Lack of blockbusters and maturing consoles result in UK video games market recording first decline in five years

In 2024, the UK video games market recorded a decline for the first time in five years, with total consumer spending of £7.63 billion, down 1.8% from 2023. Nevertheless, certain segments, such as mobile gaming and console accessories, are showing strong growth, and the industry is calling on the government for strong support to maintain its leadership position in the global market.

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According to the UKIE report, in 2024, sales of gaming software grew by 0.58% to reach £5.14 billion, mainly due to the mobile segment, which added 8.1% to reach £1.725 billion. At the same time, sales of physical copies of games fell by 34% (£322 million), while digital sales on consoles grew by 3.5% (£2.446 billion). On PC, digital sales were down 1.8% to £647 million.

Hardware took the biggest hit, with total sales down 5.1% to £2.105bn. The console segment was particularly affected by a 24% decline (£723 million), driven by the maturity of the PS5, Xbox Series X|S and the eighth year of the Nintendo Switch. At the same time, the PC hardware market grew by 6% (£715 million), console accessories by 14% (£463 million), and VR devices by 7% (£204 million). The success of the Meta Quest 3 and Quest 3S headsets is particularly noteworthy.

The "gaming culture" segment (merchandise, books, magazines, soundtracks, films, events) decreased by 13% to £385 million. Despite the overall decline, UKIE emphasises that the market remains twice as large as in 2013, and the number of new studios and start-ups is growing at a record pace.

Analysts attribute the decline in spending to the lack of high-profile blockbusters in 2024, as well as the saturation of the subscription market and rising prices. At the same time, according to UKIE, government support is needed right now: tax relief reform, expansion of the UK Games Fund, and implementation of educational initiatives can bring the market an additional £500 million and create 6,000 jobs.

Source: UKIE