UK Gaming Market Sees 4.4% Growth, Reaching £7.82 Billion in 2023

The UK games market expanded to £7.82 billion in 2023, marking a 4.4% increase from the revised total of £7.49 billion in 2022, according to the latest Consumer Market Valuation Report published by UKIE. Key findings include: £7.82 billion in total market value, representing a 4.4% year-on-year increase; £5.18 billion in software sales, up 4.1% from the previous year; and £2.22 billion in hardware sales, showing a 2.1% growth. Additionally, revenue from film, TV, and soundtracks based on game IPs reached £124 million. Although overall game sales were up, boxed sales declined by 5% to £495 million. In contrast, digital console software sales rose 5.6% to £2.48 billion, and digital PC software sales increased 4.5% to £684 million, with mobile sales growing 4.5% to £1.52 billion. The hardware sector saw a strong performance from consoles, with sales up 12% to £951 million, while PC sales decreased 11% to £673 million. Industry experts attributed the growth to successful game releases, including Diablo 4, Hogwarts Legacy, and Super Mario Bros Wonder, as well as the resilience of the Nintendo Switch. The decline in boxed software sales was mitigated by strong releases and the 'Zelda effect' on Switch, with PS4/PS5 boxed sales surpassing Switch sales in the UK. The average selling price of boxed sales reached a record high of £36, driven by 17 major titles remaining above £50 throughout the year. Accessories sales grew 3% to £402 million, and VR hardware sales increased 11% to £194 million. The report also introduced a new sector, the 'broader game culture sector,' which includes revenue from digital film and TV, toys, merchandise, books, and events, totaling £418 million in 2023. Revenue from games soundtracks and TV and film adaptations reached £124 million, while events revenue surged 140% to £10.3 million, driven by events like Pokémon Go Fest and Apex Legends Global Series. UKIE CEO Nick Poole noted the industry's resilience and commitment to supporting the UK games industry amidst challenges and evolving consumer behavior.