German Gaming Industry and Economic Downturn

Germany has the biggest economy in Europe and recent figures have shown that it has stood up well to the uncertain financial terrain that has ruined the economies of many countries globally.

An industry that has fared particularly well in Germany throughout the economic downturn is the online leisure software and games industry. The computer games industry is worth £65 billion globally and it’s a sector that tends to do well in times of economic uncertainty. The less disposable income the average consumer has, the more they will tend to play free online games or other games that will cost much less than going out on a regular basis. In fact, recent research shows that the industry actually grows when the economy is retracting as people yearn for a cheap leisure-time option.

So, industry leaders in Germany are not particularly worried about a knock-on effect as a consequence of the economic problems elsewhere. They feel because consumers are looking now more than ever for value for money, they are more likely to play free games and use other inexpensive online software.

Figures for the industry in Germany show that up to the mid-point of 2011, sales of game applications had risen by 13 per cent. Another area of the industry that had shown marked growth was that of free games which charge consumers for the optional extras. These games have a low cost and high perceived value to users and have been another reason that industry spokespeople felt that they would be protected from the fall out of the recession in America and through large parts of Europe.

The only discouraging piece of news in a highly bullish market was that the sale of consoles had dropped slightly in the last year. But this is being attributed to the fact that two of the biggest selling consoles were coming to the end of their life cycle.