gamescom 2026: Germany plays more than it develops
Why Europe's largest games market is falling behind as a development location and support has so far barely counteracted
The gamescom 2026 runs from August 26 to August 30 in Cologne and online, the world's largest event for computer and video games. The political march around the opening is extensively described. The economic account behind it is less so. It states: Germany is Europe's largest games market and at the same time a weak development location. And the most important tool to close this gap has so far only worked halfway.
A Billion Market That Produces Little
Germany, with annual sales of around 9.4 billion euros, is the biggest games market in Europe. However, the balance looks different in development. A large part of the titles played in this country are developed abroad, and value creation and well-paid jobs often arise elsewhere. This very imbalance is the reason why the state promotes at all: The market is growing, but the location is not keeping up. For founders, investors, and technology companies, therefore, it matters less which blockbusters are shown in Cologne. What matters is where they will be developed in the future.
125 Million Euros, One Third Allocated
The government is trying to counteract, so far with mixed success. For 2026, the federal government has allocated around 125 million euros for the games sector, the majority of which will go into game funding. By mid-year, according to the GamesWirtschaft service, only about one third had been allocated, with more than 80 million euros still unutilized. So, there is money available. It's just arriving slowly at the studios. This points to a structural problem: Project funding, which must be applied for and approved in advance, fits poorly with an industry that needs to scale up or pause at short notice.
The real goal is a tax credit
The industry therefore wants a different tool: tax incentives for game projects, as are already familiar in countries like the UK, France, or Canada. A tax credit automatically applies, scales with actual production, and gives studios financial planning security over several years. Such support is agreed upon in the coalition agreement as a declaration of intent, but it has not been implemented. The fact that Lars Klingbeil, the Federal Minister of Finance, is coming to the opening in Cologne is no coincidence in this context, but rather the sign that the studios have been waiting for.
The location is not decided on the stage
This year, gamescom showcases the demand side at its best. 2025 saw 357,000 visitors from 128 countries, over 34,000 trade visitors, and 1,568 exhibitors from 72 countries covering 233,000 square meters. However, a location does not emerge by itself. It depends on capital, skilled labor, and reliable framework conditions, and exactly those are not yet set. As long as the tax credit remains just an announcement, Germany remains an excellent place to sell games and a mediocre one to develop them.
The order of signals is clear. The attention of the politicians is there, the size of the market is undeniable. What is missing is the tool that turns demand into a production location. The gamescom 2026 makes this gap visible. It must be closed by the legislature.