Overview

• Research minister Dorothee Bär pledges €125 million a year for games funding from 2026, with €88 million slated for 2025.
• The research ministry says it will move forward on tax incentives as quickly as possible, allowing studios to claim eligible costs and reduce taxes.
• Specific rules for the tax measure remain under development and the package still requires Bundestag approval.
• Short-term revenue losses are expected for federal and state budgets, and Bavaria’s digital minister says the federal government should compensate the Länder.
• Industry voices urge tying support to companies that declare profits in Germany so benefits do not flow to firms booking earnings abroad.