UKIE: UK games market reaches £8.7bn in 2025
The UK games market reached £8.7 billion in 2025, with growth across all major segments according to UKIE’s annual market valuation. Software sales grew 7% to £6.03 billion, while digital console sales increased 9.2% year-on-year to £2.49 billion, reflecting the industry’s continued shift toward digital distribution.
Hardware sales grew 3% to £2.17 billion, buoyed by the Nintendo Switch 2 launch in June 2025. The new console proved to be a significant driver of consumer spending in the physical hardware space throughout the latter half of the year.
Mobile gaming demonstrated resilience with 7.9% growth to £2 billion, despite declining download numbers. The growth reflects improved monetisation across all business models and app stores, suggesting players are engaging more deeply with existing titles rather than constantly seeking new downloads.
Game-related entertainment and merchandise saw particularly strong expansion. Film, TV, and soundtrack sales jumped 70% to £159 million, with film adaptations alone generating £77.9 million. Toys and merchandising rose 43% year-on-year to £333 million, underscoring the growing value of intellectual property across entertainment mediums.
The diverse growth across software, hardware, digital sales, and adjacent entertainment categories indicates a maturing games industry with multiple revenue streams beyond traditional game sales.