UK games market reaches record £8.8B in 2025

The UK video games market reached a record valuation of approximately £8.8 billion in 2025, marking a year-on-year increase of more than 7%, according to new data released by industry body Ukie.

The figures, presented during the London Games Festival, highlight continued expansion across software, hardware, and game-related media, reflecting sustained consumer demand despite broader economic pressures.

Software remained the largest contributor, generating just over £6 billion in revenue. Digital console sales led the segment, reaching nearly £2.5 billion, followed closely by mobile gaming at around £2.1 billion. PC digital sales also contributed more than £1.1 billion, while physical game sales continued to decline, falling to £319 million.

Hardware sales accounted for approximately £2.2 billion, supported by strong console performance. Growth in this category was partly driven by the release of the Nintendo Switch 2, which surpassed 10 million units globally within its first months on the market. In the UK, console sales rose notably, outpacing PC hardware spending.

Beyond core gaming segments, revenue linked to game-related media and merchandise expanded significantly. Spending on game culture—including film, television, and merchandise tied to gaming intellectual property—grew by over 40% to reach £566 million. Film and TV adaptations alone generated £159 million, with A Minecraft Movie contributing a substantial share of box office revenue.

The data also reflects structural shifts in consumer behavior, with digital distribution continuing to dominate and mobile gaming maintaining its position as a mainstream entertainment channel. At the same time, emerging areas such as transmedia are becoming more prominent as game franchises extend into broader entertainment ecosystems.

The UK games industry has expanded significantly over the past decade, now supporting more than 73,000 jobs and contributing an estimated £6 billion annually to the national economy. Industry stakeholders expect continued momentum into 2026, supported by a pipeline of new titles from studios across the country.