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UK games market worth a record £4.33bn in 2016

The most recent UK Consumer Video Games Market Valuation launched in March 2022.  To access the most recent valuation, click here.

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%