UkieLuke: /* Valuation Summary */

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‎Valuation Summary

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[[File:Ukie 2019 UK Games Market Valuation 800px.jpg|thumb|border|400px|Ukie 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.

== 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 [https://www.omdia.com/ 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 [http://www.gfk.com/en-gb/ GfK Entertainment] showed boxed games revenues declining -21.7% to £603m. Data from [https://www.kantarworldpanel.com/en 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 [https://www.npdgroup.co.uk/wps/portal/npd/uk/home/ 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 [https://www.bfi.org.uk/education-research BFI], [https://www.bpi.co.uk/ BPI] and [https://www.officialcharts.com/ 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 [https://nielsenbook.co.uk/ Nielsen Book], [https://www.abc.org.uk/ 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:

{| class="wikitable"
|'''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
|8.9
| -0.8%
|-
|'''Game Culture Total'''
|
|'''114.0'''
|'''146.5'''
| '''+28.5%'''
|-
|'''UK Games Market Total'''
|
|'''5,616.9'''
|'''5,348.6'''
| '''-4.8%'''
|}

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 |Ukie
 |8.9
-|8.9
+|8.8
 | -0.8%
 |-

2019 UK Consumer Games Market Valuation - Revision history

UkieLuke: /* Valuation Summary */

UkieLuke: Created page with "Ukie 2019 UK Consumer Games Market Valuation All figures shown below are those given on the date of..."