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Germany’s Video Game Industry Faces Funding Uncertainty Despite New Federal Budget Allocation

the German Bundestag has approved the 2024 federal budget, allocating EUR 33 million to the video game industry. This funding is part of a strategic effort to enhance the development and production of video games in Germany, encapsulated within a EUR 100 million package set to be distributed over the next three years. Despite this, the industry faces a reduction in funding compared to previous years, leading to concerns and uncertainties among stakeholders.

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Germany's Video Game Industry

Analyzing the Decrease in Video Game Funding

The 2024 budget outlines a total expenditure of EUR 477 billion, with an additional EUR 39 billion in investment loans, highlighting the government’s broad commitment across various sectors. However, the allocation of EUR 33 million to the video game sector marks a decrease from the EUR 50 million and EUR 70 million provided in the preceding two years, as reported by “Games Wirtschaft.” This reduction has sparked discussions within the industry, emphasizing the need for consistent and adequate financial support.

The Challenge of Funding Distribution

A key issue facing the German video game industry is the distribution of the allocated funds. The industry association, “game,” has expressed significant concerns regarding the lack of clarity on how these subsidies will be accessed. A survey among “game” members revealed a pessimistic outlook for the industry’s future, largely due to the current uncertainty surrounding funding. Felix Falk, the head of “game,” highlighted the industry’s frustration, pointing to the unclear criteria for accessing the new funds.

The Impact on Developers and Industry Initiatives

This funding ambiguity affects a wide range of industry participants, from established developers like Ubisoft’s subsidiary in Mainz, Daedelic, and Piranha Bytes, to key initiatives such as the German Computer Game Award. The uncertainty surrounding the federal budget’s approval has put the award’s prize money in jeopardy, although the recent Bundestag decision has provided some reassurance.

The Path Forward: Addressing Industry Concerns

The decrease in funding and the prevailing uncertainty pose significant challenges for the German video game industry. It is essential for the government and relevant authorities to engage with industry representatives, ensuring transparent and accessible guidelines for subsidy applications. This collaboration will be crucial in leveraging the EUR 33 million allocation effectively, fostering innovation, and supporting the industry’s growth.

Conclusion: Sustaining Growth in the German Video Game Industry

As the German video game industry confronts these funding and distribution challenges, the role of government support becomes increasingly critical. Despite the reduction in this year’s allocation, the EUR 33 million investment represents a significant opportunity for the sector. Addressing the current issues and ensuring effective fund distribution will be key to maintaining the industry’s momentum and securing its future success in the global market.

Source: Bundestag, game

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Image source: https://pbs.twimg.com/

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  • Leonid Shmatenko

    Leonid Shmatenko is part of Eversheds Sutherlands’ data protection and technology law team. He has vast experience in regulatory and general issues in the areas of eSports and Blockchain. He advises eSports associations and clubs on all legal issues, advises and supports crypto startups in all matters from planning, preparation to execution of private and public token offerings (so-called Initial Coin Offerings or ICOs). Furthermore, Leonid Shmatenko specializes in international arbitration and has participated in several arbitration proceedings (SAC, ICC, DIS, UNCITRAL, ICSID, ad hoc) as a party representative and secretary of the tribunal. Leonid Shmatenko studied at the Heinrich Heine University in Düsseldorf and is currently pursuing a PhD in international law. After his successful first state examination (2011), he completed his legal clerkship, inter alia, at the German Embassy in Lima and within international law firms in Düsseldorf and Paris. He passed the second state examination in 2015. He is an external lecturer at the National Law University of Ukraine “Yaroslav Mudryi”, where he teaches International Investment Law. He is admitted to the Bar in Switzerland and Germany. Before joining Eversheds Sutherland, Leonid Shmatenko worked as an attorney at leading law firms in Geneva, Munich and Paris. View all posts

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CMS Advises on Inaugural Esports World Cup in Riyadh

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The international full service law firm CMS has provided comprehensive legal counsel to the Esports World Cup Foundation in organizing the first-ever Esports World Cup (EWC), set to take place in Riyadh, Saudi Arabia, over eight weeks from July to August 2024.

The Esports World Cup is poised to make history, with over 1,500 players from more than 60 countries competing in 21 of the world’s most popular games for a share of a record-breaking USD 60 million prize pool.

“This is a monumental event in the history of esports,”

commented Ralf Reichert, CEO of the Esports World Cup Foundation.

