UK Games Market Valuation Reaches £8.7 Billion in 2025

The UK's gaming market achieved a valuation of £8.7 billion in 2025, as reported in UKIE's annual assessment of the consumer games market. Software sales experienced a 7% increase, reaching £6.03 billion, while digital console sales saw a 9.2% year-on-year rise to £2.49 billion. Hardware sales grew 3% to £2.17 billion, buoyed by the June 2025 launch of the Nintendo Switch 2. The mobile sector grew 7.9% to £2 billion, with improved monetisation across business models and app stores, despite a decrease in downloads. Sales of gaming-related films, TV shows, and soundtracks surged 70% to £159 million, and toys and merchandising rose 43% year-on-year to £333 million. Film adaptations generated £77.9 million, led by Sonic the Hedgehog 3 and A Minecraft Movie, the latter becoming the UK's highest-grossing film at £56.8 million. London was ranked as the world's third-largest hub for game developers, after Los Angeles and San Francisco. However, despite market growth, the UK games industry is experiencing a decline in employment, according to TIGA's recent report. The industry saw a 4.5% year-on-year decline in employment, with 491 companies cutting 3,655 full-time roles and 513 studios adding 2,571 positions between May 2024 and September 2025, resulting in a total workforce decline from 28,516 to 27,347.