UKIE, a UK video game trading agency, found that the total valuation of the UK video game market in 2024 was £7.6 billion, slightly lower than the £7.8 billion valuation in 2023, the first time that UK consumers’ spending on physical games has dropped in five years.

As the PS5 and Xbox Series X/S and Switch both entered a slowdown in sales, console hardware fell 24%, while PC hardware, console accessories and VR were all growing year-on-year, which is the first time the total valuation has dropped year-on-year since 2019.There are many factors that have led to this recession, and one fact that we can hardly ignore is that the current generation of console games are too expensive.Nevertheless, UKIE stressed that the UK market is still much better than it was a decade ago and is still twice as large as in 2013.

It also noted that the number of UK gaming companies registered a record high in 2023, with regions growing across the UK."The growing electronic gaming industry in the UK urged the government to take prompt measures to ensure the £500 million growth potential is realized, otherwise it is possible to see world-class talent, innovation and intellectual property loss to more backgrounded international competitors," a statement from UKIE read.

Data shows that the market size has doubled since 2013, with new independent studios exploding, with SMEs merging games growing by 24% in the third quarter of 2024 alone.But as other countries increase their support for their own creative technology industries, the current policy framework of the UK is gradually becoming backward.

UKIE pointed out that the UK government should increase its investment in the industry.The company stressed that the market outlook is generally optimistic, but it may require some help if it is to compete with industries in other regions.