UK Gaming Market Contracts by 1.8% to £7.63 Billion in 2024

The UK gaming market valued at £7.63 billion in 2024, experienced a 1.8% decline from the previous year, according to the Consumer Market Valuation Report by UKIE. While hardware sales dropped by 5.1%, software sales demonstrated a 0.58% growth, driven by an 8.1% surge in mobile gaming expenditure. Key figures include a £7.63 billion market value, £5.14 billion in software sales, and £2.105 billion in hardware sales. Notably, despite the increase in software sales, boxed game sales plummeted by 34% to £322 million, whereas digital console sales rose by 3.5% to £2.446 billion, and digital PC sales decreased by 1.8% to £647 million. Mobile spending's significant increase brought its value to £1.725 billion in 2024. The decline in hardware sales can be attributed to a 24% drop in console spending to £723 million, although PC hardware sales grew by 6% to £715 million, and console accessories saw a 14% increase to £463 million. VR hardware sales also experienced a 7% growth to £204 million. Senior analyst James McWhirter commented on the market trends, citing the impact of fewer high-value game releases on full-game content spending, despite steady game volumes due to successful lower-value titles. As new-gen consoles approach a critical mass, spend on DLC continues to grow, with subscription pricing adjustments driving growth despite audience saturation. The report highlights the growth of PC hardware, driven by gaming PCs and monitors, and the success of VR headsets, particularly PC-focused devices like the Meta Quest 3 and Quest 3S. The 'game culture' sector, encompassing toys, merchandise, books, and events, valued at £385 million, experienced a 13% decline. UKIE's Press Start on Growth campaign aims to support the UK's gaming industry, calling for reformed Video Games Expenditure Credits, an expanded UK Games Fund, and improved access to finance. CEO Nick Poole emphasized the need for bold support to unlock the industry's potential, stressing that with the right reforms, the UK can create 6,000 skilled jobs and stimulate the digital economy.