Federal computer game funding: New conditions and opportunities for game developers

The federal government’s computer games funding has been reorganized to provide even more targeted support for the German games industry. With improved funding conditions, the federal government aims to promote the development of high-quality computer games and strengthen the competitiveness of German developers on the international market. This opens up new opportunities for game developers – from small indie studios to established companies – to finance and implement their projects.

In this article, I explain the new conditions of the funding, what opportunities it offers and how I can help as a consultant in setting up game development studios and in drawing up and reviewing contracts.

What’s new about the federal government’s computer game funding?

The federal government’s revised computer game funding scheme brings with it some important changes that will make it easier to access funding and expand support for developers. The new features include:

Increased funding amounts:

The federal government’s new computer game funding scheme not only offers game developers higher funding amounts, but also a clear structure for funding opportunities. Studios can apply for grants of up to 50% of the eligible costs, with the exact amount depending on the type of project and the size of the company. Particularly ambitious projects benefit from a maximum funding amount of up to 8 million euros per project, with funding of up to 15 million euros possible over a period of three years. This opens up new prospects for larger productions or technologically innovative projects in particular.

Funding quotas and bonuses

The funding guideline provides for a basic funding rate of 25%, which can be increased by additional bonuses:

• SME bonus: Small and medium-sized enterprises (SMEs) receive an additional funding bonus of up to 20%, which raises the overall funding rate to up to 45%.
• Start-up bonus: Start-ups that are no more than three years old can receive a further bonus of 5%, so that they can achieve a total funding rate of up to 50%.
• These bonuses are cumulative, provided the relevant criteria are met.

Eligible stages of development

The promotion covers various development phases of a game:

1. Prototype development: Grants for the creation of a prototype to test the feasibility of a project or to attract investors.
2. Production: Support for the complete development and release of a market-ready game. This also includes ports to new platforms or extensive expansions such as DLCs and add-ons.

Eligible costs

The funding covers a wide range of costs, including:

• Personnel costs for developers and designers.
• License costs for software or protected content.
• External services such as sound design or localization (maximum 50% of personnel costs).
• Marketing measures such as gameplay trailers or community support.
• Project-specific legal advice and protection of intellectual property rights.

Not eligible for funding:

• Distribution costs such as packaging or shipping.
• General office costs such as rent or standard software.
• Costs incurred before the application was submitted.

If you are planning to develop a game, check exactly which funding category and bonuses are available for your project. I will support you in preparing your funding applications in a legally compliant and precise manner – whether for prototype developments or extensive productions. Take advantage of the opportunity to optimally combine various funding options!

Simplified application:

The digitalization of the application process is a central component of the federal government’s new computer game funding scheme. Studios can now submit their funding applications in full via a user-friendly online portal that has been specially developed to meet the needs of the games industry. This portal makes it possible to digitally upload all required documents such as project descriptions, cost plans and schedules. It also provides a clear overview of the status of the application so that developers can see at any time what stage of processing their application is at.

Another advantage of the digital system is the faster processing time. By automating certain processes and managing applications centrally, studios can receive feedback on their funding status in less time. In addition, the portal ensures that all documents are submitted completely and correctly by pointing out missing information or documents.

Consideration of cultural aspects:

Games with cultural or educational added value are the focus of the federal government’s new computer game funding program, as they make an important contribution to cultural diversity and education in Germany. The funding aims to support projects that use innovative narrative styles or interactive elements to convey socially relevant topics. This includes games that reappraise historical events, promote cultural values or convey educational content in a playful way. Particular attention is paid to combining entertainment and education in order to appeal to both young target groups and adults.

The funding conditions have been adapted to make it easier for studios with such projects to gain access. In addition to financial support, projects that address current social challenges such as climate change, diversity or inclusion will also be considered. The aim is to encourage game developers to pursue creative and bold approaches that go beyond pure entertainment and have a positive social impact.

Requirements for funding

Studios must meet certain requirements in order to benefit from the new funding. These include:

• Registered office in Germany: Only studios with a registered office or permanent establishment in Germany are eligible for funding.
• Degree of innovation: The project must be characterized by technological or creative innovations.
• Cultural contribution: Games with cultural or educational added value are given special consideration.
• Detailed project plan: The application must contain a clear description of the project, a timetable and a cost breakdown.

Practical tip:

Thorough preparation is crucial for a successful application. I will support you in preparing your funding application in a legally compliant and convincing manner – from drawing up a detailed project plan to clarifying legal issues. All information and documents can be found on this page.

Legal challenges when founding a game development studio

Setting up your own studio is a big step for many developers. But without a solid legal foundation, problems can quickly arise. The most common challenges include

• Choice of legal form: Should the studio be founded as a GmbH, UG or GbR?
• Shareholder agreements: Clear regulations on the rights and obligations of the founders are essential.
• Tax aspects: The tax structure plays an important role in the financing of the studio.

I will provide you with comprehensive advice on setting up your studio – from choosing the right legal form to drawing up individual shareholder agreements. In this way, you create a solid basis for your company.

Contracts for game developers: What is important?

The development of a game often requires collaboration with external partners – such as publishers, freelancers or technology providers. Clear contracts are essential to avoid legal conflicts.

Important contract types:

1. Development contracts: Govern the cooperation between studio and publisher.
2. Freelancer contracts: Clarify rights to created content (e.g. graphics or music).
3. License agreements: Enable the use of external technologies or content.
4. Data protection agreements: Ensure that personal data is processed in accordance with the GDPR

I support you in drafting and reviewing all relevant contracts to protect your rights as a developer and minimize legal risks.

Why legal advice is crucial

The games industry is dynamic and complex – legal mistakes can quickly become expensive or jeopardize the success of a project. Professional advice can help you with this:

• to make optimum use of subsidies.
• secure your rights as a developer.
• avoid conflicts with partners or customers.

As an experienced consultant, I can support you with all legal issues relating to the establishment of your studio, applying for funding and drafting your contracts. Together we will create a solid foundation for your success in the games industry.

Conclusion: New opportunities through improved promotion

The federal government’s new computer game funding scheme offers game developers a unique opportunity to drive their projects forward and achieve international success. With higher funding amounts, simplified application procedures and a focus on cultural diversity, it creates ideal conditions for creative ideas.

However, without a solid legal basis, obstacles can quickly arise – be it when setting up a studio or working with partners. With my experience in setting up companies, drafting contracts and advising on funding, I can help you achieve your goals safely and efficiently. Use this opportunity to successfully implement your creative ideas!

Author: Marian Härtel

Marian Härtel ist Rechtsanwalt und Fachanwalt für IT-Recht mit einer über 25-jährigen Erfahrung als Unternehmer und Berater in den Bereichen Games, E-Sport, Blockchain, SaaS und Künstliche Intelligenz. Seine Beratungsschwerpunkte umfassen neben dem IT-Recht insbesondere das Urheberrecht, Medienrecht sowie Wettbewerbsrecht. Er betreut schwerpunktmäßig Start-ups, Agenturen und Influencer, die er in strategischen Fragen, komplexen Vertragsangelegenheiten sowie bei Investitionsprojekten begleitet. Dabei zeichnet sich seine Beratung durch einen interdisziplinären Ansatz aus, der juristische Expertise und langjährige unternehmerische Erfahrung miteinander verbindet. Ziel seiner Tätigkeit ist stets, Mandanten praxisorientierte Lösungen anzubieten und rechtlich fundierte Unterstützung bei der Umsetzung innovativer Geschäftsmodelle zu gewährleisten.