Time to press start on growth

Press Start on Growth
Unlocking the full potential of the UK video games industry
The UK video games industry is one of the most
dynamic, innovative and high-growth sectors in the creative economy. It already contributes £6 billion
in Gross Value Added (GVA) annually and supports more than 73,000 jobs.
But new analysis shows that, with targeted policy intervention, the sector could generate:
£500
million
in additional G VA
6,000
new jobs
over five years, of which 2,550
are highly skilled 5:1
return
on public
investment
Source: Ukie / Nordicity, Business Case for an Enhanced
Video Games Expenditure Credit, February 2025
Driving UK growth
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
UK Games Consumer Market Valuation
Total Market Valuation (£bn)
3.27 3.483.94
4.19
4.33 5.11
5.70
5.397.00
7.4 77.77
7.82
7.63
Source: Ukie, Consumer Market Valuation, May 2025
New data show
consumers have spent £7.6bn in 2024 Market size has
doubled since 2013 (£3.5bn)
Despite a challenging global environment, mobile game spend
grew by 8.1% in 2024 Record number of
incorporated UK
games companies in 2023, with regional
growth across the UK
The risk without action
Global competitors are already
increasing incentives to attract investment and talent
Policy
Recommendations
Reform the
Video Games Expenditure
Credit (VGEC)
1.
Expand Access to Finance
and Innovation Support
2.
Develop
Skills and
Attract Global Talent
3.
Now is the time to
press start on growth
The UK video games sector is a vital growth engine
within the creative economy. With the right strategic
support and policy reforms, the UK can not only retain its global leadership, but also significantly expand its reach, influence and economic contribution. Now is the time to press start on growth.

Ukie 2024 Video Games Consumer
Market Valuation
• Physical (boxed) software fell 34% year-on-year,
continuing a long-term decline, accounting now
for 4% of total spend.
• Mobile games grew by 8%, although behind the
Western European average of 13%.
• Full-game digital purchases dipped due to fewer
blockbuster releases, though overall game volume
remained stable.
• Lower-priced hits like Palworld and Helldivers II
affected average PC game prices, but growing PS5
adoption and record Steam user numbers helped
drive strong DLC performance.
• Game subscription revenue rose, mainly due to
price increases, as the console subscriber base
approached saturation.
Game Software
Source: Omdia, 2024
• The Sony PS5 Disc console and Microsoft Xbox Series
Consoles saw declines owing to fewer major first-party
software releases and accompanying hardware bundles,
dampened consumer confidence from cost of living
rises, and other global economic factors. Nintendo.
Switch sales also declined with the Switch being in its
8th year and consumers primed for Switch 2 in 2025.
• Conversely, the PS5 Digital Console had a best ever
year at its lower price point alongside the growth of
direct-digital delivery of games via PlayStation Plus
membership plans.
Game Hardware
• Live events spending fell 15% due to cancellations
and event transitions.
• Esports grew by 44% year-on-year, with more
prominent UK-based events.
• Grassroots events expanded, suggesting signs of
post-pandemic recovery.
–– Events & Esports
• Box office receipts for video game adaptations were
lower this year with Borderlands grossing under
£2 million and Sonic the Hedgehog 3’s December
release meaning that some of its box office will
contribute to 2025 instead.
• In contrast, 2023 saw major hits like The Super Mario
Bros. Movie (£55m) and Five Nights at Freddy’s (£11m),
both of which went on to lead video sales and rentals
in 2024.
• Online streaming and gaming video content fell 3%
as audiences continue to stabilise post-pandemic.
–– Film, TV, Streaming and GVC
Source: NielsenIQ/GfK Entertainment, 2024
Source: NielsenIQ/GfK Entertainment Source: Ukie, 2024
Source: BFI, Comscore, Official Charts Company, Omdia, 2024
Source: Ukie, 2024
• Game culture fell by 13% with declines across all
categories, tracking with broader market trends.
• Game culture ticket and subscription prices rose in
2024, counteracting some of the revenue impact of
declines in engagement.
Game Culture
• Video game-related toy sales fell by 8.5%, in line
with a broader toy market decline.
• Notable successes included Sonic the Hedgehog
and Animal Crossing merchandise.
• Pokémon started 2025 as the UK’s top toy property.
–– Toys & Merchandise
Source: Circana, POS Tracking Service, UK, Full Year 2024 & YTD March 2025
Source: Ukie, 2024
Game Software
2024YOY Change Source
Boxe d 322 -34%NielsenIQ/GfK Entertainment
Digital Console 2,446 3.5%Omdia
Digital PC 647 -1.8%Omdia
Mobile 1,725 8.1%Omdia
5,140 0.58%
Game Hardware
Console 723-24%NielsenIQ/GfK Entertainment
PC 7156.0%NielsenIQ/GfK Entertainment
Console Game
Accessories 463
14%NielsenIQ/GfK Entertainment
VR 2047.0%NielsenIQ/GfK Entertainment
2,105 -5.1%
Game Culture
Toys and Merchandise 211-8.5%Circana
Books 6.8*Nielsen
Magazines 3.8-2.5%ABC, Ukie
Film, TV, Soundtracks,
Streaming and GVC 155
-17%BFI, Comscore, Official Charts
Company, Omdia, Ukie
Events and Venues 9.2-11%Ukie
385 -13%
To t a l 7,630 -1.8%
*The methodology for Books has changed and cannot be
compared directly to the previous year’s figure.