In 2024, the UK gaming market experienced a decline of 1.8%, bringing the total to £7.63 billion

Three footballers celebrating — Image credit: Electronic Arts

The latest figures from UKIE indicate that the UK's gaming industry was valued at £7.63 billion in 2024, experiencing a slight decline of 1.8% from the previous year. Hardware sales saw a downturn of 5.1%, yet software sales witnessed a 0.58% rise, bolstered by an 8.1% increase in mobile gaming expenditures.

The figures

UK games consumer market value: £7.63 billion (-1.8% year-on-year)
Software sales: £5.14 billion (+0.58% year-on-year)
Hardware sales: £2.105 billion (-5.1% year-on-year)

The highlights

While software sales rose modestly, there was a significant decrease in boxed game sales, which fell 34% to £322 million. In contrast, console digital sales grew by 3.5% to £2.446 billion, although digital PC game sales slipped by 1.8% to £647 million. Mobile gaming's growth of 8.1% brought its value to £1.725 billion in 2024.

The reduction in gaming hardware sales was largely due to a 24% drop in console sales, totaling £723 million. Meanwhile, PC hardware sales increased by 6% to £715 million, and spending on console accessories rose by 14% to £463 million. VR hardware gains, showing a 7% increase, reached £204 million.

According to Omdia senior analyst James McWhirter, "2024 saw fewer high-value blockbuster game launches, affecting full-game content spending. Nonetheless, the market was sustained by smaller titles performing exceptionally well. As newer consoles become more prevalent, expenditure on downloadable content continues to rise. Unlike full-game purchases, subscription pricing has been adjusted for inflation, driving spending growth despite market saturation."

The plunge in console purchases is linked to the PS5 and Xbox nearing five years in the market, with the Nintendo Switch in its eighth year. A significant part of the accessory sales surge came from headphones and controllers.

Growth in the PC hardware sector was largely fueled by gaming PCs and monitors. VR headset sales were also strong, led by PC-centric devices, with particular success seen by Meta Quest 3 and its less expensive counterpart, the Quest 3S.

This year's report from UKIE once again encompasses the 'game culture' sector, which includes associated toys, merchandise, publications, and entertainment. This category is valued at £385 million, reflecting a 13% decline from the previous year.

UKIE also used the report to promote its Press Start on Growth initiative, aimed at securing the UK's competitive edge in gaming. The campaign advocates for changes such as reformed Video Games Expenditure Credits, expansion of the UK Games Fund, the introduction of a Digital Creativity GCSE, and enhanced financing access.

"The UK's gaming sector is a worldwide success, yet we mustn't become complacent," noted Nick Poole OBE, UKIE's CEO. "With strategic reforms, we have the opportunity to unlock £500 million GVA, generate 6,000 skilled roles, and significantly boost the digital economy in the UK. Any delay might cause these chances to slip away to other countries. It's imperative that we initiate growth now."

Poole further stated, "The UK boasts remarkable talent, narratives, and development studios. We now require robust support to realize our ambitions. Should the government wish to promote digital growth, investing in the gaming industry is the optimal starting point."