Wednesday, September 21, 2011

Games market in Germany: positive market development in first half-year of 2011

Berlin, 9 August 2011. The German market for games has developed positively in the first half-year of 2011. In the first six months of this year a total of approximately 793 million euro was generated with the sales of PC and video games, as well as with income from online business models – one per cent more compared with the same period last year. This was announced today by the German Trade Association of Interactive Entertainment Software (BIU) in the run-up to the gamescom on the basis of a recent representative survey of 25,000 Germans carried out by the GfK for the PC and console game segment. The growth of the market segment for online and browser games is based on a BIU extrapolation for the first half-year of 2011. By the end of the year BIU expects a slight increase in total turnover of 3 percent.

“A digital transformation is currently taking place in the computer and video game industry”, commented Olaf Wolters, BIU managing director, on the market figures for the first half-year of 2011. Although the sale of game data carriers still represents the most important pillar of the games industry in Germany, digital business models such as downloads, game apps, demand for online subscriptions or the sale of virtual items within the framework of online and browser games is increasing and in the meantime accounts for 26 percent of the total turnover. “We assume that these online business models will continue to gain strength in the coming years and will supplement the traditional sales model. The precondition for this is the nationwide provision of broadband internet, where Germany is still lagging behind”, continues Wolters.

PC games on target for further growth

The traditional sale of PC and console games per data carrier and download (including game apps) increased by 7 percent to 33 million games sold in the first half-year. At the same time, turnover fell by 2 percent to 639 million euro owing to the lower average prices.

The supporting pillar remains console games, which are responsible for more than half of the turnover in this market segment. In the first six months of 2011, the number of console games sold increased by 8 percent to 10 million, whilst turnover fell by 3 percent to 323 million euro.

The PC is the most popular gaming platform amongst Germans: According to a recently published study carried out by BIU, 17.2 million people in Germany say they use the PC to play games, many of which are internet games. This is reflected in the market for PC games which, following a strong upward trend in 2010, has been able to continue its growth course. The turnover in this segment climbed by 2 percent to a total of 201 million euro in the first half-year of 2011, and the quantity of PC games sold even increased by 8 percent to 12.3 million. Digital turnover has been particularly relevant here, and download figures increased by about 45 percent in the first half-year of 2011.

The market segment for mobile game consoles has stabilised following heavy falls in the previous three years, posting only a small decrease in turnover of 1 percent to 101 million euro in the first six months of 2011. Wolters commented:” Following the bottoming out of the handheld market in 2010, the introduction of the Nintendo 3DS and PlayStation Vita means that a clear upwards trend in this market segment can again be expected in 2012. Furthermore, game apps for smart phones and tablet PCs represent an exciting expansion of the mobile gaming portfolio”. In the first half-year, a total of 7 million game apps were sold in Germany, 13 percent more compared to the same month last year. At the same time, turnover with game apps fell by 13 percent to 15 million euro in the first half-year.

The BIU managing director expects strong growth again in PC and console games by the end of the year: “Numerous blockbusters are being presented at the gamescom in Cologne, which will provide an upturn in the market for PC and console games. In comparison to other European countries, the home console in particular has great potential in Germany and will ensure positive development in the future”.

Online and browser games continue on the wave of success

Online business models are currently the strongest field of growth of the games industry. The double-digit growth curve of 2010 will be continued this year according to BIU estimates. According to a recent projection for the first half-year of 2011, a total increase in growth of 15 percent, from 134 million euro in the first six months of 2010 to 154 million euro in the first half-year of 2011, can be expected. The turnover is based on fees for online subscriptions and the sale of virtual items and additional content. Strong online blockbusters ensured growth in revenues through subscriptions and premium accounts of 24 percent in 2010. According to BIU estimates, turnover in this segment for the first half-year of 2011 is about 107 million euro, and thus 10 percent higher when compared to first six months of 2010.

The high growth rates in the area of item selling, which increased by 38 percent in 2010, will continue in 2011 according to BIU forecasts. “The sale of virtual games items represents an innovative revenue model in the games industry. For the first half-year of 2011 we expect growth of 30 percent to a turnover of 47 million euro in Germany”, concluded Wolters.

Market figures and projections

BIU market figures are based on a survey carried out by the GfK market research institute of 25,000 German citizens. The PC and console game market segment data (data carriers and downloads, incl. game apps) in the first half of 2011 is based on a recent study carried out by the GfK for the months January to June. As a result of statistical adjustments, slight adjustments to these market figures may occur in the coming weeks. Data on the online and browser game market segment is collected once a year by the GfK and retrospectively presented in the spring of a year. The determination of this growing market segment for the first half-year of 2011 was projected on the basis of a BIU forecast for the first six months of 2011.

Further information
The German Trade Association of Interactive Entertainment Software (BIU) is the interest group for suppliers and producers of entertainment software in Germany. It organizes the interests of the relevant companies in the field of interactive entertainment. As a competent partner for media as well as political and social institutions, BIU answers all questions on subjects relating to computer and video games.

Contact:

Bundesverband Interaktive Unterhaltungssoftware e.V.
Andreas Leisdon
Rungestrasse 18
D-10179 Berlin
Tel: ++49-30-2408779-0
Fax: ++49-30-2408779-11
www.biu-online.de
Email: presse@biu-online.de

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