“We are witnessing the convergence of gaming and sports as universal languages, uniting the global community through competition, advancing the esports industry, and fostering growth across the entire network.”

A global CMS team, led by Dr. Pietro Graf Fringuelli and Samuel Oustayiannis, consisting of over 30 lawyers from Germany, the UK, and Saudi Arabia, provided legal advice on all aspects of the EWC. This included team agreements, tournament rules, sponsorship contracts, media rights distribution, and partnerships with game publishers.

Dr. Pietro Graf Fringuelli, Partner at CMS Germany and Co-Head of the international CMS Technology, Media & Communications Group, stated,

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“The esports industry is growing at an astonishing pace, drawing record numbers of viewers worldwide. The EWC will transform the entire esports landscape and contribute to developing a sustainable ecosystem.”

The Esports World Cup, supported by major sponsors like Sony, TikTok, Amazon, Adidas, Pepsi, and MasterCard, is an annual tournament series featuring over 450 teams globally. The event is accessible to both professional esports players and gaming enthusiasts, with broadcasts on television and streams across various digital platforms. Featured games include League of Legends, Call of Duty: Warzone, Counter-Strike 2, EA Sports FC 24, and Fortnite.

CMS Partner Sam Oustayiannis, leading the UK team on media rights and partnerships, added,

“The Esports World Cup is a unique event attracting significant interest from competitors, sponsors, and the media. We’ve assembled a collaborative team across multiple offices to cover all legal aspects, ensuring a successful and enjoyable event. We eagerly anticipate the future of the Esports World Cup!”

The EWC continues in Riyadh until August 24, 2024, marking a new chapter in esports with CMS playing a crucial role as the legal advisor to the organizers.

CMS Legal Team Overview for Esports World Cup

CMS Germany

  • Dr. Pietro Graf Fringuelli – Lead Partner, TMC (Technology, Media & Communications)
  • Dr. Sebastian Cording – Partner, TMC
  • Dr. Markus Häuser – Partner, TMC
  • Dr. Patrick Ehinger – Counsel, TMC
  • Dr. Fiona Savary – Counsel, TMC
  • Dr. Felix Glocker – Senior Associate, TMC
  • Georg Schneider – Senior Associate, TMC
  • Lara Grünberg – Associate, TMC
  • Dr. Malte Bruhns – Partner, Corporate/M&A
  • Dr. Henrik Meurer – Associate, Corporate/M&A
  • Dr. Martin Gerecke – Partner, IP (Intellectual Property)
  • Dr. Tobias Nasr – Senior Associate, IP
  • Dr. Robert Budde – Partner, Commercial
  • Phillip Bubinger – Counsel, Commercial
  • Prof. Dr. Björn Gaul – Partner, Labor, Employment & Pensions
  • Victoria Kaule – Counsel, Labor, Employment & Pensions
  • Hanna Hamacher – Senior Associate, Labor, Employment & Pensions
  • Thomas Gerdel – Partner, Tax
  • Dr. Hendrik Arendt – Senior Associate, Tax
  • Christoff Soltau – Partner, Antitrust, Competition & Trade
  • Dr. Denis Schlimpert – Counsel, Antitrust, Competition & Trade

CMS Saudi Arabia

  • Mohammed Aldowish – Partner
  • Wala Alawajy
  • Sara Alsaud
  • Reem Alsmail

CMS United Arab Emirates

  • Ben Gibson – Partner

CMS UK

  • Sam Oustayiannis – Partner
  • Rebekah Hayes – Partner
  • Coralie Barker
  • Georgia Clark
  • Harry Hall
  • Laurel O’Dell
  • Carter Rich
  • Hamish Temporal
  • Daniel West

Author

  • Leonid Shmatenko

    Leonid Shmatenko is part of Eversheds Sutherlands’ data protection and technology law team. He has vast experience in regulatory and general issues in the areas of eSports and Blockchain. He advises eSports associations and clubs on all legal issues, advises and supports crypto startups in all matters from planning, preparation to execution of private and public token offerings (so-called Initial Coin Offerings or ICOs). Furthermore, Leonid Shmatenko specializes in international arbitration and has participated in several arbitration proceedings (SAC, ICC, DIS, UNCITRAL, ICSID, ad hoc) as a party representative and secretary of the tribunal. Leonid Shmatenko studied at the Heinrich Heine University in Düsseldorf and is currently pursuing a PhD in international law. After his successful first state examination (2011), he completed his legal clerkship, inter alia, at the German Embassy in Lima and within international law firms in Düsseldorf and Paris. He passed the second state examination in 2015. He is an external lecturer at the National Law University of Ukraine “Yaroslav Mudryi”, where he teaches International Investment Law. He is admitted to the Bar in Switzerland and Germany. Before joining Eversheds Sutherland, Leonid Shmatenko worked as an attorney at leading law firms in Geneva, Munich and Paris. View all posts

