The German videogame market generated flat revenues of €1.56 billion in 2010, according to trade body BUI, with units sales of software at 57.8 million games.
That compares to €3.38 billion (£2.875bn) in sales in the UK, where 63 million packaged games were sold at retail.
Revenues in the German PC games market were up 7 per cent to €443 million and unit sales up 4 per cent to 24.6 million.
Home console software was also up, only 3 per cent, to €884 million in revenues off 23.6 million units sold.
But it was the handheld market that prevented overall growth, as revenues were down 22 per cent to €230 million, and game units down to 9.6 million from 11.1 million the previous year.
However, the BUI expects the launch of the 3DS and Sony's NGP this year will help the market bounce back, with an anticipated 3 per cent growth in 2011.