UK games market worth a record £4.33bn in 2016

UK Games Industry 2016 Consumer Spend Valuation

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.

UK Games Valuation - Software

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 2016 Games Valuation - Hardware

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'.

UK 2016 Games Valuation - Others

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%
Mobile revenues SuperData 851.1 995.1 +16.9%
Pre-owned Kantar Worldpanel 123.0 119.0 -3.3%
SOFTWARE TOTAL   2,979.4 3,104.3 +4.2%
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%
VR hardware SuperData - 61.3 -
HARDWARE TOTAL   1,209.4 1,126.9 -6.8%
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
OTHERS TOTAL   91.7 100.6 +9.7%
         
TOTAL   4,280.4 4,331.8 +1.2%