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Introducing Valentin de Roany: Project Coordinator for Esports Tournaments and Legal Databases at Esports Legal News

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Esports Legal News is thrilled to welcome Valentin de Roany as our new Project Coordinator for Esports Tournaments and Legal Databases. Valentin brings a unique blend of legal acumen and esports expertise, honed through years of dedication in both fields.

Currently in his final year of law studies, Valentin has already made a significant impact in the legal world. A distinguished mooter, he represented his university at an international competition, playing a key role in securing a top placement for his team. His passion for the law extends beyond the classroom, where he revitalized mooting and negotiation programs, mentoring new students and sharpening the skills of seasoned advocates.

Valentin’s journey in the esports realm is equally impressive. He has served in various coaching roles, nurturing the growth of promising talents and leading teams to success. His leadership in a grassroots esports organization, where he navigated cultural and linguistic challenges, showcases his ability to build bridges and drive success across different regions.

With dual French-Australian citizenship, Valentin is well-versed in connecting diverse esports communities. He brings his rich experiences to Esports Legal News, where he will streamline complex legal information and contribute to the growth of our esports initiatives. Though he’s always eager to share his insights, Valentin remains careful to distinguish his advice from formal legal counsel.

We are excited to see Valentin apply his leadership, strategic thinking, and passion for esports to help drive Esports Legal News to new heights.

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Author

  • Leonid Shmatenko

    Leonid Shmatenko is part of Eversheds Sutherlands’ data protection and technology law team. He has vast experience in regulatory and general issues in the areas of eSports and Blockchain. He advises eSports associations and clubs on all legal issues, advises and supports crypto startups in all matters from planning, preparation to execution of private and public token offerings (so-called Initial Coin Offerings or ICOs). Furthermore, Leonid Shmatenko specializes in international arbitration and has participated in several arbitration proceedings (SAC, ICC, DIS, UNCITRAL, ICSID, ad hoc) as a party representative and secretary of the tribunal. Leonid Shmatenko studied at the Heinrich Heine University in Düsseldorf and is currently pursuing a PhD in international law. After his successful first state examination (2011), he completed his legal clerkship, inter alia, at the German Embassy in Lima and within international law firms in Düsseldorf and Paris. He passed the second state examination in 2015. He is an external lecturer at the National Law University of Ukraine “Yaroslav Mudryi”, where he teaches International Investment Law. He is admitted to the Bar in Switzerland and Germany. Before joining Eversheds Sutherland, Leonid Shmatenko worked as an attorney at leading law firms in Geneva, Munich and Paris. View all posts

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Play By The Rules: Esports Legal Forum Announced for ESI Lisbon 2024 

Esports Insider’s events arm ESI Events has announced the launch of “Play By The Rules,” a pioneering legal forum dedicated to the esports sector, taking place as part of ESI Lisbon from 23 September to 25 September 2024.

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In cooperation with international lawyers Leonid Shmatenko (Eversheds Sutherland) and Rodolphe Ruffié-Farrugia (Clifford Chance) as well as Esports Legal News, this inaugural event aims to set the standard for esports-focused legal conferences worldwide.

ESI Events and the co-organisers intend for “Play By The Rules” to provide a platform for legal professionals (including attorneys, in-house-lawyers, academics and students), industry stakeholders, and esports enthusiasts to delve into the complex legal landscape of the esports sector. The forum will have a focus on player contracts, intellectual property, governance and regulation, streaming rights and more.

