Smitch

The Unshakable Resolve of "this guy are sick"
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Apr 21, 2022
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www.gamesindustry.biz

UK games market grew 4.4% to £7.82bn in 2023

UKIE published its latest Consumer Market Valuation Report, showing that the UK games market was worth £7.82 billion in…

The figures


  • UK games consumer market value: £7.82 billion (+4.4% year-on-year)
  • Software sales: £5.18 billion (+4.1% year-on-year)
  • Hardware sales: £2.22 billion (+2.1% year-on-year)
  • Revenue from film, TV, and soundtracks based on game IPs: £124 million

The highlights

While overall game sales were up in the UK in 2023, boxed sales have continued their decline and were down 5% to £495 million compared to 2022. Looking at digital sales more precisely, digital console software sales were up 5.6% to £2.48 billion, and digital PC software sales increased 4.5% year-on-year to £684 million. Mobile sales were also up, reaching £1.52 billion following a 4.5% growth.

When it comes to hardware sales, consoles had a particularly strong year, with sales increasing 12% compared to 2022 to £951 million. PC, on the other hand, showed quite a decline, with sales decreasing 11% year-on-year, falling to £673 million.
Omdia senior analyst James McWhirter gave a bit more detail: "Digital spend within the UK's console market returned to growth in 2023 as PlayStation 5 hardware sales volumes hit their stride, while Nintendo Switch remained remarkably resilient as a bumper lineup of first party software propped up active users and spend on the now seven-year-old platform."

He also noted the success of games including Diablo 4, Hogwarts Legacy, Spider-Man 2, Super Mario Bros Wonder, Tears of the Kingdom, EA Sports FC 24, and Baldur's Gate 3, which all contributed to the health of the market.
Dorian Block, from data firm GfK Entertainment, added that the decline in boxed software sales was actually "better than expected," due to strong releases and the "Zelda effect" on Switch. He added that PS4/PS5 boxed sales overtook Switch sales in 2023 in the UK.

"Total sales achieved a higher overall [average selling price] than any other year on record (£36 overall)," he continued, still talking about boxed sales. "This was achieved by the fact that there were 17 major titles in 2023 that remained above £50 over the entire year (accounting for 34% of 2023 revenue), compared to just 8 titles in 2022 (accounting for 21% of 2022 revenue)."

Meanwhile, accessories sales grew 3% to £402 million, and VR hardware sales increased 11% to £194 million.
UKIE's report included revenue coming from digital film and TV based on video game properties for the first time, creating a new vertical the trade body called the "broader game culture sector," including toys, merchandise, books, magazines, film, TV, soundtracks, events, and streaming content. This sector saw a revenue of £418 million in 2023 in the UK.

Revenue from games soundtrack as well as TV and film adaptations reached £124 million in 2023, while events revenue surged 140% to £10.3 million – a success UKIE attributed to events including Pokémon Go Fest and Apex Legends Global Series.
UKIE CEO Nick Poole, commented: "Once again, the report showcases the vitality of interactive entertainment in the UK in the face of significant challenges."

He acknowledged both this "positive trajectory" but also the layoffs affecting the industry, and reiterated UKIE's commitment to support the UK games industry.

He added: "The video game industry continues to evolve rapidly, presenting both challenges and opportunities. As we continue to see changing patterns of consumer behaviour in how people buy and play games, these figures give us real confidence that games will continue to pioneer tomorrow's frontiers in entertainment, learning and participation."
 

Super

Studied the Buster Sword
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Jan 29, 2022
7,961
Going to be interesting to see the cross media revenue tracking over the next few years.

Omdia senior analyst James McWhirter gave a bit more detail: "Digital spend within the UK's console market returned to growth in 2023 as PlayStation 5 hardware sales volumes hit their stride, while Nintendo Switch remained remarkably resilient as a bumper lineup of first party software propped up active users and spend on the now seven-year-old platform."
It's a shame this year won't have a Switch 2 and PS5 Pro release really. The growth provided by the availability of the PS5 after stock shortages won't really be replicated this year. With the Pro coming hopefully the base model gets a price cut but who knows. You also have to think Nintendo will hold big games for the Switch 2 now.
 

