German gaming sector stays strong

19 July 2011

AMSTERDAM: The German core gaming sector will perform strongly this year, with traditional boxed games enjoying growth rates similar to those of mobile and social media games.

A new report from Newzoo has predicted that overall German consumer spend on "core gaming" will be 6% higher in 2011 than in 2010, rising to €4.6bn ($6.5bn, £4bn).

But in other markets, where online and app-based gaming has taken share in recent years, core gaming spend is set to fall. US revenues for the sector are anticipated to drop by 3% and the UK market is likely to see a 1% decline.

Peter Warman, CEO and co-founder of Newzoo, said: "Germany has always been a stronghold for core PC/Mac gaming and does not seem to have given that up in favour of online or mobile gaming.

"It seems that Germans are simply adding game platforms to their menu."

Newzoo also found that the amount of time spent on gaming in Germany across all platforms has doubled over the last two years with every gamer playing on average 6.4 hours per week.

An increase in the popularity of gaming on social networking sites and mobile devices, as well as the continuing strength of core gaming, helps to explain this increase.

The number of different platforms used by the average German gamer stands at 4.1, compared to 3.8 in the US.

Globally, Newzoo anticipates that mobile gaming revenues will rise by 12% between 2009 and 2012, while social gaming is predicted to grow 8%.

But less dramatic increases are anticipated for sales of console games which are expected to rise by only 2%. PC or Mac boxed games revenues are forecast to grow 4%.

Data sourced from Newzoo; additional content by Warc staff