A new report has found that UK consumer spending on video games last year saw a decrease for the first time since 2019.
The report, provided by UK video game trade body UKIE, found that the total UK market valuation for 2024 was £7.63 billion ($10.19 billion), down slightly from 2023’s valuation of £7.82 billion ($10.44 billion).
According to its detailed breakdown, boxed software was down 34% year-on-year and digital PC games were down 1.8%, but digital console games were up 3.5% and mobile game spending was up 8.1%.
Console hardware was down a sizeable 24% given slower sales for PS5 and Xbox Series X/S and the Switch entering its eight year, while PC hardware, console accessories and VR were all up year-on-year.
This is the first time the total valuation has dropped year-on-year since 2019, when it dropped from £5.7 billion to £5.39 billion.
Despite this, UKIE stresses that the UK market is still in a much better state than it was a decade ago, and is still double the size it was in 2013, when the UK market valuation was £3.48 billion ($4.64 billion).
It also notes that a record number of UK games companies were incorporated in 2023, with regional growth across the UK.
The trade body is now urging the UK government to invest in the UK’s video game sector and help it to grow further, warning that the country is at risk of falling behind others who are taking steps to invest.
“New data shows UK consumers spent £7.6bn on video games in 2024 and the UK’s growing video games sector is urging government to act swiftly to secure a £500 million growth opportunity or risk seeing world-class talent, innovation, and IP slip away to better-backed international competitors,” a UKIE statement reads.
“The data reveals a market doubling in size since 2013, with an explosion of new independent studios and a 24% rise in incorporated games SMEs in Q3 2024 alone. But as other countries ramp up support for their creative tech industries, the UK’s current policy framework is falling behind.”
UKIE estimates that support could “unlock £500 million” for the economy across five years, “deliver a fivefold return in investment” and create 6,000 new jobs within five years.
