Games funding Germany 2025: All about the restart | IT-Medienrecht

Federal Funding for Computer Games Returns: New Opportunities for German Developers

The news many game developers in Germany have long awaited has finally arrived: federal funding for computer games is back! After a lean period of almost two years, the federal government has relaunched the funding program for games development. This is a great relief for an industry that has suffered significantly from the funding freeze in recent years.

The previous funding already had an enormous impact. The number of game studios in Germany more than doubled between 2020 and 2023, growing from 208 to 450. Consequently, the joy and optimism that new projects can now finally be supported again is immense.

Funding Break Over: Games Industry Breathes a Sigh of Relief

Since December 30, 2024, it has officially been possible to submit funding applications for games projects to the federal government again. Prior to this, there was a freeze on applications for around 20 months because the funds originally provided were unexpectedly exhausted. No new funds were earmarked in the federal budget.

This forced pause – a kind of driving with the handbrake on – caused significant uncertainty and frustration in the industry. The relief is all the greater now: the funding lights are green again, and studios can finally get their concepts out of the drawer. Moreover, the renewed commitment signals a strong future for game development in Germany.

Restart and Funding Volume

The Federal Ministry for Economic Affairs and Energy (BMWK) published a new funding guideline at the end of 2024 and had it notified by the EU Commission. This paved the way for the restart. The funding program is not a one-off measure; it is an ongoing federal-state program with a planned annual volume of approximately €70 million.

According to the Federal Ministry, over 640 projects have already been supported with a total of more than €220 million since 2019 (as of July 2025). This is clear evidence of how important this funding is for Germany as a games location. Many developers used the period of standstill to prepare projects. Now, these projects can be implemented with financial support, giving a new boost to the creative potential in the country.

Understanding the New Federal Games Funding Program

What exactly does the "Federal Government Games Funding" 2025 involve? Here is an overview of the key points:

• What is supported? Development of computer games, including both prototypes and complete productions. Projects with development costs between at least €300,000 and a maximum of €2 million are eligible for funding. Smaller projects under €300,000 are no longer eligible for this federal funding.
• How much funding is available? The funding rate (proportion of eligible development costs) depends on the size of the company. Large companies receive a 25% subsidy, while small and medium-sized enterprises (SMEs) receive 45%, and start-ups can receive up to 50%. This means independent studios and young development companies particularly benefit. Initially, a maximum of €2 million in funding was available per project, an amount that has since been significantly increased.
• Objectives of the funding: The German government pursues clear objectives with its games funding. It aims to create an "international level playing field", compensating for competitive disadvantages compared to other countries. Additionally, the cultural diversity of the games landscape is to be preserved and expanded. Germany as a development and production location is to be sustainably strengthened, promoting an economically healthy games ecosystem of small, medium-sized, and large companies. This program contributes to strengthening the audiovisual sector in Europe as a whole, focusing on both culture and business, and making "Games made in Germany" internationally competitive.
• Application procedure: As before, the DLR Project Management Agency will handle the application process, having managed the previous funding period on behalf of the BMWK. Importantly, a mandatory design consultation takes place before the actual application submission. Developers first submit a project concept and receive feedback before submitting the full application. This procedure has proven its worth in increasing success rates and ensuring projects receive appropriate funding. The good news is that applications can be submitted again without restriction from August 1, 2025, making now an opportune time to launch new projects.

Important Changes and Conditions in 2025

The new edition of games funding brings some changes, partly due to experiences from previous years and partly due to the special budget situation at the beginning of 2025. Developers should be aware of the following points:

• Minimum budget €300,000: As mentioned, very small projects below this threshold are no longer funded nationwide. This means solo developers or mini-studios with micro-budgets may need to seek state funding programs or other forms of support. The aim of this lower limit is to use federal funds more targeted for greater impact and to avoid duplicate structures with state funding.
• Limited duration at first call: At the restart, there was initially a strict time restriction: funded projects were not allowed to run beyond the end of 2025. Larger multi-year game developments were only approved at the end of 2024 if their completion was guaranteed by December 2025. This practically meant that large-scale projects with longer development periods initially lost out. Multi-year developments could initially only be considered up to a total project sum of €900,000. This temporary restriction was due to the provisional budget situation, as no fresh funds were initially approved in the 2025 budget.
• Raising the funding ceiling: A further tightening at the start of 2024 was the reduction of the maximum funding amount to €2 million per project. Previously, individual large prestige projects received up to ~€5 million in federal funding (e.g., "Anno 1800" and other major titles). The cap of €2 million was initially intended to give more projects a chance of receiving funding but also slowed down ambitious large-scale projects.

Positive Developments and Future Outlook

The truly good news is that all these temporary restrictions have been a thing of the past since August 2025. The new federal government (with the Ministry of Research in charge since May 2025) has published its first call for funding 2.0, removing all brakes. From August 1, projects with a duration of several years can again be applied for, without a rigid end date of 2025. The distinction between project sizes (prototype vs. large game) is also no longer applicable; there is now a uniform pot for all types of games projects.

Furthermore, the upper limit for the grant will be quadrupled: in the future, up to €8 million in funding per project will be possible. This means that even AAA-related projects or extensive productions can finally be considered, sending a strong signal to the industry. These changes significantly enhance the viability of ambitious projects and reduce the legal risks for start-ups in this sector.

At the same time, the funding pot itself will be increased. A significant increase in the funding budget is planned in the upcoming federal budget. Although the exact amount will not be known until it is passed, politicians have recognized that the current ~€50-70 million per year is not enough to support all good projects. Therefore, more money will be made available in the future, with a focus on predictability and reliability for the studios. Additionally, the coalition agreement even announces additional tax incentives for games (tax credit), which could increase the funding effect in the long term. It remains to be seen when this will be implemented.

Outlook and Conclusion

For game developers in Germany, this means one thing above all: get to work and submit your project ideas! Federal funding is back and better equipped than ever. Anyone who put their game idea on ice during the uncertain phase can now thaw it out again; the "air to the top" is back both financially and in terms of time. Thanks to the lifted restrictions, projects once again have the necessary freedom to develop without artificial time or budget limits.

A few practical tips: Inform yourself thoroughly on the official website for games funding about the current guidelines and FAQs (a funding radar is also available there, showing the current budget). Plan your project realistically and ensure you meet all funding criteria, such as the cultural heritage character of your game, which is relevant for funding. Make use of the design consultation at an early stage, as it will help sharpen your application and avoid typical pitfalls. And do not hesitate to call in professional support for complex questions, whether from industry associations or specialized consultants.

All in all, the signs are better than they have been for a long time: politicians are sending a clear signal that games are being taken seriously as an industry of the future. Now it is up to the creative minds in the German games industry to seize this opportunity. We are already looking forward to seeing many new, successful "games made in Germany" soon – perhaps the next surprise hit will come from your studio! Good luck with your application; if you have any questions or need support, we will, of course, be happy to assist you.