EagleClaw

Member
Dec 31, 2018
11,212
Not a really good sign if market analysts from the UK don't even name Xbox anymore.

Also kinda interesting that console software sales are atleast a billion above mobile and PC in the UK,
looking pretty healthy atleast in the UK.
 

jroc74

Member
Oct 27, 2017
29,759
Interesting to see that PC hardware declined in 2023.
Yup, Interesting stats all around.

Not a really good sign if market analysts from the UK don't even name Xbox anymore.

Also kinda interesting that console software sales are atleast a billion above mobile and PC in the UK,
looking pretty healthy atleast in the UK.
I was thinking this right before you posted.

It is what it is at this point. Sony and Nintendo carrying the UK on their backs.
 
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bitcloudrzr

Member
May 31, 2018
14,867
so consoles...aren't doomed???
cCIQSt.gif
 

Mocha Joe

Member
Jun 2, 2021
10,120
RTX 4070, 4060 , aka the most popular (by far) 4000 cards released in 2023.
But are the selling well? And for every 5 MSRP 4060s sold is the equivalent of one 4090. Which apparently sold extremely well at launch.

Also wait, didn't the 4060 get slammed in reviews and nobody was buying them?
 

giapel

Member
Oct 28, 2017
4,681
Not a really good sign if market analysts from the UK don't even name Xbox anymore.

Also kinda interesting that console software sales are atleast a billion above mobile and PC in the UK,
looking pretty healthy atleast in the UK.
I'm questioning what's included in the mobile number
 

AHA-Lambda

Member
Oct 25, 2017
11,957
I recall reading on installbase that pc gaming in UK isn't as big as other similar markets?
Given the cost of living crisis and the comparative high prices I'm not too surprised it's down
 

pswii60

Member
Oct 27, 2017
26,897
The Milky Way
2022 had the RTX 4000 launch and Zen 4 launch so it was going to decline this year.

Intel did launch 14th gen CPUs in 2023 but nobody bought them pretty sure lol.
Are they talking all PC hardware? Or just PC gaming hardware? And how to they decide which is which? Whether it has a decent GPU? Is Deck included? What about an i3 laptop? Pretty meaningless perhaps.
I recall reading on installbase that pc gaming in UK isn't as big as other similar markets?
Given the cost of living crisis and the comparative high prices I'm not too surprised it's down
UK is very console centric indeed since the mid 90s. Very different before then when home computers ruled the roost.
 

Super

Studied the Buster Sword
Member
Jan 29, 2022
7,961
Not a really good sign if market analysts from the UK don't even name Xbox anymore.

Also kinda interesting that console software sales are atleast a billion above mobile and PC in the UK,
looking pretty healthy atleast in the UK.

It's the reality of the market though. This report from Chris Dring on the 2023 UK market in January said the same.

PS5 was the driver behind this. Sony's console saw sales rise 55.2% over 2022, making it the biggest year yet for new PlayStation. It's actually the best year for a PlayStation machine since 2014.
www.gamesindustry.biz

UK PC and console sales grew 2.6% in 2023 | UK Annual Report

38 million video games were sold in the UK during 2023, the latest GSD figures reveal. It's a slight increase of 2.6% o…
 

Mocha Joe

Member
Jun 2, 2021
10,120
Are they talking all PC hardware? Or just PC gaming hardware? And how to they decide which is which? Whether it has a decent GPU? Is Deck included? What about an i3 laptop? Pretty meaningless perhaps.
good point, i don't even know what it actually could encompass when I think about it more. Because there are so many different things; parts, handhelds, laptops, pre builts, etc.

At least when you see "console", you know exactly what it means.
 

EagleClaw

Member
Dec 31, 2018
11,212
It's the reality of the market though. This report from Chris Dring on the 2023 UK market in January said the same.


www.gamesindustry.biz

UK PC and console sales grew 2.6% in 2023 | UK Annual Report

38 million video games were sold in the UK during 2023, the latest GSD figures reveal. It's a slight increase of 2.6% o…

Still i'm kinda surprised that Xbox isn't even named once.
I could even believe this is an first for an yearly consumer market report on consoles since the early X360 days.
 

bitcloudrzr

Member
May 31, 2018
14,867
Which isn't sustainable, we know the industry isn't doing well since everyone has had layoffs.
This is not the right perspective on layoffs.

