Gamescom: Gaming Industry Trends Create Opportunities in German Market

Berlin/Cologne (ots) - Germany's gaming industry remains stable in
2010, looking to nearly match 2009 revenues after a record year in
2008. With over 21 million gamers in Germany and 62 million internet
users, the German market remains Europe's largest and most
attractive. Developments in the online gaming segment, especially the
growing popularity of social gaming on social networking sites like
Facebook, as well as recent demographic developments indicate an
industry-wide shift. Several international game developers and
publishers are already active in Germany. Industry experts from
Germany Trade & Invest will be at this year's "Gamescom" from August
18-22 in Cologne, Germany, to discuss market and investment
opportunities in the Germany gaming industry.

Over the past five years, the Germany gaming industry, consisting
of PC, console, online as well as mobile gaming, has seen a number of
significant developments. Posting growth rates as high as 47 percent
in some industry segments in recent years, the gaming set a record
with revenues of EUR 2.7 billion in 2008. The industry as a whole
posted a slight drop in revenues in 2009 to EUR 2.4 billion during
the global economic downturn, although several segments remained
immensely popular, especially online gaming. Increasing participation
in gaming over social networking sites is anticipated to create
growth potential and stimulate innovation in the coming years.

Recent demographic developments in the industry are also creating
new market potential. While 4 out of every 5 teens are gamers, this
traditional target group is not the only one playing electronic
games. According to a recent report by BITKOM, almost one third of
all 40-49 year olds plays video or computer games. The most
attractive types of games in Germany are electronic puzzle, strategy
and management games.

Several international gaming companies have already established a
presence in Germany, with branch offices or subsidiaries located
across the country. A large number are based in the USA, such as
Electronic Arts subsidiary EA Phenomics in Ingelheim. Asian companies
also have a strong presence in the German market. Japanese game
developer Konami Digital Entertainment, for example, has a German
branch office in Frankfurt am Main. For new developers and
publishers, market entry conditions remain highly attractive, as the
German market is not dominated by large companies that control large
market shares. The structure of the industry here is characterized by
small and medium enterprises. Of the 200 game developer studios in
Germany, only 25 have more than 50 employees.

With approximately 62 million internet users, Germany has the
largest online market in Europe and therefore creates considerable
potential for companies in the online gaming segment. Germany's
geographic position in the center of Europe, excellent
infrastructure, and ultra-modern broadband network allow companies to
effectively direct their European operations from Germany. An
additional strategic advantage for the innovation-dependent gaming
industry is the availability of highly trained workers. German
universities, technical institutes, and the country's dual education
system ensure a high quality education and provide companies with
qualified and motivated employees at competitive costs. Today several
higher education institutions, such as the Games Academy in Frankfurt
and Berlin or the Hamburg University of Applied Sciences, offer
gaming industry-related fields of study.

At this year's Gamescom, taking place from August 18-22 in
Cologne, industry experts from Germany Trade & Invest will be on hand
to discuss the latest developments and business opportunities in
Europe's largest gaming market.

Germany Trade & Invest is the foreign trade and inward investment
promotion agency of the Federal Republic of Germany. The organization
advises foreign companies looking to expand their business activities
in the German market. It provides information on foreign trade to
German companies that seek to enter foreign markets.

Originaltext: Germany Trade and Invest
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Media Contact:
Germany Trade & Invest
Eva Henkel
Email: eva.henkel@gtai.com
T: +49(0)30 200099-173
F: +49(0)30 200099-111