Train2Game News UK games market reaches new heights in 2016

At its annual Games Industry Market Valuation Breakfast event yesterday, games trade body Ukie revealed the value of UK consumer games market reached a record £4.33bn in 2016, up +1.2% from 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 and an impressive +16.9% rise in UK mobile games revenue – now worth £995m. 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, included in the market valuation for the first time and valued at £61.3m. The impact of VR was also seen in the sale of top-end graphics cards, driving a huge increase in PC game hardware of +64% to £258m.  

As the current generation of the console cycle matures, there was an expected reduction in sales of new hardware, down to £507.5m.

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 £66.8m, with books and magazines increasing +13% to £18.4m.

The annual breakfast briefing was attended by industry, media and analysts, and featured lively panel discussions from industry leaders about the state of the UK industry and expected trends in the coming year.

Data was collated to build the total Market Valuation using trusted industry data sources including Superdata, GfK, Kantar Worldpanel, Neilsen, NPD, ABC, The Official Charts Company and Ukie.

Dr Jo Twist OBE, CEO of Ukie, said, “Our sector is constantly innovating and investing in new experiences, technologies and talent, resulting in the strong and resilient games industry shown in this £4.33bn market valuation. It has been an excellent year for the industry, including the release of first commercially available VR headsets, an exciting year for our national esports scene, and the explosion of the UK mobile market, which is now worth nearly £1bn alone.

These statistics will go a long way to reinforcing the message that the UK continues to be a world leading games market, remaining strong in the face of an uncertain political climate. Ukie will continue to use these stats to promote the strength of our sector nationally and worldwide to investors, the media, policy makers and more, to prove that the UK is the best place to make and sell games.

The next year will be a big year of change, but we look forward to seeing the market remain resilient and robust and a leading creative economy in the UK.”

Read the full market breakdown here.