UK Game Sales in 2023: A Year of Resilience and Growth

The year 2024 has been challenging for the gaming industry, making it an ideal time to reflect on the previous year's performance and assess demand-side conditions. With the complete set of UK retail and digital data available for 2023, it is evident that the year was relatively positive, with combined physical and digital unit sales increasing by 3% compared to 2022. Furthermore, average prices for new games rose by 14% between 2021 and 2023, while digital full game sales continued to grow, albeit at a slower pace. Despite unfavorable economic conditions, spending on full video games in the UK remained robust in 2023. Using Game Sales Data (GSD), this analysis provides a comprehensive overview of the UK's full game market in 2023, encompassing both physical and digital sales. The total unit sales for full games in 2023 reached 38.2 million, representing a 3% increase from 2022. Between January and April, the sales figures for 2022 and 2023 were comparable, with both years seeing successful title releases. However, 2023 began to outperform 2022 from May onwards, driven by the release of notable games such as The Legend of Zelda: Tears of the Kingdom and Diablo 4. In the second half of the year, the sales margins between 2022 and 2023 narrowed, with some titles experiencing declines in unit sales. Nevertheless, new game sales performed well, with 11.8 million units sold in 2023, a marginal decline of 1% from 2022. Catalogue game sales also increased, reaching 26.4 million units, a 5% rise from 2022. The value proposition of video games has become increasingly attractive, with spending on full games remaining resilient despite economic headwinds. In 2023, spending on full games across physical and digital formats reached £1.27 billion, a 4% increase from 2022. Digital full game spending drove this growth, rising by 8% to £785 million. Although physical disc spending continued to decline, the rate of decline slowed, with a 2% decrease to £487 million between 2022 and 2023. The average price of games in the UK increased, with physical boxed brand new games rising from £50 in 2021 to £57 in 2023, and digital format prices increasing from £59 to £68 over the same period. This represents a 14% increase for both formats. The growing demand for video games in the UK is evident in the top ten best-selling games of 2023, with two titles experiencing increased unit sales compared to their 2022 counterparts. The top ten ranked games sold 2% fewer units in 2023 than in 2022, with a similar variance observed when combining physical and digital formats. In conclusion, the 2023 UK full video game sales data indicates a year of resilience and growth, albeit with some caution. While there was a 3% increase in unit sales and 5% growth in spending, consumers opted for catalogue and older games over new releases. The 14% increase in average price for new games may have influenced consumer behavior, with some waiting for price reductions. As the industry looks to 2024, it is likely that the first half of the year will be challenging, but the latter half may offset any declines.