The UK video game and interactive entertainment sector was valued at £7.82 billion ($9.76 billion) in 2023.
That’s according to the annual Consumer Games Market Valuation Report from UK trade body Ukie, which explained that figure is an increase of 4.4 percent on the revised valuation of £7.49 billion it slapped on the UK game industry in 2022.
Ukie said the latest valuation shows the UK video game market is on a “strong path of growth” in the face of headwinds that have disrupted the industry around the globe. “This increase underlines the video games market’s stability and resilience, as well as consumers unrelenting appetite for games and games culture,” it added.
Ukie CEO Nick Poole claimed the report highlights the “vitality of interactive entertainment in the UK,” with overall game software sales increasing by 4.1 percent to £5.18 billion over the past year–driven largely by digital console and PC software sales.
Combined game hardware sales, meanwhile, rose by 2.1 percent year-on-year to £2.22 billion. Console and VR hardware drove that upswing, with sales of PC hardware actually falling by 11 percent year-on-year.
“While celebrating this positive trajectory, we also acknowledge the current market correction affecting some of our member companies, resulting in unfortunate staff layoffs. As an industry, we remain committed to supporting our workforce and games businesses through these transitions, fostering a resilient ecosystem that prioritizes innovation and sustainability,” said Poole.
“The video game industry continues to evolve rapidly, presenting both challenges and opportunities. As we continue to see changing patterns of consumer behavior in how people buy and play games, these figures give us real confidence that games will continue to pioneer tomorrow’s frontiers in entertainment, learning, and participation.”
Omdia senior analyst James McWhirter said the UK market grew and maintained an audience for “high-value digital content” in 2023 across both established and emerging titles. He added that PlayStation 5 hardware sales appeared to “hit their stride” last year, while the Nintendo Switch also remained “remarkably resilient” thanks to its first-party software lineup.
Visit the Ukie website for more on the 2023 UK Consumer Games Market Valuation Report.
Game Developer and Omdia are sibling companies under Informa Tech.