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Annual UK video games revenues exceed £4bn for first time in history

2020 was a record year for video game revenues in the UK, according to new figures released today by the Entertainment Retailer's Association (ERA).

Video games generated £4.2bn in revenue last year, with overall revenues up 14.5% compared to 2019.

Digital sales were the main driver of this growth. They accounted for £3.6bn of the total, an increase of 16.3% on the previous years.

However, there was also an increase in physical game sales too which were up by 4.6% to just under £600m over the course of last year.

Games continue to account for nearly half of the overall entertainment market, providing 46.6% of all revenues in the entertainment sector.

While the release of new consoles may have been one driver for growth this year, the main driver is likely to have been the COVID-19 pandemic.

In July 2020, our Playing On Report discovered that 49% of UK games businesses had reported either an increase or significant increase in revenue during the first lockdown.

This tallies with the ERA's findings and suggests that the next Ukie Consumer Market Valuation, due for release at the end of Q1 2021, could be a significant one for the UK video games industry.

For more information and market data from the UK games sector, head to our free to access Ukiepedia now.