In 2024, the UK gaming market witnessed significant changes in consumer behavior and spending patterns. According to Ukie’s latest report, expenditures on video games surged to £7.6 billion, representing more than double the amount from a decade earlier. This growth was primarily driven by the expansion of mobile gaming and digital formats, while traditional boxed software saw a decline. Additionally, hardware sales experienced mixed results, with console sales dropping sharply, but accessories and peripherals showing robust growth. The report also highlights a decrease in spending related to gaming culture, influenced by affordability concerns. Furthermore, Ukie emphasized the need for governmental support to capitalize on a potential £500 million growth opportunity within the gaming sector.
Recent years have marked a transformational period for the UK gaming landscape. Data reveals that the industry's total revenue skyrocketed over the last decade, reaching an impressive milestone in 2024. Mobile gaming emerged as one of the key contributors to this surge, experiencing an 8.1% increase and achieving revenues of £1.7 billion. This trend underscores the growing preference among consumers for portable and accessible gaming experiences. Meanwhile, the decline in physical game sales reflects broader shifts towards digital distribution channels, which accounted for a substantial portion of the overall growth.
The evolution of gaming hardware further illustrates these changing dynamics. Although overall hardware sales dipped slightly in 2024, certain segments performed well. Console sales notably fell by 24%, attributed to market maturity and the phasing out of older systems. However, PC and virtual reality (VR) hardware managed to post modest gains, indicating continued interest in high-performance and immersive gaming setups. Accessories and peripherals, on the other hand, thrived with a 14% year-over-year rise, suggesting that gamers are increasingly investing in complementary products to enhance their experience.
Beyond financial figures, cultural aspects of gaming also came under scrutiny. Spending associated with gaming culture decreased by 13%, likely due to rising costs for tickets and subscriptions. This trend raises important questions about accessibility and affordability within the gaming community. As industry leaders look ahead, addressing these challenges will be crucial to sustaining long-term growth and engagement.
Ukie has called upon policymakers to recognize the strategic importance of supporting the gaming industry. With bold measures, they argue, the UK could unlock £500 million in additional revenue, create thousands of skilled jobs, and bolster its digital economy. Nick Poole OBE, CEO of Ukie, stressed the urgency of acting now to prevent talent and innovation from migrating overseas. By aligning government initiatives with the industry's ambitions, the UK can solidify its position as a global leader in gaming.
As the UK gaming industry continues to evolve, it faces both opportunities and challenges. While digital adoption and accessory sales drive growth, declining console sales and affordability issues present hurdles that require innovative solutions. Policymakers and stakeholders must collaborate to ensure that the industry not only maintains its current momentum but also positions itself for future success in an increasingly competitive global market.