2019 UK Consumer Games Market Valuation
All figures shown below are those given on the date of publication. Later valuations may have revised the figures for this year.
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2019 Valuation
The UK market for video games between January and December 2019 was valued at £5.35bn, an overall drop of -4.8% on the previous year’s record-breaking results. This finding comes as the industry finds itself on the cusp of a new generation of console hardware and, as with previous transitional periods, consumer revenues are reflective of a market of expectant of the next big thing.
2019 proved to be a varied year for the sector, with each of the three main areas of game software, game hardware and game culture each with a different story to tell. Game software saw a pause in the growth trend of the recent years, with revenues plateauing and a small -2.1% drop to £3.85bn. Hardware saw a slower year, with a -14% decline to £1.35bn, mirroring demand for last-gen consoles. However, broader interest in games continues to grow with UK audiences, with game culture revenues climbing +28.5% to £146m.
Game Software
Within the software market, data from Omdia (previously known as IHS Markit) showed that digital and online revenues maintained their 2018 peak, with a small +0.6% year-on-year increase to £1.98bn. Digital PC and console revenues now comprise 51% of the overall UK game software market.
Mobile game revenues also saw a positive year, continuing the growth trend of recent years, up +7.7% to £1.2bn, thanks in part to the ongoing success of mature titles such as 'Candy Crush', 'Clash of Clans' and 'Roblox' continuing to lead the top-performers.
In the physical retail world, after two steady years buoyed by headline releases, data provided by GfK Entertainment showed boxed games revenues declining -21.7% to £603m. Data from Kantar Worldpanel also showed a similar story in pre-owned sales revenues, dropping 18.7% to £55.2m.
Game Hardware
The impact of the changing console cycle is perhaps clearest when looking at console hardware revenues, down -30.5% in 2019 to £488m, according to data from GfK Entertainment. GfK data also showed a related drop in console game accessories, although less dramatically at -6.8% to £331m. Separate to these however, PC game hardware enjoyed a steady +6.1% growth to £469m, again via data provided by GfK.
While overall VR hardware revenues saw a -12% decline to £65.8m in 2019, the story behind this rapidly developing sector is more complex, with new standalone VR headsets beginning to have a significant impact on the market.
Game Culture
Looking at the broader impact of games within culture, it’s clear that demand for game-related experiences and products remains in good health. Game-related toys and merchandising revenues saw their first boom year since the closure of Toys-R-Us, increasing +48% in 2019 to £94.2m, with 'Fortnite'-related toys playing a major role according to data provided by NPD.
Game-related films, video and music also enjoyed a successful year, with the smash box office returns for 'Detective Pikachu' helping drive revenues up +24.9% to a combined £29.5m, according to data from the BFI, BPI and Official Charts Company.
As with previous years, tentpole franchises like 'Pokémon' and 'Minecraft' were key to game-related book revenues, however declines in physical demand and the shift to digital’s impact on magazine revenues saw an overall drop of -21.6% in game-related books and magazines to £13.9m, combined data from Nielsen Book, ABC and Ukie's own research showed.
Finally, analysis from Ukie showed demand game-related events for 2019 remained buoyant, with headline expos like EGX and Insomnia supporting overall UK ticket revenues of £8.8m, a small drop of just -0.8% on the previous year.
Valuation Summary
The 2019 UK games market consumer spend valuation details in full are as follows:
| Categories | Data Supplier | 2018 (£m) | 2019 (£m) | % Growth |
| Digital & Online | Omdia | 1,964.7 | 1,976.9 | +0.6% |
| Boxed Software | GfK Entertainment | 770.0 | 603.0 | -21.7% |
| Mobile Games | Omdia | 1,126.4 | 1,213.3 | +7.7% |
| Pre-owned | Kantar Worldpanel | 68.0 | 55.2 | -18.7 |
| Game Software Total | 3,929.2 | 3,848.4 | -2.1% | |
| Console Hardware | GfK Entertainment | 702.0 | 488.0 | -30.5% |
| PC Game Hardware | GfK Entertainment | 442.0 | 469.0 | +6.1% |
| Console game accessories | GfK Entertainment | 355.0 | 331.0 | -6.8% |
| VR Hardware | Omdia | 74.8 | 65.8 | -12.0% |
| Game Hardware Total | 1,573.8 | 1,353.8 | -14.0% | |
| Toys & Merchandise | NPD | 63.6 | 94.2 | +48.0% |
| Books & Magazines | Nielsen Books / ABC / Ukie | 17.8 | 13.9 | -21.6% |
| Movies & Soundtracks | Official Charts Company / BFI / BPI | 23.6 | 29.5 | +24.9% |
| Events & Venues | Ukie | 8.9 | 8.8 | -0.8% |
| Game Culture Total | 114.0 | 146.5 | +28.5% | |
| UK Games Market Total | 5,616.9 | 5,348.6 | -4.8% |
