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BUSINESS & INDUSTRY

Cosplay and queues at gamers gathering in Cologne

Armour-clad warriors mixed with cosplaying Super Marios and monster hunters on Thursday, as gamers braved hours of queuing at the sector's biggest trade show, Gamescom in Germany's Cologne.

A cosplayer attends the media day at the Gamescom video games trade fair in Cologne, western Germany on August 21, 2024.
A cosplayer attends the media day at the Gamescom video games trade fair in Cologne, western Germany on August 21, 2024. Photo by Ina FASSBENDER / AFP

“We’ll have to run,” said Mark Nass, a 20-year-old German who queued from 6:30 am outside the glass and steel Kölnmesse convention centre.

Nass was among many aiming to be first in line to play “Monster Hunter Wilds”, one of the most popular games at the annual Gamescom gathering.

The event serves as a celebration for fans, who get sneak peaks at new releases and chats with developers while spending time with like-minded folk.

But it is also a massive deal for the industry.

Although Microsoft is dominating this year’s event, hundreds of smaller companies are battling for a share of the attention.

Visitors play the 'Final Fantasy XIV: A Realm Reborn' online game developed and published by Square Enix during the media day at the Gamescom video games trade fair in Cologne, western Germany on August 21, 2024.

Visitors play the ‘Final Fantasy XIV: A Realm Reborn’ online game developed and published by Square Enix during the media day at the Gamescom video games trade fair in Cologne, western Germany on August 21, 2024. – Photo by Ina FASSBENDER / AFP

‘A bit like Cannes’

Marina Diez from German independent studio BTF was showing off the game “The Berlin Apartment”.

“We’re showcasing it in a big event for the first time, before releasing the next year,” she told AFP.

She said getting opinions from players at the conference was vital to feed into the game design.

The stakes are getting higher for smaller studios, who rely on making deals with publishers to get their games out into the world.

But publishers are also struggling as major financial backers shift their focus to AI and other sectors.

Thousands have been laid off and many studios have shut down.

Gamescom gives creators a chance to do deals and secure vital funding.

“It’s a bit like the Cannes Film Festival in terms of business,” said David Rabineau, director of the Parisian independent studio Homo Ludens.

Mario vs Poppy

Crowds swelled on the conference floor during Thursday, the first day the public were allowed into the event, which runs until Sunday.

Shouts and applause erupted periodically from behind high partitions separating the stands from the alleyways, as attendees got to see trailers and snippets of gameplay.

Long queues formed in front of the “Assassin’s Creed Shadows” stand to get these invaluable titbits.

At other stands, attendees were able to play new games — some that have not been released yet.

Waiting patiently in the queue for “Dragon Ball: Sparking! ZERO”, 25-year-old German Lars was decked out in a red cap, blue overalls and a fake moustache.

“Everyone likes Mario! I like him because I used to play it when I was a kid,” he said.

But at an event expected to attract 370,000 attendees, some players were inevitably going to miss out on their number one game.

“I hoped to play ‘Monster Hunter Wilds’ but it was already full,” said Ype, a 28-year-old Dutchman decked out as Poppy from “League of Legends”, with pointed ears, blue face and two-metre-long hammer.

But he was not going to let that disappointment deter him.

“It’s cool to discover new games and meet people,” he said, before heading elsewhere to test the latest “Warhammer” release.

By Kilian Fichou

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BUSINESS & INDUSTRY

Intel chip plant delay latest blow for struggling German economy

Struggling with high energy costs and softening demand for its exports, the last thing Germany needed was Intel announcing it is delaying plans to build a massive chip factory.

Intel chip plant delay latest blow for struggling German economy

Intel’s delay

The US chip giant announced Monday it is postponing plans for its project in Germany for two years as it focuses more on the United States.

This is a blow to Berlin, which had pledged 10 billion euros ($11 billion) – a third of the cost – to build the production plant in the eastern city of Magdeburg.

While Intel’s own struggles are the immediate cause for the delay, it has also fuelled concerns that Germany is becoming less attractive as a place to do business.

In this year’s ranking of the most competitive economies by Swiss business school IMD, Germany slipped two spots to 24th, with taxes, bureaucracy and poor infrastructure cited as major handicaps.

Volkswagen stalls

Auto titan Volkswagen announced earlier this month it could take the unprecedented step of closing factories in Germany for the first time in its 87-year history.

READ ALSO: Will there be job losses and plant closures at Volkswagen in Germany?

Europe’s biggest carmaker is struggling with high costs, problems in the transition to electric vehicles, and fierce competition from local rivals in key market China.

(FILES) Employees of German car maker Volkswagen (VW) protest at the start of a company's general meeting in Wolfsburg, northern Germany, on September 4, 2024.

Employees of German car maker Volkswagen (VW) protest at the start of a company’s general meeting in Wolfsburg, northern Germany, on September 4, 2024. Photo by Moritz Frankenberg / POOL / AFP

A week after VW’s shock announcement, BMW announced it was recalling 1.5 million vehicles due to problems with their brakes and downgraded its outlook for the year, also citing problems in China.

Steel storm

Efforts by Thyssenkrupp to spin off its loss-making steel division and get its business back on track ran into trouble last month when a host of senior executives quit in protest at the what they said was the unacceptable behaviour of the group’s CEO.

The row centres around plans to restructure the division, which operates Europe’s largest steelworks in Duisburg, western Germany.

The conglomerate wants to separate the steelmaking unit from its other activities, which include building submarines, as it faces higher manufacturing costs and competition from cheaper Asian steel.

It already announced that it plans to cut jobs in Duisburg and reduce production.

Firms face being gobbled up

Deutsche Bahn announced last week that logistics unit Schenker, traditionally one of its most profitable arms, is to be sold to Danish group DSV, with unions fearful it could lead to thousands of job losses in Germany.

Meanwhile Italian bank UniCredit is targeting a takeover of Commerzbank after building up a nine-percent stake in Germany’s second-biggest lender, a development that reportedly blindsided Berlin and has angered German unions.

Still some say such takeovers also highlight that German firms remain attractive, despite the woes of the broader economy.

Poor indicators

After starting the year on a positive note, recent surveys – from business morale to consumer confidence – have been on a downward trend, denting hopes of a strong rebound.

Some economic institutes have cut their forecasts, and now expect either stagnation or a slight recession for the whole year.

In its last official forecast in April, the economy ministry still expected growth of 0.3 percent this year, but it may downgrade that forecast when it updates the figure soon.

Commenting after a recent batch of negative data, ING economist Carsten Brzeski summed up Germany’s problems: “Years of stagnation, and underestimating technological trends and international competition do not come without consequences.”

By Sophie MAKRIS

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