’s largest media markets.
"The weaker our position here, the heavier the impact on us will be in years when the climate in the international games industry is harsher. And the stronger our position, the better we here in Germany will be able to profit from the next wave of growth."
UK trade body TIGA released a similar study earlier this month, showing that 46% of British games studios are "cautiously optimistic about the year ahead."
However, other games industry leaders have told GamesIndustry.biz they are bracing themselves for "up to two years of pain."