Gamescom: Gaming Industry Trends Create Opportunities in German Market

BERLIN and COLOGNE, Germany, August 17, 2010 - Germany's gaming industry remains stable in 2010, looking to
nearly match 2009 revenues after a record year in 2008. With over 21 million
gamers in Germany and 62 million internet users, the German market remains
Europe's largest and most attractive. Developments in the online gaming
segment, especially the growing popularity of social gaming on social
networking sites like Facebook, as well as recent demographic developments
indicate an industry-wide shift. Several international game developers and
publishers are already active in Germany. Industry experts from Germany Trade
& Invest will be at this year's "Gamescom" from August 18-22 in Cologne,
Germany, to discuss market and investment opportunities in the Germany gaming
industry.

Over the past five years, the Germany gaming industry,
consisting of PC, console, online as well as mobile gaming, has seen a number
of significant developments. Posting growth rates as high as 47 percent in
some industry segments in recent years, the gaming set a record with revenues
of EUR 2.7 billion in 2008. The industry as a whole posted a slight drop in
revenues in 2009 to EUR 2.4 billion during the global economic downturn,
although several segments remained immensely popular, especially online
gaming. Increasing participation in gaming over social networking sites is
anticipated to create growth potential and stimulate innovation in the coming
years.

Recent demographic developments in the industry are also
creating new market potential. While 4 out of every 5 teens are gamers, this
traditional target group is not the only one playing electronic games.
According to a recent report by BITKOM, almost one third of all 40-49 year
olds plays video or computer games. The most attractive types of games in
Germany are electronic puzzle, strategy and management games.

Several international gaming companies have already
established a presence in Germany, with branch offices or subsidiaries
located across the country. A large number are based in the USA, such as
Electronic Arts subsidiary EA Phenomics in Ingelheim. Asian companies also
have a strong presence in the German market. Japanese game developer Konami
Digital Entertainment, for example, has a German branch office in Frankfurt
am Main. For new developers and publishers, market entry conditions remain
highly attractive, as the German market is not dominated by large companies
that control large market shares. The structure of the industry here is
characterized by small and medium enterprises. Of the 200 game developer
studios in Germany, only 25 have more than 50 employees.

With approximately 62 million internet users, Germany has the
largest online market in Europe and therefore creates considerable potential
for companies in the online gaming segment. Germany's geographic position in
the center of Europe, excellent infrastructure, and ultra-modern broadband
network allow companies to effectively direct their European operations from
Germany. An additional strategic advantage for the innovation-dependent
gaming industry is the availability of highly trained workers. German
universities, technical institutes, and the country's dual education system
ensure a high quality education and provide companies with qualified and
motivated employees at competitive costs. Today several higher education
institutions, such as the Games Academy in Frankfurt and Berlin or the
Hamburg University of Applied Sciences, offer gaming industry-related fields
of study.

At this year's Gamescom, taking place from August 18-22 in
Cologne, industry experts from Germany Trade & Invest will be on hand to
discuss the latest developments and business opportunities in Europe's
largest gaming market.

Germany Trade & Invest is the foreign trade and inward
investment promotion agency of the Federal Republic of Germany. The
organization advises foreign companies looking to expand their business
activities in the German market. It provides information on foreign trade to
German companies that seek to enter foreign markets.

    Germany Trade & Invest

    Eva Henkel
    Email: eva.henkel@gtai.com
    T: +49(0)30-200099-173
    F: +49(0)30-200099-111

Germany Trade & Invest: Eva Henkel, Email: eva.henkel at gtai.com, T: +49(0)30-200099-173, F: +49(0)30-200099-111