UK Gaming Market Sees Slight Downturn to £7.05 Billion in 2022

The UK video game market experienced a minor contraction in 2022, with total spending on games and related products decreasing to £7.05 billion. This represents a 5.6% decline from the record £7.47 billion achieved in 2021, marking the first decrease in spending since 2019. However, the 2022 total surpasses pre-pandemic levels by 17% and exceeds projected growth based on 2019 data. According to the latest UK games market valuation by UKIE, which aggregates data from various sources, the market's performance can be broken down into several key areas. Total software spending reached £4.57 billion, a 0.44% increase, with digital console spending at £1.98 billion, down 4.7%, and digital PC spending at £660 million, up 2.2%. Boxed games and pre-owned sales saw declines of 4.3% and 37%, respectively, while mobile spending rose 11% to £1.43 billion. In terms of hardware, total spending was £2.16 billion, with console hardware sales down 27% to £823 million, PC game hardware down 14% to £760 million, and console game accessories down 16% to £396 million. The culture segment, which includes toys, merchandise, books, and events, saw a 27% increase to £316 million, driven by a 7.7% rise in toys and merchandising to £196 million. The UK games market's resilience is attributed to the growth in mobile and digital PC revenues, as well as the continued dominance of consoles. The decline in digital console spending and the relatively stable performance of boxed games suggest a potential leveling off of the decline in physical game sales. The market valuation report also highlights the success of UK-developed games, with 16% of software spending going towards titles created by UK-based companies. Furthermore, the report notes that the pandemic-driven boost in games culture products has begun to normalize, with a 4.8% decline in video content spending. Nevertheless, the year saw significant growth in toys and merchandise sales, as well as a substantial increase in events revenue. UKIE CEO Dr. Jo Twist expressed satisfaction with the market's performance, citing the maintained growth trajectory and strong appetite for games and games culture in the UK.