UKIE has released its latest Consumer Market Valuation Report, showing the games market was worth £7.63 billion in 2024, a 1.8% decrease from 2023’s total. Hardware sales dropped by 5.1% overall, while software sales grew 0.58%, driven by an 8.1% increase in mobile game spending year-on-year.
The figures
- UK games consumer market value: £7.63 billion (-1.8% year-on-year)
- Software sales: £5.14 billion (+0.58% year-on-year)
- Hardware sales: £2.105 billion (-5.1% year-on-year)
The highlights
Despite the modest percentage increase in software sales, boxed game sales dropped by 34% year-on-year to £322 million. Digital sales on console increased by 3.5% to £2.446 billion, while digital PC sales dropped 1.8% to £647 million. Mobile spending’s 8.1% increase puts its value for 2024 at £1.725 billion.
The drop in games hardware sales can be attributed to a 24% year-on-year decline in console spending to £723 million. PC hardware sales, however, grew by 6% to £715 million, while console game accessories increased by 14% to £463 million. VR hardware sales, too, increased by 7% to £204 million.
Omdia senior analyst James McWhirter provided context. “High-value blockbuster first- and third-party game releases took a breather in 2024, impacting spend on full-game content despite the volume of games holding steady thanks to a number of lower-value hits punching above their weight.
“As the installed base of new-gen consoles reaches a critical mass, spend on DLC continued its growth path. Unlike full-game content, subscriptions pricing has been more responsive to inflationary pressures, and these price rises are driving spend growth despite audiences [reaching] saturation.”
The decline in console sales was attributed to the PS5 and Xbox platforms entering their fifth year in market, while the Nintendo Switch has entered its eighth year. The notable increase in console accessory spending was driven by controllers and headsets.
Gaming PCs and monitors were major contributors to the growth of the PC hardware market, according to the report. VR headsets’ increase was attributed to “PC-focused” devices leading the market, with the report giving a special mention to the success of both the Meta Quest 3 and its cheaper variant, the Quest 3S.
UKIE included the ‘game culture’ sector in its report again this year, which includes toys and merchandise, books, magazines, soundtracks, film, TV, streaming, events and venues. This segment is worth £385 million, a year-on-year decline of 13%.
UKIE used the report to highlight its Press Start on Growth campaign, which aims to help the UK maintain its ‘global edge’. This encompasses a call for reformed Video Games Expenditure Credits to better support independent studios, an expansion of the UK Games Fund, a request for the inclusion of a Digital Creativity GCSE to aid skill development, and improved access to finance.
“The UK games industry is a global success story, but we can’t take that success for granted,” said Nick Poole OBE, CEO of UKIE. “With smart reforms, we can unlock £500 million GVA, create 6,000 skilled jobs, and supercharge the UK’s digital economy. But if we delay, we risk losing that prize to competitors overseas. Now is the time to press start on growth.”
“The UK has the talent, the stories, and the studios. What we need now is bold support to match our ambition. If the government is serious about backing digital growth, then backing games is the place to start,” Poole continued.