UK techies splash out record £7.16bn on consoles and games

The UK spent a record amount on video games in the last year, beating previous highs set by techies in the peak of the pandemic.

According to new data from the trade association Ukie, the gaming market is now valued at around £7.16bn –  a 32.8 per cent increase on 2019 figures.

Console hardware revenues were a major factor, growing by 32.9 per cent to reach £1.13bn last year. This was due to ongoing demand for devices like PlayStation 5, as well as the newly released Nintendo Switch OLED.

Virtual Reality hardware sales also rose significantly in the year that Facebook rebranded to Meta, growing by 41.9 per cent to reach £183m in 2021.

The growth in hardware sales were offset by a minor year-on-year decrease in revenues generated by video game software and physical game sales.

However, mobile games revenue clung on to momentous 2020 levels, once again recording a market size of £1.46bn.

It should also be remembered that the hardware sales decline was in line with historical falls taking place pre-pandemic with each market down in comparison to 2019.

Commenting on the findings, senior analyst at Omdia Steven Bailey said: “The important story here is of how much of the lockdown-related boost seen in 2020 has been successfully retained during 2021’s year of correction”.

Dr Jo Twist OBE, CEO of Ukie added: “The UK is a nation that loves its video games and we should be proud of the positive contribution this sector makes to the economy, to our culture and to wider society”.