Key Dates

  • September 24, 2024: Play By The Rules Conference (Concurrent with ESI Lisbon Day 1 and taking place at the same venue)
  • September 25, 2024: Exclusive access for PBTR speakers, sponsors, and VIP guests to ESI Lisbon Day 2 and the SBC Summit

“Play By The Rules” will cover a broad spectrum of legal questions affecting the global esports industry through stage talks, roundtable discussions and focussed group networking, with an emphasis on creating actionable takeaways for attendees. Key areas of discussion will include:

  • Player contracts and rights
  • Intellectual property challenges
  • Governance and regulatory frameworks
  • Streaming and broadcasting rights
  • Dispute resolution mechanisms

Attendees will also have the opportunity to attend the evening social event, the ESI Film Festival at the MEO Arena with food and beverage, gaining detailed insights into esports, gaming and intersecting industries through short films that shine a light on stories behind the screens.

Running alongside the SBC Summit, which anticipates over 25,000 attendees, ESI Lisbon will feature:

Already confirmed attendees at ESI Lisbon include:

  • Formula One 
  • Savvy Games 
  • UNICEF
  • Samsung Ads
  • OverActive Media
  • Deutsche Telekom
  • Radisson Hotel Group
  • Mercedes-AMG PETRONAS Formula One
  • Twitch
  • BLAST
  • ESL FACEIT Group
  • Chess.com 
  • Electronic Arts
  • Ubisoft
  • City Football Group
  • Visit Raleigh
  • Team Liquid
  • Moonton
  • Visit Qatar
  • OG Esports
  • Wasserman 
  • & many, many more

Sam Cooke, Co-Founder and Managing Director at Esports Insider, said:

“We are thrilled to launch ‘Play By The Rules’ in partnership with Leonid Shmatenko of Eversheds Sutherland and Rodolphe Ruffié-Farrugia of Clifford Chance as part of ESI Lisbon 2024. Our new esports legal forum  represents a first and important step in addressing the complex legal challenges within the esports industry, providing a dedicated forum for discussion, innovation, and actionable solutions. By bringing together the brightest minds in esports law, we aim to set a new standard for legal excellence in this rapidly evolving sector.”

Leonid Shmatenko, Senior Associate at Eversheds Sutherland and Founder of Esports Legal News, commented:

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“After an extensive search for a comparable event in the market, I found numerous conferences that addressed video games law but none that focused specifically on the unique legal challenges in esports. Esports is a rapidly growing field with its own set of legal considerations, and it is high time we had a dedicated platform to address these issues. I approached ESI with this concept and their enthusiasm and commitment to excellence made them the perfect partner. Together, we aim to set new standards in the esports law conference world, providing invaluable insights and fostering a deeper understanding of the legal landscape in esports.”

Rodolphe Ruffié-Farrugia, Counsel at Clifford Chance and co-founder of Esports Legal News, said:

“For years now, esports has been a booming industry and we have witnessed the emergence of a wide variety of professional stakeholders, including the players themselves, their teams, the leagues, tournament organisers… Yet, the legal industry has not been as quick in adapting to the unique needs and high stakes at play in esports, no doubt because lawyers and gamers tend to evolve in different worlds. Knowing well these communities from within both personally and professionally, I have made it a mission years ago to build bridges between them. I feel very lucky to have found like-minded peers in Leonid and ESI to create this first-of-its-kind summit, a turning point in bringing esports and the law together.”

Tickets to B2B esports, games and creator economy event and industry festival ESI Lisbon are still available. Early bird tickets offering 33% off are available until August 23rd. For more information and to purchase a ticket, click here.

Author

  • Leonid Shmatenko

    Leonid Shmatenko is part of Eversheds Sutherlands’ data protection and technology law team. He has vast experience in regulatory and general issues in the areas of eSports and Blockchain. He advises eSports associations and clubs on all legal issues, advises and supports crypto startups in all matters from planning, preparation to execution of private and public token offerings (so-called Initial Coin Offerings or ICOs). Furthermore, Leonid Shmatenko specializes in international arbitration and has participated in several arbitration proceedings (SAC, ICC, DIS, UNCITRAL, ICSID, ad hoc) as a party representative and secretary of the tribunal. Leonid Shmatenko studied at the Heinrich Heine University in Düsseldorf and is currently pursuing a PhD in international law. After his successful first state examination (2011), he completed his legal clerkship, inter alia, at the German Embassy in Lima and within international law firms in Düsseldorf and Paris. He passed the second state examination in 2015. He is an external lecturer at the National Law University of Ukraine “Yaroslav Mudryi”, where he teaches International Investment Law. He is admitted to the Bar in Switzerland and Germany. Before joining Eversheds Sutherland, Leonid Shmatenko worked as an attorney at leading law firms in Geneva, Munich and Paris. View all posts

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