The UK games market was valued at a record £4.33bn in 2016, up +1.2% from the 2015 figures.
The result shows positive growth for the games and interactive entertainment economy, including an +11.1% increase in digital console and PC games sales to £1.22bn and an impressive +16.9% rise in UK mobile games revenue - now worth £995m.
Physical boxed software sales declined -15.2% to £766.7m, although this drop was more than made up by gains in the digital and mobile sectors. Pre-owned software saw a slight drop of -3.3% to £119m, with a lower average selling price masking an increase of sales. Overall, software sales in the UK exceeded £3bn for the first time.
The consumer release of the first VR headsets has helped fuel the growth of the sector though the sales of VR hardware, valued at £61.3m and included in the market valuation for the first time. The impact of VR was also seen in the sale of top-end graphics cards, driving a huge +64% increase in PC game hardware to £258m.
As the current generation of the console cycle matures, there was an expected reduction in sales of new console hardware, down -26.7% to £507m. Console perhiperals and accessories was similarly affected, dropping -16.6% to £300.1m.
UK games events have also seen a strong increase, up 20.6% from 2015, fuelled by a growing esports scene in the UK and consumers engaging more with the industry at UK-wide games shows such as popular Insomnia and upcoming EGX Rezzed.
The successes of both Pokémon GO and Minecraft were factors in increases for both categories for game-related toys and merchandise, and books and magazines. Toys and merchandise sales increased by +7.2% to £66.7m, with books and magazines increasing +13% to £18.4m.
Games' influence on the other creative sectors continues to grow, with games movies and soundtrack sales increasing +14.4% to £7.8m, helped along by the success of Duncan Jones' 'Warcraft: The Beginning'.
The UK games 2016 consumer spend valuation details in full are as follows:
|SEGMENT||DATA SOURCE||2015 (£m)||2016 (£m)||% GROWTH|
|Digital & online||SuperData||1,101.4||1,223.5||+11.1%|
|Boxed Software||GfK Entertainment||903.9||766.7||-15.2%|
|Console hardware||GfK Entertainment||692.6||507.5||-26.7%|
|PC game hardware||GfK Entertainment||157.0||258.0||+64.3%|
|Perhiperals & accessories||GfK Entertainment||359.8||300.2||-16.6%|
|Toys & merchandise||NPD||62.3||66.8||+7.2%|
|Books & magazines||Nielsen | ABC | Ukie||16.3||18.4||+13.2%|
|Movies & soundtracks||Official Charts Company||6.9||7.8||+14.4%|
|Events & venues||Ukie||6.2||7.5||+20.6|