Still i'm kinda surprised that Xbox isn't even named once.
I could even believe this is an first for an yearly consumer market report on consoles since the early X360 days.
The fact that this is happening, in what is supposed to be their second strongest market is alarming.
 

Thorrgal

Member
Oct 26, 2017
12,785
Selling a bunch of consoles doesn't mean you are successful.

You could be making $1 billion in revenue but costs were $2 billion that means a $1 billion loss. Which isn't sustainable, we know the industry isn't doing well since everyone has had layoffs.

Companies have layoffs even when doing well to earn even more money, that's why people complain about them
 

Super

Studied the Buster Sword
Member
Jan 29, 2022
7,961
Still i'm kinda surprised that Xbox isn't even named once.
I could even believe this is an first for an yearly consumer market report on consoles since the early X360 days.
The Xbox Series consoles are not driving growth in the UK or European markets though. That's why it's not being mentioned in that statement.
 

EagleClaw

Member
Dec 31, 2018
11,212
The Xbox Series consoles are not driving growth in the UK or European markets though. That's why it's not being mentioned in that statement.

There is also a statement about digital software sales were Xbox isn't named,
so it isn't just about the driving force of console hardware sales.
 

jroc74

Member
Oct 27, 2017
29,759
Selling a bunch of consoles doesn't mean you are successful.

You could be making $1 billion in revenue but costs were $2 billion that means a $1 billion loss. Which isn't sustainable, we know the industry isn't doing well since everyone has had layoffs.
True....which is why I often ask what's the profit margins for selling consoles for each of the 3 platform holders.

Since margins are such a hot topic these days.
 
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Super

Studied the Buster Sword
Member
Jan 29, 2022
7,961
There is also a statement about digital software sales were Xbox isn't named,
so it isn't just about the driving force of console hardware sales.

Yeah you need to move consoles to sell software. If you look at the Europe report for 2023 you get this statement. Low console sales and low software sales go hand in hand unfortunately.

In terms of platforms, PC was No.1 in terms of game sales, ahead of PS5 (No.2), Switch (No.3), PS4 (No.4) and Xbox Series S and X (No.5). Out of those five, Switch and PS4 were the only platforms to post a drop in game sales year-on-year.

The biggest European market for games remains the UK, ahead of Germany (No.2), France (No.3), Spain (No.4) and Italy (No.5).

www.gamesindustry.biz

Video game sales up 1.7% in Europe during 2023 | European Annual Report

Small growth for game sales across Europe, but console sales up significantly due to PS5
 

Mung

Member
Nov 2, 2017
3,505
Good to see data that goes against some of the prevailing narrative and narrative setters. Much of the trends seen recently can be explained relatively simply, by natural cycles and global issues etc. People love to over react to short term data without due consideration.
 

Zafir

Member
Oct 25, 2017
7,324
Interesting to see that PC hardware declined in 2023.
I'm not that shocked with how prices on computer parts went. The worst example is GPUs, the 3080 was £650 RRP, meanwhile the 4080 was £1200 RRP, lmao. You can argue some of this was the currency struggling a bit, but that didn't mean that we all got more money. The Uk wages haven't at all kept up with inflation.

As for the decline of physical, I don't think that's massively surprising either. The amount of stores which sell physical copies has drastically reduced. Even the supermarket hold outs finally got rid of their lines last year.
 

plow

Member
Oct 28, 2017
4,686
it's incredibly sad that Chris deactivated his account, probably due to harrasment. We got some nice insight out of it. I hope he is fine.
 
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bitcloudrzr

Member
May 31, 2018
14,867
What a shame, but not surprising seeing the cesspool that is twitter and the campaign some xbox "fans" were doing againts Dring for supposedly having an agenda, when all he was doing was giving sales numbers (a narrative that I have seen on Era as well).
Cultivate this kind of community, and this is what happens when bad news comes out. MS's own projections of hardware are down 40% for Q1, not the sales analyst's fault if that is turning out to be correct.