According to the trade organization UKIE, the value of the British video game market fell by 5.6% in 2017.
Gaming gear sales, including consoles, fell 19% to £2.16 billion last year, while software sales rose 0.4% to £4.57 billion.
In 2022, the market had a total value of £7.05 billion, which was 17% higher than pre-pandemic levels.
As with other entertainment industries, the gaming industry is preparing for the impact of the recent cost of the living crisis on consumer spending in the future years.
This report indicates that price fluctuations resulting from the Ukraine conflict, rising inflation. And higher energy costs have already affected the amount of money consumers are prepared to spend on video games.
UKIE Chief Executive Officer Dr. Jo Twist stated. “We are pleased to see that the consumer market for video games in the United Kingdom has maintained its growth trajectory.”
She added, “Although we may have witnessed a natural leveling off following increased spending during the lockdown years. It is evident that the appetite for games and the surrounding culture in the United Kingdom remains strong.”
The 27% decline in console revenue was not unforeseen. Similar declines have been observed two to three years after the release of new console generations (PlayStation 5 and Xbox Series X|S were released in 2020).
Last year’s PS5 sales were also impacted by supply issues, which Sony has previously attributed in part to the pandemic.
The decline in streaming and game video content of 4.8% in 2022 was expected following the pandemic peak period.
Toys and merchandising grew by 7.7% annually, defying the trend of a 3% decline in the overall toy market.
The best-performing merchandise was Pokémon-related.
Lego Star Wars: The Skywalker Saga, PlayStation-exclusives God of War Ragnarok and Horizon Forbidden West, Pokémon Legends. According to the ERA Yearbook 2023, Arceus on Switch and Elden Ring were the most popular UK games in 2022.
Many major releases, including Hogwarts: Legacy, Starfield, and Legend of Zelda: Tears of the Goddess, have been pushed back from 2022 to 2023, giving game developers reason for optimism that next year’s sales will remain above the pre-pandemic benchmark.
The Electronic Retailers Association released figures earlier this year comparing the economic influence of gaming in the United Kingdom to that of the film and television industries. This most recent report examines expenditures associated with the video game industry, including merchandising, and related products such as movies based on video games, and PC hardware. This is why the ERA study undervalued the games market.
The British Film Institute is one of the organizations that contributed to the compilation of data for this report.
Harriet Finney, the company’s deputy chief executive, stated, “Development spending on creating new video games fluctuates from year to year based on when work begins on larger video game initiatives.
However, the continued success of the UK video games industry demonstrates its creative contribution to the creative industries. Also the creation of jobs and additional revenue for the UK economy.
Ukie is a non-profit trade organization that represents the UK’s video game and interactive entertainment industries. It represents over 600 companies throughout the United Kingdom, including game developers, publishers, platforms, and service providers.
