Games funding 2025 – back at last!

The news that many game developers in Germany have been waiting a long time for 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 – much to the relief of an industry that has suffered greatly from the funding freeze in recent years. The previous funding already had an enormous impact: the number of games studios in Germany more than doubled between 2020 and 2023 (from 208 to 450). The joy and optimism that new projects can now finally be supported again is correspondingly great.

An impression of the enthusiasm in the German games industry: after a long break, the German government is once again signaling its full support for computer game developers.

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 and no new funds were earmarked in the federal budget. This forced pause – a kind of driving with the handbrake on – caused a lot of uncertainty and frustration in the industry. So the relief is all the greater now: the funding lights are green again and studios can finally get their concepts out of the drawer.

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: it is an ongoing federal-state program with a planned annual volume of around €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) – clear evidence of how important this funding is for Germany as a games location. Many developers had used the period of standstill to prepare projects. Now these can be implemented with financial support, giving a new boost to the creative potential in the country.

The new funding program at a glance

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, both prototypes and complete productions. Projects with a size (development costs) of between at least €300,000 and a maximum of €2 million are eligible for funding. Smaller projects under €300,000 are unfortunately not (or 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, small and medium-sized enterprises (SMEs) 45% and start-ups even up to 50%. This means that independent studios and young development companies in particular benefit to the maximum from the funding. Initially, a maximum of €2 million in funding is available per project – an amount that has since been significantly increased (more on this in a moment).
• Objectives of the funding: – The German government is pursuing clear objectives with its games funding. It wants to create an “international level playing field”, i.e. compensate for competitive disadvantages compared to other countries. In addition, 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 and an economically healthy games ecosystem of small, medium-sized and large companies is to be promoted. Last but not least, the program contributes to strengthening the audiovisual sector in Europe as a whole. In other words, it is about both culture and business – and about making “Games made in Germany” internationally competitive.
• Application procedure: – As before, the DLR Project Management Agency, which already managed the previous funding period on behalf of the BMWK, will handle the application process. Important to know: A mandatory design consultation takes place before the actual application is submitted. This means that developers first submit a project concept and receive feedback before the full application is submitted. This procedure has proven its worth in increasing the chances of success and ensuring that projects receive the right funding. The good news is that applications can be submitted again without restriction from August 1, 2025 – so now is exactly the right time to get your own projects off the ground!

Important changes and conditions in 2025

The new edition of games funding brings with it some changes – partly due to experiences from the first few years, 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 that solo developers or mini-studios with micro-budgets may have to switch to state funding programs or other funding. The aim of this lower limit is to use federal funds in a more targeted manner 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. In practical terms, this meant that large-scale projects with a longer development period 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 – no fresh funds were initially approved in the 2025 budget, which meant that funding could only be restarted “with the handbrake on”. For many studios, this meant that federal funding could only be used to a limited extent for the time being.
• Raising the funding ceiling: A further tightening of the new start 2024 was the reduction of the maximum funding amount to €2 million per project. Previously, individual large prestige projects had 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 has also slowed down ambitious large-scale projects.

The really good news: all these temporary restrictions have been a thing of the past since August 2025. The new federal government (the Ministry of Research has been in charge since May 2025) has published its first call for funding 2.0, which removes all the brakes. From August 1, projects with a duration of several years can once 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. And the upper limit for the grant will be quadrupled: in 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, which sends a strong signal to the industry.

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. In future, more money will therefore be made available – the focus is on predictability and reliability for the studios. In addition, 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: Seize the opportunity now!

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 at the end: Inform yourself thoroughly on the official website for games funding about the current guidelines and FAQs (there is also a funding radar there that shows how much budget is currently still available). Plan your project realistically and make sure you meet all the funding criteria – such as the cultural heritage character of your game, which is relevant to the funding. Make use of the design consultation at an early stage: it will help to sharpen your application and avoid typical pitfalls. And don’t be afraid to call in professional support for complex questions – be it 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! With this in mind: good luck with your application – if you have any questions or need support, we will of course be happy to assist you. ????????

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.