With music sales and streaming revenue reaching a record high of £2.4 billion, the UK video games market has experienced consistent growth over the years, despite a 4.4% decrease. The most significant decline was seen in boxed video game sales, which dropped by 35%.
Data from the Digital Entertainment and Retail Association (ERA) predicts that the UK video games market will reach £4.6 billion in 2024, making it the second-largest market after TV and film, which is valued at £5 billion.
The shift in consumer buying habits from physical games to digital downloads and in-game purchases is evident in the increasing popularity of games like Fortnite and Roblox. Currently, boxed games account for 27.7% of new game sales in the UK, according to ERA data.
According to an ERA spokesperson, several factors have contributed to the decline in physical sales, including the shift towards digital downloads, subscription access, the console cycle downturn, and the lack of new hit IPs in the market.
The decrease in physical sales also reflects a decline in brick-and-mortar video game retail, with Games being one of the last specialist video game retailers in the UK. The shift away from selling video games towards toys and other merchandise has left customers with limited options for buying boxed games in-store.
Global trends in the gaming industry indicate a decline in physical sales as digital distribution becomes more popular. While physical formats may still exist as collector items, digital distribution is expected to dominate the market in the future.
Download sales saw a slight decrease, while subscription revenue and mobile/tablet game revenue increased. Despite job losses and reduced investment, analysts anticipate a rebound in sales and profits in 2025 with new console releases and game titles.
Source: www.theguardian.com
