As music sales and streaming revenue peak at £2.4bn (the highest level since 2001, not taking into account significant inflation), the UK video game market, which has grown almost continuously over decades, it has fallen by 4.4%. The most significant drop occurred in boxed video game sales, with a 35% drop.
Data from the Digital Entertainment and Retail Association (ERA) puts the total value of the UK video games market in 2024 at £4.6bn, double the music market and behind TV and movies at £5bn. .
The figures show a shift in gamer purchasing habits that has been happening for years, from physical games to digital downloads and in-game purchases of popular and established games like Fortnite and Roblox. Boxed games now account for 27.7% of new game sales in the UK, according to ERA data.
“We see at least four factors affecting physical sales,” an ERA spokesperson said. “First, gamers are more comfortable with console downloads; second, the growing popularity of subscription access; third, the fact that we are in a period of decline in the console cycle; and finally, the lack of successful new IPs. “If you look at the top 10 titles (of 2024), there really isn’t much that is really new and has advanced.”
The decline in physical sales also reflects a precipitous decline in video game retail. The UK’s only remaining specialist video games retailer, Game, was acquired by Frasers Group, owner of Sports Direct, in 2019, and last year ceased both in-store game pre-orders and used game sales, in addition to closing its customer loyalty program. . As the staff said eurogamer In a report last year, the stores themselves have shifted from offering a wider variety of video games to toys, action figures and other merchandise, making it harder for customers to walk in and buy a boxed game on the high street, even if they want it that way. , unless it’s an established bestseller like Call of Duty or EA Sports FC.
“The 35% drop in boxed game sales in the UK reflects a broader global shift,” says Joost van Dreunen, professor and market analyst at NYU Stern. “We are seeing similar patterns in major markets, although the pace varies by region… Boxed games will not disappear completely, but they are unlikely to regain their former position in the market. The digital distribution models that have become popular over the last decade better serve both publishers and consumers. “Physical formats are likely to persist as premium collectibles or in markets where digital infrastructure is still developing, but will represent an increasingly niche market segment.”
Download sales also fell slightly, 5% on PC and 15% on console. Meanwhile, subscription revenue increased 12% and mobile and tablet gaming revenue increased 2.6%.
After a period of rapid growth during and immediately after the Covid-19 pandemic, the global games industry has contracted. A drought of new investment, combined with belt-tightening by corporate publishers, resulted in the loss of around 15,000 jobs across the industry in 2024. But in 2025, analysts expect a recovery in sales and revenue, driven by Nintendo’s successor, the Switch console with 150 million sales. and for Grand Theft Auto 6.